Grieg Seafood Rogaland AS farms salmon in Rogaland on the west coast of Norway. The company has 19 seawater license equivalents and two licenses for land-based production of smolt. We also operate our own brood stock activity in Erfjord. All our salmon harvested in this region is processed and packed at our own facilities.
As our operations are located across six municipalities in Rogaland, we contribute significantly to the value creation in the local communities. For more information on our initiatives in the local communities, please refer to Local value creation
Grieg Seafood Rogaland aims to reduce the production time in sea from 18 to 12 months, with an average smolt size increasing to 500 grams in 2020. Larger smolt size will significantly reduce seawater production time, making the fish less exposed to challenges such as sea lice and PD. At the end of 2018, we completed the expansion of the smolt facility Tytlandsvik Aqua, our co-investment with Bremnes Fryseri and Vest Havbruk, to produce large size smolt of 700 to 1 000 grams. We expect to receive 1 000 tonnes of large size smolt from Tytlandsvik in 2019.
Our sites Rogaland are located in a yellow area in the recently introduced "traffic light" system. The yellow light is a consequence of high sea lice density and a fear that this could negatively affect wild salmonid stocks.
Please see To farm salmon in co-existence with wild salmon for more information on impact of fish farming on wild salmon.
We use cleanerfish as a preventive measure for sea lice and did not perform any sea lice treatment between July and November.
Pancreas Disease (PD) has also been a challenge in Rogaland, negatively affecting feeding and reducing growth rates. At year end 2018, two out of 13 sites were affected by PD, compared to seven out of 12 sites at the same time last year. This is expected to improve cost level, harvest weight, and quality going forward.
As part of our precision farming strategy, we launched our first integrated operations center in Rogaland in September. Five sites are currently being monitored and fed from this facility. Precision farming will ensure better feeding, leading to reduced costs and increased growth. We aim to have full coverage of all sites from our operations center by the end of 2019.
Please read more about Precision Farming on Driving digital aquaculture.
Our harvested volume in 2018 was 16 293 tonnes, a decrease from 18 111 tonnes in 2017. The reduction in harvest volume was primarily linked to issues with sea lice and PD, particularly in the first half of 2018. Revenue amounted to NOK 960 million, an average price of NOK 58.9 per kg.
Strong production in the second half of the year has resulted in a good standing biomass as of year end, with fewer sites affected by PD. Overall for 2018, Rogaland reports a survival rate of 92 % (calculated according to the GSI definition).
The cost per kg of harvested salmon increased compared to last year, due to operational challenges related to sea lice and PD, average harvest size of fish, and total harvest volumes. At year end the biological situation was stable and improved compared to last year at the same time. High standing biomass at year end gives cause for optimism regarding harvest volumes and cost per kg of harvested fish going forward.
The EBIT per kg before fair value adjustments amounted to NOK 13.5, compared to NOK 21.7 in 2017.
1 We have 18 license numbers, but one of our licenses is double which in practice means we have 19 licenses. In addition, we have a long-term rental agreement with Rogaland County for one license, which means that we in total make use of 20 license equivalents.