May 12, 2023

 

Mowi stands firm against proposed aquaculture tax despite amendments

 

Mowi, the world's largest salmon farmer, has restated its opposition to the Norwegian government's planned aquaculture tax, even after some revisions were made to the proposals, Just Food reported.

 

The company said that the tax plans would have a detrimental impact on Norway's seafood industry. Alongside other Norwegian companies in the sector, Mowi is actively advocating for the controversial tax plan to be discarded.

 

In a response to industry pressure, the Norwegian government announced in March that it had reduced its initial proposal to introduce a tax rate of 40% on salmon and trout farmers' profits to 35%.

 

However, if implemented, this would result in an overall tax burden of 57% for major seafood players in the country, including Mowi, Leroy, and SalMar, which includes corporate tax.

 

Mowi's CEO, Ivan Vindheim, expressed his disappointment with the amended proposal presented to the country's parliament. He said that the tax level is still totally out of proportion and not sustainable.

 

The bill for the proposed tax is expected to be voted on before the summer.

 

During the release of Mowi's first-quarter results, Vindheim addressed analysts, emphasizing that the current proposals would be severely detrimental to the Norwegian salmon industry. He warned that it would place significant limitations on future growth and development, potentially leading to the decline of Norway's dominant position in salmon farming over time.

 

Vindheim said that if the tax plan becomes a reality, demand for salmon would shift to other countries, undermining Norway's industry leadership.

 

But he said that the industry would continue to campaign against the tax proposal.

 

The Norwegian government initially announced the tax plan last autumn, arguing that it would ensure that coastal communities and society as a whole receive a greater share of the value generated by the fish farming industry.

 

Despite the tax controversy, Mowi has reported impressive financial results in the first quarter of 2023, achieving its best quarter ever. The company recorded an all-time high operational profit of EUR 322 million (~US$351.5 million; EUR 1 = US$1.09), compared to EUR 207 million (~US$226 million) in the same quarter of 2022. Additionally, it achieved its highest revenue ever of EUR 1.36 billion (~US$1.48 billion).

 

Mowi attributed the success to seasonally record-high salmon prices resulting from reduced global supply and strong demand.

 

-      Just Food