Switching from trout to salmon

The Hofseth Group will implement a gradual transition in production from trout, which accounted for around half of the fish harvested in Q4, to salmon. 

This follows a strategic review of the fish farming business, according to the company's fourth quarter report.

The decision means that the hatchery in Tafjord will switch to producing only salmon smolt in 2026 and that trout will gradually be phased out of the group's production mix.

The group is the only fish farmer in Storfjorden in Sunnmøre, where more than 14,000 tonnes of salmon and trout were produced at five locations in 2025. The fish are slaughtered at the company's facility in Ålesund, and a total of more than 48,000 tonnes of salmon and trout were processed in the group's four processing plants last year.

Record growth expected

The reason for the restructuring is an assessment of the optimal production mix going forward. At the same time, the aquaculture division is entering a year with expected strong volume growth.

For 2026, the company is guiding for record production of approximately 16,000 gutted weight tonnes, representing a 17% increase from the midpoint compared to the previous year. The most important contribution comes from two new development licences that were activated in August 2025 and increase Hofseth's maximum permitted biomass by over 25%.

In the fourth quarter, the aquaculture division harvested 3,754 gwt, up 14% from the same period last year. Trout accounted for 50.5% of the volume in the quarter.

The 12-month mortality rate was 4.3%, while the quarterly mortality rate ended at 1.6%.

At the Bugane site, the company began harvesting from submersible cages during the quarter. According to the report, these have resulted in about a 70% reduction in sea lice pressure compared to traditional surface cages.

Development projects 

A submersible development project, "Havliljen", is having its steel structure deployed at Vindsnes during the first quarter, with fish stocking in June and first harvest expected in the first quarter of 2027.

The Egg closed cage (E20,000) is being further delayed. Deployment of the first plant is now expected in the first quarter of 2027, compared to previous estimates of the fourth quarter of 2026.

Tough US market

While aquaculture is heading towards volume growth, 2026 is expected to be significantly more demanding for the processing industry. At the beginning of the year, Norwegian processors faced a 15% tariff on imports to the United States, compared to the 10% tariff imposed on Chilean salmon. This contributed to American buyers securing Chilean contracts to a greater extent.

The tariff rate has now been normalised to 10% for all supplier countries, which may lead to better market conditions in the second half of the year.

Nevertheless, the group expects that sold processing volumes could fall by up to 30% in 2026. Management is announcing cost cuts and efficiency improvements in anticipation of increased volumes in the second half of the year and a more normalised 2027.

In Q4 2025, the group had revenue of NOK 1.276 billion (£99.2 million), down 18.7% from the same period last year. EBITDA, a measure of operating profit, ended at NOK 89 million, a decrease of 45%, mainly due to weaker results in the refining division.