How Scottish Salmon Supports a Nationwide Supply Chain

An independent study from BiGGAR Economics, commissioned by Salmon Scotland, has demonstrated that the salmon industry is one of the most important stakeholders for rural communities. 

In 2024, there were more than 200 active farms across north and west Scotland, which collectively produced 192,000 tonnes of Scottish salmon.

The new study shows that it is vital to supply chains, creating opportunities for investment and new jobs. 

Salmon production

Scotland Salmon commissioned BiGGAR Economics to assess the economic impact of the salmon farming sector, evaluating direct, indirect and induced impacts.

The report discovered that salmon farming is an increasingly beneficial industry, supporting thousands of jobs and contributing £1bn (US$1.3bn) to the country's economy every year. It shows the industry is a significant anchor for jobs, investment and supply chains across Scotland. 

Since it began salmon farming 60 years ago, Scotland has become the third largest producer of Atlantic salmon around the world. Each part of the salmon production cycle, from breeding to distribution, supports a range of economic activity, with various agencies and certifications required to ensure ethical and sustainable practices. 

Scottish salmon production takes place mostly within vulnerable communities with fragile economies on the north and west coasts. However, related headquarters and processing facilities are located across Scotland, necessitating strong supply chains and creating jobs.

“This report shows the significant benefits that salmon farming provides to our rural communities and beyond," says Kate Forbes, Deputy First Minister of Scotland. "This is more than just an economic headline; it is a testament to the resilience, innovation and commitment of everyone involved in the industry,"

“This is a sector that continues to invest in its people, with average salaries being significantly above the Scottish average. It is also an industry that brings benefits to the country’s wider supply chain.

“The Scottish Government will continue to take bold steps to support the sector’s ongoing sustainable development and to ensure it remains a Scottish success story.”

Direct impacts

The direct economic impacts measured for 2024 were direct employment and direct GVA (Gross Value Added). Direct employment includes all directly employed staff, including on-site farming roles and head office positions. Direct GVA was calculated by taking total reported turnover by the companies and subtracting their expenditure.

The report found the salmon farming sector generated £231.2m (US$305.5m) in GVA for the Scottish economy and directly employed 2,460 people. The majority of the jobs were in key coastal and island study areas. 

A significant proportion of the salmon produced is exported around the world, with Scottish salmon being is the UK's largest export. In 2024, £844m (US$1.1bn) worth of whole, chilled salmon was exported to customers globally, making up more than 101,000 tonnes. The European Union was the top market, followed by North America and China. 

As well as generating funds through exports, core operations of the industry generate fiscal revenues. On average, salmon farming jobs paid £44,500 (US$58,600) in 2024, which was 16% higher than the median wage across the country that year. As a result, tax revenues were estimated to be worth £37.1m (US$48.9m). 

“Scottish salmon continues to generate vital wealth for the country, especially for our Highland and islands communities," adds Tavish Scott, CEO of Salmon Scotland. "Farm-raised salmon is the economic backbone of some of Scotland’s most isolated areas, creating thousands of well-paid jobs and opportunities, and supporting a nationwide supply chain of businesses that depend on its success."

Wider supply chain effects

Though the scale of salmon farming in coastal communities is significant, its economic impact has a powerful ripple effect nationwide. Every part of salmon farming and distribution has its own supply chain that depends on high production levels and, in turn, supports that production.

Key areas involved include:

• Fish feed and health – specialised feed and veterinary care

• Equipment and infrastructure – purchase and maintenance of cages, nets, boats and related assets

• Professional and technical services – environmental monitoring, engineering and consultancy

• Logistics and utilities – fuel, transport networks and electricity

In 2024, the Scottish salmon farming supply chain generated an impact of US$776.6m in gross value added (GVA) and supported 7,040 jobs.

Capital investment by producers totalled approximately US$140.8m in 2024, which is estimated to have generated more than US$88.1m in GVA for the Scottish economy and supported more than 860 jobs.

"Our report describes Scottish salmon farming as a vital economic anchor for rural and coastal Scotland, supporting thousands of skilled jobs and a network of businesses across the country," concludes Nikki Keddie, director of BiGGAR Economics.

“It concludes that the sector provides stability and opportunity in fragile rural economies, underpinning year-round employment, investment, and community resilience. Each job in salmon farming generates above-average economic value, with productivity well ahead of the national average.”

The report highlights the widespread presence of salmon farming across Scotland, with a broad supply chain generating hundreds of millions of dollars for the national economy.

By creating well-paid, permanent jobs in rural and coastal areas, the industry supports local communities and helps build a resilient supply chain for future generations.