Andfjord Salmon farm ‘progressing well’

To this end, it’s building a new land-based farm build-out at Kvalnes, Andøya, which is progressing as planned. It’s also taking a science-based approach to land-based fish farming which has contributed to a recent equity raise of NOK 350 million, attracting new strategic investors.

“Our build-out is progressing well. During the first quarter, we identified an additional revenue stream that strengthens our business case. We also received another report confirming strong biological conditions in our first production cycle, which contributed to the success of last week’s equity raise,” said Martin Rasmussen, CEO of Andfjord Salmon.

Science based

Andfjord Salmon is currently expanding its Kvalnes facility and therefore had no salmon production and only minor revenue in the first quarter of 2024.

In the first build-out phase, the  company is completing four new pools, which brings total production capacity to 8,000 tonnes HOG at Kvalnes in 2025. It’s targeting a total production capacity of 40,000 tonnes (HOG) at Kvalnes through gradual volume increases between 2025 and 2030.

In the initial build-out phase, the company is also developing shared infrastructure, such as waterways and a harbour area, that will support future production of 40,000 tonnes.

Behind the scenes the company is also working hard its science-based approach to land-based fish farming.

Independent research body Nofima was tasked with documenting biological conditions and fish welfare in the first pool. It reprted that “Andfjord Salmon applied a very comprehensive welfare and health documentation plan for the first production cycle.”

“The fish farming industry is under pressure to improve biological conditions, fish health and welfare. Although we are still only a small player in a large global industry, this report shows that our land-based flow-through system is capable of enabling fish-friendly salmon farming,” said Mr Rasmussen.

During the first quarter, Andfjord Salmon announced plans to utilise surplus pool capacity after smolt release to release even more smolt in its land-based pools. This additional smolt will be sold on to ocean-based fish farmers in the region after approximately five to seven months, when the fish has reached approximately 1kg. It is a smart way of enhancing production capacity and income potential without adding additional infrastructure costs. 

The company said its cash flow will also improve considerably as it can generate sales revenue more quickly, in addition to income from the harvest of human grade salmon after a full 12 to 15 month production cycle.

During the first quarter, Andfjord Salmon entered into a strategic collaboration with ocean-based fish farmer Eidsfjord Sjøfarm/Holmøy Havbruk to provide post-smolt for selected, nearby ocean-based farming locations.

Current shareholders in Andfjord Salmon include its largest shareholder Jerónimo Martins Agro-Alimentar S.A and fish farming company Eidsfjord Sjøfarm. In addition, High Liner Foods Incorporated has invested US$10 million as a new shareholder.