September 30, 2024

 

Norwegian firm Mowi outlines ambitious strategy to expand salmon production and cut costs

Norwegian firm Mowi, the world's largest producer of Atlantic salmon, has unveiled a strategic plan to reinforce its leadership in the industry over the coming years, Fish Farmer reported.

 

The plan was presented at the company's Capital Markets Day event held in Trondelag, Norway.

 

The group's primary goals include increasing production volume by 100,000 tonnes and achieving cost savings of between EUR 300 million (US$335 million) and EUR 400 million (US$477 million)

 

In addition to its coastal salmon farming operations, Mowi is exploring alternative methods of salmon farming as part of its long-term strategy.

 

At the presentation, CEO Ivan Vindheim stated: "After reaching a milestone of 500,000 tonnes of salmon harvested in 2024, we are now looking ahead to the next milestone of 600,000 tonnes, which we aim to fulfil by 2029."

 

"We will achieve this through better utilisation of licence capacity and by improving the productivity and biological performance of existing production through our investment in post-smolt," he added.

 

Mowi also intends to embark on an ambitious cost improvement programme. This builds on an initiative launched in 2018, which has already resulted in EUR 300 million (US$335 million) in savings through 1,700 different measures.

 

According to Vindheim, Mowi's strategy is built on three key pillars: volume growth, competitive costs, and sustainability. The company has increased production from 375,000 tonnes in 2018 to an expected 500,000 tonnes in 2024, with plans to continue this upward trend.

 

"We have grown faster than the rest of the industry in recent years, and our goal is to continue to do so. By releasing more smolt and increasing our use of post-smolt, we will be able to harvest 600,000 tonnes of salmon in 2029, thereby reinforcing our position as the world's top producer of Atlantic salmon," said Vindheim.

 

In addition to the company's post-smolt programme, Vindheim highlighted the importance of Mowi's digitalisation and automation strategy.

 

He explained: "We launched Mowi 4.0 in 2021 and since then have invested significantly in measures to increase efficiency and automation across our value chain. We are already seeing the positive impact this has had on sustainability, productivity, and cost reduction, and we expect further benefits in the future."

 

Mowi's expansion in farming operations is expected to drive growth in its two other divisions: Consumer Products and Feed.

 

"The rest of the supply chain will grow in tandem with farming. To produce more salmon, we will need more feed, and more salmon means more raw material for our 20 secondary processing plants worldwide," Vindheim noted.

 

The company anticipates annual revenue growth of 7-8% over the next five years, leading to revenue of EUR 8.5 billion (US$9.5 billion) by 2029, compared with EUR 5.5 billion (US$6.1 billion) in 2023.

 

Although Mowi remains focused on sea-based salmon farming and related technologies, Vindheim emphasised that the company is keeping a close watch on new technologies. He stated that Mowi is ready to adopt new methods when they prove profitable.

 

The company also revealed plans to explore selective acquisitions that align with its operational strategy as part of its growth objectives.

 

-      Fish Farmer