A pilot project to farm cod on the west coast of the Scottish Highlands has passed a major milestone this week with the first fish going on sale in 30 Marks and Spencer stores across the UK.

The project could boost diversification in the aquaculture industry, giving fish farmers new options to rear species other than salmon, providing new jobs and opportunities in remoter parts of the Highlands and Islands.

The cod cultivation trials have been carried out over a three year period. Principal backers of the scheme are development agency Highlands and Islands Enterprise (HIE) who invested £190,000 (pounds) towards the total cost of £460,000 (pounds). Other partners include the Sea Fish Industry Authority, Marks and Spencer and a number of aquaculture and fish processing companies.

Successful consumer taste testing preceded this weeks launch of Marks and Spencer's new cod fillet labelled " West Coast Scottish Cod."

Britons eat some 170,000 tonnes of cod every year, of which 110,000 tonnes are imported from countries such as Iceland and Norway. This demand, coupled with falling catches worldwide, means the price of cod is rising and makes farming an attractive proposition, with a potentially enormous market.

The fish, which thrive naturally around the British coast, have proved easy to rear, with a good survival rate, using feeds developed to closely mirror their natural diet.

This year's 10 tonnes of farmed cod is expected to grow to a demonstration output of 50 tonnes by next year. Commercial success and expansion could complement the salmon farming industry which currently sustains some 4,600 jobs in the HIE area, in production, processing, transport and other activities.

HIE chief executive Iain Robertson said: "Fish farming is of vital importance to many fragile communities in the Highlands and Islands and this programme, which could create more jobs as well as broadening the base of the industry, has the potential to provide them with exciting new development opportunities, based on the area's outstanding natural resources.

"Success in these trials could lead to significant private sector investment, following our 'seed-corn' investment in research and development."

Alasdair Fairbairn, chief executive of the Sea Fish Industry Authority said: "Having provided much of the technical expertise to take the project to this stage, we are pleased to see the first farmed cod being offered to consumers. We're convinced that cod farming will soon be providing a real alternative for the aquaculture industry."