Mowi partners with Skretting for feed production, projecting significant savings

Mowi ASA has entered into a strategic and industrial partnership with Nutreco-owned feed producer Skretting to enhance its aquaculture operations. This follows a strategic review of Mowi's integrated feed division, which concluded in a collaboration leveraging Skretting's feed formulations and purchasing terms. Mowi's feed division will continue to operate its two factories in Bjugn, Norway, and Kyleakin, Scotland, under this new model.

The partnership is projected to yield over NOK 650 million in net annual cost savings through improved feed formulation, procurement, and logistics. Additionally, Mowi's integrated feed division is estimated to contribute NOK 825 million to the group's gross operating profit in 2026. This combined contribution of NOK 1,475 million equates to NOK 1.70 per share and NOK 2.10 in EBIT/kg for the group.

Mowi chief executive Ivan Vindheim stated that the agreement ensures the best feed and lowest feed costs in the industry. The company will pay a minor annual fee to Skretting for their nutritional expertise and research and development, maintaining Mowi's competitive advantage with its integrated feed model and highly profitable feed value chain.