‘Very important’: Mowi, Grieg, Cermaq CEOs welcome British Columbia license decision but analyst has concerns
Analysts say the news was as expected and it is still unclear what will happen with the disputed Discovery Islands.
“Now we'll sit down and see what we can do together. It is about finding good and constructive solutions, which satisfy their needs and our needs,” he said.
Two-year period
Kvame said British Columbia is a “very important” region for Grieg Seafood.
“We have said that our focus is on establishing in British Columbia, Newfoundland and Norway. And the two areas in Canada have good synergies that are important to us,” he said.
Plan remains unclear
In a stock exchange announcement, Mowi said the first step will entail one year of consultation on the development of the plan.
“At the time of writing, the content of the plan remains unclear. Mowi Canada West will continue to work with all levels of government, including First Nations, to secure a future for sustainable and viable salmon farming in British Columbia and securing important jobs for the province and rural coastal communities,” it said.
This area, however, is not covered by Wednesday's decision.
About 44 percent of the licenses renewed on June 22 in British Columbia belong to Mowi. Grieg Seafood has 22 salmon licenses that should also expire at the end of this month in the region.
Mitsubishi-owned Cermaq also has salmon farming operations in Canada with 14 locations in Clayoquot Sound, which is among the 79 salmon farming licenses being renewed.
Cermaq Global Group CEO Steven Rafferty said the two-year renewal period will be an important part of a larger and more comprehensive process that will "chart the future of salmon farming in British Columbia."
Cermaq will be an active participant in that process, Rafferty said.
"Our goal is that the transition planning will contribute to a long-term development of salmon farming, which already today contributes to healthy food production, many local jobs and an important contribution to ensuring the rights of indigenous peoples," he said.
"Our cooperation with First Nations is subject to agreements, which is a clear prerequisite for us for all our operations in Canada."
Analyst: ‘As expected’
He added that, if anything, the news is a bit disappointing.
“The permits are extended by two years, which the breeders may think is a little too little,” he said.
However, Thommessen said that it is unrealistic to believe that there will be no farmed fish in the sea in British Columbia by 2025.
“For that, there are far too many employees who are in danger,” said Thommessen.
The analyst believes the decision was as expected in the financial market, and already priced into stock prices.
“We will not change any estimates on the basis of this… It would have been a negative event if they were not extended,” he said.
(Copyright)