Mowi's feed mills have a combined production capacity of 700,000 tonnes per year.
Photo: Mowi.
Mowi has entered into a strategic partnership with Skretting, marking the conclusion to a strategic review of its feed division announced in March - which also contemplated a potential sale of the business.
The agreement with Skretting, announced today, will see Mowi retain ownership and operation of its feed business, including its feed mills in Norway and Scotland, with future feed production to be based on Skretting’s formulations.
Under the deal, Skretting will also provide access to its "proprietary know-how", research and development capacity, data and procurement capabilities, Mowi said.
"With this agreement, Mowi Farming secures the best performing feed in the coming years at the lowest cost in the industry. The partnership will deliver improved feed formulation and recipes for our European salmon farming operations which will drive significant cost improvements whilst ensuring top quality feed performance in the years to come”, said Mowi CEO Ivan Vindheim, via a press release.
Mowi said the partnership is expected to generate annual net cost savings of more than NOK 650 million (EUR 55m / USD 60m), through changes to feed formulation, procurement and logistics.
According to the company, the retained feed division is forecast to deliver an EBITDA contribution of around NOK 825 million in 2026 (EUR 70m / USD 76m). Combined, Mowi estimates total EBITDA from the partnership and its in-house feed operations of more than NOK 1.47 billion (EUR 125m / USD 136m).
The company said this level of earnings corresponds to an EBIT contribution of NOK 2.1 per kilogram of gutted weight for the group, rising to NOK 2.6 per kilogram for its Norwegian operations. Mowi said this would translate into earnings of about NOK 1.7 per share.
The agreement concludes a strategic review announced in March 2025, when Mowi said it was assessing “all available options, including a sale” of its feed division.
At the time, Mowi's CEO Ivan Vindheim said it made sense to reassess how the feed business should be organised, given Mowi’s rapid growth in production volumes from 400,000 to 600,000 tonnes, in addition to its geographic spread and the resultant "complexity" of its operations.
Mowi engaged Arctic Securities to support the review, and while a possible divestment was on the table, the company stressed that there was no certainty a transaction would take place.
In 2024, Mowi's feed division generated operating revenues of EUR 1.12 billion (USD 1.18bn), with operational EBITDA of EUR 62 million, according to the company. Its main assets are two ASC-certified feed mills at Valsneset in Norway and Kyleakin in Scotland, with a combined annual capacity of around 700,000 tonnes, and employing around 140 staff.
Mowi said the decision to retain the feed business reflects its view that feed markets are likely to tighten in the coming years, which could improve profitability in this part of the value chain. The company will pay what it described as a small annual consideration for Skretting’s support.
Skretting is the aquaculture feed division of Nutreco and has been a supplier to Mowi for decades.
“Mowi and Skretting are a great match for each other, and the partnership with Skretting is our preferred outcome from the strategic review process. I am confident that teaming up with them will make Mowi into an even better salmon farming company,” Vindheim said.