100 jobs set to go as Skretting pulls out of UK production
Salmon feed producer Skretting today announced that the company intends to cease production in the UK at the end of 2019, with the likely loss of around 100 jobs.
The company blames overcapacity in the “highly-competitive” market, which will be increased when Marine Harvest’s feed plant at Kyleakin, Skye, begins production early next year.
In a press release Skretting said the move was intended to reduce the overcapacity in the market, and better utilise the company’s existing production facilities in Europe. The company has no plans to stop production in other markets and will continue to pursue its established growth strategy.
Unsustainable market conditions
“Unfortunately, we are experiencing unsustainable market conditions in the UK. With a new large feed plant becoming operational in Scotland early 2019, the total feed capacity in the region is expected to exceed the total market by more than 50%. This is driving down prices, leading to an unsustainable commercial environment”, said Skretting chief executive Therese Log Bergjord.
“We have therefore made the decision to start consulting with our employees on a proposal to cease feed production in the UK.”
Skretting will continue to supply to the UK market where economically viable.
“This is a tough decision for Skretting’s management team and our owner, Nutreco, considering the implications for our local employees and partners. In the proposed plan, all locations, including two production sites, will close down and around 100 employees may become redundant. First and foremost, we now concentrate on finding good solutions with our employees, customers, suppliers and partners in the UK,” said Log Bergjord.
Skretting said that while it is experiencing regional market challenges in the UK, it is actively pursuing further sustainable expansion of the global aquaculture industry from its operations in 19 countries across all continents.
“Aquaculture is an increasingly important and attractive solution to meet growing demand for healthy food. As the global leader in aquafeed, we are fully aware of our responsibilities. That is why we are prepared to take tough decisions to ensure sufficient profitability to finance our future and to remain a pioneer of continued sustainable development of the aquaculture industry,” said Log Bergjord.