Salmon Farming Industry Handbook

2025

Salmon Farming Industry Handbook 2025

Forward-looking Statements

This handbook includes forward-looking statements that reflect Mowi's current expectations and views of future events. These forward-looking statements use terms and phrases such as "anticipate", "should", "likely", "foresee", "believe", "estimate", "expect", "intend", "could", "may", "project", "predict", "will" and similar expressions.

These forward-looking statements include statements related to population growth, protein consumption, consumption of fish (including both farmed and wild), global supply and demand for fish (and salmon in particular), aquaculture's relationship to food consumption, salmon harvests, demographic and pricing trends, market trends, price volatility, industry trends and strategic initiatives, the issuance and awarding of new farming licenses, governmental progress on regulatory change in the aquaculture industry, estimated biomass utilisation, salmonid health conditions as well as vaccines, medical treatments and other mitigating efforts, smolt release, development of standing biomass, trends in the seafood industry, expected research and development expenditures, business prospects and positioning with respect to market, and the effects of any extraordinary events and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations).

The preceding list is not intended to be an exhaustive list of all our forwardlooking statements. These statements are predictions based on Mowi's current estimates or expectations about future events or future results. Actual results, level of activity, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as the realisation of those results, the level of activity, performance or achievements are subject to many risks and uncertainties, including, but not limited to changes to the price of salmon; risks related to fish feed; economic and market risks; environmental risks; risks related to escapes; biological risks, including fish diseases and sea lice; product risks; regulatory risks including risk related to food safety, the aquaculture industry, processing, competition and anti-corruption; trade restriction risks; strategic and competitive risks; and reputation risks.

All forward-looking statements included in this handbook are based on information available at the time of its release, and Mowi assumes no obligation to update any forward-looking statement.

Salmon Farming Industry Handbook 2025

Mowi Salmon Farming Industry Handbook

The purpose of this document is to give investors and financial analysts a better insight into the salmon farming industry, and what Mowi considers to be the most important value drivers.

Salmon Farming Industry Handbook 2025

1	INTRODUCTION	6
2	POSITIONING OF SALMON	8
	Seafood as part of global food consumption	9
	Seafood as part of overall protein consumption	10
	Atlantic Salmon as part of global protein consumption	11
	Stagnating wild catch – growing aquaculture	12
	Fish consumption	13
	Salmonids contribute 4.3% of global seafood supply	14
	Considerable opportunities within aquaculture	15
	Supply of farmed and wild salmonids	16
	Salmonids harvest 2024	17
3	SALMON DEMAND	18
	Global macro trends	19
	Favourable attributes of salmon	20
	Relative price development of protein products	24
4	SALMON SUPPLY	25
	Total harvest of Atlantic salmon 2005-2024	26
	Diminishing growth expectations	27
	Few coastlines suitable for salmon farming	28
5	SUSTAINABLE PRODUCTION	29
	UN's Sustainable Development Goals	30
	Environmental impact of aquaculture	31
	Material sustainability efforts	36
	Sustainability of fish feed	37
	Global sustainability initiatives	39
	Transparency	40
6	SALMON MARKETS	41
	Global trade flow of farmed Atlantic salmon	42
	Farmed Atlantic salmon by market	43
	Top 10 markets by size (2024E)	44
	Development of value (CAGR 7%) vs. volume last 10 years	45
	Price neutral demand growth – approx. 10% the past 20 years	46
	Historic price development	48
	Different sizes – different prices (Norway)	49
7	INDUSTRY STRUCTURE	50
	Top 10 companies in farmed Atlantic salmon 2024 Number of companies in producing countries	51 52

