Mowi has entered into a strategic and industrial partnership agreement with Skretting, the aquaculture business line of Nutreco.
Under the agreement, Mowi will produce salmon feed at its existing facilities using Skretting feed formulations and nutritional expertise.
The partnership is expected to deliver more than NOK650 million ($59 million) in annualised net cost savings, Mowi remarked.
It added that these gains will be achieved through improvements in feed recipes, procurement, and logistics.
Mowi Feed will retain its two factories in Norway and Scotland. The combined EBITDA contribution from the Skretting partnership and the retained feed business unit is projected to exceed NOK1.475 billion in 2026.
The agreement follows a strategic review of the Mowi feed division launched on March 4, 2025.
By utilising the research and development capacity of Skretting, Mowi said it intends to secure high-performance feed while maintaining the profit embedded in its own value chain.
CEO Ivan Vindheim stated that the partnership presents a low-risk solution to drive innovations.
He noted that the model allows Mowi to capitalise on a tightening feed market while ensuring its farming operations receive quality feed at the lowest industry cost.
The earnings from the partnership are equivalent to an EBIT per kg of NOK2.1 for the Mowi Group and NOK2.6 per kg for Mowi Norway.
Skretting will receive a small annual consideration for providing its proprietary know-how and data.
