More Salmon on the Market, How are Companies Improving Profit?
10 February 2012SCOTLAND, UK - As many salmon companies report their annual profits for 2011, many have felt the sting of recent drops in salmon prices. The Scottish Salmon Company is now seeking to expand its operations in order to have balance over fluctuating prices, writes Lucy Towers, The Fish Site Newsdesk Assistant.
The Scottish Salmon Company (SSC) recently reported that after suffering a profit loss due to a salmon price drop, it is now to expand its operations in order to increase profits again and to rise above fluctuating prices.
Talking to TheFishSite, Chief Executive of The SSC, Stewart McLelland, said that as part of the overall expansion of the company, the new sites should strategically help generate more annual profit.
"The expansion will help our profitability as the new tonnage will be on cycles that will give an even balance to our production volumes. This even, stable production volume will make our business more efficient which in turn will strengthen the company and put us on a sound footing in order to deal with fluctuations in pricing."
"Our aim is to increase production to 40,000 tonnes (head on gutted weight) by 2016, from our current output of 24,000 tonnes," said Mr McLelland.
Although the focus of the investment is on the new farm sites, in order to meet the added volume of fish, there will additional investment in harvesting and processing operations and smolt facilities also.
SSC is aiming to have the 10 new farms operational within five years. It is most likely that the new sites will be located in the company's current regional operating areas of the West Coast, Highlands and Islands of Scotland.
Additionally, the new salmon farms will also be in line with the RSPCA's “Freedom Food” standards. Mr McLelland told TheFishSite that the company is currently working through all current sites to implement the Freedom Food standard and that all new sites will be developed to meet this criteria.
Currently, two processing plants, the company’s harvesting station and a number of marine sites meet the standard. "We expect all our existing farms to be accredited by 2013," said Mr McLelland.
The expansion will also benefit people in the region as the company expects roughly 100 new jobs to be created.
Looking towards the future, Mr McLelland gave his views on the outlook for 2012 stating: "Like the rest of the economy there is currently volatility in the market place. It is always difficult to predict the future but we expect to see a stabilising of the salmon price which will be welcome for the medium to long-term sustainability of the industry."
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