The vital role played by aquaculture in sustaining jobs and communities in some of the most remote parts of Scotland has been outlined today (Wednesday 5th December) by Highlands and Islands Enterprise (HIE), alongside details of a market development plan for the industry which will help it meet the challenges of the future.

The message has been delivered at a conference in Edinburgh, organised by the Centre for Scottish Public Policy, entitled 'An Aquaculture Strategy for Scotland.'

Salmon farming is one of the most important industries in the Highlands and Islands, sustaining 4,500 jobs in the area, many in small, outlying communities on the west coast where alternative year-round employment opportunities are limited. It generates an annual turnover of some £650 million and accounts for nearly 40% of all Scottish food exports.

This economic importance in some of the Highlands and Islands most challenging locations also brings other contributions in its wake such as the development of the transport infrastructure and the provision of skills development opportunities.

For all these reasons the development of salmon farming, and aquaculture as a whole, is seen as a strategically important issue by HIE. Director of strategy Sandy Brady, speaking at today's conference, said: "There is no doubt that these are challenging times for salmon farming in Scotland. It has always had to compete on a global stage, and that competition looks like getting more intense with producers in Norway and Chile expanding production. If the industry is going to continue to play such an important role in some of our most challenging locations then it must develop to meet these new market conditions."

HIE has a long track record of working with the industry to achieve developments in the farming, processing and marketing fields. These have helped add value to the area's production and have helped to broaden the industry's local economic base. More recently assistance has been given to explore the production and commercial viability of alternative species such as cod, haddock and halibut.

Sandy Brady continued: "Diversification into new species seems to offer some very exciting new opportunities - the trials have enjoyed some success and some commercial ongrowing is taking place. However, in the meantime, and for the foreseeable future salmon will remain the backbone of the industry. That's why HIE has recently committed itself to supporting the industry through Scottish Quality Salmon (SQS) and the Shetland Salmon Farmers Association (SSFA), in a project to boost sales and exports. The Highlands and Islands undoubtedly have an excellent environmental reputation and the industry should be able to use that to their advantage - achieving a premium price for their product."

HIE's support for this project is worth £450,000 over the next three years with the balance of the £2.05 million costs coming from SQS and the SSFA's own resources. The targets include increasing export sales of Scottish salmon to 50 per cent of total production from 45 per cent at the moment, and achieving a retail premium price of 10 per cent over their competitors. Alongside this a study is to be carried out to define the current and prospective benefits of the industry for the Highlands and Islands. This will help inform policy and decision making at both a regional and national level.

A further target is to increase the membership and coverage of SQS. At the moment the body markets the output of some 50 companies, accounting for 65 per cent of Scottish output. Under this project they are being challenged to increase this - to market 90 per cent of the industry tonnage.

SQS chief executive Brian Simpson said: "Scottish salmon farmers are major contributors to the Scottish economy. With strategic support from HIE we can further develop the quality standards and marketing of salmon to provide sustained employment in the Highlands and Islands."

HIE's Sandy Brady added: "The objectives for HIE are to help the industry in Scotland continue to operate in a sustainable manner - maintaining employment in remote areas; to help promote the development of quality standards; and to expand the market. If we can achieve this by working together we will have helped underpin the stability of one of the Highlands and Islands most important industries."

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