FISH

No Jobs Here: Why Industrial Fish Farming’s

Promise to Boost Local Economies Falls Flat
Backgrounder • June 2010

T he open water aquaculture and salmon industries tout fish farms as an opportunity
to create jobs. Given current economic struggles worldwide, any potential for a new
industry to increase job opportunities is hard to dismiss. Viable, gainful employment is
badly needed. So we decided to investigate these claims. Unfortunately, we found that
the jobs created by fish farms are unstable, in some cases undesirable, and are very few
in number related to the number of fish produced. In fact, the trend in the industry has
been to cut jobs to increase “efficiency” (meaning profit), and to abandon communities
if better sites arise elsewhere. Moreover, due to pollution, escapes of farmed fish, and
other problems that negatively impact wildlife or aesthetic values of the area, open
water fish farms can threaten previously existing jobs in tourism, recreational fishing
and commercial fishing. Open water finfish farming (including salmon farming) is a
failed promise that offers nothing more than some short-term advantages to the local
economy at the cost of long-term environmental, social and economic damage.

Scotland: More Farmed Salmon but

Fewer Farm Workers
“To make [Scottish fish farms competitive] costs must come
down, but it’s not about reducing the amount of employ-
ees. I believe it’s possible to create far more jobs in Scot-
land than we have today.” – Chief Executive, Atle Eide,
Pan Fish (now Marine Harvest1), 20062

The media and government often represent the salmon

farming industry as a potential bolster to economic pros-
perity and local job creation. In November 2006, Mr. Eide
was promoting growth in the Scottish fish farming sector;
stating that the Scottish government has not allowed the
industry to keep up with those in Chile and Norway. He at-
tested that cost could be brought down. According to him,
production had decreased because of a tough regulatory
framework, and employment cuts would not be necessary
to cut costs.3

Scottish Aquaculture: The past 25 years

Traditional salmon fishermen on the River Tweed in Scotland. A look at the past 25 years of salmon aquaculture in
Photo by Les Hull. Scotland reveals many ups and downs — both for rural
A salmon farm off the coast of the Isle of Skye in Scotland. Photo by Nikki Bidgood/iStockphoto.
economies and the environment. In 2000, the salmon
aquaculture industry hit its peak of employment in direct
salmon production, with 1,397 full and part-time staff.4 The
industry was also creating jobs through support industries.
In 2001/02 it was estimated that there were around 10,000
jobs in aquaculture from the production and processing
sectors combined. 5 You could say that the industry was
at its best in 2000, in terms of its contribution to local
economies — but none of this came without a price to the
environment, or questions about stability and longevity.
The industry had already been threatened by outbreaks of
Infectious Salmon Anaemia in 1998,6 and in 2000 it was
determined that the fish in Scotland’s open water cages
produced nutrient pollution with an ecological result
greater than the sewage produced by the country’s entire
human population of 5.1 million.7
Foreign Companies, Industry Consolidation and
Closures
Ultimately, it was not the pollution nor the disease that first
burst the bubble for rural job creation through fish farming,
but the dominance of the industry by huge, multi-national
companies. By 2004, it was estimated that 1,500 jobs had
been lost in the salmon processing and production sectors.
Between 2004 and 2006, fish processing plants in the Out-
er Hebrides shut their doors, as did various fish farms and
smolt-rearing operations in Western Ross, Inverness-shire,
Shetland and the Outer Hebrides.8 During the same period,
salmon production jobs dropped off by 25 percent,9 and
there was a 15 percent loss in jobs at the smolt production
level.10 According to Bruce Sandison of the Salmon Farm
Protest Group of Scotland, “During that time, the indus-
try has received millions of tax-payer funds, the result of
which has been to destabilize rural communities and inflict
pain and hardship on those who have lost their jobs.”11
In 2006 (when no numbers since 2004 were available), the
Salmon Farm Protest Group stated that at least 500 ad-
ditional jobs had been lost due to closures, and that 500
more jobs would be lost as the aquaculture company Pan
Fish acquired Marine Harvest and Stolt, which resulted in
the formation of the largest salmon aquaculture company
in the world (now using the name Marine Harvest ASA).12
The consolidation in this industry has been staggering. Be-
tween 1998 and 2008, the number of salmon aquaculture
companies in operation has dropped by 67%: from 106 to
to 35.13
During this same period, as communities mourned the
hundreds of jobs lost during the prior five years, Nutreco
— former owner of Marine Harvest — announced profits
of 297 million pounds for the first half of 2006 — much of
that from selling Marine Harvest.14
Production, “efficiency” and employment: an unbal-
anced equation
As the industry has grown savvier and improved technol-
ogy, it has found ways to squeeze more work out of each
employee, a trend that is euphemistically known as “ef-
ficiency.” In 2006, when Mr. Eide of Pan Fish commented
that it was possible to create more jobs in Scotland, he
was correct. Where he went wrong was insinuating that
“far more jobs (emphasis added)” could be created by the
salmon aquaculture industry. Admittedly, between 2006
and 2008 (the most recent year of available statistics), there
has been an improvement in job creation in the salmon
production industry, with an overall increase of around 9
percent, or 78 jobs. However, it is important to note two
things: (1) that these jobs are not necessarily stable or long-
term and (2) an analysis with a longer time horizon reveals
overall decrease in aquaculture jobs.

