reLAKSation 210.
Where’s
the difference?:
Although a ‘leading’ industry source had told the Glasgow Herald that
the independent Scottish salmon industry would collapse by mid October,
Shetland-news reported that the industry is going through a rebirth with new
licences for David Coutts of Windhouse Seafarm and a £650,000 business loan for
North Atlantic Seafarms. Clearly not deterred by the fact that two of his
previous farming attempts have gone into receivership, John Goodlad intends to
convert North Atlantic Seafarms to organic production.
We,
at Callander McDowell, have always argued that small independent producers would
encounter difficulties in competing with the largest farming companies,
irrespective of whether they are Scottish owned or not. The economics mean that
such companies will never be able to produce the basic salmon flesh that most
consumers appear to want. Instead, they are better placed to meet the
requirements of small niche markets for the high quality salmon that are
preferred by such niche consumers. These smaller markets include production of
salmon under either organic or ethical labels as well as others. It therefore
makes a lot of sense for Mr Goodlad to aim for organic certification.
However,
it is also important to point out that organic salmon is a niche market and it
is not the answer for all of the independent sector. Despite claims that the
organic sector is growing rapidly, the reality is that it is still represents a
small part of the wider market for salmon. The attraction of organic production
is that market prices are higher than for conventional salmon, at least at
retail level. For example, a prepack of conventional Scottish salmon retails in
Marks & Spencer for £16.18/kg, whilst an identical pack of organic salmon
is priced at £18.83/kg. However, if too many farms convert to organic, then the
increased availability is likely to undermine prices. This was one of the
concerns expressed at the organic fish producers organisation, which held a
conference in Edinburgh earlier this year. If prices should fall, then the main
benefit of producing organic will be lost.
Yet,
it is not just the threat of too much organic salmon which could undermine
prices. UK retailer Sainsbury’s have just unveiled a multi-million pound shake
up of its organic range. This involves a price reduction on a quarter of its
organic products (but not salmon). Whilst the organic market is supposedly
growing at 15% a year, many consumers have cited price as the main barrier to
buying organic produce. Sainsbury’s intend to make organic produce more
accessible. Whether this will widen the appeal of organic fish from its current
niche is unclear.
Whilst
conventional salmon has received a great deal of bad press and thus is shunned
by the chef fraternity, the organic sector has received positive approval.
According to Fish Farming Today, chef Richard Corrigan said on the BBC TV
programme ‘Full on Food’ that he was surprised by the quality of organic
salmon and that he planned to put Clare Island organic salmon on the menu of his
Lindsay House restaurant.
Organic
salmon, or organic smoked salmon to be precise, featured heavily at the recent
Speciality and Fine Food Fair in London. This event provided a trade outlet for
over 400 specialist food companies, all vying for a piece of the luxury market,
whether it be retail or restaurant, caterer or wholesale. Several specialist
salmon smoking companies from England, Scotland and Ireland were amongst the
exhibitors, representing a segment of the market that is considered important
enough that the industry magazine ‘Speciality Food’ included a feature on
smoked salmon in its show issue. This posed the question that with so much
confusion over which type of smoked salmon to offer, they hoped to clarify the
issues behind wild, farmed and organic salmon and what this market segment
should be telling and selling to its customers. And there was us at Callander
McDowell, always believing that organic salmon were farmed!
According
to Angus MacMillan of West Minch Salmon, organic salmon is considerably
different from conventional salmon. However, didn’t independent Scottish
farmers used to argue that their Scottish salmon was considerably different from
other salmon, produced elsewhere? They failed to persuade consumers that this
was actually the case and now most consumers are happy to buy salmon
irrespective of where it comes from. We wonder whether consumers may be equally
deterred from buying organic salmon if the claims made about it become too
exaggerated.
Mr
MacMillan says that people are attracted to organic salmon, as indeed they are
to a variety of organic produce on the principles of production and the
nutritional benefits. Our view is that organic ‘produce’ has become more
popular because of concerns about intensive production and the widespread use of
pesticides and growth promoters. Organic production is considered slower and
more natural for which there may be a benefit, but not certain, on taste. Mr
MacMillan goes on to say that the production methods are very different and as a
result, create a different fish. Through our observations of the marketplace, we
have seen many organic salmon and we believe that most consumers would be hard
pressed to tell the difference between an organic salmon and one that is
conventionally farmed. Organic salmon are still salmon. In exactly the same way,
producers of other organic meats and eggs do not claim that their organic
chicken, beef, pork and lamb are different to the conventionally farmed
counterparts, it is just that they are farmed organically.
