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Norcod increases 2025 harvest forecast by 10 percent

Norwegian cod farming company Norcod has entered a new contract with a Spanish supermarket chain and increased its 2025 harvest forecast by 10 percent after a successful 2021.

The Fish Site
by The Fish Site
25 January 2022, at 10:31am
People standing at the edge of an ocean pen
Norcod appears to be on track to harvest 5,000 metric tonnes of biomass

© Norcod

A market report shows that as well as being on track to achieve a target harvest volume of 5,000 metric tonnes by April 2022, Norcod has landed a contract with a major Spanish supermarket chain. The contract will have Norcod delivering 850 metric tonnes with a fixed gross price of NOK 60 per kg (€5.90) of fish 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,” said Norcod CEO Christian Riber.

“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,” he added.

Based on last season’s strong biological performance, Norcod has decided to extend the in-sea growth phase to deliver an average of 4+ kg fresh cod to the market. As a result, the company has increased its expected harvested volume for 2025 by 10 percent to 27,500 metric tonnes.

net pens near the shore
The company has decided to extend the in-sea growth phase for its cod

© Norcod

“We also expect to command higher prices in the market by delivering larger fish that are even better suited for filet production,” said Riber.

Due to the Covid-19 pandemic, high demand and inflation, the aquaculture industry has experienced an increase in raw material- and transportation costs. Because of this, Norcod anticipates a 15 percent increase in Capex going forward, estimating approximately NOK 18 per kg (€1.77) MTB volume.

“To be conservative, we are adjusting our Capex to reflect higher prices on farming equipment, but we are confident this will only have a very limited effect on our business, as we continue to see strong improvements in production cost. 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,” said Riber.

According to the release, the Spanish contract is especially motivating for staff across all the company’s fish-farm sites as well as the commercial managers. “As our brand becomes more widely known, it cements confidence in our business case, our focus on sustainable farming and fish welfare, and our ultimate goal to provide a source of healthy protein for a hungry world,” said Riber.