Upbeat outlook
Trout producers in the UK and around the world are confident that they have a great story to tell.
Oliver Robinson, Chief Executive at the British Trout Association (BTA), is upbeat about how things have been going for the industry this year.
He says: “Things are looking good. The restocking market is very positive, with high demand. The sector has managed to increase some prices and we are seeing some cost recovery which is great news for restocking.
“Generally throughout the table market demand has been very strong. There are concerns of cheaper trout from Europe being offered to the UK market which poses a threat to UK trout farmers trying to achieve a stable price and cost recovery. At the BTA, we are getting enquiries from people looking to buy trout.”
Another factor has been the UK’s miserable (for humans, anyway) summer. Cooler temperatures and plenty of rainfall have meant a good supply of freshwater, with good oxygen levels in rivers and ponds and, so far, very few disease problems.
Robinson notes that the nature of the demand is changing, however, as the trend away from portion trout (smaller, whole fish) continues, with fillets and steaks from larger trout becoming more popular.
This has been accelerated by the demise of Dawnfresh Seafoods’ processing arm in 2022, since it was one of the leading processors for portion trout. Robinson says: “There is a big demand for large trout, around three kilos.”
He cites Kames Fish Farming and Chalkstream Trout as examples of producers that have marketed this approach to trout very successfully, as well as some smaller members who have also been successful with marketing.
Meanwhile there are several initiatives underway on health and welfare in the trout sector, involving collaborations between the industry, academics and government.
Trout in pond
One of the issues is fish welfare at the time of slaughter. This was a topic addressed by the UK’s Farm Animal Welfare Committee (FAWC) in a report published in February 2023 (Update to the 2014 FAWC Opinion on the welfare of farmed fish at the time of killing).
The larger firms are certified by Global GAP and RSPCA Assured, who are satisfied their systems are adequate. Some smaller farms have their own stunning systems.
No major issues were found with farm systems, but with tighter animal welfare regulations expected, the BTA may need to come up with guidelines for members. Salmon Scotland will be doing the same for salmon.
Also, a joint project funded by SAIC, involving Aberdeen University, Nottingham University, Kames and the BTA is looking at the problem of PKD (proliferative kidney disease), a salmonid disease spread by the tiny parasite Tetracapsuloides bryosalmonae.
Another, European, project, also involving Aberdeen, is also looking at the PKD problem and Robinson hopes that vaccine trials for PKD will start next year.
A third PKD-related project, also involving Aberdeen and Nottingham, is looking to develop a non-invasive test, based on blood samples and eDNA, to detect the presence of the parasite.
Feeding time, Kames
Later this year the 2040 Vision for Trout will be launched, as part of the “2040” initiative involving Seafish, Defra and the seafood industry.
One regulatory development the industry is viewing with concern, however, is environmental protection legislation (EPR). Led by Defra and the Environment Agency, it will involve switching from a “licence” system for water abstraction to a “permit” system. Details are still unclear, but it is possible this could mean time-limited permits, in contrast to licences which are typically indefinite.
Robinson points out that responsible trout farming entails “borrowing” water and flowing it through a farm. When water is returned to the waterway it is in a clean state.
As he puts it: “Trout, and aquaculture in general, is a non-consumptive industry.”
Another issue for the industry is the supply of eggs. The UK trout industry largely relies on imported eggs and, in recent times Denmark has been effectively quarantined, thanks to the prevalence of IHN (infectious hematopoietic necrosis).
That leaves the USA as a source of trout eggs, but Robinson would like to see government encouragement for a UK hatchery, to establish a broodstock resource nationally.
He argues that, in contrast with agriculture, there are no government grants for aquaculture producers: “If government is talking about food security, aquaculture is one of the ways to achieve that.”
Kames steelhead trout
Kames: taking on salmon
Kames Fish Farming is Scotland’s oldest family-owned fish farm and the UK’s only producer of steelhead trout, the strain of rainbow trout that is most adapted to life at sea. The company, based on the west coast of Scotland, was named as Aquaculture Company of the Year in 2022 and won the Aquaculture Awards’ prize for animal welfare the following year.
Andrew Cannon became Managing Director around 15 months ago, taking over the reins of the family business.
As an independent, Scottish business that is not financed by any of the multinational fish farming giants, Kames is a company with a mission: to ensure that quality, sea-raised trout is viewed as the equal, or superior, of salmon.
Cannon says: “We are confident that, for taste, we’d come above salmon.”
