Author Archives: Ole Jørn Borum

Q2 2020 results – Stable volume and cost in turbulent market

Highlights

  • Harvest volume of 23 910 tonnes, up 10 % from Q2 2019 (21 802 tonnes)
  • Earnings impacted by low market prices due to effects of Covid-19, amounting to NOK 211 million vs Q2 2019
  • Margin in Finnmark still impacted by winter ulcers
  • Continued cost reductions in BC. Shetland somewhat impacted by lower survival rate
  • Group total of 20 sites ASC certified at quarter end, 36% of net production
  • Successful completion of senior unsecured Green Bond issue of NOK 1 billion
  • Construction of RAS facility and approval of licenses in Newfoundland according to plan
  • First members of the new sales organization appointed
  • New guidance of 95 000 tonnes (100 000) in 2020 due to reduced growth in Finnmark caused by lower than average seawater temperatures in addition to market adjustments

Covid-19

The Covid-19 pandemic continued to impact the market situation also in the second quarter. The escalation of the pandemic and measurements taken by governments around the world to address the situation, have caused uncertainties for producers, processors and end consumers. Nevertheless, despite the challenging circumstances, demand for Atlantic salmon remained strong and Grieg Seafood has been able to maintain efficient operations throughout the quarter.

Financial results

The Grieg Seafood Group harvested 23 910 tonnes GWT in Q2 2019, compared to 21 802 tonnes in Q2 2019.

Average realized price during the quarter was down compared to the second quarter last year, mainly driven by lower market price impacted by market turbulence related to Covid-19, in addition to lower prices achieved on downgraded volumes in Finnmark. The reduction is partly offset by the 10% higher harvest volume.

Total revenues during the quarter amounted to NOK 1.4 billion, down from NOK 1.5 billion in the second quarter of 2019.

Farming cost during the quarter increased from the same quarter last year. The increase is mainly related to negative currency effects and increased cost per kilo in Rogaland due to lower harvest volume.

Group’s EBIT before fair value adjustment of biological assets ended at NOK 3 million during the quarter, down from NOK 302 million in the second quarter of 2019, where reduced prices and increased costs amounts to some NOK 211 million and NOK 95 million of the decrease respectively.

Commenting on the Group’s performance, CEO Andreas Kvame, said:

“The second quarter of 2020 was impacted by the continuous effect of the Covid-19 pandemic. Thanks to our fantastic employees, I am proud to state that Grieg Seafood has been able to maintain efficient operations throughout the quarter. Employee safety and wellbeing is our priority, and we have kept in place all HSE measures implemented at the beginning of the pandemic to reduce the risk of Covid-19 outbreaks as much as possible.

We have particularly seen disruptions in the US market due to Covid-19, which is mainly supplied by our British Columbia region. However, lower prices in the US have been matched by improved biology, lower costs and increased competitiveness in BC.

In Finnmark and Rogaland, the underlying biology remains strong. However, due to low seawater temperatures during the winter and spring, we have experienced reduced growth in Finnmark. Based on this external factor in combination with expectations of low market prices in the short term, we have decided to optimize production, utilize our existing licenses and postpone some harvest to 2021.

In Shetland, cost has remained high during the quarter, due to few synergies between our operations on the Shetland isles and Skye in Scotland.

In our new Newfoundland region, the first eggs were put into the hatchery in July, according to schedule. First harvest is expected in 2022/23.

While we are in the middle of a pandemic, we have not set our commitments to sustainability on hold. Reducing our environmental footprint and improving fish welfare are key factors to achieve our financial and operational targets. Over the last months, we received ASC certification on two new sites, and we strengthened our greenhouse gas reduction target. With Brazilian soy in our feed, we are also concerned about the increasing deforestation rates in the country. We are committed to use our market power to push towards an end to soy-related deforestation where we source soy, the Brazilian Cerrado biome.”

Strategic priorities

Improving sustainability is key to increasing our profits. By focusing on reducing our environmental impact and improving fish welfare, we aim to increase harvest rates and reduce production cost.

We aim to provide our shareholders with a competitive return on capital invested and have set a ROCE target of 12%. Our investments reflect our growth strategy: digitalization, post-smolt, biosecurity and fish welfare, including continuous evaluation of expansion opportunities

Digitalization in salmon farming includes applying advanced sensors, big data, artificial intelligence and automation, to support better farming decisions. Post smolt improves biosecurity, survival rates and allows for a more efficient farming cycle, while expansion opportunities will allow for improved flexibility, biosecurity and fish welfare.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological performance through the implementation of a broad range of technological and operational initiatives, including large smolt, GSF Precision Farming and other preventive operational measures aimed at combating sea lice and algae. The group targets an average survival rate in seawater above 93%.

Outlook

In the short term, operational efficiency and biosecurity are the top priorities in Grieg Seafood.

The salmon market will continue to be impacted by the Covid-19 situation adding uncertainty and putting pressure on prices in the short term. However, Grieg Seafood see limited impact on operations due to the Covid-19 situation.

The contract share for the Norwegian operations will increase in the second half of 2020 with prices well above current spot prices. Estimated contract shares for the third quarter is 63 per cent and 5 per cent for Norway and the UK, respectively, with full year estimates of 32 per cent and 8 per cent.

In 2019, a total of 25.2 million smolt with an average weight of 190 grams was stocked to sea, with the aim of harvesting 100 000 tonnes in 2020. However, during winter and spring low seawater temperatures in Finnmark have impacted growth.

Due to the limited growth in combination with expected sluggish market prices in the short term, Grieg Seafood has decided to postpone some harvest to 2021, reducing expected harvest volume to 95 000 tonnes for 2020.

In the third quarter, expected harvest volume is 21 400 tonnes, with the following area distribution:

  • Rogaland:              5 300 tonnes
  • Finnmark:              4 500 tonnes
  • Shetland:               5 600 tonnes
  • BC:                        6 000 tonnes

Grieg Seafood maintains the long-term harvest volume target of 150 000 by 2025.

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results by webcast today, Tuesday 18 August at 08:00 CEST.

