Aquafeed and fingerling producer Skretting announced on Tuesday, 6 November, it will cease all production in the United Kingdom by April 2019.
The Stavanger, Norway-based firm, which is owned by Nutreco, has two production sites in the United Kingdom, employing around 100 workers. Skretting said it has entered consultation with its employees to close both facilities – one located in Invergordon, Scotland, and the other in Longridge, near Preston, in northern England.
Skretting CEO Therese Log Bergjord said the move was a result of overcapacity in the country’s marketplace.
“Unfortunately, we are experiencing unsustainable market conditions in the U.K.,” Log Bergjord said in a press release. “With a new large feed plant becoming operational in Scotland early 2019, the total feed capacity in the region is expected to exceed the total market by more than 50 percent. This is driving down prices, leading to an unsustainable commercial environment.”
Log Bergjord said Skretting will aim to continue to serve the U.K. market “where economically viable,” through its other facilities elsewhere in Europe.
“This is a tough decision for Skretting’s management team and our owner, Nutreco, considering the implications for our local employees and partners,” she said. “First and foremost, we now concentrate on finding good solutions with our employees, customers, suppliers and partners in the U.K.”
The company has no plans to stop production in other markets and will continue to pursue a growth strategy outside of the United Kingdom, Log Bergjord said. Skretting currently operates in 19 countries across on six continents.
“Aquaculture is an increasingly important and attractive solution to meet growing demand for healthy food. As the global leader in aquafeed, we are fully aware of our responsibilities,” Log Bergjord said. “That is why we are prepared to take tough decisions to ensure sufficient profitability to finance our future and to remain a pioneer of continued sustainable development of the aquaculture industry.”
Photo courtesy of Skretting
