Argyll seafood firm expands - A history of rising energy costs made things difficult

14th April 2025

Loch Fyne company Otter Ferry Seafish Limited to increase production, safeguard the workforce and create new jobs.

A £350,000 expansion project at a seafood company in Argyll will increase production, safeguard the workforce and create new jobs.

Loch Fyne company Otter Ferry Seafish Limited has secured up to £175,225 from Highlands and Islands Enterprise (HIE) towards total project costs.

The work involves the redevelopment of the company's existing marine hatchery facilities, including new tanks, controls, lighting, water circulation and energy efficiency measures. This will significantly increase the production of juvenile halibut.

Otter Ferry Seafish was established in the 1980s and currently employs around 17 people. It is recognised internationally as a leading aquaculture research centre and continues to grow its research activity through collaboration with the Agri-Tec Centre.

The business was recently acquired by Amar Seafoods, a group of companies with operations in Norway and Canada that have been buying halibut juveniles from Otter Ferry for the past two years.

Continuing to supply juveniles to Amar in Norway and Canada is forecast to generate around £2.5m a year for the company. As well as supplying Norway and Canada, juveniles are now being retained for ongrowing of halibut in Scottish waters.

This latest project builds on previous work supported by HIE, including provision of specialist advice on business planning to develop the methods now being scaled up, and a graduate placement to support research expansion.

In addition to increasing production and generating revenue, the move will safeguard the existing workforce and create two new jobs at the hatchery and many more as the ongrowing industry is established again in Scotland.

Liam Orr, head of business growth with HIE's Argyll and the Islands team, said, "The food and drink sector is a major feature of the Argyll economy and Otter Ferry Seafish is a key part of this. We've worked with the company for a number of years now during which it has progressed strongly and shown great promise in innovation and research.

"Its potential for further growth is also very strong and under the new ownership of Amar Seafoods we can be optimistic about ongoing investment that will ensure sustainability and safeguard employment.

"I'm delighted we've been able to provide this support and look forward to continuing our collaboration with the management team as the project progresses."

Alastair Barge, managing director at Otter Ferry Seafish, said, "We have worked closely and benefitted from a close relationship with the business growth team at HIE Argyll and Islands. Their specialist advice, targeted research and assistance with the cost of expansion has helped greatly in securing the future halibut production in Scotland."

Halibut farming in Scotland, particularly through land-based recirculating aquaculture systems (RAS), faced challenges and eventually led to the closure of a prominent farm. The Gigha Halibut farm, a notable land-based halibut operation, had to cease operations due to rising energy costs, changes in water parameters, and the effects of climate change. While the farm on Gigha was closed, the Otter Ferry Seafish marine hatchery continues to produce halibut juveniles and is exploring potential sites for future halibut farming elsewhere in Scotland.

Here's a more detailed look:

Gigha Halibut Closure:
The land-based Gigha Halibut farm, which was the only such farm in the UK, closed after 15 years of operation. The decision was made due to the impact of rising energy costs on the RAS-based operation.

Otter Ferry Seafish:
This marine hatchery, located on Loch Fyne, continues to produce halibut juveniles. They are also actively seeking new locations suitable for halibut farming in Scotland.

Factors Affecting Gigha Halibut:
Rising Energy Costs: The cost of pumping and running the RAS system became unsustainable.
Biological Challenges: Climate change and changing water parameters created difficulties for the fish farming operation.
Water Intake Difficulties: Securing a reliable deep water intake for the plant was a challenge.

Gigha Halibut's Legacy:
The farm was known for its quality halibut, winning awards like Waitrose's "Made in Britain" award and the Best Scottish Product in the Great Taste Awards. It also supplied some of the UK's top restaurants and chefs.

https://www.otterferryseafish.com/

New Owners
Amar Seafoods - https://www.amar-seafoods.com/
Amar Seafood is a fully integrated aquaculture company.
The company operates five facilities, strategically located in Canada, Scotland, and Norway with fully licensed land-based and sea-based aquaculture operations.
Headquarters
Husøyvegen 123,
4262 Avaldsnes,
Norway