The presentation and subsequent Q&A will be held in Norwegian and can be followed at www.griegseafood.com or at https://channel.royalcast.com/webcast/hegnarmedia/20200818_1/

An English transcript of the presentation will be made available at www.griegseafood.com within a few days after the presentation.

For further enquiries, please contact:

Andreas Kvame, CEO

Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO

Cell phone +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world’s leading salmon farmers, targeting 95 000 tonnes of harvest (GWT) in 2020. Our farms are in Finnmark and Rogaland in Norway, British Columbia and Newfoundland in Canada, and Shetland in the UK. Our headquarter is located in Bergen, Norway. Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. More than 800 people are employed by the Company globally.

Sustainable farming practices are the foundation of Grieg Seafood’s operations. The lowest possible environmental impact and the best possible fish welfare drive economic profitability. Towards 2025, we aim to harvest 150 000 tonnes, to achieve cost leadership in each region and to evolve from a pure salmon supplier to an innovation partner for selected customers.

To learn more, please visit www.griegseafood.com.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Grieg Seafood ASA: Q1 2020 results

Click image to download the Q1 2020 report

Efficient production maintained, earnings impacted by biological challenges in Finnmark

Highlights

  • Harvest volume of 18 360, above guiding and up 24% from Q1 2019 (14 800)
  • EBIT before fair value adjustment of NOK 240 million (NOK 267 million)
  • EBIT/kg NOK 13.09 (NOK 18.07), with a positive EBIT in each region
  • Price achievement impacted by harvesting towards the end of the quarter with low market price
  • Good production and low cost in Rogaland, but margin impacted by environmental challenges
  • Margin in Finnmark negatively impacted by winter ulcers and one site affected by ISA
  • Positive cost developments in British Columbia and Shetland
  • Received ASC certification of five sites in Finnmark and three sites in BC
  • Acquisition of Grieg Newfoundland AS, with long-term annual harvest potential of 30-45 000 tonnes
  • Expected harvest of 24 900 tonnes in Q2 2020, maintaining guidance for 100 000 tonnes in 2020

Covid-19

The market situation in Q1 2020 has been impacted by the Covid-19 pandemic. Nevertheless, despite the challenging circumstances, there is a high market demand for salmon and Grieg Seafood’s diversified geographical presence provides some flexibility and reduces logistical challenges. Grieg Seafood has been able to maintain efficient operations throughout the first quarter and the impact on the first quarter results has been limited.

Q1 2020 financial results

The Grieg Seafood Group harvested 18 362 tonnes GWT in Q1 2020, up 24% compared to 14 801 tonnes in Q1 2019.

Average spot salmon price for Q1 2020 was up compared to both Q1 2019 and Q4 2019, but our price achievement was affected by harvesting towards the end of the quarter when prices were decreasing. Grieg Seafood’s revenues in Q1 2020 amounted to NOK 2 055 million, an increase of 25% compared to Q1 2019. The revenue increase is driven by higher harvest volume as well as the currency effect of a weak NOK.

Farming cost during the period (total cost related to fish harvested this quarter) was somewhat up compared to the same quarter last year, partly driven by the currency effect.

The Group’s EBIT before fair value adjustment of biological assets was NOK 240 million (NOK 267) during the quarter, corresponding to an EBIT per kg of NOK 13.09 (18.07). EBIT from the four regions includes value creation from the respective sales activities of the Group’s jointly owned sales company, Ocean Quality.

Fair value adjustments of NOK -779 million (NOK 51 million) was mainly due to lower forward and spot salmon prices compared to Q4 2019. In Finnmark the price is also impacted by downgrading due to winter ulcers. The EBIT after fair value adjustment of biological assets was NOK -538 million (NOK 319 million).

Commenting on the Group’s performance, CEO Andreas Kvame, said:

“The first quarter of 2020 took a dramatic turn when the Covid-19 pandemic hit. Our top priority in this situation is the safety and wellbeing of our employees, their families and the local communities where we operate.

Safeguarding people, operations and partnerships are key priorities going forward, as well as protecting the financial solidity and flexibility of the Group. We also will continue to execute on our ambitions. We hold on to our target of 100 000 tonnes harvest in 2020. By 2025, we aim to harvest at least 150 000 tonnes of Atlantic salmon, to achieve cost leadership and to reposition Grieg Seafood in the value chain. In the first quarter, we took an exciting first step on this growth journey by acquiring Grieg Newfoundland AS.

Lastly, but most importantly, despite the extraordinary situation, we do not yield in our commitment to sustainable and responsible farming. Sustainability is our license to operate and remains at the heart of our strategy and all our activities”

Strategic priorities

Improving sustainability is key to increasing our profits. By focusing on reducing our environmental impact and improving fish welfare, we aim to increase harvest rates and reduce production cost. For 2020, our goal is to reach an annual harvest volume of 100 000 tonnes in 2020 with cost at or below industry average, building a platform for sustainable growth beyond 2020.

Post-smolt improves biosecurity and survival rates and allows for a more efficient farming cycle. Increased growth on-shore also frees up sea water capacity. Digitalization in salmon farming includes applying advanced sensors, big data, artificial intelligence and automation, with the aim of generating better farming decisions.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological performance through the implementation of a broad range of technological and operational initiatives, including large smolt, GSF Precision Farming and other preventive operational measures aimed at combating sea lice and algae. The group targets an average survival rate in seawater above 93%.

GSF 2025

Going forward, Grieg Seafood will build on our existing platform for continued sustainable growth and cost improvements. With an ambition for global growth, we aim to strengthen our market position, while driving increased value creation as a global supplier of sustainably farmed salmon.

The strategy for 2020-2025 comprises three key strategic objectives for continued growth and business development: Global growth, cost leadership and value chain repositioning. Furthermore, increasingly sustainable farming practices is the very foundation of all areas of the strategy.

In February 2020, Grieg Seafood announced the acquisition of Grieg Newfoundland AS, a project with long-term harvest potential of 30-45 000 tonnes Atlantic salmon. This step of our growth journey includes exclusivity for salmon farming in Placentia Bay, which has a farmable area larger than the Faroe Islands. With proximity to the East Coast of the US, the acquisition reinforces our US market exposure and underpins the 2025 strategy to strengthen our position as a global leader in sustainable salmon farming. First harvest in the region is expected in 2022/23, and the region is expected to contribute with at least 15 000 tonnes of annual harvest by 2025.

