Copyright

Joar Grindheim   

July 22. 2008

For the eighth year running IntraFish is proud to present its overview of the 30 biggest salmon production companies in the world. In the overview the companies are ranked according to production of Atlantic salmon, trout, coho and chinook in 2007, and by production we mean slaughter volume (Whole Fish Equivalents - WFE). IntraFish has also endeavored to include the companies’ financial results to the extent these have been available when this report went to press.

As usual, the Norwegian and Chilean companies dominate the list, but other companies are also gaining ground in the contest. The last few years we have seen the biggest companies expand and increase production each year. It can be safely said that these companies lay the premises for salmon farming in the world. In total the four biggest producers on the list produce around the same volume as the other 26 combined. Subsequently there are a few giant companies, a good number of medium-large and some that are ”small” in this context, but nonetheless are large in a global perspective.

Salmon farming has become a major industry, which can also explain why more and more companies are choosing to go public. This trend started a few years ago, and in 2007 a number of salmon companies in Norway and Chile debuted on the stock exchange. Gathering capital from external and pure finance investors to finance growth, is a trend that is catching on. We will return to this aspect in the analysis section.

2007 was also a year with more acquisitions and consolidation. The single most dramatic event last year was the establishment of the new fish farming company Lighthouse Caledonia. Norskott Havbruk, which is owned 50 percent by Lerøy Seafood and 50 percent by SalMar, and which owns Scottish Seafarms, was set to take it over when it was Pan Fish Scotland. Norskott’s acquisition stranded in July, and instead a new company emerged. Growth through acquisitions has been the order of the day also so far in 2008, and it is likely more companies will be bought out in the time ahead.

One thing that colored 2007, and which to an even greater degree will leave its mark on 2008, is various diseases, particularly ISA and PD. Keeping a check on the environment where will grow up is a huge challenge. That’s what Norwegian and Chilean fish producers are painfully aware of every day.