The Norwegian Institute of Food, Fisheries and Aquaculture Research (Nofima) said on Monday that the country’s salmon producers can earn more by adding value to their products, but just how much more is tough to determine.
“The salmon industry has become more interested in adding value to products to increase earnings, but it is difficult to say how profitable this is,” said Nofima senior scientist Geir Sogn-Grundvåg.
With the help of scientists from Nofima and the University of Stirling, Scotland, Sogn-Grundvåg examined salmon producers in Norway, Scotland and Chile. The research indicated that the producers can achieve competitive advantages by developing products that stand out, but most of the strategies can be copied and, as such, provide only a temporary market advantage.
“One example is how the producers have copied pre-packed smoked salmon which is sliced and visible through a plastic window,” said Sogn-Grundvåg. “There is now an extremely large selection of this product type from many different producers, commonly with very limited differences between them.
“Several of the characteristics and methods that are used are common for the companies, which shows they are not alone in the choice of strategy. This means that companies must work continuously to develop and maintain the advantages they have achieved,” he added. “Companies wanting to differentiate their products should therefore concentrate on strategies and product characteristics that they can produce but are difficult to copy.”
The research was published in the journal Norsk fiskeoppdrett.
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