It may be the world's biggest salmon producer, but Norway-based Mowi is struggling to achieve growth rates comparable with others in the sector.

Despite achieving record high production volumes of 440,000 metric tons in 2020 and a 20 percent global market share, the company's growth rates have been lower than its competitors, something it is looking to address through various growth initiatives, it is set to tell investors at Wednesday's Capital Markets Day in Oslo.

Among these initiatives will be increased investment in post-smolt, which together with other measures the company believes will grow its volumes well beyond 500,000 metric tons organically, using existing license capacity.

Mowi will also pursue farming growth through accretive acquisitions "when this fits with its operational strategy," the company said.

Alternative technologies, such as land-based grow-out farms, may also play a role, although the company says netpen farming will remain its bread and butter.

"The main focus in Mowi Farming has been and will continue to be conventional farming. That said, we are monitoring developments in alternative technologies closely and may introduce such technologies when, and if, we find it timely and profitable," it said.

"Although Mowi is uniquely positioned in the salmon farming industry, we have been lagging on growth and have over the past years grown by less than the industry," said CEO Ivan Vindheim. "For an industry leader that is not satisfactory. Thus, re-igniting growth within Mowi Farming is a key priority going forward."

The company's farming costs are also under scrutiny. While Mowi's statistics reveal it to consistently be "the number one or number two performer among peers in the regions in which the company operates," costs are still considered too high in absolute terms, particularly in some regions outside of Norway.

The cost variation between the regions is also too high, said the company.

'Decommoditizing' salmon

But it is not just its farming operations that Mowi has an eye on. The company's consumer products division has achieved strong results the last few years and it continues to work on developing the global salmon market for branded products.

"We will also continue in our long-term quest to de-commoditize the salmon category through our MOWI branding strategy," said Vindeim. "At the same time we must acknowledge that salmon is still mainly sold as a commodity subject to fierce competition - particularly in Europe. Thus, it is key to be a cost leader in this part of the value chain too, in order to attain a reasonable profit on our sales."

Mowi's Capital Markets Day is scheduled for March 17 in Oslo. IntraFish will be reporting from the event.

Salmon

Salmon giant Mowi addressing 'unsatisfactory' volume growth with post-smolt, M&A and tech initiatives