Cate Cannon, Marketing and Communications Manager, stresses that provenance is a key part of Kames’ message: “More and more, people want to know where their food comes from.”
Tiffany II coastal workboat, Kames
“We have been farming in Loch Melfort for 52 years and the water quality is still brilliant – as good as ever – we have diverse marine life like native oyster beds, Arctic terns and even rare flapper skate nurseries.”
One of the things that makes the loch such a good place to farm is the fact that is subject to strong currents and tidal flows, ensuring a continually cycling flow of water.
Cate says that steelhead is “an exceptional, clean tasting trout”. The strain the company grows now was developed a decade ago by Stuart Cannon, Andrew’s father, who is now Chairman.
With each generation of trout, survival rates have improved, and now the company is working with breeding and selection business Xelect to further improve selection. The aim is to improve growth rates and resistance to challenges such as PKD and sea lice.
The Kames team is also working with suppliers such as Gael Force, ScaleAQ and GroAqua to develop technology that is suited to trout – a smaller market than salmon.
That includes sensors to monitor fish health and biomass that will work in more brackish conditions where visibility is typically less good than in seawater.
Andrew Cannon is optimistic about the prospects for growth: “The portion trout market is fading, but there is a good opportunity for growth in the trout market. Trout production in Norway has gone up significantly and Scotland could do the same.”
He believes there is still capacity to grow production at Kames’ existing locations but is open to acquiring new farms if the opportunity arises.
He explains: “There are sites that have not worked so well for salmon, for example where the water is brackish or the salinity is changeable. Salmon are generally less tolerant of changes in salinity.”
And he believes the trout market could get a lot bigger: “We are seeing more production from countries like Turkey and Denmark in the market, but we need to be the leader in terms of quality.”
Assessing growth
Meeting world demand
The supply of good quality, healthy ova is one of the most critical factors for the trout sector. The heavyweight player in this field is Troutlodge, part of the multinational genetic group Hendrix Genetics, which also includes salmon specialist Landcatch.
Based in Washington state, USA, Troutlodge is the world’s largest supplier of trout ova. It produces around 450 million eggs each year.
Troutlodge has developed four distinct strains of trout that each spawn naturally at different times of the year, so there is no need for photo-period manipulation in order to provide year-round supply.
The company also works closely with Trova Trout, based in South Africa, the southern hemisphere’s largest supplier of eyed trout eggs. Trova rears Troutlodge’s genetic breeding stock in a “multiplication” model which are subsequently stripped and fertilised. This allows Trova to sell Troutlodge steelhead eggs from July through September. Troutlodge is looking to expand this model with partners in Latin America and Europe.
Jarl van den Berg, General Manager, Landcatch Natural Selection, says: “We are seeing organic growth across the board in the trout sector.
Freshwater flow-through still represents the majority of the market. So far, RAS [recirculating aquaculture systems] production is a sliver, but it is growing.”
He notes, however, that farmers using conventional flow-through tanks and raceways are increasingly investing in technology to enhance production and grow out capacity, by partially recirculating some of the water and only removing some of the CO2 and re-oxygenating the water. Some go a step further and consider removing the ammonia using biofilters, coming closer to fully embracing RAS.
Trout is seen as more predictable and robust than salmon, even if it does not command salmon’s premium. Some producers are finding ways to increase trout’s appeal to consumers – in Turkey, for example, trout has been rebranded as “salmon trout” and astaxanthin-rich feed is being used to make the flesh pinker.
Meanwhile, Hendrix Genetics has an active research agenda, collaborating with a wide range of academic and industry partners, to accelerate genetic progress across its breeding programmes.
Van den Berg explains that Hendrix is working to exploit QTL (quantitative trait loci) information in synergy with genomic selection for, for example, BCWD (bacterial cold water disease) resistance, to bring together the best of both worlds.
Most breeding programmes opt for either QTL selection or genomic selection, while Hendrix aims to bring those together, giving more accurate EBVs (estimated breeding values) and faster progress towards objectives.
“Disease resistance is one of these objectives. However, not all research is based on understanding the genome. We are also looking for various methods to produce a sterile diploid trout.”
Currently, if sterile trout are needed, triploids can be used. They are also suitable for growing to very large sizes in RAS facilities. Triploids do not mature, so they continue to grow. They, however, require different management than diploids and are more sensitive to high temperatures and low oxygen levels which can occur in the majority of the outdoor flow through sites. . Diploid trout are therefore the ideal trout for such environments, and a sterile diploid could be very useful for both commercial, but also conservational purposes. Currently most production companies have extensive management plans to minimize the risk of escapees, and have action-plans ready in case an adverse event occurs. A sterile diploid will prevent the commercial fish to interbreed with wild fish if they ever escaped.
