Bakkafrost Scotland harvested approximately 75% of its planned total harvest volume for 2024 by the end of Q2.
Bakkafrost Scotland has reported a significant turnaround in its Q2 2024 performance, attributed largely to the company’s implementation of a strategic de-risking approach and enhanced biological control measures.
The firm’s operating revenue for the quarter surged to DKK 861 million (€112 million), representing a 55% increase compared to DKK 556 million (€72 million) during the same period in the previous year.
The company, which had been grappling with biological challenges in recent years, saw a marked improvement in both harvest volumes and fish health during the first half of 2024.
According to the latest interim report, Bakkafrost Scotland harvested approximately 75% of its planned total harvest volume for 2024 by the end of Q2, ahead of the biologically challenging Q3 period.
Bakkafrost Scotland reports rising revenues and improved profit margins
This proactive approach was a key component of the de-risking strategy developed in late 2023. By harvesting the majority of its planned volume earlier in the year, Bakkafrost aimed to mitigate the risks typically associated with the latter part of the year.
“The biological performance in Scotland has been good, harvest volumes increased significantly and by the end of Q2, around 75% of the planned harvest volume for 2024 had been harvested at good average harvest weights,” the report noted.
This improvement is underscored by significantly lower mortality rates compared to the same period in the previous two years, as well as effective control of sea lice levels and gill health.
The de-risking strategy also extended to Bakkafrost’s freshwater operations, where the company made strategic adjustments to its short-term production plans. A comprehensive risk assessment of all farming sites was conducted, which included evaluating the feasibility of stocking and farming these sites with different strains, hatcheries, and smolt sizes.
Large smolt strategy promises further improvements
Bakkafrost has prioritized the use of large, high-quality smolt from its Applecross hatchery over external sources as part of this strategy. However, the delivery of these high-quality smolt has been delayed until Q4 2024, which has impacted the average weight of released smolt, which was 23% lower than in Q2 2023.
Despite these setbacks, the company expects Applecross to supply large batches of smolt in the latter half of 2024, with average sizes increasing to around 200g by Q4.
Looking ahead, the completion of the Applecross 5 and 6 expansions in Q4 2024 and Q1 2025, respectively, is expected to further improve the biosecurity of Bakkafrost’s smolt production in Scotland. These expansions will enable the company to produce all required smolts for its Scottish operations, ensuring a stable and secure supply chain moving forward.