Outlook

The Group’s total share of fixed price contracts in Q1 2020 was 22% both in Norway and the UK. This is in the lower range of the Group’s target of 20-50% contract share. Currently, the estimated contract shares for the full year 2020 is 20% in Norway and 9% in the UK.

In 2019, a total of 25.2 million smolt with an average weight of 190 grams, was stocked to sea. Our seawater production is good, and despite abnormal mortality during the quarter, we are on track to reach our harvest target of 100 000 tonnes in 2020. Expected harvest volume for Q2 2020 is 24 900 tonnes, comprised of:

  • Rogaland: 4 000 tonnes
  • Finnmark: 7 000 tonnes
  • Shetland: 3 900 tonnes
  • BC: 10 000 tonnes

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results by webcast the same day at 08:00 CEST.

The presentation and subsequent Q&A will be held in English and can be followed at www.griegseafood.com or at https://channel.royalcast.com/webcast/hegnarmedia/20200507_3/

For further enquiries, please contact:

Andreas Kvame, CEO
Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO
Cell phone +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world’s leading salmon farmers, targeting 100 000 tonnes of harvest (GWT) in 2020. Our farms are in Finnmark and Rogaland in Norway, British Columbia and Newfoundland in Canada and Shetland in the UK. Our headquarter is located in Bergen, Norway. Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. More than 800 people are employed by the company globally.

Sustainable farming practices are the foundation of Grieg Seafood’s operations. The lowest possible environmental impact and the best possible fish welfare drive economic profitability. Towards 2025, we aim to harvest 150 000 tonnes, to achieve cost leadership in each region and to evolve from a pure salmon supplier to an innovation partner for selected customers. To learn more, please visit www.griegseafood.com

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q4 2019 results – Positive operational development drives strong earnings

Highlights

  • Harvest volume of 25 300, above guiding, and up 7% from Q4 2018 
  • EBIT before fair value adjustment of NOK 357 million (NOK 351 million)
  • EBIT/kg NOK 14.10 (NOK 14.81)
  • Solid earnings driven by strong performance in Norway
  • Biological improvements in British Columbia and Shetland, but still high costs
  • Recognized by the Carbon Disclosure Project as a leader (A) on climate disclosure and actions
  • Expect harvest of 16 800 tonnes in Q1 2020
  • 2020 volume target of 100 000 tonnes well within reach, regional differences in cost performance

Financial results

The Grieg Seafood Group harvested 25 342 tonnes GWT in Q4 2019, up 7% compared to 23 682 tonnes in Q4 2018.

Average realized price was down in Q4 2019 compared to Q4 2018, mainly due to lower price achievement in the UK and BC. Grieg Seafood’s revenues in Q4 2019 amounted to NOK 2 390 million, an increase of 12% compared to the same period last year. The revenue increase is mainly driven by higher harvest volume and spot prices.

Farming cost during the period (total cost related to fish harvested this quarter) was somewhat down compared to the same quarter last year.

The Group’s EBIT before fair value adjustment of biological assets was NOK 357 million (351) during the quarter, corresponding to an EBIT per kg of NOK 14.10 (14.81). EBIT from the four regions includes value creation from the respective sales activities of the Group’s jointly owned sales company, Ocean Quality.

Commenting on the Group’s performance, CEO Andreas Kvame, said:

“2019 was an eventful year for Grieg Seafood, marked by good market conditions and continuous improvement across all our operations. This trend continued in the fourth quarter with particularly strong results in Rogaland and Finnmark while our long-term initiatives to address biological challenges in BC and Shetland continued to yield positive results. In Shetland in particular, cost remained at a high level in the quarter, but biological improvements led to higher survival rates.

For 2020, we have a long-standing ambition of reaching 100 000 tonnes harvest with cost at or below industry average, and as we enter 2020 our volume target is within reach. However, operational development has varied between regions. While Finnmark and Rogaland have exceeded expectations, cost in BC and Shetland have been impacted by challenging biology, resulting in somewhat higher cost in these regions.”

Strategic priorities

Improving sustainability is key to increasing our profits. By focusing on reducing our environmental impact and improving fish welfare, we aim to increase harvest rates and reduce production cost. Short term, our goal is to increase production to 100 000 tonnes with a production cost at or below weighted industry average.

We aim to provide our shareholders with a competitive return on capital invested and have set a ROCE target of 12%. Our investments reflect our growth strategy: digitalization, post-smolt, biosecurity and fish welfare, including continuous evaluation of expansion opportunities.

Post-smolt improves biosecurity and survival rates and allows for a more efficient farming cycle. Increased growth on-shore also frees up sea water capacity. Digitalization in salmon farming includes applying advanced sensors, big data, artificial intelligence and automation, with the aim of generating better farming decisions.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological performance through the implementation of a broad range of technological and operational initiatives, including large smolt, GSF Precision Farming and other preventive operational measures aimed at combating sea lice and algae. The group targets an average survival rate in seawater above 93%.

GSF 2025

Grieg Seafood aims to build on our existing platform for continued sustainable growth and cost improvements. With an ambition for global growth, Grieg Seafood aims to strengthen our market position, while driving increased value creation as a global supplier of sustainably farmed salmon.

The strategy for 2020-2025 is founded in an ambition for sustainable salmon farming and comprises three key strategic objectives for continued growth and business development: Global growth, cost leadership and value chain repositioning.

Commenting on Grieg Seafood’s strategy for 2025, CEO Andreas Kvame, said:

As we look beyond 2020, we aim to build on our existing platform to ensure continued growth and cost improvements to reach more than 150 000 tonnes harvest by 2025. To scale our global operations, we will continue to grow organically, as well as through M&A activity. We will also reposition Grieg Seafood from a pure commodity supplier to an innovation partner, increasing our presence downstream through partnerships, category development and brand cultivation.

Outlook

The Group’s total share of fixed price contracts in Q4 2019 was 16% in Norway and 31% in the UK. The share of fixed price contracts for the full year 2019 was 22% and 24% for Norway and the UK, respectively. This is in the lower range of the Group’s target of 20-50% contract share. Estimated contract share for Q1 2020 is 31% in Norway and 18% in the UK.

