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Reduced profitability for the Norwegian fish farming industry
This is the conclusion to be drawn from the profitability survey of Norwegian fish farms in 2008. There was a decrease in profitability from 2007 to 2008. Average operating margin decreased from 13.2 per cent in 2007 to 8.5 per cent in 2008.
On the other hand the survey shows a positive development in sales price per kilo from 2007 to 2008.
The total profit in the industry, before taxation, is calculated to approximately 907 million NOK in 2008. For 2007 the total profit before taxation was calculated to 2.2 billion NOK and for 2006 the total profit before taxation was calculated to 6.1 billion NOK.
The negative development in profitability is caused by an increase in average production costs per kilo. Average production costs per kilo increased with 14.3 per cent from 2007 to 2008. A decrease in the productivity also contributed to reduce the profitability in 2008.
Higher production costs per kiloProduction costs per kilo increased with 14.3 per cent from NOK 15.96 in 2007 to NOK 18.24 in 2008. The main reasons for this development were increase in feeding costs, other operating expenses and net financial expenses.
Average feeding costs per kilo increased from NOK 9.07 in 2007 to NOK 9.90 in 2008. Both feed conversion ratio and price of feed increased from 2007 to 2008. Average price of feed per kilo was NOK 7.83 in 2008 compared to NOK 7.49 in 2007.
Other operating expenses increased with 47 per cent from NOK 1.91 in 2007 to NOK 2.81 in 2008. This expense item is not specified in the accounts that the Directorate of Fisheries received and the reason for this increase is therefore difficult to explain.
The increase in Net financial expenses was caused by increase in both short term liabilities and long term liabilities. Net financial expenses per kilo increased from NOK 0.43 in 2007 to NOK 0.94 in 2008.
Reduced productivity
Productivity, calculated as average production per man-year, decreased from 437 tons in 2007 to 389 tons in 2008. Lower productivity was due to an increase in the average number of man-year per company from 12.8 in 2007 to 15.3 in 2008.
Higher sales price per kilo
As mentioned above, the sales price per kilo increased from 2007 to 2008. Average sales prices of Atlantic salmon increased with 3.9 per cent to NOK 22.08 in 2008, while average sales prices of Rainbow trout increased with 7.8 per cent to NOK 20.07 in 2008.
2009-08-18