Norwegian Salmon Farm Consolidation Continues



The Chief financial Officer of Norway based Sal-Mar a major Norwegian seafood company, was reported to have said consolidation is in the cards for them.

This is not surprising since Norway has seen 1.1 billion of fish deals so far this year. Bloomberg news reported a that is an increase from 332 million in salmon deals in 2009. This followed salmon prices rising to a four year high.

Norway is the world’s largest supplier of salmon with more than 100 salmon companies and nearly 1,000 licenses. One Norwegian company, Marine Harvest, holds 22% of the total.

Current regulations restrict any one company to a maximum ownership of 25% of the licenses. Marine Harvest is currently challenging this restriction and is reported to have filed a complaint with the World Free Trade Association.

Other companies with large holdings in the Norwegian salmon industry are looking at acquisitions. One is reported to be watching fish health issues in Chile closely. Chile is the second largest fish farming nation. Chile has seen significant health issues and the collapse of the herring fishery which supplies the salmon feed.

An executive at Marine Harvest noted that the salmon industry in Scotland is already fairly consolidated and that in Canada there are now only three players.