During Q4 2019, 8.3 million smolt with an average weight around 190 grams were transferred to sea. For the full year 2019, a total of 25.2 million smolt, with an average weight of 190 grams, was stocked. We are on track to reach our harvest target of 100 000 tonnes in 2020, an increase of 20% from 2019. Expected harvest volume for Q1 2020 is 16 800 tonnes, comprised of:

  • Rogaland: 5 700 tonnes
  • Finnmark: 5 700 tonnes
  • Shetland: 1 800 tonnes
  • BC: 1 600 tonnes

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results today at 08:00 CET at Hotel Continental, Stortingsgaten 24/26, Oslo.

The presentation and subsequent Q&A will be held in Norwegian and can be followed live via webcast at www.griegseafood.com or at https://channel.royalcast.com/webcast/hegnarmedia/20200213_6/

It will be possible to ask questions online.

An English transcript of the presentation will be made available at www.griegseafood.com within a few days of the presentation.

For further enquiries, please contact:

Andreas Kvame, CEO

Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO

Cell phone +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world’s leading salmon farmers, specializing in Atlantic salmon. The Group has an annual production target of 100 000 tonnes gutted weight in 2020.

Our farming facilities are in Finnmark and Rogaland in Norway, British Columbia in Canada and Shetland in the UK. 873 people are employed by the Grieg Seafood Group (incl. Ocean Quality).
Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. Our headquarters are situated in Bergen, Norway. The business development of Grieg Seafood ASA focuses on profitable growth, sustainable use of resources and being the preferred supplier to selected customers.

To learn more, visit www.griegseafood.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Grieg Seafood commits funding to new business initiative aiming to halt deforestation in the Cerrado

A new global fundraising initiative aims to stop soy-related deforestation of the Brazilian Cerrado, one of the largest deforestation frontiers in the world today. Grieg Seafood joins Tesco and Nutreco in announcing their commitment to the funding today and invites other global companies with Brazilian soy in their value chain to join in the initiative.

 “Deforestation of the Brazilian Cerrado savannah leads to carbon emissions equivalent to 53 million cars annually. Soy cultivation is a key driver of deforestation in the Cerrado, an area recognized for its biodiversity and agricultural production. The Funding for Soy Farmers in the Cerrado Initiative will provide local soy farmers with financial incentives to expand soy cultivation in the Cerrado on existing agricultural areas. This will help protect the Cerrado’s forests and other natural habitats beyond what farmers already have to legally conserve under Brazil’s forest regulation,” says Andreas Kvame, CEO of the salmon farming company Grieg Seafood.

In addition to Grieg Seafood, the international retailer Tesco and animal feed manufacturer Nutreco have already committed to contribute to the Funding for Soy Farmers in the Cerrado Initiative each year for the next five years.

The Cerrado is one of the world’s most biodiverse dry forests, storing nearly 14 billion tonnes of carbon. The area is also crucial for preserving 40 percent of Brazil’s fresh water.

“Although the soy we use in our salmon feed is certified and deforestation-free in and of itself, Funding for Soy Farmers in the Cerrado gives us an opportunity to make a greater industry impact further back in our value chain. The idea behind the initiative is that businesses with Brazilian soy in their value chain can contribute with this funding. We hope many international companies will join us, both in and outside the salmon sector,” Kvame says.

CEO Andreas Kvame. Photo: Tommy Ellingsen

Companies are encouraged to contribute according to consideration such as the size of their soy footprint. Grieg Seafood will contribute US$ 2 per tonne of soy the company uses annually in its fish feed for five years. In addition to businesses, foundations and governments are also invited to support the initiative financially.

Brazil’s forest regulation aims to balance forest protection with economic development. In the Cerrado, landowners are legally required to conserve 20-35 percent of their land. Without financial incentives, this leaves up to 80 percent of this land at risk of legal deforestation. At the same time, the Brazilian soy industry can more than double its current soy production without additional deforestation because there are already sufficient cleared agricultural areas suitable for soy cultivation. Many local soybean farmers are positive about growing on existing agricultural land if they receive financial incentives for the move.

The Funding for Soy Farmers in the Cerrado Initiative invites Brazilian soy stakeholders to lead the development of a financial mechanism that can disburse the funds in an effective and fair way that reaches the goal to halt soy-related deforestation in the Cerrado. Preliminary studies show that $ 250 million is needed to reach the goal.

Both investors and NGOs support the initiative:

Aarti Ramachandran, head of Research and Engagement in the investor network FAIRR, with $ 20,1 trillion supporter AUM, said: “For over two years, investors, global corporations and local Brazilian organisations have joined forces to find workable solutions to protect the Cerrado biome from soy-related deforestation. The Funding for Soy Farmers in the Cerrado Initiative is a powerful example of how companies can provide the right incentives to enable farmers to go beyond regulation to conserve this precious biome, while securing their supply chains. We applaud this initiative and encourage other companies to contribute to this fund and for Brazilian actors to ensure its effective implementation to halt deforestation.”

Nils Hermann Ranum, head of the Zero deforestation program of the Rainforest Foundation Norway, said: “It’s great to see companies are committing to help stop deforestation from soy in Brazil and demonstrate a willingness to contribute financially to this crucial goal. The world needs an effective mechanism to stop deforestation, combined with the companies pledging to buy soy exclusively from deforestation-free suppliers. If we are to succeed in our efforts to save the forest and stop climate change, it is crucial that companies with soy in their value chain take responsibility.”

Facts – The Brazilian Cerrado

  • The Cerrado is a unique ecosystem, home to over 5% of global biodiversity and a store of nearly 13.7 billion tonnes of carbon. The Cerrado is also one of the most important Brazilian regions for water production – responsible for 40% of Brazil’s freshwater that is essential for agriculture.
  • Soy represents more than 80% of the current Cerrado cropland (18 million ha of soy crops).
  • The Cerrado biome in Brazil is currently the world’s largest area of land conversion.
  • There are currently 22 million hectares of additional agricultural land in the Cerrado that is highly suitable for soy expansion. This can more than double current soy production in the Cerrado and meet growing global demand for soy for many decades to come, without further deforestation.

