“High prices may be good in isolation for an owner of a farming company, but for the industry and the processing industry in particular, they have consequences.”
Gro Sveen, the General Manager of artisan Norwegian salmon processor Svanøy Røykeri, has announced on the company’s Facebook page the cessation of operations, marking an end to the 17-year old business.
The decision, as described in a press release, follows extensive family discussions and is set to take effect in June 2024.
“This decision does not come without a large portion of grief and sadness, especially for our employees who will lose their jobs as a result,” wrote Sveen, who noted the impact job losses would have on the community.
The company cited government-imposed reductions in salmon production due to the traffic light system, as amongst the factors behind the decision.
“This results in less fish in the market where the price is governed by supply and demand. This will put further pressure on the salmon price, which has already been very high for a long time. It may be good in isolation for an owner of a farming company, but for the industry and the processing industry it has consequences. By just continuing to increase the price, we are afraid we will reach a pain point, a risk we are not willing to take,” said Sveen.
