Mowi, the world's largest salmon farmer, expects to expand 2022 production in just one country, Chile, of the six countries in which it operates.
According to the guidance provided in its Q4 results, Mowi expects overall harvest volumes to remain basically flat this year at 460,000 metric tons (MT), versus the 465,600 MT it harvested in 2021. Harvest expectations for this year are slightly lower for Norway, at 272,000 MT versus 273,200 MT in 2021; Ireland at 6,000 MT, versus 6,800 MT in 2021; and the Faroe Islands, at 9,000 MT, versus 9,900 MT in 2021. Harvest expectations are slightly higher in Scotland, at 65,000 MT versus 64,400 MT in 2021. Mowi's harvest expectations are significantly lower in Canada, at 37,000 MT versus 45,300 MT in 2021, which the company attributed to a challenging biological situation in the region. The company faced a salmon die-off at its Newfoundland, Canada-based facility in September, before experiencing more die-offs in November.
In Chile, Mowi expects to harvest 71,000 MT this year, 7.8 percent higher than 2021 levels of 66,000 MT.
In Q4 2021, Mowi harvested a total of 115,000 MT of salmon, down from the 126,600 MT harvested in the same quarter of 2020. In Chile, it harvested 16,500 MT in Q4 2021, down 17.9 percent year-over-year when compared to the 20,100 MT harvested in the same quarter of 2020.
There was an estimated 728,000 MT of Atlantic salmon harvested globally in the fourth quarter, a higher-than-expected total, according to Mowi. That was driven mainly by increased harvests in Chile and Norway, though in Chile, many farmers harvested more lower-weight salmon, Mowi said.
“Favorable selling prices, coupled with risk reduction in advance of the algal season, are likely causes for the early harvesting," it said. "The industry experienced an algal bloom in early 2022 and the preliminary estimate of losses is approximately 1.5 to 2 million fish."
The Bergen, Norway-headquartered firm achieved operational earnings before interest and taxes (EBIT) of EUR 145.8 million (USD 166 million) in the fourth quarter of 2021, nearly tripling the EUR 49.4 million (USD 56.3 million) that it posted in the corresponding period of 2020, thanks to higher sale prices.
In Chile, Mowi was able to return to the black in the fourth quarter, moving from an operational EBIT that signified a loss of EUR 9.9 million (USD 11.2 million) in the fourth quarter of 2020 to a gain of EUR 10.6 million (USD 12 million) in the same period of 2021, also thanks to better prices.
However, “price achievement was negatively impacted by size distribution and quality downgrading … in Chile due to sores from SRS and tenacibaculum,” it noted.
Photo courtesy of Mowi
