US firm takes salmon bait in Loch Duart
A US private equity firm has made a rare move into Scottish salmon farming by taking a minority stake in Loch Duart, based in Sutherland.
Capricorn Investment Group, which counts eBay founder Jeff Skoll among its investors, has provided an exit for a number of shareholders and a route to new markets for the 60employee firm.
Nick Joy, managing director of Loch Duart, said Capricorn shared the firm’s objectives on sustainability and would take a longer term interest than the normal three to five years of a typical venture capitalist.
Loch Duart emerged as an independent company following a buyout from Joseph Johnson & Sons in August 1999 and had a turnover last year of £13.2m. It exports 60% of production.
Joy said the deal with Capricorn would help the firm’s sales in the US, where it already sells 1,000 tons a year, equal to 20% of output.
"The position of the dollar makes it a vulnerable market. On the other hand it is a highend niche market," he said.
With its focus on sustainability and fish welfare – the company’s salmon is certified by the RSPCA’s Freedom Food programme – Loch Duart required an investor that would take a longer term approach.
Loch Duart is now looking to capitalise on new opportunities in sustainable aquaculture, such as commercial production of sea urchins – which are considered a delicacy in European markets – and seaweed for the cosmetics industry. In 1980, only 9% of the fish consumed came from aquaculture, now it is 43%.
The salmon farming industry is an important contributor to the Scottish economy, providing 8,500 full and parttime jobs, often in remote locations and contributing more than £197m into the Scottish economy.
Scotland exported more than 12 million salmon to 60 countries and is the thirdlargest salmon producer in the world with a 10% global market share.
Original source : Business.Scotsman.com
