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Increased earnings for Norwegian salmon and rainbow trout hatcheries in 2014


January 11, 2016
By Siri Elise Dybal

The average operating margin for hatcheries increased from 10% in 2013 to 13.3% in 2014, according to the newly released profitability survey on the production of Atlantic salmon and rainbow trout 2014.

Norway’s annual profitability survey on the production of Atlantic salmon and rainbow trout, showed an improvement in the financial results for fry producers owing to a combination of better prices and lower costs in 2014 compared with 2013.

Calculations showed that the hatchery industry had a combined profit before tax of 448 million Norwegian krone (US$51.5 million) in 2014, which is up from 286 million krone (US$33 million) in 2013.

The financial results for fry producers were, however, not high relative to the results for fish producers of market-size salmon and rainbow trout.

On-growing producers achieved an average operating margin of 25.4% in 2014, while fry producers had an average operating margin of 13.3%.

Production costs per sold fry and smolt was nearly unchanged from NOK 8.59 (US$1.00) in 2013 to NOK 8.53 (98 cents) in 2014.

There was a reduction in average sales of smolt and fry of 14.2% from 2013 to 2014. On average, a hatchery producer sold 3,874,884 individual fry and smolt in 2014. The reduction was greatest in the average sales of fry, which had dropped 26.2% from 2013 to 2014.

In 2014, sales of juveniles accounted for 13.2% of the total sale of fish, while in 2013 sales of juveniles accounted for 15.3%.

Productivity, calculated as sales of fry and smolt per man labour year, increased by 10% from 2013 to 2014. This development was due to a decrease in the number of man labour years.

Average sales of fish per man labour year was 446,609 individuals in 2014. This is an increase, which is largely related to a reduction in workforce from 2013 to 2014.

Siri Elise Dybdal