Fry and smolt – hatchery production

Self sufficient with high quality smolt

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As a leading international producer of farmed salmon, having access to adequate supplies of high quality smolt is crucial to SalMar. It is therefore of strategic importance to the company to be as far as possible self-sufficient in smolt.

SalMar produces fry and smolt at six separate facilities in Møre og Romsdal, South Trøndelag, North Trøndelag and Troms. In addition, Salmar has one lumpfish production unit and one onshore facility for the production of roe.

In central Norway SalMar has five hatcheries located at Follafoss in Verran, Kjørsvikbugen in Aure, Setran in Osen, Straumsnes in Tingvold and Langstein in Stjørdal. SalMar owns 60 per cent of the Langstein facility, while the remaining hatcheries are wholly owned. The smolt production in Northern Norway is undertaken at SalMar’s facility at Gjøvika. Almost all of SalMar’s smolt production is used to supply its own fish farms. The company currently has adequate supplies of smolt of the required quality.

SalMar’s hatcheries have access to freshwater resources which will allow continued growth in output. This is particularly true of the largest hatcheries at Follafoss and Kjørsvikbugen. In the past years SalMar has also invested in recycling technology which permits a higher production of smolt with less consumption of fresh water.

SalMar’s hatcheries are largely built up around alternative energy resources. The Follafoss facility uses the waste water from a nearby wood processing plant to heat the water used in production by means of a heat exchanger, while the cooling water from Statoil’s methanol plant at Tjeldbergodden is correspondingly used by the Kjørsvikbugen hatchery. These measures result in reduced energy costs. Both at Follafoss and Langstein the water utilised for smolt production has previously been used for power generation. In order to have a back-up for the water from the wood processing plant investments in recycling and heat pump technology are being undertaken at Follafoss.

High quality smolt is a precondition for the safe and effective production of farmed salmon. By establishing its own standards and associated action plans SalMar has sought to focus on smolt quality. To make effective use of the production potential of SalMar’s fish farms it is important that the transfer of smolt to the sea is spread over the whole year. Achieving non-seasonal smolt production has therefore been an important objective for SalMar’s hatcheries.

The company’s hatcheries have substantially upgraded their facilities the last few years. This effort has been associated partly with necessary production growth, partly with environmental measures such as waste water treatment, and, not least, with measures to prevent fish from escaping from the hatcheries. SalMar has a zero-tolerance policy with respect to escape from its hatcheries.
During 2015 SalMar has started to expand two of its facilities. After this, Troms Stamfiskstasjon will produce 15 million smolt. Construction started in the spring of 2015, with the first smolt due for delivery in the autumn of 2017. This facility will also play an extremely important role in SalMar’s plans to achieve self-sufficiency in smolt production in Troms and Finnmark. At SalMar Settefisk’s Follafoss facility, output will increase from 11.5 million to 20 million smolt. This new facility will go into operation in the autumn of 2017.

SalMar’s lumpfish production unit is located in Langstein. The facility currently has the capacity to produce 1.4 million vaccinated lumpfish. This capacity will gradually be increased through 2016 to reach around 3 million vaccinated lumpfish in 2017.

Located at Vågstranda in Romsdal, SalMar’s onshore salmon roe production facility has the capacity to produce 60 million roe each year. However, current output stands at around 25 million roe. SalMar has its own breeding material: the Rauma stock.

 

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Farming

High quality locations and biological control

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Fish farming Central Norway
The bulk of SalMar’s marine-phase fish-farming activity is organised in SalMar Farming AS, and takes place in Central-Norway, from Nordmøre to the Namdal coast. Fish Farming Central Norway is divided into three regions, south (Nordmøre), central (Frøya – Hitra) and north (Fosen – Nord-Trøndelag). At the close of 2015 the segment employed some 250 people. This region offers extremely favourable environmental conditions for the production of salmon, with good temperatures all year round thanks to the Gulf Stream, good circulation of seawater and good access to appropriate sites.

SalMar’s fish farms focus on cost-effective operations and a high ethical standard with respect to animal husbandry. To help SalMar achieve its goal of being the most cost-effective producer of salmon, there is a constant focus on sub-goals, such as fastest possible growth with the lowest possible feed factor. Early on the company established its own standards and “best practices” to achieve greater efficiency. This means the concentration of marine production at larger facilities with the right capacity and sustainability.

SalMar Central Norway harvested 80,500 tonnes gutted weight in 2015, divided between 52 production licences: 34 in Trøndelag and 18 in Nordmøre. In addition, the segment operates several R&D licences, three of which in association with the research firm ACE (Sintef). The purpose of these licences is to develop more sustainable technologies. The segment also cooperates with VESO on the operation of two licences associated with improved fish health. The collaboration it used to have with Frøya Upper Secondary School came to an end in July. SalMar Farming acquired seven licences in the Green B round of licence awards in 2014. These went into operation in July of that year. With effect from 1 January 2015, SalMar Organic was merged into SalMar Farming AS.

