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The truths they don't want you to read....

Monday, July 09, 2007

Transport costs

Marine Harvest have renamed their operations as "Outer Hebrides Seafood" and hived them off as a separate company, because of the vertical integration of the salmon farming group from eggs to smoked produce. They are also having talks with the Executive to see what can be done to reduce haulage costs.

Obviously, we al hope that something significant will come from their efforts, but the underlying threat to the business remains, due to the handicap of transport costs.

As the Chief Executive says "...there is no rush to sell it, if it will be sold at all. It will become clear in the autumn or winter what action we will take." And later, "We want to build on what was done by Fjord Seafood and make it work. Then we might go looking for shareholders."

I am sure that we all hope that Alan Anderson can make the business work and that the Executive come up with funding to make it all possible, as it once again emphasises the financial handicap we face by living and working on this side of the Minch.

BTW, it looks like the debate over Western Isles/Outer Hebrides as a marketing brand has been resolved.

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