Small scale producer forks out HUGE amount at salmon license auction

No one else has paid more to enable the expansion of their enterprise than the tiny salmon producer, Lovundlaks.

“Farming fish at Helgeland (Lovund) is our prime concern,” said a cheerful Jacob Palmer Meland, after having successfully bid for 1,850 tonnes MAB (maximum allowable biomass) at yesterday’s auction held under the auspices of the Ministry of Fisheries.

“For our part it’s good to know that a large proportion of the funds we’ve now invested is going back to local communities along the Norwegian coast through the Aquaculture Fund (Havbruksfondet),” explained Meland.

Read more: 13 companies paid out EUR 243 million at salmon license auction

Of the 1,850 tonnes with MAB, Lovundlaks is paying EUR 26,7 thousand per tonne – in total EUR 49,4 million. In 2016, Lovundlaks had pre-tax profit of EUR 14,4 million, and shareholder equity entered on the books for EUR 25,8 million

Lovundlaks currently has four edible fish production licenses with fish farming activities located in Lurøy Municipality at Helgeland.

“Lovundlaks has many skilled, resourceful employees that will deftly deal with the growth. The company has worked long and hard to maximise the structure of its location in order to ensure growth for the enterprise. Much of the prior preparation has been achieved at sea and on land by others other than we in management today, so we have every reason to be humble for the opportunities now afforded us,” concluded Meland.

Thanks to first-rate biology and cost-efficient production, combined with record demand for fresh salmon from Helgeland, has kick-started Lovundlaks entry into 2018.

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