There is no significant growth today in salmon production in the largest salmon farming nations, which means the global output picture will remain stable in the coming years, said Sjur Malm, CFO of Norwegian seafood giant Leroy.

“It is not surprising that Iceland, for example, is growing. Nations where salmon farming used to be too expensive and now isn’t are going to grow, but production from these locations won’t change our world,” he said.

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According to Malm, the most obvious way to increase production nowadays is by increasing smolt transfer size. Leroy aims to produce between 40 percent and 50 of its smolts to 500 grams by 2021.

“We want to grow, everyone wants to grow, but that is not possible at the moment without new licenses,” Malm said.

“Land-based salmon farming, offshore salmon farming are both years away, and it’s not a matter of whether they’ll work, but at what cost?”

Although these new technologies will reshape the industry, it remains to be seen how competitive they are compared with current farming models.

In addition, the current positive trend in profitability is also set to change as new efficiencies and production costs stabilize.

The salmon market will remain stable in the near term, with demand and prices increasing on par, but the picture will eventually change, he said.

“At the moment, everyone is making money, and this normally doesn’t last forever. All signs indicate that as the costs scenario changes the most competitive producer will set the price and the rest will have to adjust,” Malm said.

Aquaculture

Leroy CFO: 'All new ways to grow salmon production are still years away'