Norwegian Salmon and Trout Farming

ROBERT J. FORD

Introduction

The development of Norway'sAtlantic salmon, Sa/rno sa/ar, andrainbow trout, S. gairdneri, farmingin coastal waters is, in the opinion ofmany observers, the most significantevent in the history of Europeanaquaculture. Norwegian productionof farmed salmon and trout has in­creased dramatically during the pastdecade, from only 500 metric tons (t)in 1971 to an estimated 15,500 t in1983, and production is expected todouble by 1990. Norway's productionof farmed salmon and trout, the vastmajority of which is exported, is inthe forefront of fish farmingdevelopments in Europe and has beenthat aquaculture industry's most strik­ing commercial success.

Farms and Methods

The success of saltwater aqua­culture has attracted many formerNorwegian fishermen, disillusionedwith declining fishery catches, to ap­ply for licenses to start a salmon ortrout farm. It is estimated that be­tween 20 and 30 percent of the licenseholders are former fishermen. Manyof these potential salmon or troutfarmers inhabit the isolated com­munities along the fjords and islandsof the western coast of Norway (Fig.1). The Norwegian Government en­courages fish farming in the sparselypopulated coastal regions for both

Robert J. Ford is Foreign Affairs Specialist,Western Europe, with the Branch of ForeignFisheries Analysis (F/M321), National MarineFisheries Service, NOAA, Washington, DC20235.

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strategic and social reasons. Govern­ment officials regard salmon fishingas one of the most lucrative commer­cial activities available to residents ofmany isolated coastal communities.

Modern fish culture methods haveenabled aquaculturists to start withrelatively small investments andgradually expand their operations.The Norwegian Government assistssmall operators by guaranteeing loansthrough the Regional DevelopmentFund and the Agricultural Develop­ment Fund. The Government,however, has restricted salmon farm­ing investments by large companies,and has also imposed a size restrictionon salmon farms to limit the industryprimarily to small, owner-operatedfarms. In 1973, a law limiting the sizeof salmon farms to a floating net cagecapacity of 8,000 m3 was enacted l

.

Farms having over 8,000 m3 of cagecapacity, but approved before 1973,were exempted from this law.

Norwegian statistics show that 286marine fish farms 2 were operatingduring 1982. Although the NorwegianGovernment had in effect suspendedthe issuing of new licenses in 1977, itgranted 100 new licenses in October1983 for farms with a maximum netcage capacity of 5,000 m3. Farmswhich had been operating continuous­ly for at least 3 years before October1983, are allowed to apply for permis-

'It is estimated that a farm with a capacity of8,000 m3produces about 60 t of salmon annual­ly (Edwards, 1978).'Of this total, 215 farms raised Atlantic salmonand 189 raised rainbow trout. There were 118farms which raised both salmon and trout.

sion to increase their cage capacityfrom 5,000 to 8,000 m3 to improvetheir profitability.

Although most Norwegian fishfarms are relatively small, a few largeones were in operation before the1973 law restricted net cage capacities.The largest Norwegian fish farm,operated near Bergen by the MowiCompany3, produces over 500 t ofcultured salmon per year. The Mowicompany was founded in 1969 and itsshares are partly held by the state­owned Norwegian electric powercompany, Norsk Hydro4

• Mowi hasdeveloped techniques for raisingAtlantic salmon smolts and transfer­ring them to saltwater cages in thefjords where they are protected andfed until reaching marketable size in3-4 years. Mowi exported its firstcultured salmon in 1971 and by themid-1970's had expanded its produc­tion to the point where it couldguarantee regular supplies to its majorcustomers.

Production

Two species of fish are extensivelycultured in Norway: Atlantic salmonand rainbow trout. In recent years,the Atlantic salmon has come todominate the industry.

Atlantic Salmon

Norwegian culturing of the Atlantic

3Mention of trade names or commercial firmsdoes not imply endorsement by the NationalMarine Fisheries Service, NOAA.4Norsk Hydro's British subsidiary, NorskHydro U.K. Ltd., has purchased the U.K. fish­farming flfm Golden Sea Produce, Ltd., and itssubsidiary Scottish Sea Farms, Ltd.

Marine Fisheries Review

Table 1.-Norway's farmed AUanticsalmon and rainbow trout production,1971-86.'

Production (t)

Atlantic RainbowYear salmon trout Total

1971 981972 1461973 1711974 601

1975 8621976 1,4311977 2,1371978 3,540

1979 4,3891980 4,3121981 8,9071982 10,266

1983' 17,5001984' 24,5001985' 35,0001986' 47,500

433 531778 924

1,001 1,1721,726 2,327

1,655 2,5172,045 3,4761,795 3,9322,105 5,645

2,988 7,3773,688 7,9804,485 13,3924,690 14,956

3,000 20,5003,750 28,2504,500 39,5004,500 52,000

Figure 1. - The coast of Norway.

