Farm Diversification

• Wholesale - must be able to make regular deliveries of 500 kg or more. The price is approximately 50% of the retail price.
• Direct sales to shops, hotels, etc. The local market may be too small for large producers.
• Farm gate - Need good signs and/or to be by a major road.
• Put and take - Management, planning and advertising are very important.

Fish less than 50g held in tanks with larger fish held in ponds.

Water quality and supply is vital.

•  pH neutral (6.5 - 8), alkalinity between 20 and 200 mg CaCO3/litre;
• Temperature O - 230C (optimum 160); Minimum oxygen content 6 mg/litre;
• Water flow 100,000 gall/tonne of fish fattened/day.

Minimum water depth 2 metres; Production period 9 - 11 months; Mortality rate 10%; Stocking rate 30 - 60 kg/m3 water; Feed Conversion Ratio 1.05:1.

These are very varied, depending on the existing ponds and buildings, machinery owned, etc.

The total capital required to establish a 20 tonne per year unit is likely to be £20,000 - £120,000. Significant economies of scale can be achieved, but a balance should be obtained since it is difficult to maintain high product prices, through direct selling, for large quantities of fish.

Earth ponds: Between £1,000 and £1,500 per tonne production capacity, for excavations, drains, etc. £700 - £1,000/tonne production capacity for roads, sluices, paths and buildings.

Fry: £60/1,000 fry purchased at 6 - 8 cm (100/lb).

Feed: £600 - £800/tonne (depending on size of fish).

Vet & medicine: £30/tonne trout.

Haulage, sales commission, etc ~£300/tonne.

SEPA inspection ~£1,000pa.

Wholesale price: £1.70 - £2.20/kg (Trout harvested at about 300g - 400g although larger fish are required for smoking and re-stocking of fisheries).

Retail price: £3.00 +/kg. An example of gross margin expected per tonne of trout (extracted from SAC's Farm Management Handbook is given:

Eggs from UK sources are only available for about six months of the year so that feeding programme must be properly planned.

Planning permission not necessary if production purely for food. It is necessary to register with SERD (Scottish Executive Rural Directorate, formerly SEERAD) re 1983 Act. SEPA must be contacted re: construction of a pond or dam; abstraction of water; introduction of fish or sperm; the discharge of effluent.

If trout are to be fished, SEPA must grant a licence, fishing rates will be levied, planning permission must be sought and VAT is rated on fish for sport.

Through the Scottish Rural Development Programme (SRDP) 2007-2013 funding is now available for rural businesses throughout Scotland for diversification and renewable energy projects. Specifically, support is delivered through Rural Development Contracts – Rural Priorities which was launched in April 2008. For further information about what support is available see the Section on Rural Development Contracts – Rural Priorities.