Grieg Seafood Shetland Ltd farms salmon on Shetland and the Isle of Skye in Scotland. We are the largest salmon producer on Shetland, with 17 active seawater sites (13 on Shetland and four on the Isle of Skye) and one freshwater site. We process our salmon at our own facility in Lerwick.
Our operations contribute significantly to local value creation. For more information on our initiatives in the local communities, see Local value creation
The aquaculture industry in Shetland has over time endured various biological challenges. We cooperate closely with other sea farmers in the region to establish a long-term, stable, and sustainable marine biology. Whole farming areas operate with fallowing periods, and sea lice counting and treatment activity is coordinated between farmers.
Over the last four years, we have cut production from 27 to 17 sites, focusing our production on the best sites with the strongest biological control. We have implemented routines and systems for monitoring and mitigation of algae-related issues. Other prioritized measures to ensure strong biosecurity, improved fish welfare, and control of the sea lice situation include the use of aeration systems, cleaner fish, sea lice skirts, and fresh water treatments.
We also focus on improving smolt quality, to ensure a more robust and healthy fish which is essential for good growth, which will reduce cost going forward.
The volume harvested in 2018 was 11 924 tonnes, compared to 12 056 tonnes in 2017. Revenues amounted to NOK 800 million, with an average of NOK 67.1 per kg.
Biological challenges related to algal bloom, gill-related diseases, sea lice, and winter ulcers affected the survival rate, which came to 83 % (calculated according to the GSI definition). Combined with efforts to mitigate these challenges as well as write downs due to reduced survival, the cost per kg salmon harvested was high in 2018. By improving our smolt quality and continue focusing in initiatives to improve biosecurity and fish welfare, we expect cost to be reduced going forward.
The EBIT per kg before fair value adjustments amounted to NOK 2.8, compared to NOK 5.7 in 2017.