Fish farming Rauma
SalMar’s segment in Rauma harvested 16,400 tonnes gutted weight in 2015, divided between 16 marine-phase production licenses. These include conventional, organic and broodfish licences. The Rauma segment has operations in eight districts. Although the bulk of its fish farms are located in the Romsdal region, it also has sites in several districts in Sunnmøre. The Rauma Segment is from 1 January 2016 included in Fish Farming Central Norway.

Fish farming Northern Norway
In 2015 SalMar Northern Norway harvested 39,500 tonnes gutted weight from 32 operating licenses. SalMar Northern Norway has operations in ten districts, stretching from Harstad in southern Troms to Sør-Varanger in Finnmark. Although the bulk of the fish farms are located in Troms, Finnmark will account for an increasing percentage as time goes on.

The company is continously implementing measures intended to improve operating routines, feeding and feeding regimes, and its organisational structure which have a measurable impact on the biological result. Like the company’s Central Norway operations, SalMar Northern Norway’s activities are characterised by a concentration in larger units compared with many of its competitors. To further rationalise production, several of the facilities in Troms has installed larger net-pens and increased its smolt transfers, which is expected to result in an increase in output and harvested volume.
In northern Norway, SalMar has established a ‘feed centre’ at Lysnes in Lenvik. This provides joint surveillance and control of all the segment’s sites from south Troms to Finnmark.

It is possible to produce more salmon in Norway, and Northern Norway has a strong potential for further growth. This region faces fewer challenges with respect to disease and salmon lice, and has excellent environmental conditions for sustainable production. The expansion of our smolt production in Senja is an important element in the segment’s future growth.

Scottish Sea Farms Ltd
SalMar owns 50 per cent of Norskott Havbruk AS, which in turn owns 100 per cent of Scottish Sea Farms. The remaining 50 per cent of Norskott Havbruk AS is owned by Lerøy Seafood Group ASA. Scottish Sea Farms is the UK’s second largest producer of farmed salmon. While the company’s main production is located on the Scottish mainland, it also operates from locations in Shetland and the Orkneys.

The company’s activities include hatchery production, as well as the farming, harvesting and processing of salmon.

During the last few years the company has developed several exciting market concepts, including the production of own label salmon products for the international retail chain Marks & Spencer.

Scottish Sea Farms (SalMar’s 50% share) harvested 13,500 tonnes gutted weight in 2015.

 

Harvesting, packing and processing (VAP)

Great benefits from local processing

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SalMar’s VAP operations are very closely linked with the farming operations and have been an important part of the company’s development. Bringing large harvesting volumes to a plant affords economies of scale, as well as providing flexibility and a better utilisation of the entire salmon.

New products are constantly being developed, with various seasonings and packing methods to make them easier for the consumer to prepare.

InnovaMar is the name of SalMar’s new harvesting and processing facility in Frøya, central Norway. It aims to be the world’s most innovative and efficient facility for the landing, harvesting and processing of farmed salmon. InnovaMar covers 17,500 m2 of floor space and comprises two departments (harvesting and processing). Categorisation of each individual salmon that enters the facility allows for total traceability throughout the entire plant. Together with the traceability that SalMar has in the rest of the value chain, it is possible to track the product’s journey from roe to retailer.

 

Sales & Distribution

Close customer relations and high quality products

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SalMar has established a fully integrated system for farming, processing, sales and distribution of farmed salmon and is thus in control of the total value chain.

The salmon that SalMar is producing is sold through an in-house salesforce and/ or through close partners.

Proximity to markets and customers, direct or through partners is important to secure efficient use of a high-quality raw material that has been through a traceable and controlled production process.

InnovaMar is the name of SalMar’s new harvesting and processing facility in Frøya, central Norway. It aims to be the world’s most innovative and efficient facility for the landing, harvesting and processing of farmed salmon. InnovaMar covers 17,500 m2 of floor space and comprises two departments (harvesting and processing). The facility has the capacity for all kinds of storage. Good internal logistics ensure safe and efficient handling of the products. The increased capacity affords a high level of flexibility with regard to organising production and sales.

SalMar produces a wide variety of fresh and frozen salmon products. The customer base is global and includes small and large importerts/ exporters, as well as larger processing companies and retail chains.

If you would like to know more about SalMar’s products, please contact our sales department at sales@salmar.no or by telephone at +47 72 44 79 00.