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A major Scottish salmon farm operator has reported deepening losses of £64 million.
Bakkafrost Scotland results show a decrease in turnover from £237m to £171m, a drop of 28%.
New annual accounts for the Danish giant’s Scottish operations show an operating loss of £58m, compared with £6m the previous year.
The loss after tax for the year to December 31, 2025 was £64m, compared with a loss of £24m in 2024.
The company’s strategic report stated: “Bakkafrost Scotland began 2025 with solid operational performance.
“Marine farming delivered excellent biological results during the first half of the year with low mortality, well-managed sea lice, and exceptionally high harvest weights."
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The report stated that the “de-risking strategy initiated in 2024 continued” and this meant 60% of volume was harvested in the first half of 2025 “to reduce biological risk”.
It continued: “However, a significant increase in global supply of salmon, particularly from Norway, led to lower market prices which negatively affected financial performance. Salmon reference prices for 4-5kg superior salmon were 18.1% and 33.3% lower respectively in quarter one and quarter two 2025 than during the same periods in 2024.
The company reported that “biology challenges at several sites led to increased mortality, including an issue at our Portree site which resulted in exceptional mortality and advanced harvests” in the second and third quarters of 2025.
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It added: “Other sites continued to perform well. Sites impacted were stocked with ‘legacy fish’, reflecting historic issues with smolt quality.
“As the company progresses into 2026, the biomass at sea will increasingly reflect large and high-quality smolt, as our strategic shift is expected to deliver enhanced fish health and improved growth rates."
The transition to larger high-quality smolt continued in 2025 with the completion of Applecross phase six, enhancing system flexibility and biosecurity. "Phase seven, the final phase of Applecross development, will complete early 2026", the firm said. "Smolt transferred from Applecross during the first half were on average around 230g, an 80% increase compared to prior year.
“The move to larger robust smolt from a new facility is not linear, but a gradual process that involves inherent risk while operations stabilise and procedures are refined. This was evident in quarter two, when some of the production modules at Applecross delivered strong performance and strong growth with low mortality, but one module experienced biology-driven exceptional mortality.”
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Bakkafrost said: “To strengthen freshwater operations and support the strategic shift to larger and quality smolt, the Scottish freshwater division was reorganised under group leadership.
“The team is now integrated under the group freshwater director in the Faroe Islands, with site management enhanced through the relocation of experienced colleagues from the Faroes."
It is now planned that Applecross will produce batches of smolt ranging from 200g to 400g. "This adjustment allows for greater flexibility in production planning, better utilisation of capacity, and improved biological outcomes," it said.
“The priority in 2026 is to grow freshwater biomass and strengthen utilisation to ensure consistent production of larger, high-quality smolt for marine farming which will improve fish health, growth performance, and long-term sustainability.”
The company employed an average of 443 staff in 2025, set against 488 the year before.