8	SALMON PRODUCTION AND COST STRUCTURE	53
	Establishing a salmon farm	54

	The Atlantic salmon life/production cycle	55
	Influence of seawater temperature	57
	Production inputs	58
	Cost component – disease and mortality	60
	Accounting principles for biological assets	61
	Economics of salmon farming	62
	Cost structure industry Norway 2015-2024	63
9	FEED PRODUCTION	64
	Overview of feed market	65
	Relative feeding	67
	Salmon feed producers	68
	Salmon feed ingredients	69
	Feed raw material market	71
10	FINANCIAL CONSIDERATIONS	72
	Working capital	73
	Capital return analysis	76
	Currency overview	78
	Price, cost and EBIT development in Norway	80
	Effects of geographical diversification	81
11	BARRIERS TO ENTRY - LICENSES	82
	Regulation of fish farming in Norway	84
	Regulation of fish farming in Scotland	89
	Regulation of fish farming in Ireland	91
	Regulation of fish farming in Chile	92
	Regulation of fish farming in Canada	93
	Regulation of fish farming in the Faroe Islands	95
	Regulation of fish farming in Iceland	97
12	RISK FACTORS	99
	Salmon health and welfare	100
	Most important health risks to salmon	101
	Fish health and vaccination (Norway)	102
	Fish health and vaccination (Norway)	103
13	INDICATORS DETERMINING HARVEST VOLUMES	104
	Projecting future harvest volumes	105
	Yield per smolt	106
	Development in biomass during the year	107
14	SECONDARY PROCESSING (VAP)	108
	European value-added processing (VAP) industry	110
	Market segment	111
	The European market for smoked salmon	112
	Branding and product innovation	114
	APPENDIX	115

1 Introduction

Salmon Farming Industry Handbook 2025

Introduction

Salmon is the common name for several species of fish of the family Salmonidae (e.g. Atlantic salmon, Pacific salmon), while other species in the family are called trout (e.g. brown trout, seawater trout). Although several of these species are available from both wild and farmed sources, most commercially available Atlantic salmon is farmed. Salmon live in the Atlantic and Pacific oceans, as well as the Great Lakes (North America) and other landlocked lakes.

Typically, salmon are anadromous: they are born in freshwater, migrate to the ocean, then return to freshwater to reproduce.

About 80% of the world's salmon harvest is farmed. Farming mainly takes place in large nets in sheltered waters such as fjords or bays. Most farmed salmon come from Norway, Chile, Scotland and Canada.

Salmon is a popular food. Salmon consumption is considered to be healthy due to its high content of protein and omega-3 fatty acids and it is also a good source of minerals and vitamins.

Salmon Farming Industry Handbook 2025

Seafood as part of global food consumption

The average human ate around 756 kg of food in 2022. Most of this food is produce such as vegetables, fruits, and starchy roots. Animal protein, such as seafood, poultry, pork, and beef, amounts to 9% of the total diet.

Meat as a food source has gradually become more important. Global per capita supply has more than doubled since 1960, and the seafood segment is a big contributor to this increase. 0F 1

Source: FAO (2024) FAOstat Food Balance Sheets

Seafood as part of overall protein consumption

Although 70% of the Earth's surface is covered by the oceans, fish accounts for only 6% of all protein sources produced for human consumption. The UN estimates that the global population will grow to approximately 9.7 billion by 2050.

Assuming consumption per capita stays constant, this implies a 20% increase in demand for protein. In product weight that means an increased consumption of 106 million tonnes of meat of which 33 million tonnes of fish meat. The UN however, estimates that demand will actually double. We know that resources for increased land-based protein production will be scarce, so a key question is how the production of protein sources from the sea can be expanded.1F¹

Source: FAO (2024) FAOstat Food Balance Sheets, UN (2024) World Population Prospects 2024

Atlantic Salmon as part of global protein consumption

Most animal protein in our diets comes from fish, poultry, pork and beef, with salmon consumption representing a small portion of global protein consumption.

In 2024, FAO estimated consumption of 168 million tonnes of fish, 141 million tonnes of poultry, 125 million tonnes of pork, and 74 million tonnes of beef and veal.

In contrast, the total consumption of farmed Atlantic salmon was around 2.5 million tonnes (GWT). This corresponds to about 1.7 million tonnes in product weight. If we combine all salmonids (both farmed and wild) it amounts to 3.3 million tonnes (GWT) in 2024. 2F 1

Source: OECD-FAO (2024) Agricultural Outlook 2024-2033, Kontali Analyse

Over the past few decades, there has been a considerable increase in total and per capita fish supply. As the fastest growing animal-based food producing sector, aquaculture is a major contributor to this, and its growth outpaces population growth.

Aquaculture has expanded fish availability to regions and countries with otherwise limited or no access to the cultured species. At the global level, since 2016, aquaculture has been the main source of fish available for human consumption. In 2024, this share was 57%, a figure that can be expected to continue to increase in the long term.