NORWAY I Il

.J

}

'Sources: FAO Fisheries StatisticsUnit, Department of Fisheries (1971­80 data). Royal Norwegian Embassy inWashington (1980-86 data).'Norwegian Fisheries Ministry pro·jections.

salmon began around 1970 and in­creased rapidly, from only about 100 tin 1971 to an estimated 17,500 t in1983 (Table 1). At first, Norwegiansalmon farmers had difficultiesmarketing their product. It was moreexpensive to farm salmon than tocatch it in the wild, and manycustomers believed that culturedsalmon was of inferior quality. Con­sumers, however, have found over theyears that the quality of culturedsalmon is the same, or better, thanthat of wild salmon. The controlledconditions under which salmon can becultured and harvested enablefishermen to produce a high quality,uniform product. The average weightof farmed salmon is 4 kg, whereas theweight of wild salmon fluctuates from1 to 9 kg. The high quality, uniformsize and weight, and year-roundavailability of cultured salmon ac­counts for much of its marketing ap­peal.

The Atlantic salmon is the most im­portant species cultured in Norway;its 1982 harvest represented about70 percent of the total Norwegianfarmed fish production. Salmonfarming has proven to be a very prof­itable industry and most research cur-

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rently being done on fish fanning inNorway involves salmon. This efforthas made Norway by far the world'sleading producer of farmed Atlantic

salmon with its 1981 harvest account­ing for nearly 90 percent of the worldtotal (Table 2). Furthermore,Norwegian officials expect that their

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Source: Cedrins (1983).

Table 2.-World produclion of farmedsalmon and Iroul, 1981.

'The Norwegian salmon is generally shipped inStyrofoam containers, each fish individuallywrapped in cellophane, by SAS to Kennedy Air­port in New York,

Table 3.-Norwegian exports of farmedAtlanlic salmon and rainbow Iroul, 1982.

Exports (t)

Country Salmon Trout Total

France 2,710 260 2,970Germany (FRG) 1,850 350 2,200Denmark 1,240 280 1,520Sweden 590 580 1,170United Kingdom 930 110 1,040United States 762 243 1,005Switzerland 350 140 490Belgium 370 90 460Spain 270 40 310Finland 140 40 180Netherlands 120 60 180Japan 40 40Other 40 5 45

----Total 9,412 2,198 11,610

Sou rce: Fisheries Attache, Royal Nor·wegian Embassy, Washington, D.C., pers.commun., 1984.

Production (t)

19,0007,000

21,00012,00021,00020,000

4,000 8,9002,0005,200 1,000

20,000

131,200 9,900

Rainbow Atlantictrout salmon

DenmarkFinlandFranceGermany (FRG)ItalyJapanNorwaySwedenUnited KingdomUnited States

Total

Country

petition for U.S. fishermen in bothdomestic and foreign markets. Theexcellent quality, freshness, and year­round availability of the Norwegianfarmed salmon makes it a highly­valued commodity among demandingconsumers.

Norwegian companies havetargeted the United States as aprimary market for their farmedsalmon. Although the United States isa major salmon producing country,Norwegian export companies believethat they can successfully marketsubstantially increased amounts offresh Atlantic salmon in the UnitedStates5

• In 1982, according to

salmon marketing in 1974. As a resultof the expanding salmon farming in­dustry, the NMMB began providingloans and marketing services. Most ofthe salmon farmers dealing with theNMMB are small producers.

Exports

Farmed Atlantic salmon hasbecome an important Norwegianfishery export. In 1982, Norway ex­ported 9,400 t of cultured salmon, orover 90 percent of its total farmedsalmon production (Tables 1, 3).France was the main market, buying2,700 t, or 30 percent of Norway's ex­ported salmon that year. The FederalRepublic of Germany (FRG) andDenmark also bought large quantitiesof the Norwegian salmon. Exports tothe United States were 762 t in 1982,or about 8 percent of Norway's totalsalmon exports.

Exports of Norwegian farmed troutin 1982 amounted to 2,200 t, around45 percent of the total trout produc­tion that year. Sweden, which im­ported 580 t of trout, was the largestsingle market. Other major marketswere France, FRG, and Denmark(Table 3).

The success of Norwegian Atlanticsalmon exports is due to several fac­tors. The salmon is of very high quali­ty and is mostly shipped fresh by theScandinavian Airlines System.Because the fish are farmed and notcaught in the wild, fresh shipmentscan be guaranteed at any time of theyear, and are especially valued atthose times when the catch of wildsalmon is down. The high quality andyear-round availability of Norway'sfarmed salmon makes it particularlyvaluable to such specialized customersas restaurants, hotels, gourmet stores,etc.

