Norcod warns of financial consequences of accelerated cod harvest. Image source: Norcod.
Norcod warns of financial consequences of accelerated cod harvest. Image source: Norcod.

Norcod warns of financial impact of accelerated cod harvest

Norwegian farmed cod producer Norcod warns of impacts to its production and earnings following the compulsory accelerated harvest of fish at one of its cod aquaculture facilities in the Nordland region. 

Following discovery of sexually maturing cod at its sea farm in the Meløy municipality, Norcod is cooperating with The Norwegian Directorate of Fisheries (FDIR) to address the issue. The early cod harvest, provisionally agreed with FDIR, will impact the production plan for the 2021 generation of cod currently at sea. Earnings are expected to drop significantly, while production costs per kilogram of fish will increase. 

The company states that the fish is healthy and was planned to be harvested within the following six months. Norcod warns that the accelerated harvest will lead to a lower volume of cod production and smaller fish size than expected, as well as impacting delivery for clients with long-term sales contracts. Lower sales prices are also expected due to increased sales on the spot market. 

However, the impact on Norcod's cashflow will be partially offset by lower production costs over the next six months. Representatives at Norcod also say the company is still on track to reach its 2025 target, including placing four new batches of cod in the sea during 2023. 

About Norcod

Norcod is a leading producer of sea-farmed cod based in Trondheim, Norway. Norcod's goal is to raise top-quality Atlantic cod sustainably and commercially, an ambitious goal they pursue using sustainable farming methods in the Norwegian fjords. Norcod's existing fish farms are located in central and northern Norway and contribute to value creation in the blue ocean with minimal impact on the environment while supporting local communities. The company's core business is commercial cod farming in marine facilities, but it is also involved in the entire value chain through cooperation with key players. Established in 2018, the cod aquaculture company is listed on the Oslo Stock Exchange's Euronext Growth Market.