Norwegian aquaculture company Norcod will continue the commercial harvest of its first batch of farmed cod through to April this year and is on course to achieving its target volume of 5,000 tonnes.
In a new filing with the Oslo Stock Exchange, Norcod stated that 2021 had been a successful year for the company, with it “comprehensively delivering proof of concept” for cod farming in Norway. It also confirmed that it has entered into a “landmark delivery contract” with a major Spanish supermarket chain, delivering 850 tonnes of fish with a fixed gross price of NOK 60 per kg delivered in Spain.
“This is an exceptional agreement, confirming our strategy to enter into fixed price contracts, and even more so in that it will occur during the wild fishing season,” Norcod CEO, Christian Riber, said. “It also signals that we are achieving our goal to clearly differentiate our farmed cod from wild-caught cod, even through the high-season, and at high prices.”
Norcod has also taken the decision to extend its in-sea growth phase to deliver an average of 4-plus kg fresh cod to the market. As a consequence, the company has increased its expected harvested volume for 2025 by 10% to 27,500 tonnes.
“We also expect to command higher prices in the market by delivering larger fish that are even better suited for fillet production,” said Riber.
He highlighted that due to the COVID-19 pandemic, high demand and inflation, the aquaculture industry has experienced an increase in raw material and transportation costs. As a direct result, Norcod anticipates a 15% increase in Capex going forward, estimating approximately NOK 18 per kg MTB volume.
To be conservative, Norcod is adjusting its Capex to reflect higher prices on farming equipment, but the company remains confident that this will only have a very limited effect on the business, as it continues to see strong improvements in production costs, said Riber.
“We are well on track to execute our long-term strategy to become the world’s premier supplier of high-quality, responsibly-farmed cod on a year-round basis. Buyers are eager for our product and we expect the market to grow as we grow,” he said.
Norcod’s fish farms are located in mid- and north-Norway.