Impact onthe United States

U.S. salmon fishermen are con­cerned about the impact whichdevelopments in Norway will have ontheir industry. The rapidly expandingproduction of Norwegian farmedsalmon, the vast majority of which isexported, will mean increased com-

Trade Associations

Norwegian aquaculturists havethree organizations. The largest is theNorwegian Fish Farmers Association(NFFA) which was organized in 1970and represents 70 percent of Norway'sfish farmers. It lobbies the NorwegianGovernment and also deals withdomestic and foreign buyers. NFFArepresents almost all of the large pro­ducers. NFFA has its own magazine,the National Fish Farmer, which pro­vides the largest information on fish­farming techniques and on newmarkets.

The Norwegian Trout Organization(NTO) was established in 1965.Representing over 50 percent of therainbow trout farmers, the NTO buystrout from the smaller farms and sellsit to processors, thereby giving thesmaller producers a greater leverage indeciding market prices. The NTO alsoprovides financial assistance to itsmembers when necessary.

The Norwegian Meat MarketingBoard (NMMB) became involved in

farmed Atlantic salmon productioncould reach nearly 50,000 t by 1986.

Rainbow trout

The production of rainbow trout,Salmo gairdneri, is not expected to in­crease significantly because its exportpossibilities are poor. Less than halfof the trout harvested is exported, andthe home market is limited becauserainbow trout is not indigenous toNorwegian waters and is not wellknown to Norwegian consumers (Ed­wards, 1978). Also, broodstock fortheir rainbow trout must be takenfrom captive stocks because thespecies does not spawn naturally inNorway (Edwards, 1978).

Although production of rainbowtrout increased from 400 t in 1971 to4,700 t in 1982, its annual harvest isexpected to stabilize at around 5,000t. Trout farming, however, is still im­portant because new fish farmersgenerally begin culturing trout, whichare easier to rear than Atlanticsalmon, before turning to the moreprofitable salmon culture.

46 Marine Fisheries Review

Norwegian statistIcs, U.S. firmsbought 7(fJ t of farmed salmon fromNorway, compared with only about21 t purchased in 1981. These exportsaccelerated rapidly in 1983 and to­talled 2,300 t valued at $16.8 million.Norwegian officials believe that theUnited States eventually will replaceFrance (which imported 2,700 t ofNorwegian farmed salmon in 1982) asNorway's major market for this com­modity.

Norwegian salmon exporters alsohave well-established markets inWestern Europe and are expandingtheir sales in other parts of the world.France, FRG, and Denmark eachbought over 1,000 t of Norwegiansalmon in 1982, and seven otherEuropean countries purchased signifi­cant quantities (Table 3). TheNorwegians have also decided to tryto increase exports to the Far East(despite the fact that Japan boughtonly 40 t of the farmed salmon in1982) because of their success in ship­ping fresh salmon to the UnitedStates. The SAS airline is interested inplanning marketing campaigns toestablish new markets for freshsalmon shipments.

Although the United States exportsmuch more salmon than Norway(about 135,000 t of Pacific salmon

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Oncorhynchus spp., in 1982 com­pared with about 9,000 t of Atlanticsalmon for Norway; U.S. commercialfishermen catch almost no Atlanticsalmon) and supplies most of thesalmon for the domestic U.S. market,it faces strong competition from theNorwegians for "top-of-the-line"salmon. Since the U.S.-producedPacific salmon is caught in the sum­mer, it is available fresh for only alimited time, and most U.S. salmon isproduced in frozen or canned form.The Norwegian product, on the otherhand, can be shipped fresh year­round and is exported to the UnitedStates and other countries mainly inthe winter and spring. The Norwegianproduct, furthermore, is the Atlanticsalmon which many consumers valuemore highly than the Pacific salmon.Thus, Norway is able to compete ef­fectively with the U.S. for "top-of­the-line" salmon. The export potentialof Norway's Atlantic salmon isevidenced by the fact that it has evenbeen sold in Seattle, Wash., one ofthe centers of the U.S. Pacific salmonindustry.

Future ofNorwegian Aquaculture

Prospects for farmed fish produc-

tion in Norway are very good, and in­dustry expansion, primarily salmonproduction, is expected to continue.The Norwegian Ministry of Fisheries,which is investing large amounts oftime and money into the research anddevelopment of farmed fish in Nor­way, is very optimistic. The Ministryis, however, concerned that too rapidan expansion of salmon farms couldlead to a decline in prices obtained bysalmon aquacuiturists.

As a result, the Ministry is attempt­ing to encourage fish farmers to alsobegin working with other equallycost-beneficial species (i.e., cod). Thedecline of the once flourishingNorwegian cod fishery in recent yearshas led many scientists to experimentwith cod farming. Early results ofthese experiments have been good,and Ministry officials hope that alucrative farmed cod industry can oneday help supplement dwindlingnatural resources.

Literature Cited

Cedrins, R. 1983. Aquaculture in Scandinavia.In Proceeding of the International SeafoodTrade Conference, p. 191-206. Alaska SeaGrant Rep. 83-2.

Edwards, D. J. 1978. Salmon and trout farmingin Norway. Fish. News Books, Ltd., Farn­ham, Surrey, Engl., 195 p.

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