Resolution in dispute between Scottish Salmon Company and feed manufacturer
However, there has been no admission of liability, following discussions between the parties, said SSC, in a stock exchange announcement on Friday (May 10).
Skretting is the fish feed manufacturing arm of Dutch group, Nutreco.
Fish health
The dispute started in 2012 when SSC alleged that Trouw UK had supplied it with lower quality feed that undermined the health of its fish, and sued the feed supplier.
The salmon company’s annual report 2012 documents the allegations:
“Health issues were discovered with the fish set for harvest in the second half of 2012. These issues were traced back to sub-standard feed supplied to the company and, whilst the standard of the feed was rectified, the full impact on the fish was not uncovered until Q4. This generation of fish suffered from a significantly higher cost due to increased farm costs, increased mortalities, slower growth and a lower quality standard. As a consequence, the company has initiated court proceedings against Trouw (UK) Ltd within the Court of Session in Edinburgh in terms of which damages totaling £5,452,079 (US$7.09m at today’s exchange rate) are claimed.”
According to the Scottish company’s annual report from 2018, trial proceedings in relation to the claims had been scheduled to commence in the Court of Session in Edinburgh in June this year.
SSC is a fully integrated salmon farming business operating in Scotland with 60 sites across the West Coast and Hebridean Islands. The company says its current potential production capacity is up to 50,000 tons annually and that it exports to 26 countries with a focus on North America and the Far East.