As “efficiency” has increased, and the industry has con-

solidated, employment opportunities have significantly
dropped. Unfortunately, recent statistics on the number of
people employed in processing are not available, but the
statistics on salmon production over the past 20 years re-
veal an overall trend in increased production coupled with
decreased employment. Over the past decade, between
1998 and 2008, production of farmed salmon in Scotland
increased 16 percent from 110,784 tonnes to 128,606
tonnes. At the same time, employment in the sector has
steadily decreased, dropping 28 percent during the course
of these ten years, from 1,309 full and part time employees
to 949 in 2008.15

What’s Next
If the industry continues to expand, as it plans, this trend
is likely to continue, and opportunities for alternative rural
development, such as tourism and recreational fishing,
may be impeded by the negative environmental impacts
from fish farming. As government press releases and the
media happily highlight new jobs created over the past
couple years,16 the long-term trend and lost jobs because
of the industry are ignored. According to the Salmon Farm
Monitor, 5,000 sport angling and tourist related jobs have
been lost in the West Highlands and islands of Scotland
because of the salmon farming industry.17 Whether ex-
changing these jobs for those in the salmon industry is
worthwhile might be debatable if the salmon industry
could provide long-term stable jobs, like sport angling and
tourism have the potential to do. However, lack of environ-
mental sustainability in salmon farming, combined with
the absence of a guarantee that companies will remain in
Scotland if other opportunities arise elsewhere, make the
quality of these jobs questionable.
Photo by Rob Owen-Wahl/Stock.Xchng.
these new jobs has failed to note that the number of jobs
created is disproportionate to the size of this company ex-
pansion. The expansion will add 50 percent more value to
the company, but will only result in a 4.2 increase in em-
ployment (based on 2008 employment numbers) on Scot-
tish salmon farms.20 Furthermore, these farms will require
crew members to live in residential barges off the coast,
situated by the offshore farms. Job creation is important –
but are jobs requiring workers to live on barges, away from
their families and communities, the best solution?
Examples from Other Regions
Sadly, examples from other regions suggest that problems
inflicted on local economies associated with open water
aquaculture in Scotland are inherent to the industry.

