2021 was a successful year for Norwegian aquaculture company Norcod, comprehensively delivering proof of concept for cod farming in Norway.

Commercial harvesting of Norcod’s first batch of high-quality farmed cod will continue to April this year, and the Company is on course to achieving its target volume of 5,000 MT.

Norcod has also entered into a landmark delivery contract with a major Spanish supermarket chain, delivering 850 MT with a fixed gross price of NOK 60 per kg delivered in Spain.

“This is an exceptional agreement, confirming our strategy to enter into fixed price contracts, and even more so in that it will occur during the wild fishing season,” said Norcod CEO Christian Riber.

“It also signals that we are achieving our goal to clearly differentiate our farmed cod from wild-caught cod, even through the high-season, and at high prices,” he added.

Norcod has also taken the strategic decision to extend the in-sea growth phase to deliver an average of 4+ kg fresh cod to the market. As a consequence, the company has increased its expected harvested volume for 2025 by 10% to 27,500 MT.

“We also expect to command higher prices in the market by delivering larger fish that are even better suited for filet production,” said Riber.

Due to the Covid-19 pandemic, high demand and inflation, the aquaculture industry has experienced an increase in raw material- and transportation costs. As a direct result, Norcod anticipates a 15% increase in Capex going forward, estimating approximately NOK 18 per kg MTB volume.

“To be conservative, we are adjusting our Capex to reflect higher prices on farming equipment, but we are confident this will only have a very limited effect on our business, as we continue to see strong improvements in production cost. We are well on track to execute our long-term strategy to become the world’s premier supplier of high-quality, responsibly-farmed cod on a year-round basis. Buyers are eager for our product and we expect the market to grow as we grow,” said Riber.

The Spanish contract is especially motivating for staff across all the company’s fish-farm sites as well as the commercial managers. “As our brand becomes more widely known, it cements confidence in our business case, our focus on sustainable farming and fish welfare, and our ultimate goal to provide a source of healthy protein for a hungry world,” said Riber.

Norcod is capitalising on both biological advances and new technology to succeed in cod farming, investing in the latest environment-friendly production methods including advanced feeding systems and battery-powered service boats.