Statt Torsk will start supplying fish to a contract customer in September. Photo: Statt Torsk.

Contract gives security for cod farmer Statt Torsk

Norwegian cod farmer Statt Torsk has signed a sales agreement with an un-named customer for 1,600 tonnes (whole fish equivalent), which is approximately 30% of the company’s expected output.

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Deliveries will start in September, and the expected value for Statt Torsk is around NOK 70 million (£5.9m).

“For Statt, this is a significant agreement with a customer who already knows the company and our fish,” said chief executive Gustave Brun-Lie in a market announcement.

High demands

“It is good for both the company and our new industry to get confirmation of the quality of farmed cod, especially with a customer who has high demands on both product and supplier.

“Although we will never be satisfied with the price we achieve, the agreement represents a good increase compared to last year’s price achievement. The security that follows an agreement with such a customer is also important for the company’s development in unstable times. Now we see the result of the changed production cycles from 18 to 30 months.”

New licences

Statt Torsk recently entered into an agreement for financing of NOK 35 million for the build-up of inventories to be able to carry out weekly deliveries of cod from September 2022, and earlier this month was awarded three new licences for its Rekvika site, giving it a maximum allowed biomass (MAB) of 4,680 tonnes.

The company began commercial production in August last year after six years of small-scale pilot projects at Stokkeneset.

The initial facility at Rekvika was fully installed in the summer of 2021 and comprised a feed barge and eight cages.

Greater efficiency

“A larger facility will result in both lower investment and lower production costs per produced kg for Rekvika. The investment will be carried out so that Rekvika is ready for larger production when the second production cycle is initiated in the second half of 2023,” said chief operating officer Bjug Borgund.

Statt has a target of 24 licences spread over four to six locations in order to achieve the most sustainable production unit possible in the area around Stad in Vestland region, central Norway. It currently has two facilities with a total of eight licences.