Marine Harvest itself attests that impacts on communities
and worker safety are problem areas. The company’s 2007
corporate social responsibility report notes that “Disruption
of coastal economies based on fishing and tourism” and
“damage to health of employees resulting from inadequate
health and safety precautions” were both potential com-
munity impacts of the company’s activities.18 In the 2008
annual report, Marine Harvest noted that “There were no
fatal accidents on the premises in 2008, but the number of
minor incidents (cuts and strains) remains high and re-
quires further attention in 2009.”19
In October 2009, Marine Harvest announced a massive ex-
pansion in its operations through offshore fish farms, which
would create 40 new jobs. Unfortunately, the hype about
Hawaii: decreasing jobs and alleged unsafe working
conditions
In Hawaii, where the open ocean aquaculture industry is
supported by taxpayer money, there are two ocean fish
farms currently in existence. One of these, Kona Blue
Water Farms (KBWF) reached a maximum level of em-
ployment in October 2008, when it employed 49 people
(not all local). By April the next year, its employment had
dropped to 33.21 At the same time, the company applied to
make modifications to its site. In fact, the modification was
based in part to eliminate the need for staff: “We believe
that the only way for Kona Blue to achieve profitability for
our Kona operation is by reducing our reliance on SCUBA
divers.” 22 The company’s plan is to get staffing needs down
to 14 professional, semi-professional and laborer positions
– an overall job loss of 71 percent.23 Looking at the entire
industry in Hawaii does not paint a better picture. Hukilau
LLC, the other existing ocean fish farm, has also recently
applied to make changes. The company plans to drasti-
cally expand production. However, only a relatively small
number of jobs will be created. Between the two farms,
the industry employed a total of 44 people in 2009. After
modifications to both farms are complete, overall produc-
tion will have increased 173 percent, from about 2.2 to 6
million pounds, but employment will have decreased by
11 percent.24
Furthermore, the quality and safety of the jobs provided
by KBWF have been challenged. Between 2007 and 2009,
four former employees filed lawsuits against KBWF. The
first suit, settled out of court, alleged that KBWF did not
provide a safe place to work, resulting in injuries caus-
ing ongoing physical and emotional pain and harm.25 The
second, also settled out of court, also alleged that KBWF
failed to provide a safe place to work or proper equipment,
resulting in a disabling back injury.26 The third case, with
similar allegations, was voluntarily dismissed.27 The final
case, not yet resolved, alleged among other things that
KBWF “willfully ignored and violated the mandatory provi-
sions and obligations set forth in its own Dive Manual”
and that the company has violated state and federal laws,
resulting in injuries to the worker. 28
Chile: disease outbreak and 25,000 unemployed
In Chile, where disease outbreaks and chemical use in
open water salmon farms have become notorious, an un-
sustainable industry has equated to unsustainable employ-
ment opportunities. As Infectious Salmon Anemia swept the
industry, salmon production was devastated. At its peak,
the industry created 50,000 direct and indirect jobs,29 but
by 2009 union leaders estimated that 20,000 of these jobs
were lost.30 Job cuts began as ISA spread between opera-
tions. In February of 2010, SalmonChile said that 5,000
more may lose jobs between March and June 2010, be-
cause there will not be any harvested salmon to process.31
A factory fish farm off the coast of Hawaii. Photo by NOAA.
Additional Examples
British Columbia: In the 1990s, farmed salmon produc-
tion tripled in British Columbia, but not a single new job
was created. As aquaculture in this Canadian province
increased, wild fish landings decreased, and employment
in processing dropped off as well.32