In 2024, aquaculture accounted for 96 million tonnes (LW) destined for direct human food consumption, while wild capture accounted for 72 million tonnes (LW). However, fish has been estimated to account for only 7% of global protein consumption (and about 17% of total fish and animal protein supply).

World aquaculture production of farmed aquatic animals has been dominated by Asia, with an 88% share in the last two decades.

3F 1

Sources: FAO (2024) The State of World Fisheries and Aquaculture 2024, OECD-FAO (2024) Agricultural Outlook 2024-2033, Kontali Analyse, Mowi

Fish consumption

Given the expected production growth of 11% during 2023–2033 and the projected world population growth of 8% over the same period, we will most likely see a global increase in the average fish consumption level.

By 2033, per capita fish consumption is estimated to be 21.4 kg (vs. 9.9 kg in the 1960s and 20.9 kg in 2023). This is equivalent to another 21 million tonnes of seafood supply, which aquaculture is estimated to provide.

According to FAO, per capita consumption is expected to increase by 2.4% in the period 2023-2033. South America and North America are expected to have the highest growth, whilst negative growth is anticipated in Africa. In general, per capita fish consumption is likely to grow faster in developing countries. However, more developed economies are expected to have the highest per capita consumption. 4F 1

Sources: FAO (2024) The State of World Fisheries and Aquaculture, OECD-FAO (2024) Agricultural Outlook 2024-2033

Salmonids contribute 4.3% of global seafood supply1

Although several salmon species are available from both wild and farmed sources, almost all commercially available Atlantic salmon is farmed. Even with an increase in production of Atlantic salmon of more than 1,000% since 1990, the total global supply of salmonids is still marginal compared to most other seafood categories (4.3% of global seafood supply). Whitefish is about ten times larger and comprises a much larger number of species.

In 2023, more Atlantic salmon was harvested than Atlantic cod. However, the harvest of Atlantic salmon was only about 25% of that of two of the largest whitefish species, tilapia and Alaska pollock.

Note: Live weight (LW) is used because different species have different conversion ratios Source: Kontali Analyse

Considerable opportunities within aquaculture1

The illustration above shows that Atlantic salmon (sea based) has the highest level of industrialisation and the lowest level of risk compared to other aquaculture species. Atlantic salmon (land based), on the other hand, has proven risky with a low level of industrialisation (scale) to date. The size of the circles indicates volume harvested.

Although Atlantic salmon is relatively small in harvest volume compared to other species, it is a very visible product in many markets due to the high level of industrialisation.

Source: Kontali Analyse

Supply of farmed and wild salmonids 1

The general supply of seafood in the world is shifting more towards aquaculture as the supply from wild catch is stagnating in several regions and for many important species. Wild catch of salmonids varies between 450,000 and 1,000,000 tonnes GWT, whereas farmed salmonids are increasing. The total supply of salmonids was first dominated by farmed in 1999. Since then, the share of farmed salmonids has increased and farmed salmonids has been dominant.

The total supply of all farmed salmonids was 2.8 million tonnes (GWT) in 2024. The same year, the total catch volume of wild salmonids was approx. one sixth of farmed, with pink, sockeye and chum being the most common species.

Historically, the supply of pink, chum and sockeye have accounted for 97% of the total wild catch volume, whereas pink being the dominated one with approx. 50%.

Source: Kontali Analyse

Atlantic salmon: By quantity, the largest species of salmonids. Farmed Atlantic salmon is a versatile product, which can be used for a variety of categories such as smoked, fresh, sushi, as well as ready-made meals. The product is present in most geographies and segments. Due to biological constraints, seawater temperature requirements and other natural constraints, farmed salmon is mainly produced in sea in Norway, Chile, UK, North America, Faroe Islands, Iceland, Ireland, New Zealand and Tasmania.

Small trout: Produced in many countries and most often consumed locally as a traditional dish as hot smoked or portion fish. Small trout is not in direct competition with Atlantic salmon.

Large trout: Produced in Norway, Chile and the Faroe Islands, the main markets are Japan and Russia. Trout is mainly sold fresh, but is also used for smoked production.

