The Global Salmon Success

In 2007, the annual production of farming salmon was 784 000 metric tons. Norway represents about 40 per cent of the global salmon production. The salmon farming industry is today the third largest export industry in Norway, coming after petrol and metal.
– It is during the last 25-30 years that farmed salmon has claimed the unique position nationally and globally. It started on a small scale, early in 1970s, with small fisheries, simply run, on the West coast, where the climate is beneficial, with for instance good water temperatures. The salmon grows more the warmer the water is, but the growth is not at all exclusively down to climate, says Kristin Helen Roll, associate professor at the University of Stavanger.

She presented her thesis, Productivity and Efficiency in the Norwegian Salmon Farming Industry, at the University of Stavanger this spring.

Improved genetic quality
The most important reason for the enormous growth is without a doubt control of the biological production process. Control of feed has improved, and new types of food and feeding systems have been introduced. A genetic breeding program with basis in certain genes was started, and a vaccine was developed, with reduced use of antibiotics to prevent disease.

Roll explains that the farming industry is dynamic and innovative. Frequent changes have been made with major improvements in efficiency, in the areas of feeding, work force, capital and better farms. Historically, the 1980s and 1990s were used to develop new and innovative techniques. Among the changes are improved genetic quality of the salmon and the quality of the feed. Improved immunization and treatment of disease has also been very important, as well as the development of automatic feeding systems and more robust farms.

– Throughout the years there has been significant learning among producers. They have learned and started using new knowledge. It has been imperative to the growth in production that has taken place. Suppliers have contributed with effective production of smolt and feed, and further down the chain, distributors have contributed with more efficient logistics to get the salmon to the customers, Roll explains.

Lower price
The innovation and improved efficiency has caused the costs to drop significantly. Production costs per unit today are a quarter of the costs in the 1980s. However, at the same time, prices have fallen too, to just a quarter of the price in the start-up period. In this way, the margin between costs and price has been very stable. The almost dramatically increased production volume means that price is low, to the delight of consumers.

– The price of farmed salmon in shops is now about 20 Norwegian kroner, which is very inexpensive. To customers, the shop price is of course the deciding factor. Lower price has meant that it has been possible to sell the increased amount of salmon that is a result of the growth in productivity. New markets where the industry wants to sell Norwegian salmon are continually being developed, both in terms of new products based on Norwegian salmon and new geographical sales areas, says Roll.

The world demands salmon
– Due to the global population growth and the economic growth, the global demand for sea food will increase in the future. For example, a market like China will probably be very interesting over the coming years due to the growth in the economy, according to Kristin Helen Roll.

The best proof of the global effect of farmed salmon is to be found in the labour market.

– In the EU, 10 000 people have a job that is related to Norwegian salmon, Roll says.

The researcher points out that salmon farming is an effective way of producing protein. To produce 1 kg of salmon takes a lot less feed than what it takes to produce 1 kg of chicken meat. That is one of the reasons why salmon is so sought after as a source of protein in the world. Salmon production and other fish farming therefore has the potential to be one of the most important ways of producing food in the future.

Text: Egil Rugland
Translation: Linda Johnsen