Mr
MacMillan also told Speciality Food that the fish are raised in different
environments and that organic stock is around half that of farmed salmon. He
adds that all the differences have a profound effect on the final product.
So
what makes an organic salmon
organic? One of the largest producers of organic salmon is Marine Harvest
at their Clare Island farm in Ireland. This is the farm that chef Richard
Corrigan visited for the Full on Food programme and whose salmon he said he
would put on his restaurant menu. Marine Harvest answer the question as to what
makes their salmon organic on their website www.marineharvest.com
. In essence, the differences are: 1. The feed is made from organic and natural
ingredients 2. The fish are pigmented using natural yeast (other farms use
shrimp shells) 3. The fish are stocked at low stocking densities
4. The cages are located in an area of strong currents to stop parasitic
infections and build up of pollutants and to ensure that the fish have to swim
against the tides to develop a firm muscle texture. 5. Finally, the farm has
organic certification.
Mr
MacMillan paints a similar picture. He says that that the feed is made from
renewable and sustainable sources, the stocking density is around half that of
farmed salmon and he also says that the oil level in the feed intended for
organic fish are reduced by 30% compared to that for standard fish and this
produces fish which are less oily and fatty.
From
this information, can we conclude whether organic salmon are truly different
from conventionally farmed fish as Mr MacMillan suggests. We do not believe so.
More importantly, are organic salmon better than standard farmed salmon? We do
not believe so. Organically produced salmon serve a market for consumers who are
concerned about the way their food is produced. This does not mean that
conventionally farmed salmon are produced wrongly, but they simply don’t meet
the criteria for the organic consumer. This is their choice and if some farmers
can benefit from this market demand then all to the good. But it doesn’t make
organic salmon a different fish to traditionally farmed salmon. It is just about
satisfying a different market need.
If
the perceived differences between organic and conventionally farmed salmon, as
highlighted by Mr MacMillan, are analysed, then it is apparent that there are
only two significant differences in production practice that count. These are
the strong tidal currents and the differences in feed formulation. Long before
organic salmon production was even considered, one of our consultants discussed
these exact issues in an article published in Fish Farmer in 1988. This focused
on defining the word quality as it relates to salmon flesh, especially texture.
He wrote that the then increasing trend for high energy diets would lead to much
fattier flesh which would inevitably affect texture and taste. Mr MacMillan
improves the texture of the flesh in his fish by reducing the oil content by
30%. As Richard Corrigan pointed out, the organic fish appeared to have much
less body fat. Our consultant also wrote that fish that exercised in strong
current would have a much firmer texture and Richard Corrigan appears to agree
by saying that organic fish are not flabby. Clearly, farms that use lower oil
diets and increased exercise do not have to be organic but can be classified as
conventional farming. Standard salmon can also have lower body fat and firmer
muscles and there are plenty of farmed salmon that are. For example, some farms,
rather than convert to organic have opted for Freedom Food approval. This
welfare scheme audited by the Royal Society for the Prevention of Cruelty to
Animals lays down standards such as stocking densities and use of medicines
which puts Freedom Food salmon on par with many of the aspects of organic
production. It is just another market niche to exploit.
We,
at Callander McDowell, certainly welcome this market differentiation, after all
this is something we have advocated for many years. We believe that it is the
precursor to even more specific differentiation that will define the industry in
the future. In the meantime, at least such differentiation as organic and
Freedom Food has more substance than basing any differences on country of
origin. Yet, we would be concerned that any promotion of differentiated
production will not involve denigrating other forms of production i.e. organic
is better than conventional etc. This can only confuse the consumer and damage
the wider market for farmed salmon. For example, Mr MacMillan has said that
organic production produces fish which are less fatty and oily than conventional
salmon. Yet, the industry is engaged in specifically promoting the benefits of
fish oils and now Mr MacMillan is telling consumers that organic salmon contains
less. By the same token and in the same article, Ken Hughes of Scottish Quality
Salmon has highlighted that conventionally farmed salmon has a number of
benefits over organic and wild salmon. The most important of these is that the
level of EPA and DHA omega 3 fatty acids in salmon produced by Scottish Quality
Salmon members is often double that of organically produced salmon and therefore
is better for consumers. Of course, the reason why is that organic salmon have a
lower oil intake as Mr MacMillan
points out. If producers become engaged in such bickering, consumers
looking for omega 3 rich foods will simply look elsewhere.
We would repeat that we firmly believe in organic production, it is simply that we must ensure that consumers receive the right message and not one that is enhanced to make organic production look better. This is an issue which certainly merits further discussion.