Coho: Produced in Chile and is mostly used for salted products. It is a competitor of trout and sockeye in the red fish market. Although Russia has increased its import of this fish over the last few years, Japan remains the largest market.

Pink: Caught in USA and Russia and used for canning, pet food and roe production. Since quality is lower than the other species it is a less valued salmonid. The fish is small in size (1.5- 1.7 kg) and is caught over a very short time period.

Sockeye: Caught in Russia and Alaska. It is mostly exported frozen to Japan, but some is consumed locally in Russia and some canned in Alaska. Sockeye is seen as a high quality salmonid and is used for salted products, sashimi and some is smoked in the EU.

Chum: Caught in Japan and Alaska. Most is consumed in Japan and China. In Japan, it is available as fresh, while in China it is processed for local consumption and re-exported. Little chum is found in the EU market. The catch varies in quality and part of the catch is not fit for human consumption.

Chinook/King: Small volumes, but highly valued. Alaska, Canada and New Zealand are the main supplying countries. Most quantities are consumed locally. Chinook is more in direct competition with Atlantic salmon than the other species and is available most of the year.

Source: Kontali Analyse

Salmon Farming Industry Handbook 2025

Global macro trends 1

The industry is a good fit with the global macro trends, as Atlantic salmon is a healthy, resource-efficient and climate-friendly product produced in the sea.

The global population is growing, resulting in increased global demand for food. The world's population is expected to grow to almost 10 billion by 2050.

The health benefits of seafood are increasingly being promoted by global health authorities. The EAT-Lancet Commission recommends increased consumption of fish, dry beans and nuts as sustainable, healthy protein sources. Farm-raised salmon is rich in omega-3 fatty acids, vitamins and minerals.

Global fisheries are to a large extent fully exploited, meaning the supply of wild fish has limited potential to meet the growing demand for marine protein.

The middle class is growing in large emerging markets, allowing more people to eat different, and more nutritious, protein rich foods, such as fish, meat and eggs. Consumption of high-quality proteins is expected to increase.

Another demographic trend driving shifts in demand is the aging population. Healthy eating becomes especially important as you grow older.

Climate change is the greatest environmental challenge the world has ever faced. Soil erosion is a growing issue for food production, challenging the world to investigate new ways of feeding the population. Concerns about climate change are influencing dietary choices. Increased consumption of fish can reduce global GHG emissions and improve human health.

Source: Ocean Panel (2019) The Ocean as a Solution to Climate Change: Five Opportunities for Action, UN (2024) World Population Prospects, FAO (2024) The state of the world fisheries and aquaculture.

Favourable attributes of salmon

Demand is partly driven by supportive megatrends, but of even greater importance are the characteristics of the product itself.

Salmon is a healthy product and scientifically proven natural superfood. It is nutritionally dense and has a favourable nutritional content.

Salmon appeals to the consumer with its top appetising taste, look, texture and colour. Furthermore, salmon is a versatile product suitable for both traditional and evolving food occasions. It is a good choice for Sunday dinner with the family or at the restaurant, but also a great product for food festivals or just as a snack. Another feature that makes salmon relevant for multiple occasions is that it can be served in many forms - raw, grilled, cooked and smoked. It appeals to people of all ages as it addresses the health needs of the elderly, while being equally attractive to youngsters.

There is a rising demand for more sustainable food and a willingness to pay for it. The sustainable properties of salmon therefore make the product attractive to consumers.

3.2.1 A healthy product1

Atlantic salmon is rich in long-chain omega-3, EPA and DHA, which reduce the risk of cardiovascular disease. Data also indicates that EPA and DHA reduce the risk of a large number of other health issues.

Salmon is nutritious, rich in micronutrients, minerals, marine omega-3 fatty acids, highquality protein and several vitamins, and represents an important part of a varied and healthy diet. FAO highlights that: "Fish is a food of excellent nutritional value, providing high quality protein and a wide variety of vitamins and minerals, including vitamins A and D, phosphorus, magnesium, selenium and iodine in marine fish".

The substantial library of evidence from multiple studies on the nutrients present in seafood indicates that including salmon in your diet will improve your overall nutrition and may even yield significant health benefits. Considering global obesity rates, governments and food and health advisory bodies around the world are encouraging people of all ages to increase their seafood intake, with particular focus on the consumption of oily fish, such as salmon. The U.S. Department of Health and the US Department of Agriculture recommend an intake of at least 237 grams of seafood per week for Americans in general. The UK National Health Service, the Norwegian Directorate of Health and several other national health organisations recommend eating fish at least twice a week.

