Salmon producer Mowi ASA has entered into a strategic and industrial partnership agreement with Skretting, the aquaculture feed division of Nutreco, a move the company says will strengthen its competitiveness as a salmon farmer while delivering substantial cost savings.
Under the agreement, Mowi will continue to produce feed through its wholly owned feed division, Mowi Feed, but production will be based on Skretting’s proprietary feed formulations. The partnership is expected to generate more than NOK 650 million (€55 million) in annualised net cost savings through improved feed recipes, procurement efficiencies and optimised logistics.
Mowi announced the deal following the conclusion of a strategic review of its Feed Division, which was first disclosed in a stock exchange release on 4 March 2025.
“Mowi and Skretting are a great match for each other, and the partnership with Skretting is our preferred outcome from the strategic review process,” Mowi CEO Ivan Vindheim said. “I am confident that teaming up with them will make Mowi into an even better salmon farming company.”
As part of the agreement, Mowi will retain Mowi Feed as a standalone business unit, including its two state-of-the-art feed factories in Norway and Scotland. The feed division is expected to contribute NOK 825 million in EBITDA in 2026, benefiting from what Mowi expects to be a tightening global feed market in the coming years.
Combined, the retained Mowi Feed business and the new partnership with Skretting are expected to deliver a total EBITDA contribution of more than NOK 1.475 billion. This corresponds to earnings of NOK 2.1 per kg (GWT) for the Mowi Group and NOK 2.6 per kg for Mowi Norway, or approximately NOK 1.7 in earnings per share.
“With this agreement, Mowi Farming secures the best performing feed in the coming years at the lowest cost in the industry,” Vindheim said. “The partnership will deliver improved feed formulation and recipes for our European salmon farming operations, driving significant cost improvements while ensuring top quality feed performance.”
The agreement builds on a long-standing commercial relationship between the two companies, with Skretting supplying salmon feed to Mowi for decades.
As feed formulation has grown more complex, access to specialised nutritional know-how and innovation capacity has become increasingly important, Mowi said. Through the partnership, Skretting will make its proprietary knowledge, R&D resources and procurement strengths available to Mowi, in return for a modest annual consideration.
“We know the Skretting team extremely well and have enjoyed an excellent working relationship with them for decades,” Vindheim said. “Now we are taking this cooperation to another level and formalising how we can drive innovations and cost improvements.”
Mowi said the partnership structure offers a low-risk solution, delivering cost savings from day one while allowing the company to retain profits embedded in the feed value chain. Keeping Mowi Feed intact also positions the group to benefit from any further tightening in feed supply and pricing.
“The partnership model whereby Mowi Feed is retained gives us the best of both worlds,” Vindheim said. “We team up with Skretting and all the benefits that entails, while at the same time retaining Mowi Feed with an improved market outlook. This makes it the most compelling solution coming out of the strategic review.”
