Leading salmon farming companies across Norway are cancelling contracts aimed at increasing capacity after the government announced a tax rate hike on aquaculture from 22% to 62%.
Lerøy Seafood Group has pulled out of a deal to buy 614 tonnes of maximum allowable biomas at a value of NOK123 million (€11.7 million) whilst Mowi has cancelled its acquisition of 914 tonnes valued at NOK183 million (€17.4 million).
Lerøy has halted all major new investments included a NOK420 million (€40 million) plan already in train to increase processing capacity at Skjervøy in Troms. “Norway needs to step up, not least in these difficult times, and continue to facilitate production of food for the world’s population,” said chief executive, Henning Beltestad.
“This value chain has significant potential for further development, but then the government needs to work together with the industry and provide predictable framework conditions.
“Introducing a resource rent tax will halt development of the industry’s value chain and hence reduce all its direct and indirect ripple effects along the coast,” he added.
Mowi is calling on the government to reconsider the proposal. “A tax rate of 62% will put an end to many significant investment plans along the Norwegian coast, leading not only to less employment locally but also to a massive diversion of funds away from coastal communities,” said the company.
“If the proposal for 62% tax is approved by parliament then the Norwegian aquaculture industry faces the greatest setback in its 50-year history, and over time Norway stands to lose its leading position within aquaculture to other countries,” it concluded.
