Bakkafrost boss dismisses land-based salmon farming as uneconomical

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CEO of Bakkafrost, Regin Jacobsen has launched a broadside against the trend on land-based salmon production.

In a rebuke of the model, Jacobsen said there are no financial incentives to move salmon production on land for his Faroese company, one of the sector’s leaders.

“We will not produce salmon on land as things currently stand,” he told the Danish website FoodWatch.

“Based on our investment in smelt production in Klaksvík, it costs about 700m Danish kroner for a production of 30,000 cubic meters on land. At the sea, a cage and a production of the same size will cost us 3m Danish kroner,” he said.

He said Bakkafrost should instead focus more on large-scale land-based smelt production to reduce threats from longterm sea production.

“This is where we see a competitive advantage because we can establish synergies between land and sea-based production to help boost earnings while reducing risk,” he said.