Biological issues in Canada impacts Mowi’s bottom line
By Liza Mayer
Mowi’s operations in Canada continue to suffer from biological challenges, putting a damper on the Group’s otherwise stellar overall performance in the third quarter of 2021.
The Norwegian salmon producer said a low oxygen incident in its operations in Newfoundland and a plankton bloom in the Quatsino-area farm in British Columbia raised farming costs and fetched for the Newfoundland operations lower prices for the untimely harvested fish.
Mowi said it will temporarily pause growth ambitions at its Newfoundland farming region following the recent biological issues.
“We’re going to continue growing fish, just the expected pace of growth has been slowed,” says Mowi Canada East Managing Director Alan Cook. “Effectively, we had planned to scale up to three farms according to the Bay Management Area (BMA) in the Bays West region over the next years. For the next two years, we will stock two farms.”
He said the unit is testing a variety of methods, such as in-feed, bath treatments, freshwater, hydrolicers and thermolicers to address the issues.
“We’ll make a decision about 2024 based on how we do over the next two summers. Once we find a system that works consistently, we’ll go back into growth mode,” he said.
Mowi said the decision regarding its eastern Canada unit does not impact the organization, “however, we reserve the right to make adjustments if and when it’s required.”
Overall, the Group had an overall exceptional performance, with revenues reaching a record high of €1.03 billion ($1.19 billion) in 3Q. Operating profit was up 64 percent in 3Q over the same period in 2020.
The salmon industry giant attributed the growth to the improvement in foodservice activity and sustained retail demand.