Norway: Between 1985 and 2000, Norway’s fish farming
industry expanded tenfold, but employment dropped by
20 percent.33
Conclusion and Recommendations:
Salmon farming may have become one of the biggest
players in Scotland’s economy – contributing to over half
of Scotland’s total food exports – but its contributions to
rural economies and Scottish citizens is dwindling, and the
offshore jobs the industry is moving toward may be less
desirable than the very jobs the industry is eliminating in
the recreational angling and tourism sectors. Moreover, the
industry is dominated by a Norweigan company, and there
are no guarantees about what will happen to jobs, or spe-
cific aquaculture sites in the future, when other locations
with lower cost opportunities arise.
Councils, planning authorities and politicians are under
pressure to provide job opportunities, and this is a diffi-
cult challenge, but it is important to look beyond the false
promises made by fish farming corporations and into the
future. Instead of sacrificing Scotland’s rural communities
for this multinational industry, politicians should support
more sustainable, locally controlled businesses. When
open water fish farms fail to deliver on their promises of
local economic gain, communities, economies and the
environment would be better served through investment
in jobs with longevity, such as tourism, sustainable fishing,
land-based recirculating aquaculture systems, small-scale
shellfish aquaculture and value-added processing.
A wide variety of shellfish, including mussels, oysters and
scallops are already cultivated in Scottish waters, and this
production is currently dominated by small-scale produc-
ers.34 Recirculating land-based aquaculture systems (RAS)
are another option that are not only more environmentally-
responsible, but have been shown in the United States to
be capable of producing many more jobs, and keeping
more economic gain within local communities. More
investment should be made to further these more viable
alternatives.
We urge policymakers not to let fish farming corporations
take advantage of struggling communities, and we recom-
mend that the European Fisheries Fund support invest-
ment in businesses and resources that can build long-term
economic prosperity and development in Scotland, and
beyond.
Anstruther Harbor in Fife, Scotland. Photo by Colin Broug/StockXchng.
Endnotes
1 Marine Harvest. “History.” February 20, 2008. Available at: www.
marineharvest.com/en/About-Marine-Harvest/History/#
2 “More jobs could be created in Scotland, says Pan Fish chief.” Fish-
update.com, Nov. 30, 2006. Available at: www.fishupdate.com/news/
fullstory.php/aid/5993/More_jobs_could_be_created_in_Scotland,_
says_Pan_Fish_chief.html
3 “More jobs could be created in Scotland, says Pan Fish chief.” Fish-
update.com, Nov. 30, 2006. Available at: www.fishupdate.com/news/
fullstory.php/aid/5993/More_jobs_could_be_created_in_Scotland,_
says_Pan_Fish_chief.html
4 Marine Scotland Science, “Scottish Fish Farms: Annual Production
Survey 2008.” The Scottish Government, 2009 at 27.
5 Salmon Farm Protest Group warns of further job losses. Fish Farmer,
June 19, 2006.
6 Fisheries Research Services. “Infectious Salmon Anaemia.” The Scottish
Government, 2010. Available at: www.marlab.ac.uk
7 Clover, Charles. “Pollution from fish farms ‘as bad as sewage.’” Tele-
graph (London). Sep 19, 2000.
8 Salmon Farm Protest Group warns of further job losses. Fish Farmer,
June 19, 2006.
9 Marine Scotland Science, “Scottish Fish Farms: Annual Production
Survey 2008.” The Scottish Government, 2009 at 31.
10 Marine Scotland Science, “Scottish Fish Farms: Annual Production
Survey 2008.” The Scottish Government, 2009 at 11.
11 Salmon Farm Protest Group warns of further job losses. Fish Farmer,
June 19, 2006.
12 Salmon Farm Protest Group warns of further job losses. Fish Farmer,
June 19, 2006; Pan Fish. [Press Release]. “Pan Fish acquires Marine
Harvest to form the world’s largest fish farming company.” March 6,
2006; Marine Harvest. “History.”