Facts – The Funding for Soy Farmers in the Cerrado Initiative

  • Funding for Soy Farmers in the Cerrado is an industry-led initiative designed to support Brazilian farmers who are playing an active role in Cerrado conservation by preserving more land than they are legally required to, under the Brazilian Forest code, as native vegetation.
  • The initiative will help the shift towards an end in soy-associated deforestation and habitat conversion in the Cerrado biome. Alongside the Amazon soy moratorium that has been effective at stopping deforestation for soy in the Amazon, the funding aims to create a financial incentive mechanism for farmers that could make Brazil a zero-deforestation and conversion soy producing country.
  • International soy-value chain companies, foundations and governments can support this initiative by contributing financially.
  • Initial forecasts and modelling indicate that approximately US$250 million in funding would be needed over a five-year period to achieve these outcomes. Beyond the initial five years, complementary incentives, such as green bonds and carbon financing, will be needed to continue to support farmers to expand soy only on already cleared land.
  • The funding will only be disbursed when an effective mechanism to deliver the outcomes of the funding is designed and agreed.
  • Once an effective mechanism is designed and agreed, donors will be expected to pay from approximately one year after the mechanism is launched.
  • It is recognised that if an effective industry mechanism that achieves the outcomes of the funding is not developed, that the next best alternative for companies is to purchase credits (e.g. which are currently around USD2 a tonne). This next best alternative serves as a recommended minimum for companies to consider.

Facts – Grieg Seafood’s contribution to The Funding for Soy Farmers in the Cerrado Initiative:

  • Grieg Seafood has committed to contribute with $USD 2 per tonne of Brazilian soy the company uses in its fish feed. This is in accordance with the guidelines of the initiative.
  • All of the soy that Grieg Seafood uses in their feed is certified according to ProTerra or Round Table for Responsible Soy (RTRS). The contribution to The Funding for Soy Farmers in the Cerrado comes in addition to this.
  • Grieg Seafood’s annual soybean imprint is approximately 30,000 tonnes. The company is in a growth phase, but is also looking for alternative feeding ingredients. They therefore expect their soy footprint to remain stable over the next few years.
  • The company will report the exact soy footprint per year in its annual reports. As fish growth and feed consumption is impacted by various factors, such as sea water temperature, they never know how much feed they use before the end of the year.
  • Grieg Seafood is a member of the steering group in Cerrado Manifesto Signatories of Support
  • Read more about how Grieg Seafood works with sustainability here: http://grieg18.digirapport.no/

Please also see:www.businessforthecerrado.com

Contact information:

Kristina Furnes, Global Communications Director Grieg Seafood ASA

TEL: +47 481 85 505 / kristina.furnes@griegseafood.com

Quotes from soy farmers in the Cerrado:

Paulo Rickly, Soy Farmer Cerrado (Maranhão)

“We—producers of soybeans and other grains in the Brazilian Cerrado region—are aware of the need to preserve the biome not only because of its great biodiversity, but also because the Cerrado is where the springs of the main watersheds in South America are born. The Cerrado´s vegetation is a ‘sponge’ that absorbs rainwater and feeds the groundwater and aquifers that will give rise to rivers.

“In addition to other factors such as evapotranspiration, regulation of temperature gradients, and wind barriers, among others, this idea of payments for environmental services comes at a good time, as it will certainly help to keep most of these areas preserved.”

Cesare, Soy Farmer Cerrado (Maranhão)

“The movement for the preservation of the environment observed in Brazil should not only be an external pressure event. It is important to use tools such as payments for environmental services as an incentive. These payments express the worldwide commitment of all those involved in the food production chain to embrace sustainability.

The applicability of tools like financial mechanisms are mandatory to achieve preservation and maintenance of the environment.”

Gabriel Couto, Soy Farmer Cerrado (Maranhão)

“Preserving forests is one of the biggest challenges for developing countries like Brazil. We are aware of the importance of native vegetation in maintaining rainfall regimes, as forests control climate through evapotranspiration. Brazil’s role in favor of the Amazon has been closely watched internationally and the country’s reputation for agriculture will depend on maintaining high levels of production in an environmentally sustainable manner.

Thus, payments are a direct way to curb deforestation. For the farmer who is not yet aware of the global importance of forests, this incentive would give him a direct economic reason to contribute to the preservation of his reserves.”

Luiz Pradella, Soy Farmer Cerrado (Bahia)

“Payment for Environmental Services is recognition of the very few individuals that contribute to the good of all. We must socialize the benefit and the cost as well. Environmental services are for the planet, so the service provider (farmer) should be rewarded for it.”

Benildo Telles, Soy Farmer Cerrado (Mato Grosso)

“I believe it is possible to produce sustainably while preserving forests and soil, but receiving payments for environmental services is critical to that.”

Gisela Introvini, Soy Farmer Cerrado (Maranhão)

“In the region of Maranhão and Piauí, we (producers) use RTRS certification and believe that payment for environmental services is a great tool for valuing those who get high production results through the technologies and systems that make it possible to produce in the same space: meat, soy and corn—and still contribute to carbon storage. ”

Deomar, Soy Farmer Cerrado (Mato Grosso)

“Brazilian agriculture in the Cerrado regions carries very large burdens in relation to the maintenance of reserves. The farmer bears this cost for the benefit of the whole community, which receives benefits not only from the food production, but also from all the environmental services generated.

There is an urgent need for society to be aware of this issue and understand that such a burden should be shared amongst all, given the social benefits that preserving the environment brings.”

Q3 2019 results – Solid earnings driven by strong performance in Norway

Highlights

  • Harvest volume of 21 000 tonnes (16 900 tonnes)
  • EBIT/kg NOK 7.32, down 22% from Q3 2018
  • Earnings impacted by lower spot market prices
  • Strong biological performance in Norway and biological improvements in British Columbia
  • Improved biological situation in Shetland resulted in lower cost
  • Expected harvest volume of 82 000 tonnes in 2019, 10% growth from 2018
  • 2020 harvest guiding of 100 000 tonnes remains
  • Launch of GSF 2025 strategy, targeting cost leadership and harvest volume above 150 000 tonnes
  • Dividend of NOK 2.00 per share

Download the Q3 2019 Report

Financial results

The Grieg Seafood Group harvested 21 028 tonnes GWT in Q3 2019, an increase of 24% compared to 16 941 tonnes in Q3 2018.

