Bakkafrost expects rising marine raw material prices and the effects of El Niño on global fishmeal and fish oil supplies to increase feed costs from late 2026, CFO Högni Jakobsen told investors on Friday.
Speaking at Handelsbanken’s Nordic Small/Mid Cap Seminar, Jakobsen said marine raw material prices have already increased by 5-10%. While El Niño is not expected to directly affect the Faroese salmon farmer’s North Atlantic sourcing, tighter pelagic fish supplies from Latin America are expected to filter through to global markets.
The impact is likely to reach Bakkafrost’s cost base by the end of 2026 or in the first quarter of 2027, he said.
Additional production capacity at feed subsidiary Havsbrún is expected to provide some offset, although management still expects pressure on feed margins.
