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.

In Norway SalMar produces fry and smolt at seven separate facilities in Møre og Romsdal, Trøndelag and Troms. In addition, Salmar has one lumpfish production facility.

In central Norway SalMar has six hatcheries and in Northern Norway SalMar has one facility. 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 Senja. 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 methanol plant at Tjeldbergodden is correspondingly used by the Kjørsvikbugen hatchery. These measures result in reduced energy costs.

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.

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.

In 2019 the expansion of Follafoss was completed by the year-end which gives increased smolt production capacity in Central Norway. In the autumn 2019 the expansion of the smolt facility on Senja was approved, where construction will start in may 2020 and expected delivery of first smolt will be in 2022.

SalMar’s lumpfish production unit is located in Langstein. The facility currently has the capacity to produce 3 million vaccinated lumpfish.

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Farming

High quality locations and biological control

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Fish farming Central Norway

In 2019 SalMar harvested 95,300 tonnes gutted weight in Central Norway. Today, the segment has 68 licences for the production of fish at sea farms, and also operates several R&D licences in collaboration with other companies.

The fish farming operations are located in Central Norway, stretching from Sunnmøre in the south to the Namdal coast in the north. Fish Farming Central Norway is divided into three regions, south (Møre & Romsdal), central (Frøya and Hitra) and north (Fosen and Namdalen). The environmental conditions for salmon farming in this region are very good, with favourable sea temperatures all year round thanks to the Gulf Stream, a high water replacement rate and several suitable locations.

SalMar’s fish farms focus on cost-effective operation and maintain a high ethical standard with respect to animal husbandry. In order to contribute to SalMar reaching its goal of being the most cost-effective producer of farmed salmon, there is a continuous focus on sub-goals, such as achieving optimal growth with the lowest feed factor. The company was quick to introduce its own standards and ‘best practices’ in order to secure increased efficiency. This involves, among other things, concentrating marine-phase production at large, sustainable facilities stocked with the correct biomass volume and with a good environmental carrying capacity. SalMar is also working strategically to secure locations so that we can take our share of future production growth.

Fish farming Northern Norway
In 2015 SalMar harvested 48,000 tonnes gutted weight in Northern Norway. Fish Farming Northern Norway currently has 33 licences for the production of farmed salmon, of which 1 is a demonstration licence. In addition, SalMar Nord co-operates several R&D licences.

SalMar has the largest aquaculture operation in Troms & Finnmark County, with activities stretching from Harstad in southern Troms to Sør-Varanger in Finnmark. The business is divided into two regions: Region South and Region North, which are each led by a regional manager. The segment’s head office and administration are located at Finnsnes in Senja.

Remote feeding has been an important focus area for the segment since 2012. This means joint surveillance and control of all SalMar’s sea sites from South Troms to East Finnmark. The sea farms are monitored even when there is no one physically on site. Data collection is more structured in the remote feeding centre, which provides a better foundation for decision making forward in time.

It is possible to produce more salmon in Norway, and Northern Norway has a considerable potential for further growth. This region has excellent environmental conditions for sustainable production, which we nurture through expertise and systematic improvement efforts. The expansion of SalMar’s smolt production, as well as the decision to build a local harvesting plant, underpin the importance to the Group of both Fish Farming Northern Norway and the region as a whole.

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 SalMar’s main industrial processing facility. It is located at Nordskaget in Frøya, in close proximity to Fish Farming Central Norway’s sea farms. InnovaMar is a modern building covering 17,500m2. It has an advanced equipment park for harvesting, fileting and portioning. It has the capacity to harvest 75,000 tonnes of salmon annually using a single shift. A significant portion of the volume harvested goes on to secondary processing before being sent to customers and consumers around the world. Innovative use of production technology increases the quality of the final product, reduces costs and improves the employees’ working environment. Through SalMar’s co-ownership of Vikenco AS, SalMar facilitates the harvesting of fish from the southern part of Central Norway and Møre & Romsdal County. In all, Vikenco and InnovaMar produced just over 42,000 tonnes of processed products, measured by product weight.

In 2019, construction of a new harvesting and processing facility got underway in Northern Norway. The facility is called InnovaNor. This is an important move to strengthen the region as an important industrial engine in the Group’s development and will contribute to local value creation and new employment opportunities. At the same time, InnovaNor will provide the same flexibility and immediate capacity, as the Group has at its InnovaMar facility in Central Norway, to harvest fish on the terms of biology and contributing to optimising logistics. Construction work is proceeding on schedule, and the facility is expected to go into operation in the summer of 2021.

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 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.

Through SalMar’s co-ownership of Vikenco AS, SalMar facilitates the harvesting of fish from the southern part of Central Norway and Møre & Romsdal County. In 2019, construction of a new harvesting and processing facility got underway in Northern Norway. The facility is called InnovaNor. This is an important move to strengthen the region as an important industrial engine in the Group’s development and will contribute to local value creation and new employment opportunities.

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.