Salmon-farming firm Mowi has entered into a strategic and industrial partnership agreement with Skretting/Nutreco, which will see it produce feed based on Skretting’s formulations.
Mowi said the new partnership will deliver more than NOK 650 million (USD 64 million, EUR 54 million) in annualized net cost savings through improvements in procurement and logistics and through better feed formulations and recipes. The company said it plans to retain its two feed factories, which will provide an estimated NOK 825 million (USD 81 million, EUR 69 million) in EBITDA in 2026.
Mowi first announced it was planning a strategic review of its integrated feed division in March in order to assess how that part of the company would be organized as the company continues to grow. The new partnership is a result of that investigation, the company said.
“Mowi and Skretting are a great match for each other, and the partnership with Skretting is our preferred outcome from the strategic review process,” Mowi CEO Ivan Vindheim said. “I am confident that teaming up with them will make Mowi into an even better salmon-farming company. With this agreement, Mowi Farming secures the best performing feed in the coming years at the lowest cost in the industry.”
Vindheim said that Mowi and Skretting have worked together for “decades” and the new agreement will help both companies drive innovation in feed formulations.
“This partnership model presents a low-risk solution for Mowi while ensuring cost savings from day one on improved feed formulation and optimized procurement and logistics,” Vindheim said.
The company also said that keeping its feed facilities as-is will maintain profits in the feed value chain – especially as the company is anticipating feed market supply tightening, which will drive up costs.
“The partnership model whereby Mowi Feed is retained gives us the best of both worlds; teaming up with Skretting with all the benefits that it entails and at the same time retaining Mowi Feed with an improved market outlook make this the most compelling solution,” Vindheim said.
