August 22, 2024

Skretting to close US feed mill amid market challenges

Skretting, a global leader in aquaculture feed, has announced it will shut down its production facility in Tooele, Utah, US, by July 1, 2024, citing stagnant market conditions in the US and a significant reduction in the British Columbia, Canada salmon aquaculture industry, AquaFeed reported.

Trevor Stanley, managing director of Skretting North America, confirmed the decision in a statement, explaining that the company had been facing a flat US market and a 40% decline in British Columbia's salmon farming industry since 2020.

"After careful consideration, we have made the difficult decision to close our Tooele, Utah production facility," Stanley said. He added that the move was part of a broader strategy to optimise Skretting's operational footprint and production capacity utilisation across North America.

Stanley emphasised the company's commitment to serving its customers while adjusting to the current market environment. "This decision focuses on reallocating resources to operate as efficiently as possible while maintaining sufficient capacity to serve our customers with the best available technology for high-quality feeds," he said.

Skretting acknowledged the impact the closure will have on its employees and the local community. The company is encouraging affected workers to apply for other open positions within Skretting or its parent company, Nutreco. Efforts will be made to relocate eligible staff to different sites in North America.

The statement also indicated that Skretting remains committed to investing in future production capacity within the region and assured that feed production capacity would not limit growth in the aquaculture industry.

-      AquaFeed