Independent salmon producers sign NOK 22 billion feed deal

The Salmon Group network, which represents several small and medium sized Norwegian fish farmers, has signed a new long term feed deal worth NOK 22 billion (£1.66 bn).

The group said that in a world where risk and instability prevail, it was important to focus on sustainability and human rights in feed contracts.

Christine Lyngsgård Larsen, the group’s head of procurement and sustainability explained : “Our two main suppliers, BioMar and Skretting, have delivered well over time, and consolidated their position by delivering very good offers in this process.

“Overall, this has given us the confidence to award longer agreements, with a duration of up to five  years including options.”

“First and foremost, long-term contracts provide more stability and predictability for both parties, which stimulates comparative conditions and efficiency gains for both buyer and seller.

She added: “This form of contract also gives us better time and more leeway to intensify our work to introduce even more sustainable raw materials into the Salmon Group recipe, as well as to ensure that human and labor rights are safeguarded in the feed’s value chain.”

Based in Bergen, the Salmon Group was established in 2003 and now represents 38 independent  businesses who, together, produce over 200,000 tonnes of salmon a trout a year.

Christine Larsen said Salmon Group feed already had a lower climate  footprint than the industry standard, but it was working to reduce that even further.

“A lot of good work is being done towards the goal of reducing the climate footprint in the industry, regardless of whether you are a supplier or a customer,” she explained.