Mowi to make feed division self-sufficient and sustainable
With a switch to bulk marine transport, that reduces costs and the company’s environmental footprint and with a higher flexibility to meet customers demand, the company aims to be self-sufficient in Europe and maintain full control of the feed production process.
March 26, 2020
Mowi established a separate fish feed division in 2012 and now operates two modern feed mills in Norway and Scotland. The company’s requirements for feed have increased in recent years as its farming division has grown, and now the majority of the feed used in its farming operations is sourced internally, according to its Integrated Annual Report.
The company said that the Scottish factory has now been completed and produced 51,883 tons in 2019. The feed mill is set to produce 240,000 tons of feed a year and can deliver different types of freshwater, seawater and organic feed. The Norwegian feed mill at Valsneset produced 353,310 tons of feed in 2019 and the company aims to be self-sufficient in Europe with a total production capacity of 600,000 tons of feed.
Prior to Mowi entering the feed business, salmon farms across Norway, Scotland, the Faroe Islands and Ireland received their feed in 750kg bags, with much delivered by road. The company is switching to bulk marine transport that reduces costs and the company’s environmental footprint. Since the Kyleakin feed mill entered production, 10,000 annual cross-country truck journeys have been taken off Scotland’s roads and the same is happening with raw materials.
In 2019, particular attention was paid to expanding the raw materials basket for fish feed production, which involves lowering our reliance on wild-caught fish. Mowi Farming used 0.66 kg of wild-caught fish to produce 1 kg of farm-raised salmon in 2019 - comparatively, in 2018 the company used 0.75 kg.
“In terms of raw material development, we strive towards independence from specific raw material sources be they of marine origin or those derived from commodities including wheat, soya, corn, peas or beans, etc. This will secure our cost competitiveness in the face of fluctuations in commodity markets and give us the power to catalyze change in the supply chain through our ability to switch between sustainable, responsible, solutions when circumstances dictate it. In seeking to expand our spectrum of available raw materials, we continue our efforts by validating promising candidates including those derived as by- or co-products from other feed, food and even non-food industries. Within this scope, we include products derived from insects, alcohol fermentation, CO2 capture and forest,” the report states. The expertise and flexibility of the Feed Division is allowing Mowi to react much more quickly to customer trends and create branded products to meet specific market demands. Atle Kvist, CEO of Feed Division, said that this flexibility was not possible when the company had to deal with external feed suppliers.
“Feed is the key ingredient to success in aquaculture, so it makes sense that the world’s largest salmon farming company maintains full control of this vital part of the process. This tight control also enables us to create niche feed required for our new premium brands now launching around the world,” said Kvist.
Download the report here.