News / Salmon price closes Whalsay factory
AROUND 60 jobs are at risk on the Shetland island of Whalsay after the local fish factory has been forced to close temporarily.
Whalsay Fish Processors Ltd has been producing frozen salmon portions but due to very high world market prices of above £5 per kilo for whole salmon, supplies have effectively dried up.
Shetland Development Trust invested £610,000 of working capital in the factory in July last year after it was taken over by Aberdeen based SCAF Ltd, a company owned by four business men including local man Frank Johnson of salmon sales company Framgord.
On Tuesday, the council’s head of development Neil Grant said he was concerned for the £540,000 still outstanding from the loan.
He said the local authority had been in discussion with the owners for some time to help them find a solution to secure the long-term viability of the fish plant.
Whalsay Fish Ltd has been an essential part of the economic fabric of Whalsay for the last 40 years, and is the largest employer on the island providing around 60 full and part time jobs.
Mr Johnson said that diseases such as ISA in Chile, Norway and in Shetland, combined with the very cold winter in northern Europe, have reduced salmon volumes and inflated prices.
He said his company had to swallow increases in raw material prices of 40 per cent during the last six months and was unable to do so any longer.
He added that he had been working on a number of new projects, which could come on stream in the near future.
“Regrettably it has become necessary to lay off production staff for a short period while two new projects are explored which can keep the business operational and employ the workforce.
“It is hoped these will come to fruition in the next three weeks.
“So many parties have worked so hard and contributed to maintain the employment on the isle that it would be a devastating impact if the business had to close for a longer period,” Mr Johnson said.
Whalsay councillor and chairman of the SIC’s economic development committee, Josie Simpson, said it would be “a great blow” to the community if the fish plant could not re-open.
“The fish factory means a lot to the island of Whalsay. There is great concern in the island as there are whole families that depend solely on the factory for their livelihoods.
“I would not say that I am confident, but we are doing everything we can and I am very, very hopeful that we can get that factory re-opened again.
“It is temporary closed for three weeks and I know that Mr Johnson is working very hard to get it going again. But the big problem is to get hold of raw material,” Mr Simpson said.
Whalsay Fish Processors was founded around four decades ago by local man John Tait. The fish plant saw some turbulent times during the late ‘90s and early this decade when whitefish stocks collapsed.
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