Source: Mowi, FAO, WHO, The Norwegian Directorate of Health, Health and Human Services, US Department of Health (2020) Dietary Guidelines for Americans 2020-2025

3.2.2 Resource-efficient production1

Protein retention	28%	34%	21%	13%
Feed conversion ratio ("FCR")	1.3	1.9	3.9	8.0
Edible meat per 100 kg feed	56 kg	39 kg	19 kg	7 kg
Carbon footprint (kg CO2 / kg edible meat)	5.1	8.4	12.2	39.0
Water consumption (litre / kg edible meat)	2 000*	4 300	6 000	15 400

To optimise resource utilisation, it is vital to produce animal proteins in the most efficient way. Protein resource efficiency is expressed as "Protein retention", which is a measure of how much animal food protein is produced per unit feed protein fed to the animal. Salmon has a protein retention of 28%, which is more efficient than pork and cattle (see table above).

Calorie retention is measured by dividing calories in edible portion by calories in feed. Salmon has a high calorie retention of 25%.

The main reason why salmon convert protein and energy to body muscle and weight so efficiently is that they are cold-blooded and therefore do not have to use energy to heat their bodies. Furthermore they do not expend energy on standing up like land animals do.

Edible yield is calculated by dividing edible meat by total body weight. Atlantic salmon has a high edible yield of 73%.
Feed conversion ratios measure how efficiently the different animal proteins are produced. In short, this tells us the kilograms of feed needed to increase the animal's bodyweight by one kg. Feed for Atlantic salmon is high in protein and energy which accounts for Atlantic salmon's feed conversion ratio being even more favourable than its protein and energy retention when compared with the production of other land animal proteins.
Edible meat per 100 kg of feed fed is the combination of the FCR ratio and edible yield and presents salmon as giving a favourably high quantity of edible meat per kg of feed fed.

Source: Fry et al (2018) Corrigendum: Feed conversion efficiency in aquaculture: dow we measure it correctly? (2018 Environ. Res. Lett. 13 024017)

3.2.3 Climate friendly production1

In addition to its resource-efficient production, farmed fish is also a climate-friendly protein source. It is expected to become an important solution to providing the world with vitally important proteins while limiting the negative effect on the environment.

According to Blue Food Assessment and SINTEF the carbon footprint of farm-raised salmon is 5.1 kg of carbon equivalent per kg of edible product, compared with 8.4 kg, 12.2 kg and 39.0 kg carbon equivalent per kg of edible product of chicken, pork and beef, respectively. For the consumer, replacing land-based proteins with fish would significantly reduce their personal carbon footprint (daily greenhouse gas (GHG) emissions).

Freshwater is a renewable but limited natural resource, and human activities can cause serious damage to the surrounding environment. Production of farmed Atlantic salmon requires 2,000 litres of freshwater per kg of edible meat, which is significantly less than other proteins.

Footprint Carbon
CO2 / edible meat Kg Kg	kg 5.1	8.4 kg	12.2 kg	39.0 kg
Water consumption
Litre / edible Kg meat	2,000*	4,300	6,000	15,400

*Total water footprint for farmed salmonid fillets in Scotland, in relation to weight and content of calories, protein and fat.

Source: SINTEF (2020) Greenhouse gas emissions of Norwegian seafood products in 2017, Mekonnen, M.M. and Hoekstra, A.Y. (2010) The green, blue and grey water footprint of farm animals and animal products, SARF (2014) Scottish Aquaculture's Utilisation of Environmental Resources

Relative price development of protein products1

Relative price development 2015-2024

Prices for all proteins have increased over the past decade, with a particular rise during 2021 and 2022. In 2023, all proteins, except from salmon, decreased. While all other proteins saw a slight increase in 2024, salmon experienced a flat price development.

Salmon has historically always been a rather expensive product on the shelves.

