Norcod ‘positive’ despite higher losses

The white fish farmer Norcod has reported a big increase in losses during the final part of last year despite higher sales.

Nevertheless, the young – but market leading – cod producer stressed that the outlook was very positive.

It is only a few weeks ago that Norcod announced it had won a £4m contract to supply 850 tonnes of farmed cod to large, but as yet unnamed Spanish supermarket chain

With output now getting into gear turnover was well up at NOK 44.2m (£3.7m) against just NOK 0.5m 12 months earlier.

But the company’s operating loss was NOK 24.4m (£2m) against a loss of NOK 17.2m (almost £1.5m) in Q4 2020. Norcod harvested 1,393 tonnes between mid-August and the end of last year.

The company said in its quarterly report that Norcod had comprehensively delivered proof of concept and it was now a market leader in Norwegian cod farming.

The 1,393 tonne harvest figure represented more than 85% of the total volume figure of cod farmed cod in the country during that period.

“This demonstrates that Norcod has achieved commercially viable, biologically superior cod farming, which paves the way for a positive future for the industry,” the report continued.

“The 2021 batch of 2.2 million fish at the company’s locations in Meløy and Frøya, have shown strong biological performance during Q4.

“Transfer operations to the sea facilities in Q3 went successfully as planned. The fish remained calm throughout the process and immediately began feeding on arrival.”

Norcod added: “Throughout the fourth quarter the cod has shown excellent growth and survival rate and caught up with budgeted growth despite some delayed release at the sea locations.

The fish seem to thrive above expectations at low temperatures, which we have observed at our production sites during the recent months.”

Norcod said it continues to land strategic milestones which included the reception of its first hybrid vessel and two barges rigged for waterborne feeding strengthen the company’s sustainability profile.

“The choices we make regarding equipment addresses a lower climate footprint and lead to reduced local and global impact from our business,” it added.

The company had also increased staff recruitment.