NORWAY – Mowi ASA, the world’s largest salmon farming company, is aiming to boost its annual harvest by 20% while cutting costs as it works to meet rising demand for salmon despite challenges from diseases and sea lice.
The Norwegian firm is focusing on technology-driven solutions to achieve these targets within the next half decade.
During its recent capital markets day, Mowi revealed that it is pushing for €400 million (US$46.3M) in cost reductions over the next five years.
The company plans to do this by embracing Industry 4.0 technologies, which include increased automation, digital tools, and robotics.
The cost-saving measures are intended to counter the impact of inflation, stricter regulations, and biological challenges.
Mowi’s technology initiatives will range from remote operations and real-time monitoring of fish stocks to digital systems for counting sea lice and automated feeding methods.
Since the launch of its Mowi 4.0 program in 2021, the company has already realized savings of €307 million (US$341.7M), with €207 million (US$230.3M) coming from its farming operations alone.
This year, Mowi reported a 2% drop in operating revenue for the second quarter of 2024, with earnings of EUR 1.34 billion (US$1.49 billion).
Operational earnings before interest and tax (EBIT) fell by 23% year-over-year, reaching EUR 229.5 million (US$255.1 million).
The company pointed to lower farming costs and a seasonal rise in sea conditions as factors supporting its production.
Mowi is on track to meet its goal of producing 500,000 tonnes of salmon, a significant increase from the 375,000 tonnes harvested in 2018.
The company is also reviewing its operations in Canada West after the Canadian government announced a ban on open net-pen salmon farming in British Columbia.
Mowi’s CEO noted that the Canadian West operations have been a smaller part of the company’s overall business, with the region producing 19,000 metric tons last year and contributing just EUR 11 million (US$12.2 million) to its total revenue, accounting for only 1% of Mowi’s overall profit.
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