Norwegian Salmon Farming Industry in Dire Financial Straits


Read this blog from Alexandra Morton, summarizing the dire financial situation for the world’s biggest salmon farming operators, all headquartered in Norway. (June 25, 2012)

In 2009, I met with the previous CEO of Marine Harvest in Norway. She asked me, “what do you want?” When I said, “you have to move your industry out of the narrow Fraser sockeye migration route off Campbell River,” she said it could not be done, because their share price must rise every quarter. However, today Marine Harvest is moving farms from exactly that area trying escape a parasite that liquifies salmon flesh (Kudoa). People don’t want to consume their salmon through a straw.

Screen Shot 2012-06-26 at 11.31.29 PMKudoa, the white balls in this picture, releases an enzyme that liquifies the flesh after death. Salmon farms are almost certainly enhancing this parasite similar to how they enhance sea lice, viruses and bacteria

Kudoa is a typical customer claim. At 4Q11, Marine Harvest continued to report Kudoa challenges linked to the Campbell River area…. The company will concentrate production at the best sites, while other sites will be closed down in order to improve biological performance.” Download MHG4Q11update080212 copy.pdf (884.4K)

For Marine Harvest Canada, the 2011 profit was affected by exceptional customer
claims and discards at harvesting totalling NOK 67.7 million due to the parasite Kudoa thyrsites. A restructuring plan for Canadian operations led to restructuring costs of NOK 23.4 million

Operating revenues for Marine Harvest Canada were NOK 1 182 million in 2011 (NOK 1 371 million). The average price achieved in CAD was 11% lower than in 2010 due to high presence of Kudoa combined with a general reduction in the market price. Total costs related to discards and claims as a result of soft flesh (Kudoa), amounted to NOK 68 million/NOK 2.00 per kilo harvested in 2011 (NOK 24 million/0.72 per kilo harvested).”Download MH_AnnualReport_2011_Web copy 2.pdf (6264.7K)

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