The average realized price was down in Q3 2019 compared to Q3 2018, mainly driven by lower average spot market prices. Revenues amounted to NOK 2 011 million, an increase of 27% compared to the same period last year, driven mainly by higher harvest volume.

Farming costs during the period (total cost related to fish harvested this quarter) remained stable compared to the same quarter last year.

The Group’s EBIT before fair value adjustment of biological assets was NOK 154 million (160) during the quarter, corresponding to an EBIT per kg of NOK 7.32 (9.43). EBIT from the four regions includes value creation from the respective sales activities of the Group’s jointly-owned sales company, Ocean Quality.

The Board is authorized by the Annual General Meeting to pay out additional dividends during 2019 based on the financial statements for 2018. Based on the financial position and the market outlook, the Board has decided to pay a dividend of NOK 2.00 per share.

Commenting on the Group’s performance, CEO Andreas Kvame, said:

“The third quarter was yet again characterized by solid performance for our Norwegian operations, with strong biological performance and continued high survival rates. Our post-smolt strategy in Rogaland is developing well and in Finnmark another two sites were ASC certified during the quarter – a testament to our strict focus on sustainability.

We also began to see biological improvements in BC, for which 2019 has been characterized by challenging environmental conditions. These improvements are the result of diligent, persistent work by our dedicated employees as well as extensive operational and technical solutions implemented to combat issues such as algae and low oxygen levels.”

Strategic priorities

Improving sustainability is key to increasing our profits. By focusing on reducing our environmental impact and improving fish welfare, we aim to increase harvest rates and reduce production cost. Short term, our goal is to increase production to 100 000 tonnes with a production cost at or below weighted industry average.

We aim to provide our shareholders with a competitive return on capital invested and have set a ROCE target of 12%. Our investments reflect our growth strategy: digitalization, post-smolt, biosecurity and fish welfare, including continuous evaluation of expansion opportunities.

Post-smolt improves biosecurity and survival rates and allows for a more efficient farming cycle. Increased growth on-shore also frees up sea water capacity. Digitalization in salmon farming includes applying advanced sensors, big data, artificial intelligence and automation, with the aim of generating better farming decisions.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological performance through the implementation of a broad range of technological and operational initiatives, including large smolt, GSF Precision Farming and other preventive operational measures aimed at combating sea lice and algae. The group targets an average survival rate in seawater above 93%.

GSF 2025

Grieg Seafood aims to build on its existing platform for continued sustainable growth and cost improvements going forward. With an ambition for global growth, Grieg Seafood aims to strengthen its market position while driving increased value creation as a global supplier of sustainably farmed salmon.

Grieg Seafood’s strategy for 2020-2025 is based on an ambition for sustainable salmon farming and comprises three key strategic objectives for continued growth and business development: Global growth, cost leadership and value chain repositioning.

Commenting on Grieg Seafood’s strategy, CEO Andreas Kvame, said:

“For several years, we have been working towards our 2020 targets of harvesting 100 000 tonnes at a cost at or below industry average, with the underlying ambition of building a platform for sustainable growth beyond 2020. Although we have faced some biological challenges in Shetland and BC, our 2020 harvest target is well within reach and costs at our Norwegian operations are developing in line with our ambitions.

We are now looking beyond 2020 and setting the direction for the next five years as we launch our GSF 2025 strategy. We will aim to build on our existing platform to ensure continued growth and cost improvements and harvest more than 150 000 tonnes by 2025. To scale our global operations, we will grow organically as well as through M&A activity. Furthermore, we will work to reposition Grieg Seafood from a pure commodity supplier to an innovation partner, increasing our presence downstream through partnerships, category development and brand cultivation. Thus, we aim to drive increased value creation as a global, integrated supplier of sustainably farmed salmon.”

Outlook

The global supply of Atlantic Salmon for 2019 is expected to increase by approximately 7% compared to 2018. With outlook for continued strong underlying demand, combined with limited growth potential in the short- to mid-term, prices are expected to increase going forward.

The Group’s total share of fixed price contracts in Q3 2019 was 30% in Norway and 20% in the UK. The share of fixed price contracts for the full year 2019 is estimated at 22% and 24% for Norway and the UK, respectively.

During Q3 2019, 6 million smolt with an average weight of 180 grams were transferred to sea. Year-to-date, 17 million smolt have been stocked to sea. For the full year 2019, a total of 26 million smolt, with an average weight around 190 grams, is planned stocked.

Grieg Seafood expects to harvest approximately 82 000 tonnes in 2019. Expected harvest volume for Q4 2019 is 24 400 tonnes, comprised of:

  • Rogaland: 7 300 tonnes
  • Finnmark: 10 400 tonnes
  • Shetland: 3 000 tonnes
  • BC: 3 600 tonnes

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results today at 08:00 CET at Hotel Continental, Stortingsgaten 24/26, Oslo.

The presentation and subsequent Q&A will be held in Norwegian and can be followed live via webcast at www.griegseafood.com or at https://webtv.hegnar.no/presentation.php?webcastId=98164401

It will be possible to ask questions online.

An English transcript of the presentation will be made available at www.griegseafood.com within a few days of the presentation.

For further enquiries, please contact:

Andreas Kvame, CEO
Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO
Cell phone: +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world’s leading salmon farmers, specializing in Atlantic salmon. The Group has an annual production target of 100 000 tonnes gutted weight in 2020. Our farming facilities are in Finnmark and Rogaland in Norway, British Columbia in Canada and Shetland in the UK. 834 people are employed by the Grieg Seafood Group (incl. Ocean Quality). Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. Our headquarters are situated in Bergen, Norway. The business development of Grieg Seafood ASA focuses on profitable growth, sustainable use of resources and being the preferred supplier to selected customers.

