The development of marine finfish farming will offer important benefits to the Shetland economy, including the provision of an important supply source of whitefish for the islands' hard-pressed processing sector.

Dwindling quotas and reduced amounts of whitefish being sold across the markets at Lerwick and Scalloway means that gaining adequate supplies has been a real problem for Shetland fish processors and merchants. But the expansion of marine finfish farming gives the opportunity to help safeguard existing businesses and the potential for the creation of new processing outlets.

UK landings by the commercial fishing fleet are down significantly since the 1970s, but consumer demand for fish is increasing - second only to poultry in terms of protein eaten at home.

"The stark choice is that we can continue to import the shortfall in domestic supplies of whitefish, or we can help bridge the gap by developing a successful and vibrant indigenous industry farming staple species such as cod and halibut," states Alastair Barge, chairman of the British Marine Finfish Association.

"The knock-on benefits for the whole UK seafood industry are potentially considerable, given that many fish processors in areas such as Shetland are finding it increasingly difficult to source fresh fish. Marine finfish farming would provide Shetland fish processors with a consistent supply of high quality whitefish. This opens-up the possibility of the setting-up of value-added processing, which would maximise the impact of farmed fish to the local economy.

"It is important to stress, however, that we do not see marine finfish farming supplanting the supplies of fish coming from the Shetland and UK fishing fleets. We envisage farmed fish as complementing supplies already taken-up by imports. In fact, because aquaculture will help support the local processing infrastructure, there is every possibility that it could prove beneficial to the local whitefish fleet by boosting markets."

Shetland also offers the advantage of providing ideal environmental conditions for the farming of cod, haddock and halibut - the rich fishing grounds around the islands bearing testament to this. "The optimum temperature profile of Shetland and the West Coast of Scotland - caused by mild winters and summers - offers an unparalleled economic opportunity for the sector," says Mr Barge.

The first sale value of marine fish (cod, haddock and halibut) farmed in 2002 was about £4m, with a production of around 800 tonnes of cod, 400 tonnes of halibut and haddock still undergoing commercial viability trials.

Projections predict that in seven to 10 years time market demand could sustain a combined production of 30,000 tonnes of farmed cod and haddock (for the whole of Scotland), with an additional 10,000 tonnes of high value halibut. This would equate, depending on market conditions, to a first sale production value of about £100m by the end of the period, employing 600 people in high quality, full time jobs. The BMFA believes this will stimulate upstream and downstream employment of a further 1,800 jobs in Scotland.

It is also important, however, that the sector expands on a sustainable basis. The BMFA is already developing codes of practice for the farming of cod and other marine species to help minimise the risk of future disease and environmental problems. The Association is committed to working with key stakeholder groups in initiatives such as Area Management Agreements and the recognition that different sub sectors must co-exist and that there should be a holistic approach to aquaculture that will be beneficial to the whole industry.

Mr Barge says: "Scotland and Shetland have tremendous scenery, where tourism, fishing and other activities are of major importance. This is why we are putting the emphasis on the development of a sustainable expansion strategy, which will include environmental and fish health issues, and take into account the ecological carrying capacity of coastal waters."