Bakkafrost Scotland losses were much heavier last year

Salmon farmer Bakkafrost Scotland’s operating loss increased from £6 million in 2024 to £58.1m last year, newly published accounts show.

Its financial loss after tax increased from £23.5m to £63.9m.

The increased losses came during a year when a significant increase in global supply of salmon, particularly from Norway, led to lower market prices which negatively affected financial performance, wrote Bakkafrost Scotland’s directors.

“Salmon reference prices (in NOK) for 4-5kg superior salmon were 18.1% and 33.3% lower respectively in Q1 and Q2 2025 than during the same periods in 2024.”

Bakkafrost Scotland harvested 23,200 gutted weight tonnes last year, down from 27,900 gwt in 2024. The lower volume and prices led to a revenue drop of £66m (28%), from £237m in 2024 to £171m.

Mixed fortunes in sea

The company’s sea farms delivered excellent biological results during the first half of 2025 with low mortality, well-managed sea lice, and exceptionally high harvest weights, Bakkafrost Scotland reported.  

But in Q2 and Q3 biology challenges at several sites led to increased mortality, including an issue at its Portree site, Skye, which resulted in exceptional mortality and early harvesting.

“Other sites continued to perform well,” directors reported. “Sites impacted were stocked with ‘legacy fish’, reflecting historic issues with smolt quality. As the company progresses into 2026, the biomass at sea will increasingly reflect large and high-quality smolt, as our strategic shift is expected to deliver enhanced fish health and improved growth rates.”

£38m invested in freshwater facilities

Faroes-headquartered Bakkafrost is relying on the production of large post-smolts to improve farming outcomes and its financial position in Scotland, and invested £38m in improving freshwater capacity last year, on top of the £34.1m invested in 2024.

Smolts transferred to sea pens from its new Applecross facility in Wester Ross during the first half of 2025 had an average weight of around 230g, an 80% increase compared to prior year.

But here, too, Bakkafrost has had challenges to overcome.

“The move to larger robust smolt from a new facility is not linear, but a gradual process that involves inherent risk while operations stabilise and procedures are refined,” the company wrote.

“This was evident in Q2 2025, when some of the production modules at Applecross delivered strong performance and strong growth with low mortality, but one module experienced biology-driven exceptional mortality.”

Altered production plan

After a management change, the production plan at Applecross was revised to produce batches of smolt ranging from 200g to 400g.

“This adjustment allows for greater flexibility in production planning, better utilisation of capacity, and improved biological outcomes,” wrote directors. “The priority in 2026 is to grow freshwater biomass and strengthen utilisation to ensure consistent production of larger, high-quality smolt for marine farming which will improve fish health, growth performance, and long-term sustainability.”

Bakkafrost said it remains firmly committed to its strategic investment plan and larger, high-quality smolt strategy.

“Completion of the Applecross facility, investment in treatment capacity and adoption of best practices are expected to drive improved financial performance in the coming years.”

45 fewer staff

Bakkafrost Scotland employed 443 staff last year, a reduction of 45 compared to the year before. Staff costs amounted to £23.5m, down from £24.5m in 2024.

The company made £45.7m from sales in the UK in 2025, down from £74.7m the year before. Income from sales to Europe plunged from £108.2m to £45m, but sales to North America went up from £24m to £30.1m. Sales to the rest of the world also increased, from £30.2m in 2024 to £49.8m.