Norcod wins £4m Spanish supermarket deal

The cod farmer Norcod has won a £4m plus major contract with a large but as yet unnamed Spanish supermarket group, the company has announced.

The deal is for the delivery of 850 tonnes of fish at a fixed gross price of NOK 60 per kilo and has a total value of NOK 51 million (£4.25m).

The first consignment will be delivered in April. The Norway-based company has also announced that it is on course to reach its production target of 5,000 tonnes over the next 12 months.

Norcod’s CEO Christian Riber said: “This is a unique agreement that consolidates our strategy of entering into fixed-price contracts, also for delivery during the cod fishing season.

“It also signals that we reach our goal of clearly differentiating between our farmed cod and wild-caught cod, even during the high season, and at a high price.”

He also disclosed that Norcod has made a strategic decision to extend the growth phase in the sea in order to achieve fresh farmed cod with an average weight of four kilograms plus.

This will allow the company to increase production by 10% to a target figure of 27,500 tonnes by 2025.

CEO Riber also said that due to the pandemic the aquaculture industry in general has experienced an inflationary increase in both raw material and transport costs. As a result,  the company is expecting its investment cost bill to rise by 15%, but Riber was confident this would only have a limited effect.

He added on an upbeat note: “We have a steady course towards achieving our long-term strategy of becoming the world’s leading supplier of responsibly produced farmed cod on a year-round basis. Customers are excited about our product, and we expect the market to grow in line with our own growth.”

Christian Riber, CEO Norcod