13 Marine Scotland Science, “Scottish Fish Farms: Annual Production
Survey 2008.” The Scottish Government, 2009 at 32.
14 “Attack on profit from sale of fish-farming company.” Press and Journal,
The Aberdeen (UK), Aug 14, 2006.
15 Marine Scotland Science, “Scottish Fish Farms: Annual Production
Survey 2008.” The Scottish Government, 2009 at 19 and 27.
16 “Aquaculture Stands Strong.” Press Release, the Scottish Government,
Dec. 17, 2009.
17 Bruce Sandison. “The Key Questions.” The Salmon Farm Monitor.
Available at: www.salmonfarmmonitor.org/documents/questions.
html#question9
18 Marine Harvest, Corporate Social Responsibility Report. 2007 at 8.
19 Marine Harvest, Annual Report 2008 at 9.
20 “Marine Harvest Scotland plans 50% expansion with offshore fish
farms,” Fishnewseu.com, Oct 7, 2009
21 Kona Blue Water Farms, LLC. “Final Supplemental Environmental
Assessment for a Modification to Net Pen Designs Within the Existing
Production Capacity and Farm Lease Area for Kona Blue’s Offshore
Open Ocean Fish Farm off Unualoha Pont, Kona, Hawaii.” April 21,
2009 at 22.
22 Kona Blue Water Farms, LLC. “Final Supplemental Environmental
Assessment for a Modification to Net Pen Designs Within the Existing
Production Capacity and Farm Lease Area for Kona Blue’s Offshore
Open Ocean Fish Farm off Unualoha Pont, Kona, Hawaii.” April 21,
2009 at 10.
23 Kona Blue Water Farms, LLC. “Final Supplemental Environmental
Assessment for a Modification to Net Pen Designs Within the Existing
Production Capacity and Farm Lease Area for Kona Blue’s Offshore
Open Ocean Fish Farm off Unualoha Pont, Kona, Hawaii.” April 21,
2009 at 23.
24 Calculation performed by Food & Water Watch. Combined total pro-
duction and jobs projected by companies in their Final Environmental
Assessments after approved modifications from “Final Environmental
Assessment Proposed Expansion of Hukilau Foods Offshore Fish Farm,
Mamala Bay, Oahu, Hawai`i.” Prepared for Office of Conservation and
Coastal Lands, Hawai`i Department of Land and Natural Resources
by Aquaculture Planning & Advocacy LLC. July 24 2009 and “Final
Supplemental Environmental Assessment for a Modification to Net Pen
Designs within the Existing Capacity and Farm Lease Area for Kona
Blue’s Offshore Open Ocean Fish Farm off Unualoha Point, Kona,
Hawai`i.” Prepared for Office of Conservation and Coastal Land Divi-
sion, Department of Land and Natural Resources by Kona Blue Water
Farms. Kailua-Kona, HI. April 21, 2009
25 Karlsson v. Kona Blue Water Farms United States District Court for the
District of Hawai`i No CV07 00242BMK Filed May 10 2007 at 3.
26 Labossiere v. Kona Blue Water Farms, LLC United States District Court
for the District of Hawai`i No CV07 00540 BMK Filed October 29
2007 at 4.
27 Michael Larson vs. Kona blue Water Farms LLC United States District
Court for the District of Hawai`i. CV 08 00428 Filed September 23,
2008 at 3 and Michael Larson vs. Kona blue Water Farms LLC United
States District Court for the District of Hawai`i. Amended Notice of
Voluntary Dismissal. CV 08 00428 Filed December 8, 2008 at 1.
28 Wagner v Kona Blue Water Farms LLC United States District Court for
the District of Hawai`i No CVO9 00600 Filed December 16 2009.
29 “SalmonChile Anticipates Layoffs.” ThefishSite, February 19, 2010.
30 “Chilean salmon industry expects worst production ever in 2010.”
Mercopress South Atlantic News Agency. Oct 28, 2009.
31 “SalmonChile Anticipates Layoffs.” ThefishSite, February 19, 2010.
32 British Columbia Ministry of Finance and Corporate Relations. “British
Columbia’s Fish Product and Seafood Industry in the 1990s.” May
2001 at 38-39 and 56-57.
33 Norway Directorate of Fisheries. “Key Figures from the Norwegian
Aquaculture Industry: 2000.” Department of Aquaculture, 2001 at
12. As quoted in: Marshall, Dale. “Fishy business: The Economics of
Salmon Farming in BC.” Canadian Centre for Policy Alternatives, Van-
couver, July 2003 at 16.
34 “Survey a Year of Scottish Shellfish Farms.” TheFishSite.com, July 2009.
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