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Marine Harvest to Build First Fish Feed Factory in Norway

28 January 2013

ANALYSIS - Following on from last years announcement that Marine Harvest planned to move into the fish feed market, the company has now announced that the first fish feed factory will be located in Bjugn, Norway, writes Lucy Towers, TheFishSite Editor.

The company's strategic move into the feed sector means Marine Harvest will now have even more control in the salmon market.

The factory will now produce feed for its farms, helping to reduce the 50 per cent of its current production costs which are spent on feed.

The factory, which will become operational in the first half of 2014 and it is estimated to have a feed capacity of 220,000 tonnes, a smaller capacity than the 500,000 tonnes that was originally planned.

Marine Harvest has assessed the investment to be approximately NOK 800 million.

With the go ahead now given for the company's expansion into the feed division, how will the market be affected?

Marine Harvest's entrance into the feed market will likely create even more competition, with other feed suppliers seeing a reduction in their available markets.

However, with the factory not operational until 2014, other large feed companies have the chance to adjust investments accordingly.

Torben Svejgard, CEO of BioMar, which currently supplies Marine Harvest with feed, told TheFishSite that the Norweigian salmon market will continue to grow and therefore more market opportunities will continue to arise. Mr Svejgard also said that BioMar will have plenty of time to adjust by expanding into new markets and species.

Lucy Towers

Lucy Towers
News Team - Editor

After graduating from The University of Sheffield, Lucy joined 5M in 2011 as part of the News Desk team. In 2012, she was promoted to editor of TheFishSite. With previous farming experience and a love for the great outdoors, Lucy has a passion for wildlife and the environment.

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