Scottish Salmon Industry Provides £1 Billion Economic Boost
New Report Highlights Growing Impact of Salmon Farming
Key Findings
- Economic contribution increased by 25% over the past four years
- Supports 11,000 jobs, with 2,500 in salmon farming
- Over £700 million spent with local Scottish businesses
According to a recent independent study conducted by BiGGAR Economics for Salmon Scotland, the Scottish salmon sector now contributes an impressive £1 billion annually to the nation’s economy. This growth underscores the industry’s critical role as a rural economic engine, fostering job creation, investment, and supporting various supply chain businesses across Scotland.
Economic Growth and Employment
The data indicates that the economic contribution has surged by a quarter over the last four years, driven by robust domestic and international demand. The report reveals that jobs in salmon farming provide an average salary of approximately £44,500, which is about 16% higher than the average across Scotland. This translates to at least £37 million collected in taxes last year, alongside additional contributions via the supply chain.
Scottish Government officials have welcomed these findings, particularly Deputy First Minister Kate Forbes, who acknowledged the sector’s significant role in job creation and economic growth during a recent meeting with industry stakeholders in Edinburgh. Tavish Scott, Chief Executive of Salmon Scotland, emphasized that the report highlights the dedication of farmers in Scotland’s coastal and island communities, noting that record exports and sustained investment are fueling ongoing growth.
Regional Contributions
According to the report, the direct economic contribution from salmon farming is estimated at £231.2 million in Gross Value Added (GVA) for 2024. The sector indirectly generates an additional £589.9 million in GVA through supply chain activities that benefit communities across Scotland, including major urban areas.
Investment activities contribute another £66.5 million, while staff spending adds approximately £65.5 million, supporting local businesses throughout the year. The overall economic impact of the salmon industry reached £953 million, marking an increase from £766 million reported by Salmon Scotland in 2021. Salmon farming currently provides 2,500 direct jobs in vulnerable coastal communities, with an additional 8,500 roles tied to sector-dependent businesses.
Official Statements
Deputy First Minister Kate Forbes stated, “This report showcases the extensive benefits that salmon farming brings not only to rural communities but also to the wider economy. It reflects the resilience, innovation, and commitment of everyone involved in the sector. With average salaries significantly above the Scottish average, this industry also positively influences the supply chain.”
Tavish Scott, Chief Executive of Salmon Scotland, added, “Scottish salmon is vital for the economic health of our Highland and island communities. The industry creates well-paying jobs and supports a nationwide supply chain. We take pride in producing one of the healthiest and best-tasting foods globally while adhering to high environmental and welfare standards.”
Contribution by Regions
The report details the economic contributions of salmon farming across five key producing regions:
- £307 million in the Highlands
- £100 million in Argyll and Bute
- £91 million in Shetland
- £39 million in the Western Isles
- £30 million in Orkney
Conclusion
Nikki Keddie, Director of BiGGAR Economics, concluded, “Our report characterizes Scottish salmon farming as a vital economic anchor for rural and coastal Scotland, bolstering thousands of skilled jobs and supporting a network of businesses across the nation. The industry not only ensures stability and opportunity within fragile economies but also generates above-average economic value, maintaining productivity levels that outpace national averages.”
Image: Salmon Scotland
