Norcod cuts losses by almost half

Leading cod farmer Norcod is gradually clawing its way into profit, the company’s latest figures suggest today.

The Norwegian business saw its losses reduced by almost half during the first three months of 2024.

Operating loss before biomass adjustments was NOK 47.9m (£3.5m) against a loss of NOK 88m (£6.5m) over the same period a year ago.

Norcod slaughtered 2,765 tonnes (round weight) during the period at a production cost of NOK 39.75 (£2.90) per kg.

Norcod said net growth during the quarter was 1,586 tonnes, amid heavy investment in biomass and a satisfactory feed conversion rate and stable and predictable mortality.

In fact, according to official statistics, Norcod’s share of total export volume of harvested cod from Norway during the quarter was 65%, and at the end of the period, it held 50% of the farmed cod biomass volume.

Norcod’s main market during the past year has been central and western Europe. But during the start of this year it secured a new contract with a Chinese customer “at favourable market prices” , and Norcod said it now has an ambition to strengthen its market position in China this year.

Norcod said its key tasks going forward are twofold: “Firstly, a continued vigilant focus on cod biology and fine tuning of the feeding regime, the production processes, and the utilisation of production capacity.

“Secondly, stepping up efforts to develop the market and positioning our product in a premium niche category, with corresponding sales prices and contracts.”

It adds: “A continued focus in these two areas will enable us to deliver on our number one priority of achieving profitability at current production levels. Beyond this goal, we will take a step-by-step approach to building up volume in line with market demand at favourable sales prices.”