Cod farming company Norcod has delivered an optimistic third quarter assessment on its future operations.
The Norwegian business has announced considerably reduced losses from NOK 16.5m (£1.4m) for the same period last year to NOK 3m (£254,000) in the latest quarter. It also reports that, with countries reducing fishing quotas, farmed cod is well placed to take on an increasingly important role.
Two weeks ago Norcod entered into a NOK 75m (£6.3m) overdraft facility with DNB, Norway’s largest bank, to secure operations for the next 12 months.
The company plans to use the credit facility to build up its biomass and cod production at sea.
CEO Christian Riber said: “The loan facility is very important for us and brings hope and excitement as what to expect in this new business area within the seafood industry.”
Other Q3 highlights include:
- Stocking of the 2022 generation is in progress;
- The company’s second harvest period is coming up;
- Preparation for a new production site is under way; and
- Production of biomass is worth NOK 96m (£8.2m).
Already in May, Norcod initiated stocking of its third production cycle at sea.
The quarterly report said: “The global cod market is seeing great change with dwindling quotas.
“Agreements to reduce cod stocks in the Northern Atlantic by some 20% for 2023 has recently been agreed to.
“While such changes are regrettable, they do highlight the importance of farmed cod to help ensure fresh cod in the market, that comes with no cost to the wild stocks.”
The report adds: “This both underlines the business model rationale and environmental considerations that were made when founding Norcod.
“On the environmental side, Norcod also very much aligns with the goals of many customers who seek to source more sustainable products to help them make their own business more green. The demand from the market and consumers for cod remain strong with cod being a stable item in many household and culinary kitchens.”