The total harvest was 1.479 million tonnes in 2023 with the value of exports hitting a record 122.4 billion NOK ($11 billion), an increase of 16 percent, despite 2 percent lower volumes. At the macro level, the weak Norwegian kroner and the resource rent tax also impacted income.
Norway retained its position as the largest producer of salmonids, but the two percent drop in production contributed to a 1 percent decline in total global harvest compared to 2022. Chile, the second largest producer, harvested 1.1 million tonnes, accounting for 34 percent of the global market.
“2023 was an outstanding year for the Norwegian salmon industry, achieving an all-time high in earnings. Prices and profits were up, though production declined marginally, down for the third consecutive year,” said Filip Szczesny, salmon analyst at Kontali.
“At the regional level, North Region did excellently with the highest earnings per kilogram (EBIT/kg), reflecting exceptional profitability. Mid Region led in operational efficiency with the best capacity utilisation, while South Region surpassed Mid Region in EBIT/kg for the first time since 2017,” he added.
© Kontali Edge
Top performers
Among the major companies, Mowi South emerged as the leader, reporting the highest operational EBIT of 38.1 NOK/kg, a significant improvement from 24.3 NOK/kg the previous year. SalMar North followed with an EBIT of 36.7 NOK/kg, slightly below its 2022 figure of 39.8 NOK/kg.
In the mid-sized company segment, Alsaker outperformed its already strong 2022 results, recording an impressive 36.9 NOK/kg, up from 36.1 NOK/kg. Eidsfjord Sjøfarm followed closely with an EBIT of 36.4 NOK/kg, while Salaks and Kobbevik & Furuholmen tied for third place at 33.3 NOK/kg.
For smaller companies, Sjurelv Fiskeoppdrett AS stood out with an exceptional EBIT margin of 48.8 percent, the highest in its category. Erviks Laks og Ørret AS and Kobbvåglaks AS also delivered remarkable results, achieving EBIT margins of 46 percent and 45.6 percent, respectively, far exceeding the industry average.
Price trends and dynamics
The dip in production contributed to driving prices upward, with the weighted average price of fresh Atlantic salmon increasing by 13 percent to 93 NOK/kg. Price volatility was significant, with fluctuations of approximately 80 percent between the lowest and highest points. Segment-specific variations in price were also notable, with salmon over 7kg reaching a high of 140 NOK/kg at one point.
Price dynamics were further shaped by a fluctuating Norwegian kroner (NOK) which reached historically low levels against the Euro. While price achievements for fresh whole salmon rose by 4 percent in euros, the weaker NOK led to an 18 percent increase in NOK prices, amplifying the financial impact. European markets remain the most important for Norwegian salmon, absorbing 70 percent of its total exports. However, the United States and other markets had the biggest increase in export share, rising to 7 percent and 17.4 percent, respectively.
The resource rent impact
In 2023, a resource rent tax (RRT) on salmon farming was introduced, impacting on company income across Norway. Most companies have disclosed estimated tax liabilities in the notes section of their financial accounts. Kontali’s analysis of payable RRT highlights two key findings. First, the total payable RRT is reported to be NOK 2.6-2.7 billion, which is lower than the government’s projected RRT revenue of NOK 3.5 billion. While the final tax amount is yet to be determined, any final difference could result in a significant discrepancy between the anticipated and actual outcomes of the tax’s implementation.
Second, companies harvesting 10,000 to 30,000 tonnes report the highest payable RRT per MAB unit, at NOK 5-6 per kg MAB, while larger producers harvesting over 30,000 tonnes estimate a tax cost of less than NOK 3 per kg MAB. Although the tax scheme includes a minimum standard deduction intended to provide relief to smaller players, the data suggest that mid-sized companies might be bearing the highest tax burden per MAB unit. This outcome contrasts with the government’s stated objective for the largest companies to contribute the highest share of the tax, both in absolute and relative terms.
Value chain performance
Smolt producers enjoyed a standout year, with earnings before interest and taxes increasing by 210 percent, with the average EBIT margin rising to 26 percent, up from 12 percent in 2022. Export companies also performed better than the previous year, achieving an 11 percent growth in net sales and an increase in operating margins from 1.3 percent to 1.7 percent, but the latter is still consistent with historical averages for this part of the value chain.