Danforel farm, Dambrug
The international scene
With seven farms and a big share of the market, particularly with its hot smoked trout offering, Danforel is one of the largest trout producers in Denmark.
Danforel raises rainbow trout in RAS farms, as well as processing and smoking its own fish.
In recent years the company has made advances in terms of its efficiency and in dealing with fish health and welfare issues. Now, according to CEO Steffen Nielsen, the biggest challenge is the market itself. The pressure from retailers to keep prices low is strong, and there is fierce competition from producers in countries such as Turkey, where the cost base is lower than in northern Europe.
Nielsen stresses: “We are setting high standards for quality, and we don’t want to question that. Retailers are reducing prices, but that’s the name of the game.”
Danforel was acquired by aquafeed producer Aller Aqua, although Nielsen stresses that Danforel is paying a market price for its feed. The relationship does, however, create opportunities for working together on developing and improving feed solutions, which helps both Danforel and its parent.
Danforel fish processing
The company is also a pioneer in using the whole fish and making the best use of sidestreams. As well as providing ingredients for pet food, Danforel uses processing “waste” to extract fish oil of high quality. As Nielsen points out, the company can supply fresh fish oil to the European market with much less oxidation than catch fisheries on the other side of the world can offer.
Technology also provides opportunities to reduce costs without compromising on quality. Nielsen says: “We see great benefits in automation… within a few years we expect to see some good financial results.”
Meanwhile Rocky Boschman, Managing Director of Tasmania-based Petuna, sees great opportunities for the trout sector: “Loved for its delicate texture, rich flavour, and high quality, trout is a favourite for both home dining and fine dining establishments.
Rocky Boschman, Petuna
“There’s strong potential for growth in both domestic Australian and international markets by tapping into consumer preference for responsibly farmed, nutritious protein. As more people prioritise sustainability and food origin, trout’s reputation as a versatile, health-conscious choice opens doors to new market segments, including sustainable retailers and high-end culinary venues.”
Petuna farms both “ocean trout” and “Atlantic salmon” in sea farms in Tasmania.
Boschman says: “Like most businesses, one of our biggest growth challenges is the rising cost of doing business. Increased operational expenses, energy costs, eco-friendly inputs, and biosecurity protocols all add financial pressure. We’re tackling these challenges head-on by investing in technology and infrastructure to boost efficiency and support sustainable growth. Our Best Aquaculture Practices (BAP) certification reinforces our commitment to global best practice in sustainability, traceability and fish welfare, even as costs rise.”
Petuna has recently made major advancements in its operations. Its multi-species hatchery in Cressy, Tasmania, now sustainably farms both trout and Atlantic salmon, boosting efficiency and market flexibility.
In June 2023, the company completed a A$15m (£7.8m) expansion, transforming it into a state-of-the-art RAS hatchery, using less than 5% of the water that traditional systems require – highlighting Petuna’s commitment to sustainability. Petuna also holds BAP Four Star accreditation, the highest level in the programme, and it is the first hatchery in the southern hemisphere to achieve this certification.
Petuna farm, Tasmania
Boschman adds: “A key part of our approach is our climate resilience breeding programme, which produces trout better adapted to rising water temperatures and the warmer conditions in Australia. This initiative is crucial to the long-term sustainability of our operations, helping to future-proof our stock against the challenges of a changing climate and ensuring Petuna’s continued commitment to responsible and resilient aquaculture.”
In the United States, Pacific Seafood operates both catch fisheries and aquaculture, though its subsidiary, Pacific Aquaculture. The latter includes its farmed Columbia steelhead trout, which are farmed in the waters of the Columbia River, in association with the local indigenous people, the Colville Confederated Tribes, in Washington state.
Danielle Florenzen, Fish Health Lab Manager with Pacific Aquaculture, says: “The biggest challenges or constraints on growth are: permitting and regulations in the United States and state-wide; access to good, viable breeding stock; and potentially [the rise of] plant based/artificial meat… this is a concern among all terrestrial meat-based operations.”
Columbia River steelhead pack, Pacific Seafood
She sees a key opportunity in educating the public about where their food comes from, and dispelling myths.
Her outlook for the future is positive: “We are very optimistic that the industry and markets will continue to grow especially with the importance of building relationships and partnerships with other farmers and tribal partners to promote food security, high quality protein and promote research for future decision-making.”
