Mowi ASA, a producer of farm-raised Atlantic salmon, has entered into a strategic partnership with Skretting/Nutreco in which Mowi will produce feed based on Skretting’s formulations.
The partnership is expected to deliver more than $58 million in annualized net cost savings through improvements in feed formulation, procurement and logistics.
“Mowi and Skretting are a great match for each other, and the partnership with Skretting is our preferred outcome from the strategic review process,” said Ivan Vindheim, Mowi CEO. “I am confident that teaming up with them will make Mowi into an even better salmon farming company.”
The agreement follows a strategic review of Mowi’s feed division announced in March.
Retaining feed operations
Mowi Feed will retain its two factories in Norway and Scotland, with an expected EBITDA contribution in 2026 of about $74 million. The total EBITDA contribution from both the Skretting partnership and the retained Mowi Feed business unit is projected to exceed $132 million.
“The partnership model whereby Mowi Feed is retained gives us the best of both worlds,” Vindheim said. “Teaming up with Skretting with all the benefits that it entails and at the same time retaining Mowi Feed with an improved market outlook make this the most compelling solution.”
Leveraging expertise
Skretting, the aquaculture feed business line of Nutreco, is a leading global aquafeed manufacturer with advanced nutritional expertise and research and development capabilities. The company has been one of Mowi’s feed suppliers for decades.
“We know the Skretting team extremely well and have enjoyed an excellent working relationship with them for decades,” Vindheim said.
“Now we are taking this cooperation to another level and formalizing how we can drive innovations and cost improvements. This partnership model presents a low-risk solution for Mowi while ensuring cost savings from day one on improved feed formulation and optimized procurement and logistics.”
As feed formulation has become increasingly complex, nutritional know-how and R&D focus have become more important, the company noted.
Mowi is headquartered in Bergen, Norway, and operates salmon farms in seven countries including Norway, Scotland, Ireland, Faroes, Iceland, Chile and Canada. The company employs 12,300 people in 26 countries and reported turnover of $5.9 billion in 2024.
Related: Mowi Launches Global Norwegian Atlantic Salmon Brand, Mowi Pure