Salmon farmer Scottish Sea Farms has outlined the financial challenges impacting the business in 2022 alone amid a rise in the running cost of operations in the region.
“Across each area of our business, costs are rising at a rate and to a level never seen before,” Scottish Sea Farms Managing Director Jim Gallagher revealed.
“In the first four months of this year alone, the cost of fish feed – one of our largest overheads – has risen by 29 percent, with further increases expected throughout the year,” Gallagher stated.
The view that salmon feed could continue to significantly increase is one that was expressed by Polarfeeds directly to SalmonBusiness during the seafood fair in Barcelona.
Speaking to SalmonBusiness, Polarfeed raised the point that people are talking “about the feed price doubling” in this year alone, pushing salmon feed costs beyond the already historically high levels they are at.
Alongside the impact of the rising cost of fish feed, Scottish Sea Farms highlighted “even larger hikes” in costs in other parts of the business, potentially impacting the “smooth-running” of operations. Oxygen prices have risen 32 percent, oil and diesel has spiked by 48 percent and electricity has increased by over 50 percent, all key areas for the business, according to Gallagher.