The GSF 2020 program for sustainable growth

In 2016, we launched our growth program to utilize existing farming licenses. The growth target is 100 000 tonnes in 2020, with a cost at or below industry level. With this program, we are also building a platform for sustainable growth beyond 2020.

OUR STRATEGIC FOCUS AREAS

 

POST SMOLT STRATEGY

Our post smolt strategy will enable us to keep fish longer on land before releasing it into the sea. While an average smolt released into the sea in 2014 was 90 grams, the average smolt in Rogaland will be 500 grams in 2020. Bigger smolt improves biosecurity because each salmon has less time in sea, with reduced exposure to biological risks. It also increases smolt release flexibility and allows us to fallow for longer periods if needed. Further, post smolt improves salmon survival rates because each salmon is more robust when entering the sea. Post smolt also allows for a more efficient production cycle. It takes less time to reach harvest size in the sea, which frees up capacity on farms and reduces the number of active sea sites. As such, it reduces the need for capital expenditure in seawater production. The result is lower environmental footprint per kilo, better fish health, increased productivity, and lower costs.

 

DIGITALIZATION

When digitalizing salmon farming, we apply advanced sensors, big data, artificial intelligence, and automation, with the aim of gene-rating better farming decisions. Today, we have simplified and standardized data acquisition. Farmers are starting to get access to real-time data from the pens to support decisionmaking. The future will allow us to use big data analytics to predict events in advance, to improve decision-making and omit negative occurrences. We call it Grieg Seafood (GSF) Precision Farming.

 

We will open integrated full-scale operations centers for remote farming operations in all regions. The centers will gather and analyze new and historical data, support decisions through conti-nuous data analysis, centralize and improve feeding operations, and keep an overview of all technical infrastructure. Our digitalization efforts will improve insight, provide better control for the farmers, increase resource utilization, and improve the area management. We believe it will allow us to find new connections between the fish and the environment, which may impact farming decisions. The result is reduced environmental impact, improved fish welfare, improved productivity, and lower cost.

 

BIOSECURITY AND FISH WELFARE

We pursue a systematic, long-term approach to fish welfare. The key is investment and further development of preventative measu-res against dangers to the fish in the sea, such as sea lice, harmful plankton, low oxygen levels, diseases, and low sea water tempe-ratures. Prevention will reduce handling and stress for the fish. It will also reduce our environmental footprint, for instance by reducing the number of treatments needed. The result is stronger growth, high harvesting quality, increased survival rates, and lower cost.

 

EXPANSION OPPORTUNITIES

We look for more sites and new locations in existing regions, which will allow us to improve flexibility, biosecurity, and fish welfare. We take part in new growth initiatives such as development licenses in Norway, and look for joint ventures and cooperation with farmers in existing areas. Increasing production time on land through our post smolt strategy will also give us more options. Expansion opportunities give us more flexibility in production, which helps us to reach our targets on volume, cost, quality, fish welfare, and environmental impact.

SUSTAINABILITY DRIVES RESULTS

In salmon farming, when we are in it long-term, there is no contradiction between sustainability and profit. In fact, sustai-nability drivers such as sea lice control and survival directly impact success factors like cost or volume. As such, to reach our financial targets, our sustainability drivers need to perform well.

SUSTAINABILITY DRIVERS

  • Sea lice control
  • Escape control
  • Disease control
  • Survival
  • Minimal sea lice medication
  • Wild life management
  • Carbon emissions
  • HSE
  • Work satisfaction
  • Certifications
  • Local value creation

SUCCESS FACTORS

  • License to operate
  • Higher volume
  • Superior quality
  • Reduced cost
  • Engaged employees
  • Preferred partner

FINANCIAL TARGETS

  • ROCE: 12 %
  • 100 000 tonnes in 2020
  • Cost at/below NOK 37.9/kg
  • NIBD/EBITDA < 4.5
  • NIBD/harvest volume: NOK 20/kg
  • Dividend of 25-35 % of net profit
 
 
FooterNav