Mowi cuts investment worth NOK 5 billion

Mowi has dramatically cut back on investment worth at least NOK 5bn (£367m), citing the new “salmon tax” which was approved by the Norwegian parliament last week.

The company broke the news to the newspaper and  media  outlet vg.no,  saying it planned to call a halt to significant investment in its post-smolt strategy in Norway.

Mowi CEO Ivan Vindheim told vg.no that the company would stop the building of seven facilities along the entire coast.

So far Mowi has reacted more strongly against the tax than most of the other large salmon farmers, but they too look likely to go down the same path on future investment.

The Oslo parliament approved a  lower rate for the salmon tax (or “ground rent” tax) of 25%, against the original proposal of 40% and later 35%. But the new measure will still more than double the tax burden on the larger fish farming companies,  it is being backdated to 1 January.

Ivan Vindheim, on CNN earlier in 2023

Vindheim said: “Unfortunately, it [the new tax]has consequences for the supplier industry.

“The Storting majority has imposed a tax on us that amounts to more than double, on top of the tax we already pay.

“This means that our funds for investments decrease accordingly.  So we have to adapt our plans based on the increased cost picture.”

Meanwhile, Conservative party leader Erna Solberg, who is widely tipped to return to power in 2025, has said that if re-elected, she would cut the tax rate to 15% and then study other systems including the Faroese model. The latter is regarded by in the industry as fairer, because it takes market prices and production costs into account.

Erna Solberg