Land-based producer in post-smolt pivot; set to boost EBIT by as much as 25%

by
Editorial Staff

Producer to make use of unused pool capacity in the first half of each production cycle with new post-smolt production strategy.

Norwegian land-based salmon producer Andfjord Salmon has unveiled a new post-smolt production strategy aimed at enhancing the utilization of its pool capacity during the initial stages of each production cycle.

According to the announcement, the strategy could result in a significant 15-25% increase in EBIT (Earnings Before Interest and Taxes).

By making effective use of the surplus space in pools, the company anticipates a 10% rise in biomass turnover.

While the company’s cash flow will also improve significantly as it can generate sales revenue from a production time of 5-7 months, in addition to revenue from a full production cycle of 12-15 months.

Notably, this strategic shift requires no additional capital expenditure on infrastructure, offering a cost-effective route to increased productivity.

The CEO of Andfjord Salmon, Martin Rasmussen, emphasized the strategy’s potential benefits. “We have worked diligently on the post-smolt strategy and are excited to present it today. It’s not just a step forward for Andfjord Salmon, but also for the broader ocean-based fish farming community, the fish, the marine environment, and the regional aquaculture industry,” he said.

The strategy is expected to hasten the company’s revenue generation and positively impact cash flow, with multiple biological and environmental benefits for ocean-based fish farmers.

Furthering its commitment to innovation in aquaculture, Andfjord Salmon has forged a strategic partnership with Eidsfjord Sjøfarm/Holmøy Havbruk for post-smolt collaboration.

In January, Andfjord Salmon completed the excavation of 12 pool pits in the north of the country ahead of schedule.

The company successfully completed its first harvest in July and August last year, yielding 530 metric tons of salmon with an average weight of 3.4 kilograms. This generated a revenue of NOK 37.1 million ($3.5 million).

The company plans to produce 40,000 metric tons of salmon at its Kvalnes site by 2025-2030.

This goal is part of a broader strategy to eventually produce 90,000 metric tons across three sites, including Breivik and Fiskenes, which are currently under development.

To facilitate this expansion, Andfjord Salmon is investing in significant infrastructure development, including waterways and a harbor area at Kvalnes. The construction involves using excavated material for the development of a new harbor, featuring a dock and breakwater. These developments are reportedly progressing well.

Salmon Evolution, the only other land-based salmon farmer in Norway to have harvested and sold its salmon.

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