Norway’s salmon industry reports record profits

NORWAY – Norway’s salmon industry posted record-breaking profits in 2023 despite facing reduced production levels and rising costs. 

According to data from Kontali, earnings per kilogram increased by 15 to 20 percent, driving the total value of salmon exports to US$11 billion, up 16 percent from the previous year.

This increase occurred even as production volumes dropped by 2 percent to 1.479 million tonnes.

The weaker Norwegian krone and the implementation of a resource rent tax influenced overall income at a macroeconomic level.

Despite these challenges, Norway maintained its position as the leading global producer of salmonids.

However, the reduced output contributed to a 1 percent decline in global salmon production compared to 2022.

Chile, the second-largest producer, harvested 1.1 million tonnes, accounting for 34 percent of the global market.

Filip Szczesny, a salmon analyst at Kontali, described 2023 as a remarkable year for the industry.

“Prices and profits increased significantly, though production decreased for the third consecutive year,” he stated.

At a regional level, Norway’s North Region achieved the highest earnings per kilogram (EBIT/kg), demonstrating strong profitability.

The Mid Region led in operational efficiency with optimal capacity utilization, but the South Region surpassed it in EBIT/kg for the first time since 2017.

Among major companies, Mowi South led with an operational EBIT of US$3.44 per kilogram, a notable rise from US$2.20 per kilogram in 2022.

SalMar North followed with US$3.31 per kilogram, slightly down from US$3.60 the previous year.

Mid-sized companies also performed well.

Alsaker recorded an EBIT of US$3.34 per kilogram, up from US$3.27 in 2022, while Eidsfjord Sjøfarm reported US$3.30 per kilogram.

Salaks and Kobbevik & Furuholmen tied at US$3.02 per kilogram.

Smaller companies saw impressive margins. Sjurelv Fiskeoppdrett AS achieved a 48.8 percent EBIT margin, the highest in its category, while Erviks Laks og Ørret AS and Kobbvåglaks AS reported margins of 46 percent and 45.6 percent, respectively.

The average price of fresh Atlantic salmon rose 13 percent to US$8.41 per kilogram, with larger salmon over 7 kg reaching highs of US$12.67 per kilogram during price peaks.

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