Skretting plans to reduce feed overcapacity in competitive UK market
8 November 2018
Skretting, a global leader in aquafeed, today announced that the company has started a process of consulting with employees with the view to cease production in the UK at the end of April 2019.
This move is aimed at reducing the overcapacity in the highly competitive salmon feed market, and better utilise the company’s existing production facilities in Europe. The company has no plans to stop production in other markets and will continue to pursue its firmly established growth strategy.
“Unfortunately, we are experiencing unsustainable market conditions in the UK. With a new large feed plant becoming operational in Scotland early 2019, the total feed capacity in the region is expected to exceed the total market by more than 50%. This is driving down prices, leading to an unsustainable commercial environment”, says Therese Log Bergjord, CEO Skretting. “We have therefore made the decision to start consulting with our employees on a proposal to cease feed production in the UK”.
Skretting will continue to supply to the UK market where economically viable.
“This is a tough decision for Skretting’s management team and our owner, Nutreco, considering the implications for our local employees and partners. In the proposed plan, all locations, including two production sites will close down, and around 100 employees may become redundant. First and foremost, we now concentrate on finding good solutions with our employees, customers, suppliers and partners in the UK”, says Log Bergjord.
While Skretting experiences regional market challenges in the UK, the group actively pursues further sustainable expansion of the global aquaculture industry from its operations in 19 countries across all continents.
“Aquaculture is an increasingly important and attractive solution to meet growing demand for healthy food. As the global leader in aquafeed, we are fully aware of our responsibilities. That is why we are prepared to take tough decisions to ensure sufficient profitability to finance our future and to remain a pioneer of continued sustainable development of the aquaculture industry”, says Log Bergjord.
- Skretting is an essential link in the feed-to-food chain, by applying its knowledge of ingredients and the nutritional needs of fish and shrimp to deliver optimum value to producers from limited natural resources.
- Skretting has invested more than EUR 100 million in development of new, more sustainable nutritional solutions over the last five years to drive the sustainability and productivity of the global aquaculture industry.
- Skretting’s ambition is to consistently invest in the development of innovative products and concepts to ensure that the aquafeed industry fully meets the nutritional and health requirements of fish and shrimp from the larval stage through to harvest.
Skretting is the global leader in providing innovative and sustainable nutritional solutions for the aquaculture industry. Skretting has production facilities in 19 countries on five continents, and manufactures and delivers high quality feeds from hatching to harvest for more than 60 species. The total annual production volume of feed is more than 2 million tonnes. The head office is located in Stavanger, Norway. Skretting is the aquaculture arm of Nutreco, a global leader in animal nutrition. www.skretting.com
For more information, contact:
Therese Log Bergjord, CEO, +47 901 10 540
Dag Engelsvoll, Finance Director, +47 959 93 065
Sophie Noonan, Communications Manager, +47 907 27 560