Scottish salmon farmers are optimistic about firmer prices in the final quarter of the year, thanks to lower production.
Leading distributor Sea Products of Scotland reported that prices were currently averaging £2.10/kg.
MD Willie Liston is cautiously optimistic that they will reach and even go beyond the £2.25/kg he called for in the winter as a minimum for a sustainable future for the farms.
Liston said: “There has been an improvement in demand and prices have stabilised at a level which, while not yet profitable for the farms, is a darn sight higher than a few months ago.
“They would have to stay at that level for some time to offset the huge losses that the industry has been suffering.”
Liston added: “The biomass in the water is 7-10% less than this time last year, which leads us to believe that production and demand will be in parallel for the last quarter.
“Considerably less salmon has been put to sea this year. I have heard there has been a vast reduction in smolts that have gone to sea in Shetland.”
Prices in January languished at £1.75, and several farms in Shetland were casualties. But Liston said that now Scotland was set to face less competition from other producers.
“The Faroes have said that their production might be finished by 2006, and Ireland has cut its production.
“Chile is up but going to the US to compensate for reduced US and Canadian production.”
Shetland producer Aquafarm faced collapse this month but has been given a lifeline by Shetland Islands Council.
Leading distributor Sea Products of Scotland reported that prices were currently averaging £2.10/kg.
MD Willie Liston is cautiously optimistic that they will reach and even go beyond the £2.25/kg he called for in the winter as a minimum for a sustainable future for the farms.
Liston said: “There has been an improvement in demand and prices have stabilised at a level which, while not yet profitable for the farms, is a darn sight higher than a few months ago.
“They would have to stay at that level for some time to offset the huge losses that the industry has been suffering.”
Liston added: “The biomass in the water is 7-10% less than this time last year, which leads us to believe that production and demand will be in parallel for the last quarter.
“Considerably less salmon has been put to sea this year. I have heard there has been a vast reduction in smolts that have gone to sea in Shetland.”
Prices in January languished at £1.75, and several farms in Shetland were casualties. But Liston said that now Scotland was set to face less competition from other producers.
“The Faroes have said that their production might be finished by 2006, and Ireland has cut its production.
“Chile is up but going to the US to compensate for reduced US and Canadian production.”
Shetland producer Aquafarm faced collapse this month but has been given a lifeline by Shetland Islands Council.
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