Source: IMF Primary Commodity Prices (2025). Beef = Australian and New Zealand beef import price (I:ANZBIP), Lamb = lamb price (I:LP), Pork = US swine price (I:USSPZRXF), Chicken = US chicken spot price (I:USDCSP), Salmon = Norway salmon price (I:NSP)

Salmon Farming Industry Handbook 2025

Total harvest of Atlantic salmon 2005-20241

CAGR	Global	Norway	Chile	U K	North America	Others
2005-2024	4%	5%	3%	2%	1%	9%
2015-2024	2%	2%	2%	1%	-1%	6%
2024-2029E	3%	3%	2%	1%	-3%	11%

Note: Figures are in thousand tonnes GWT and "Others" includes the Faroe Islands, Ireland,
Tasmania, Iceland and Russia

Note: Figures are in thousand tonnes GWT and "Others" includes the Faroe Islands, Ireland, Tasmania, Iceland and Russia

Diminishing growth expectations 1

Supply of Atlantic salmon has increased by 534% since 1995 (annual growth of 7%). Annual growth in the period 2015-2024 was 2%. Mowi expects growth to remain relatively stable at 3% from 2024 to 2029.

The background for this trend is that the industry has reached a production level where biological boundaries are being pushed. It is therefore expected that future growth can no longer be driven only by the industry and regulators as measures are implemented to reduce its biological footprint. This requires progress in technology, development of improved pharmaceutical products, implementation of non-pharmaceutical techniques, improved industry regulations and intercompany cooperation.

Too rapid growth without these measures in place adversely impacts biological indicators, costs, and in turn output.

Note: Mowi does not provide guidance of industry supply except for guidance depicted in quarterly presentations.

Source: Mowi, Kontali Analyse, UN (2024) World Population Prospects.

Few coastlines suitable for salmon farming

The main coastal areas adopted for salmon farming are depicted on the above map. The coastlines are within certain latitude bands in the Northern and Southern Hemispheres.

A key condition is a temperature range between 1ºC and 20ºC. The optimal temperature range for salmon is between 8 ^ºC and 14ºC.

Salmon farming also requires a certain amount of current to allow a flow of water through the farm. The current must however be below a certain level to allow the fish to move freely around in the sites. Such conditions are typically found in waters protected by archipelagos and fjords and this rules out many coastlines. However, offshore farming is an emerging approach. Offshore farms are positioned in deeper and less sheltered waters, where ocean currents are stronger than they are inshore, and they therefore require more robust cages.

Certain biological parameters are also required to allow efficient production. Biological conditions vary significantly within the areas adopted for salmon farming and are prohibitive in certain other areas.

Political willingness to permit salmon farming and to regulate the industry is also required. License systems have been adopted in all areas where salmon farming is carried out.

Land based salmon farming (full-cycle) has attracted increased investments in the past years. To date, only limited volumes have been harvested on land, however, this could change going forward as new production technologies continue to mature.

Salmon Farming Industry Handbook 2025

UN's Sustainable Development Goals

The SDGs, which were agreed by all 193 UN member states in 2015, guide governments, civil society and the private sector in a collaborative effort for change towards sustainable development. Out of the 17 SDGs, the industry can contribute significantly to at least ten: good health and well-being; gender equality; decent work and economic growth; reduced inequalities, sustainable cities and communities; industry, innovation and infrastructures; responsible consumption and production; climate action; life below water and partnerships for the goals.

Environmental impact of aquaculture1

It is important first to understand the impact of aquaculture on the environment in order to become even more sustainable.

Carbon footprint

Fish farming is among the most climate-friendly forms of animal husbandry. According to the Blue Food Assessment (Environmental performance of blue foods, Gephart et al., 2021) the carbon footprint is only 5.1 kg of carbon equivalent per kg of edible product, compared with 8.4 kg of carbon equivalent per edible kg of poultry, 12.2 kg per edible kg of pork and 39.0 kg per edible kg of beef.

By replacing land animal protein production with farmed salmon, significant CO² emissions are avoided. Assuming that global salmon production replaced a mix of poultry, pork and beef production in 2024, 1.9 million tonnes of CO² emissions were avoided.

Genetic changes in wild salmon

Most escaped farmed salmon disappear into the open sea. They are likely to die from starvation or disease, or be eaten by predators. Still, some survive after escaping, and migrate into the rivers each year, posing a risk of genetic changes in a river's wild salmon population.

