The algae attack has cost the salmon farmer over €15 million. Insurance payout: €615,000

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Gratanglaks in Troms, Norway is underinsured, and will only get covered 15 percent of the production value of the salmon.

The company has lost 500,000 salmon, just over one million kilos. With a harvest price of €6,15, this would have generated an income of over €15 million euros in 2020.

“Unfortunately it hit us hard. That figure is the loss of future income next year,” said Tore Lundberg, CEO of Gratanglaks, to Dagens Næringsliv.

Gratanglaks have insured the salmon for less than €3 per kilo – more than €1 under real production cost.

“Many salmon farmers have insured the fish lower than today’s production costs. We have insured one third lower than the current production cost,” said Lundberg.

“We receive 15 percent of the loss over the insurance. How many percents will vary greatly from salmon farmer to salmon farmer,” said Lundberg, who confirmed that the company is thus paid around €615,000 from the insurance company.

According to the Norwegian Directorate of Fisheries, a total of 13,200 tonnes have been lost following the toxic algae bloom in Troms and Nordland.