To learn more, visit www.griegseafood.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q2 2019 results – Strong performance in Norwegian operations

Highlights

  • Harvest volume of 21 800 tonnes
  • EBIT before fair value adjustment of NOK 309 million (NOK 426 million)
  • EBIT/kg NOK 14.17, down 25% from Q2 2018
  • Strong biological performance in Norway
  • Earnings driven by overall high prices and cost reductions in Norway
  • Continued high cost in Shetland, driven by enduring biological challenges
  • Biological challenges related to sea lice and algae in British Columbia
  • Expect harvest volume of 82 000 tonnes in 2019, 10% growth from 2018

Financial results

The Grieg Seafood Group harvested 21 800 tonnes GWT in Q2 2019, compared to 22 570 tonnes in Q2 2018.

Total revenues during the quarter amounted to NOK 2.2 billion, unchanged from Q2 2018.

Farming cost during the quarter (total cost related to fish harvested this quarter) increased from the same quarter last year, mainly driven by higher cost in Shetland and BC due to biological challenges related to sea lice and algae blooms.

The Group’s EBIT before fair value adjustment of biological assets was NOK 309 million (426) during the quarter, corresponding to an EBIT per kg of NOK 14.17 (18.89). EBIT from the four regions includes value creation from the respective sales activities of the Group’s jointly-owned sales company, Ocean Quality.

Commenting on the Group’s performance, CEO Andreas Kvame, said:

“Grieg Seafood continued to experience strong growth and biological improvements in Rogaland and Finnmark during the second quarter. With a steady focus on our operational priorities, we have increased biological control with preventive efforts and obtained a more efficient utilization of our licenses. Our post smolt strategy is on track, and during the quarter we acquired 50% ownership of Nordnorsk Smolt. We also ASC-certified an additional three sites in Finnmark.

While we still have some challenges related to gill disease and algae in Shetland, the biological condition is improving. We continue to work systematically to increase our smolt robustness in Shetland, and survival on smolt stocked to sea so far this year is increasing. We have initiated a strategic assessment for our operations on Skye, as we see that the synergy between our farming areas on Shetland and Skye are low. In BC, challenges related to algae, plankton and low oxygen levels have impacted production negatively during the quarter. This shows the importance of monitoring and use of aeration system to minimize impact. We are still in the early stages in executing on our priorities and we expect continued growth and operational improvements going forward.

By driving forward improvements to our farming operations, we remain committed to our ambition for sustainable salmon farming and long-term value creation for all our stakeholders, and also remain confident in our 2020 target of 100 000 tonnes harvest with cost at or below industry average.”

Strategic priorities

Improving sustainability is key to increasing our profits. By focusing on reducing our environmental impact and improving fish welfare, we aim to increase harvest rates and reduce production cost. Short term, our goal is to increase production to 100 000 tonnes with production cost at or below weighted industry average, targeting NOK 37.90 per kg by 2020.

We aim to provide our shareholders with a competitive return on capital invested and have set a ROCE target of 12%. Our investments reflect our growth strategy: digitalization, post-smolt, biosecurity and fish welfare, including continuous evaluation of expansion opportunities

Digitalization in salmon farming includes applying advanced sensors, big data, artificial intelligence and automation, to support better farming decisions. Post smolt improves biosecurity, survival rates and allows for a more efficient farming cycle, while expansion opportunities will allow for improved flexibility, biosecurity and fish welfare.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological performance through the implementation of a broad range of technological and operational initiatives, including large smolt, GSF Precision Farming and other preventive operational measures aimed at combating sea lice and algae. The group targets an average survival rate in seawater above 93%.

Outlook

The global supply of Atlantic Salmon for 2019 is expected to increase by some 4-7% compared to 2018, mainly driven by higher volumes in Norway and Chile, in addition to UK. With a growing demand and limited possibilities for increase in harvest volumes, prices are expected to remain high.

The Group’s total share of fixed price contracts in Norway in Q2 2019 was 20%. The share of fixed price contracts for the full year 2019 is estimated to 20% and 24% for Norway and the UK, respectively.

During Q2 2019, 7.1 million smolt were transferred to sea, with an average weight of 201 grams. Approximately 26-28 million smolt is planned stocked in 2019, with an average weight around 190 grams.

Grieg Seafood expects to harvest approximately 82 000 tonnes in 2019. Expected harvest volume for Q3 2019 is 20 200 tonnes, comprised of:

  • Rogaland: 2 800 tonnes
  • Finnmark: 10 600  tonnes
  • Shetland: 3 500  tonnes
  • BC: 3 200  tonnes

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results later today at 08:00 CEST at Hotel Scandic Flesland Airport, Lønningsvegen 9, Bergen.

The presentation and subsequent Q&A will be held in Norwegian and can be followed live via webcast at www.griegseafood.com

It will be possible to ask questions online.

An English transcript of the presentation will be made available at www.griegseafood.com within a few days after the presentation.

For further enquiries, please contact:

Andreas Kvame, CEO
Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO
Cell phone +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world’s leading salmon farmers, specializing in Atlantic salmon. The Group has an annual production target of 100 000 tonnes gutted weight in 2020. 

Our farming facilities are in Finnmark and Rogaland in Norway, British Columbia in Canada and Shetland in the UK. Approximately 780 people are employed by the Group. Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. Our headquarters are situated in Bergen, Norway. The business development of Grieg Seafood ASA focuses on profitable growth, sustainable use of resources and being the preferred supplier to selected customers.

To learn more, visit www.griegseafood.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q1 2019 results – Continued operational improvements and strong growth

Highlights

  • Harvest volume of 14 800 tonnes, 30% increase compared to Q1 2018
  • EBIT before fair value adjustments of NOK 267 million (NOK 162 million)
  • EBIT/kg NOK 18.07, up 27% from Q1 2018
  • Strong biological performance in Norway and BC
  • Earnings driven by overall high prices and cost reductions in Norway
  • Continued high cost in Shetland, driven by enduring biological challenges
  • Expect harvest volume of 82 000 tonnes in 2019, 10% growth from 2018

Financial results

The Grieg Seafood Group harvested 14 801 tonnes GWT in Q1 2019, compared to 11 443 tonnes in Q1 2018.

The average realized price was up in Q1 2019 compared to Q1 2018, mainly driven by higher average market price. Total revenues during the quarter amounted to NOK 1 650 million, an increase of 9% compared to the same period last year.

