100 jobs may go as Bremnes calls time on Salma brand
Norwegian salmon farmer Bremnes Seashore has announced that it is ceasing production of its international brand, Salma.
Salma is described as a high quality production using innovative technology. It was the first to produce sashimi quality salmon loins.
Bremnes also maintains that its process uses clean, cold water and is less stressful for the fish because they flow through the process, like salmon in a river, rather than being pumped.
But Bremnes said yesterday that it was taking the action to ensure the company’s continued development and to ensure what was best for the business.
When the brand was launched in 2017 Bremnes said it was aimed at conquering new markets in Asia and countries like Spain.
The Salma site employed 100 people and many are likely to lose their jobs. Bremnes said it had been difficult to deliver such a message, especially before Christmas.
The company statement added: “We are doing this to strengthen the company for the future and ensure that Bremnes Seashore is a sustainable and robust player.”
CEO Linda Litlekalsøy Aase said it had been a difficult but necessary decision: “Salma has been an adventure that has put Norwegian salmon on the world map and created great pride in the entire organisation. But economic realities mean that we can no longer justify further investment in Salma.
“The salmon venture has been running at a loss in recent years. Forecasts show that this will continue, with losses in the order of several tens of millions of kroner annually.
She added: “The market situation has changed, and high prices mean that not everyone can afford highly processed salmon products. This has made it challenging to achieve volumes that ensure profitability.”
The company said that raw material prices had increased, and both internal and external costs have increased, after the decision had been made to invest in a new factory.
The factory contains a new chiller, freezing facilities, a state-of-the-art fillet line and the Salma line. The first three will be further developed, while Salma production will be discontinued.
Aase said: “It would also not have been a disadvantage if the authorities had made better arrangements for Norwegian ownership and processing in Norway, including by avoiding increased taxes and by strengthening the framework conditions for processing.”
She stressed that the discontinuation of Salma production frees up resources that will strengthen the company focus on other quality salmon, which is part of Bremnes Seashore’s core business.
The CEO concluded: “To succeed in the future, we must be well equipped to ensure that the salmon we produce is healthy, grows well and maintains high quality. This requires investments in larger post-smolt, better shielding technology in the sea, upgraded reception facilities and, not least, more measures to improve biosecurity. Such investments are absolutely necessary to meet the future.”
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