'From egg to customer': Norwegian cod farmer goes fully integrated after latest deal

Norwegian cod farmer Ode has agreed to buy the harvesting arm of salmon producer Masoval for an undisclosed sum, the final step in its rapid growth to becoming a fully integrated producer and supplier.

Ode, formerly known as Gadus Group, said it planned this year to develop the Western Seaproducts facility in the western Norwegian town of Vartdal into a larger, specialized facility for harvesting and processing cod.

"By acquiring the processing plant in Vartdal, we are now involved all the way from the egg to the customer, a process that takes three years," Ode CEO and founder Ola Kvalheim said in a statement Friday.

Ode, based in the town of Alesund, operates six sea farms with annual production capacity in excess of 25,000 metric tons, making it one of the largest players in Norway's fledgling farmed cod sector.

By being fully integrated, the company said it aimed to control quality, traceability and efficiency throughout the supply chain. Ode already owns a hatchery and manages juvenile grow-out, farming, slaughtering, processing, sales and marketing of its cod.

In recent years, Ode has made significant investments in production capacity. The company employs almost 150 people and delivered just under 4 million kilograms of fresh cod in 2023 – an amount it plans to triple this year.

"Ode will be focusing on expanding production step-by-step across our value chain to ensure we can continue to grow with our existing customers and take on new customers," said Kvalheim.

In a separate statement, Masoval said it decided in late-2023 to seek a buyer for its harvesting company after undertaking a strategic review.

In 2022, another Norwegian cod farmer, Statt Torsk, entered a two-year agreement to harvest and process up to 3,500 metric tons of cod per year at the Vartdal facility. That agreement expires on Dec. 31.