“Space projects” doomed, seafood CEO says

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Roger Hofseth, CEO, Hofseth Aqua

Roger Hofseth, chief exec at Hofseth Aqua, says normalized salmon prices are good for the industry. At the same time, he thinks enclosed farm concepts and projects out at sea won’t be realized when the salmon price drops, writes Sunnmorsposten.

In just a few months the salmon price has fallen from 70 kroner a kilogram to 50 kroner. That’s a trajectory Hofseth things is favorable.

“Long-term, a normalization is just good,” he was quoted as saying, adding that he thinks the fall in price will affect enclosed aquaculture concepts, especially those offshore. He describes them as “pricy science fiction”.

“The cheapest way to farm fish is the way we do it today. Now, when the price of salmon comes down to a normal level again, these “space projects” will stop all by themselves. All of these ideas cost something, so when the salmon price comes down to around 50 kroner, there won’t be any of them left,” Hofseth said, adding that the key in future will be cost-cutting and good biology, together with access to more distribution in Norway.

No lightweight, Aalesund-based seafood company Hofseth Aqua earned net profit of EUR 9.9 million in 2016 on revenues that doubled to EUR 59.3 million kroner.