Source: SINTEF (2020) Greenhouse gas emissions of Norwegian seafood products in 2017, Institute of Marine Research (2024) Risk assessment of Norwegian fin fish aquaculture 2024 Note: The carbon footprint used for land animal protein production was calculated by starting to convert the global production volumes of Atlantic salmon in 2023 to edible yield (using a 73% conversion), then calculating the carbon footprint of that volume originating from animal protein mix. This was done by using a mix of consumption (OECD, 2020) of 40% chicken, 38% pork and 22% beef and the reported GHG emissions from SINTEF 2020.

The Institute of Marine Research considered five out of 13 production areas in Norway to be at high risk for further genetic changes. Five production areas are considered to be at moderate risk and three production areas are considered to be at low risk.

Environmental effects of discharges of dissolved nutrients

Dissolved nutrient salts are released into coastal waters by population (sewage), industry, agriculture and aquaculture. In aquaculture, when salmon eat, dissolved nitrogen and phosphorus will be released via the gills and also a smaller proportion in the form of urea. Even though increased concentrations of dissolved nutrients in coastal waters may cause adverse ecosystem changes, the risk of regional environmental impacts as a result of dissolved nutrients from fish farming is considered low in all production areas according to the Institute of Marine Research.

Environmental impact on the seabed as a result of particulate organic emissions

Open pens release organic particles directly into the environment in the form of faeces from the fish and feed that is not eaten. Such discharges can affect the environment to a greater or lesser extent around the fish farm. However, the emissions mainly consist of easily degradable compounds, the impact is reversible, and the seabed can fully regenerate over a few months to a few years. Farmers are obliged by law to monitor the seabed continuously in accordance with NS 9410 or other national regulations, so that the environmental impact of aquaculture is within acceptable limits. If the environmental impact on the seabed is not acceptable, the site may be fallowed, production reduced or the site reallocated to a different location.

Based on reporting made through today's monitoring system, the condition of softbottom sites is considered to be low risk in 10 out of 13 production areas where as 3 production areas are considered to be moderate risk in Norway and the risk of unacceptable environmental impacts due to particulate organic emissions is low. As of today, there is no good monitoring of hard-bottom sites and this has therefore not been evaluated.

Mowi measures the potential impact of organic loading on the seabed according to national seabed quality standards. Results show that, on average, 94% of its sea sites surveyed in 2023 have a minimal impact on faunal communities and/or sediment chemistry near to the fish pens, which is up from 92% in 2022.

Environmental effects on non-target species when using medicine16F 1

Sea lice belong to the animal group of crustaceans, and medicines that treat sea lice can potentially affect other species.

There are differences in the way treatments may affect non-target species. Bath treatments may have a short-term effect, while oral treatments may affect non-target species over a longer period of time. Bath treatments include hydrogen peroxide, azamethiphos, cypermethrin and deltamethrin, and the treatment takes place either directly in the pen or in a well boat. If treatment is done in pens, the bath treatment is released directly into the sea.

Source: Institute of Marine Research (2024) Risk assessment of Norwegian fin fish aquaculture 2024, Mowi

When the treatment takes place in a well boat, the bathing agent is released while the vessel is in motion. However, purification systems that remove the medicine used in well boat-delivered bath treatments have are being introduced to the market. The oral treatments considered are diflubenzuron, teflubenzuron and emamectin, and a proportion of these can be released to the environment via feed and faeces.

The Institute of Marine Research's risk assessment is a comprehensive assessment and emphasises, among other things, total consumption, toxicity and occurrence in the environment in Norway. Of the treatments considered, azamethiphos and emamectin are considered to have low risk, while hydrogen peroxide, cypermethrin, deltamethrin, diflubenzuron and teflubenzuron are considered to have moderate risk. However, the number of prescriptions was highest in the years 2014 and 2015, respectively 3,477 and 3,285, whereas for 2018 this was reduced to 501. Overall, this presents a significant reduction in the environmental risk.

Mowi only uses licensed medicines when other measures are not sufficient or when fish welfare may be compromised. In 2024, 82% of sea lice treatments were non-medicinal in norway, compared with 12% in 2015, showing the significant reduction in the use of medicines to manage sea lice, itself made possible by the increased use of nonmedicinal tools.

