There has been an abundance of wild-caught cod on most European markets over the last six months and with these supply conditions expected to prevail well into 2011, cod farming would appear to be out in the cold.
Indeed over the last two years, many of the producers who had vowed to raise the species in pens and preserve this almost-sacred consumer market have pulled the plug on their operations.
In most cases the facilities and infrastructure have been turned over to salmon farming.
Last year Norwegian giants Marine Harvest and Villa Organic terminated their respective investments in cod production, citing an implosion of the industry. More recently, in April, Canada’s Cooke Aquaculture announced it was walking away from the sector after six years.
Cooke said the lower prices being paid in world markets and higher than expected production costs had combined to make the business unprofitable at this time.
It still has more than 150,000 cod in the water along Newfoundland’s south coast and will continue to grow these fish out until harvest, expected at the end of 2012.
But advocates of farmed cod still exist. Cooke, despite having its fingers burned, still believes the fish has strong potential further down the line.
Even more optimistic are Norwegian producers Atlantic Cod Farms and White Ocean. Both claimed at a conference at the start of the year that production costs are falling and they were confident there would be a turnaround in prices in the second half of 2010.
They believe they can succeed if they stick to a steady rate of production and a stable rate of slaughter and delivery.
Atlantic Cod Farms’ Managing Director Kenneth Brandal also reckons farmed cod has been missing its mark as 90% is currently sold frozen in Europe, whereas research shows consumers want fresh cod.
Farmed cod can and should be delivered fresh all year round, Brandal said.
Is this the simple point of difference cod farmers have been looking for?
