EXPECTED INCREASE IN GLOBAL SALMON SUPPLY

Expected increase in global salmon supply. The global supply of Atlantic Salmon for 2019 is expected to increase while demand growth is expected to remain stronger than supply growth, contributing to continued good prices going forward, according to Greig Seafood in its latest report.

Grieg Seafood says its objective is to ensure sustainable growth in the years ahead by combining skilled and motivated people, new technology and to increasingly farm salmon on nature’s terms. The goal is to increase sustainable production to reach an annual harvest volume of 100 000 tonnes in 2020. They are also aiming for production cost at or below weighted industry average, targeting NOK 37.90 per kg by 2020. In Norway, the target is NOK 36.00 per kg by 2020.

To ensure progress towards our goal for sustainable growth, they have initiated the GSF 2020 improvement program, with specific targets and initiatives for each region. The program contains four strategic priorities;

1) digitalization
2) post-smolt strategy
3) biosecurity and fish welfare
4) expansion opportunities

Through its digitalization strategy “GSF Precision Farming,” Grieg Seafood intends to take a leading role in utilizing new technology, big data and artificial intelligence to improve operational efficiency through reduced environmental impact, increased fish welfare and improved growth.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological performance through the implementation of a broad range of technological and operational initiatives, including large smolt, GSF Precision Farming and other preventive operational measures aimed at combating sea lice and algae. The group targets an average survival rate in seawater above 93%. In 2018, average survival rate was 91%.