Norway-based salmon farmer Marine Harvest reported a total harvest volume of 105,963 metric tons (MT) in the third-quarter of 2015, down from 107,333 MT in the corresponding period of last year, which it largely attributed to continuing biological challenges, particularly sea lice.
The group has therefore reduced its harvest guidance for the year by 5,000 MT to 425,000 MT. Its guidance for 2016 is 440,000 MT.
According to the outlook statement from the board of directors, costs related to sea lice are currently “unacceptably high,” and it stressed that costs and associated biological performance need to be improved going forward.
“This is not only important from a production cost perspective but also in terms of achieving environmental sustainable production for the salmon farming industry in general,” it said.
During Q3 2015, Marine Harvest’s salmon of Norwegian origin achieved operational earnings before interest and taxes (EBIT) of NOK 10.11 (EUR 1.07; USD 1.19) per kg, up from NOK 9.71 (EUR 1.03; USD 1.14) in Q3 2014. Its salmon of Scottish and Canadian origin reported operational EBITs of NOK 6.14 (EUR 0.65; USD 0.72), respectively, down from NOK 9.95 (EUR 1.06; USD 1.17) and NOK 4.70 (EUR 0.50; USD 0.55) a year previously. Salmon of Chilean origin reported an operational EBIT of NOK -6.50 (EUR -0.69; USD -0.76) in Q3 2015, compared with NOK 6.06 (EUR 0.64; USD 0.71).
“The production cost in the quarter is high due to biological issues and negative impact from currency. Increasing sea lice mitigation cost in Norway is a concern. Sea lice are the industry's biggest challenge. To combat this, Marine Harvest has implemented a new sea lice management strategy,” said Alf-Helge Aarskog, CEO of Marine Harvest.
Some of the key initiatives in its sea lice strategy include:
- Keeping the adult female sea lice levels low in all pens at all times, and not only at site level
- The use of different types of cleaner fish is extensive across all farming operations
- Ensuring that pens are clean to improve the effectiveness of the cleaner fish
- The use of lice skirts, submerged lighting and optical lasers to reduce the sea lice pressure
Marine Harvest also has a policy of counting lice weekly on pen level and treating pens that exceed 0.2 adult female sea lice (non-medical treatments are normally used as the first treatment option). Sharing best practices and good husbandry are also key aspects of the strategy.
Overall, the group achieved an operational EBIT of NOK 720 million (EUR 76.6 million; USD 84.7 million) in Q3 2015, down from NOK 912 million (EUR 97 million; USD 107.3 million) a year previously.
