Demand rises but producers lose out on price

BSE is having a major impact on the entire farming industry with lamb and pork prices at high levels as consumers eat less beef.

At the same time, Scotland's fish farming sector has seen demand rise by at least 10% since the crisis first began but this increase is not being reflected in higher prices for producers in an industry worth almost #300m annually, making it larger in financial terms than sheep production.

Graeme Gordon, convener of the Scottish Landowners' Federation, is one of the 20 serious trout producers in Scotland. He is delighted at the increase in consumption but claims there has also been a downside.

He said: ``We are certainly getting more sales and we can sell all the trout we can produce, but the supermarkets have not moved the price one bit, and that is disappointing.

``We also have still not caught up on the price levels of four years ago when the market collapsed due to the huge surplus of farm salmon, principally from Norway, which swamped the market.''

As with other intensive systems, producers in the fish sector have been badly hit by the worldwide rise in protein prices which has pushed feed costs up by almost 20%. Meat and bonemeal has been removed from all rations, but now blood and feathermeal is also being banned.

Mr Gordon, who operates a fish farm at New Galloway in Kirkcudbrightshire, explained: ``Meat and bonemeal was virtually out anyway but there is no logical reason to ban blood and feathermeal, other than pressure from the supermarkets.

``The whole world market for proteins is in some disorder with soya shooting up as a result of the US poultry industry moving away from animal proteins. Fishmeal has eased slightly recently, but it is hitting us hard because we need to have very high levels of protein, around 45%, to get the conversion rates and to make sure we have no pollution.

``You could say that despite BSE and increased sales we are actually worse off.''

Mr Gordon remains confident that in time producers will be paid a higher price. Part of that belief comes from the success of the sector's quality assurance scheme, Scottish Quality Trout.

``It's a fully regulated scheme, very like the one for pigs. We were ahead of the rest of farming and we brought it in to give total respectability and full traceability to stop food scares. I am sure this is the way everyone else will have to go.''

Meanwhile, the European Union is preparing to move in support of the Scottish fish farming industry against Norway, EU trade commissioner Sir Leon Brittan indicated yesterday.

Sir Leon told Euro-MPs Allan Macartney (SNP, North-east Scotland) and Hugh McMahon (Labour, Strathclyde West) that he would urge the Commission to take anti-dumping and anti-subsidy action against Norway.