Farming cost (total cost related to fish harvested this quarter) improved compared to the same quarter last year, mainly related to economies of scale from higher harvest volume and improved production in Norway. 

The Group’s EBIT before fair value adjustment of biological assets was NOK 267 million during the quarter (162). The corresponding EBIT per kg amounted to NOK 18.07 for the period (14.18). EBIT from the four regions includes value creation from the respective sales activities of the Group’s jointly-owned sales company, Ocean Quality.

Commenting on the Group’s performance, CEO Andreas Kvame, said:

“During the first quarter Grieg Seafood experienced strong growth and continued biological improvements, particularly in Finnmark and Rogaland. Our strong performance is a result of our skilled employees’ dedication to our strategic focus areas – large smolt, digitalization, biosecurity and fish welfare and operational expansion.

We are still in the early stages in executing on our priorities and we expect continued growth and operational improvements going forward. We remain confident in our 2020 target of 100 000 tonnes harvest with cost at or below industry average, and with our five pillars for sustainability, we remain committed to our ambition for sustainable salmon farming and long-term value creation for all our stakeholders.

We are proud to have climbed from 12th place to 8th place on the SHE Index, which scores companies on their efforts to improve gender balance in management. Our objective is to achieve sustainable growth by combining talented people, knowledge about nature and new technology.”

Strategic priorities

Improving sustainability is key to increasing our profits, and by combining skilled and motivated people with new technology and by increasingly farming salmon on nature’s terms, we will ensure sustainable, cost-efficient growth. Short term, our goal is to reach an annual harvest volume of
100 000 tonnes in 2020, targeting group production cost at NOK 37.90 per kg. Combined with continues strong focus on our strategic priorities, this will form the basis for sustainable growth also going forward, generating value for all our stakeholders.

Through the digitalization strategy “GSF Precision Farming,” Grieg Seafood intends to take a leading role in utilizing new technology, big data and artificial intelligence to improve operational efficiency through reduced environmental impact, increased fish welfare and improved growth.

With a strict focus on biosecurity and fish welfare, Grieg Seafood aims to achieve strong biological performance through the implementation of a broad range of technological and operational initiatives, including large smolt, GSF Precision Farming and other preventive operational measures aimed at combating sea lice and algae. The group targets an average survival rate in seawater above 93%.

Outlook

The global supply of Atlantic Salmon for 2019 is expected to increase by approximately 4-7% compared to 2018, mainly due to increased harvest volume in Norway, UK and Chile. With a growing demand and limited possibilities for increase in harvest volumes, prices are expected to remain high.

The Group’s total share of fixed price contracts in Norway in Q1 2019 was 17%. The share of fixed price contracts for Norway and the UK is estimated to be 20% for the year.

During Q1 2019, 3.7 million smolt were transferred to sea, with an average weight of 188 grams. Approximately 26-28 million smolt is planned stocked in 2019, with an average weight around 190 grams.

Grieg Seafood expects to harvest approximately 82 000 tonnes in 2019. The expected harvest volume for Q2 2019 is 21 000 tonnes, comprised of:

  • Rogaland: 7 700 tonnes
  • Finnmark: 5 500 tonnes
  • Shetland: 3 100 tonnes
  • BC: 4 700 tonnes

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results later today at 08:00 CEST at Hotel Continental, Stortingsgaten 24/26, Oslo.

The presentation and subsequent Q&A will be held in Norwegian and can be followed live via webcast at www.griegseafood.com or at the following link; https://webtv.hegnar.no/presentation.php?webcastId=97815832

It will be possible to ask questions online.

An English transcript of the presentation will be made available at www.griegseafood.com within a few days after the presentation.

For further enquiries, please contact:

Andreas Kvame, CEO
Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO
Cell phone +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world’s leading salmon farmers, specializing in Atlantic salmon. The Group has an annual production target of 100 000 tonnes gutted weight in 2020. 

Our farming facilities are in Finnmark and Rogaland in Norway, British Columbia in Canada and Shetland in the UK. 804 people are employed by the Group. Grieg Seafood ASA was listed at the Oslo Stock Exchange in June 2007. Our headquarters are situated in Bergen, Norway. The business development of Grieg Seafood ASA focuses on profitable growth, sustainable use of resources and being the preferred supplier to selected customers.

To learn more, visit www.griegseafood.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Annual Report 2018 published

Please find attached the Grieg Seafood Integrated Annual Report 2018, including sustainability reporting and complete annual accounts with notes, as adopted by the Board of Directors.

For further information, please contact:

  • CEO Andreas Kvame (cell phone: +47 907 71 441)
  • CFO Atle Harald Sandtorv (cell phone: +47 908 45 252)

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Please click image for web version:

Grieg Seafood among top ten on gender equality index

While the seafood industry is still heavily male-dominated, it is moving in the right direction. Grieg Seafood climbed to an 8th place on the SHE Index for 2019.

Andreas Kvame, CEO of Grieg Seafood.

“We have a very long way to go before we have reached gender equality both in the industry and in Grieg Seafood. That goes particularly for employment in production. We are, however, working systematically to get women into the company and into management positions,” says Andreas Kvame, CEO of Grieg Seafood.

The accounting and consulting firm EY and the Norwegian gender equality firm SHE is behind the SHE Index, which measures gender balance and gender equality in companies. The Index is scoring companies based on the gender balance in management teams on different levels, as well as the company’s policies to improve female representation in management.

From the seafood industry, Bremnes Seashore and AKVA group have also decided to participate in the SHE Index.

The industry must roll up its sleeves

Andreas Kvame believes that the seafood companies have been single minded in recruitment for too long, and that the industry must start rolling up its sleeves.

«Over the next years, the aquaculture industry will develop a great number of new solutions aimed at reducing our environmental footprint and improving fish welfare. We need the most talented people, regardless of gender, age and other backgrounds,” Kvame states.

“Diversity is not only the right thing to do. It definitely also serves our own interests.”

So far, the SHE Index is comprised of Norwegian companies. EY and the SHE is, however, working to expand it to international businesses as well. They are soon launching the SHE Index for India.

For more information about the SHE Index, please see:

www.shecommunity.com