The first commercial cod hatchery in Shetland is being set up at a cost of over £1 million and is set to create up to 12 full time jobs.  Shetland Enterprise is awarding Nufish Limited a funding package worth almost a quarter of a million pounds to help them establish the facility at Sandwick in the South Mainland of Shetland.

The men behind the project, Peter Tarrant and Dennis Blackmore have considerable experience of operating marine hatcheries in the Mediterranean where technological breakthroughs in fish husbandry have allowed the successful production of farmed sea bream and sea bass.

Commenting on the project, Nufish hatchery manager Peter Tarrant said: "Shetland is a prime place to establish a cod hatchery and Dennis and I are looking forward to transferring our skills and experience from warm water species to the colder water species of the North Sea. 

"We are grateful to Shetland Enterprise for their assistance, which will go towards capital and working capital costs."

The waters around Shetland already produce some 30,000 tonnes of salmon annually but the increasing competitiveness in the farmed salmon industry is leading some producers to look at diversification into other species.  The Seafish Industry Authority and the North Atlantic Fisheries College have been involved in pioneering work on the farming of new species in Scotland, including cod.

Nufish is converting an existing building at Broonies Taing and it is expected the hatchery will start the first production of fry later this year.  Nufish production manager Dennis Blackmore said: "We will have two distinct markets for our cod with the first being from within Shetland itself for the supply of cod fry.  Indications from the Shetland Salmon Farmers Association suggest there will be substantial demand from local on-growers.

"The second market is for the finished product in the UK.  Fishing quotas for cod have been cut in an effort to conserve wild stocks so this will mean an increase in demand for farmed fish.  This is good news for Shetland's whitefish processing industry with a new supply of raw materials, following the decrease in whitefish landings in recent years."

As salmon farming has grown the sea fishing industry has suffered a continual decline.  This decline has had a major impact on the processing sector in Shetland with only one major white fish-processing factory remaining from a high of 16.  Fortunatley the growing salmon farming industry created new employment opportunities for those no longer working in the white-fish processing sector.

Salmon farming is one of the largest employers in Shetland with 640 people employed by or connected to the industry, making a significant contribution to the Island's economy.  Many of these jobs are in remote communities, helping to sustain some of Shetland's most fragile areas but diversification of the aquaculture industry is seen as vital to the sector's long-term survival.

Development manager at Shetland Enterprise, Steven Leask said: "This cod hatchery represents an important diversification opportunity for Shetland's aquaculture industry with a reliable and local supply of alternative species helping to sustain the long term viability of the industry.  The project will also bring high quality jobs to Shetland, introducing new skills and expertise to the local fish-farming sector.

"One of our priorities at Shetland Enterprise is growing businesses, especially within the food and drink sector so we are delighted to be able to assist Nufish with the establishment of Shetland's first commercial cod hatchery.  We wish them every success."