Namgam hopes to join Pure Farming (whose CEO Eldar Arne Henden, and Marketing Manger Reidar Nygård are pictured) as Norway's second producer of Label Rouge salmon.

Plans for new Label Rouge producer

The Norwegian firm Namgam has applied for permission to produce 2000 tonnes of Label Rouge (LR) certified salmon at a new site in Smøla. 

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If the application is successful, it would make them the country’s second LR producer, while around 7,500 tonnes are grown by 5 companies (Cooke Aquaculture, Scottish Sea Farms, Marine Harvest, The Scottish Salmon Company and Loch Duart) in Scotland each year.

Namgam is a 100% owned subsidiary of Nekton Akvakultur and, as part of the LR project, they aim to focus on reducing the risk of disease, reducing lice problems by shortening the time the fish spend at sea and improving fish welfare.

However, Pure Norwegian Seafood – Norway’s main LR salmon distributor, whose subsidiary, Pure Farming, produces LR salmon – reports a difficult 2015, “largely due to problems caused by Pancreas disease (PD),” its CEO, Eldar Arne Henden, tells kyst.no.

Despite this setback, the manager has great faith in ensuring a steady supply of, and achieving a higher price for, Norwegian LR salmon.

The company was established in September 2010 has grown considerably since then, although 2015 proved to be tough, as Pure Farming was hit with a severe PD outbreak, which led to six months during which they were unable to deliver LR fish.

This year has also been challenging so far, with Norwegian LR salmon fetching less than conventional salmon sold at spot price.

“2016 has so far been a state of emergency, where LR salmon is cheaper than the spot price, which also gave us a lower turnover,” Henden explains.

Pure Norwegian exports most of its LR fish to France and Switzerland, as well as selling some domestically. However, Henden is also convinced that there is considerable untapped potential for Norwegian LR salmon in the US market.