Skretting has said it will close its UK feed production facility at the end of April 2019 because of overcapacity in the salmon feed market.
The Norwegian company confirmed it will focus on better utilising the company’s existing production facilities in Europe but has no plans to stop production in other markets and will continue to pursue its growth strategy. It said it will continue to supply to the UK market where economically viable.
Therese Log Bergjord, CEO of Skretting, said: “Unfortunately, we are experiencing unsustainable market conditions in the UK. With a new large feed plant becoming operational in Scotland early 2019, the total feed capacity in the region is expected to exceed the total market by more than 50%. This is driving down prices, leading to an unsustainable commercial environment.”
Skretting has started a consultation process with employees about the plan in which all locations, including two production sites, will close down, and around 100 employees may become redundant, stated Log Bergjord.
The company will actively pursue further sustainable expansion of the global aquaculture industry from its operations in 19 countries across all continents.
“Aquaculture is an increasingly important and attractive solution to meet growing demand for healthy food. As the global leader in aquafeed, we are fully aware of our responsibilities. That is why we are prepared to take tough decisions to ensure sufficient profitability to finance our future and to remain a pioneer of continued sustainable development of the aquaculture industry,” said Log Bergjord.