Fish welfare

In Norwegian farm pens, there is a maximum of 200,000 fish per pen at any given time. These are individuals which, according to the Animal Welfare Act, have the right to be kept in an environment that provides good welfare based on species and individual needs, and the opportunity for stimulating activity, movement, rest and other natural behaviour. Farmers must also ensure that feed is of good quality and meets the fish's needs, and that the farmed fish is protected against injury, disease and other hazards. The farmed fish must be robust enough to withstand farming conditions, and they should not be subjected to unnecessary stress.

The challenges in the north of Norway are primarily related to low temperatures and bacterial wound infections, while Western Norway has challenges with PD and injuries in connection with lice treatment.

Survival rate is commonly used as a measure of animal health and welfare. Improved survival can be achieved through good husbandry and management practices, vaccination etc. In 2024, the monthly survival rate measured on fish numbers and based on GSI definition* increased in seawater (99.3%) and was kept stable at the same levels for freshwater (99.2%). This survival rate measured in accordance with GSI methodology is suitable for comparisons across companies applying the same methodology.1

^* reported in accordance with the Global Salmon Initiative (GSI) methodology: (total # mortality in sea last 12 months / (closing # of fish in sea last month + total # mortality in sea last 12 months + total # harvested last 12 months + total # culled fish in sea) X 100) Source: Institute of Marine Research (2024): Risk Assessment of Norwegian fin fish aquaculture 2024, Mowi

Monthly Survival Rate*

	ಲ್ಲಿ ಎ		ம் I
	Atlantic salmon Chicken		Pork	Beef
Monthly survival rate*	99.3 % -			98.8 % - 99.5 % - 99.8 %

The survival rate is the complement of the mortality rate.

An alternative calculation of monthly mortality rate, which is simpler and better reflects how the companies themselves and various governmental bodies monitor mortality, is to measure the number of mortalities relative to the opening biomass number. The monthly numbers may be aggregated either per year (annual mortality) or per generation. Mowi refers to this as the industry definition of mortality, as opposed to the GSI definition described above. Measured in accordance with the industry definition, annual mortality in seawater for Mowi Farming, i.e. across all seven farming countries, was 16.2% in 2024 (17.4% in 2023).

Mortality rates vary from country to country and from region to region depending on e.g. environmental conditions such as temperatures, weather conditions, oxygen levels, prevalence of algae and plankton etc. Mowi's best-performing region with regards to mortality is the Faroes with 6.8% annual mortality in 2024. In the largest Farming entity, Mowi Norway, annual mortality was 14.7% in 2024, i.e. better than the overall group figure.

Monthly Mortality Rates

Measured for the complete production cycle (freshwater and seawater), the monthly average mortality rate for Mowi Norway is 0.7%, i.e. lower than for pig (2.9%), chicken (2.2%) and lamb (1.5%). However, because of the salmon's long production cycle of up to three years in total, the nominal cycle mortality rate for salmon is higher than for all of these animals. Also note that in the wild, mortality rates for salmon range from 65% to 95%, i.e. significantly higher than for farmed salmon.

The salmon is a so-called R-strategist producing a high number of reproductive cells, aiming for at least a few offspring to survive. This as opposed to so-called K-strategists producing a low number of reproductive cells. This means that from nature's side, reproductive biology and mortality rates are very different for salmon than for most land farmed animals. This, combined with the significantly longer production time, represents a challenge when comparing mortality rates with other farmed animals. That being said, Mowi puts great emphasis on reducing mortality as much as possible. This is important for many reasons, including fish welfare. Also, from a financial point of view, mortality represents a pure loss.

Industry mortality rates have been relatively stable for the last thirty years, although Mowi saw an improvement in 2024 vs. 2023. However, we expect that our ongoing implementations of postsmolt, as well as shielding technologies (such as submerged pens and closed-containment systems), lasers and other Mowi 4.0 technologies, will further improve mortality rates. With regards to postsmolt, larger smolt is more robust, and the seawater phase can be reduced to one year given a smolt size of approx. 700 grams. This has the potential to significantly reduce mortality, as mortality mainly occurs in the seawater phase.

Loss rate* Linear (Loss rate*)

Mortality rates for Atlantic Salmon relatively stable over the past 30 years1

Source: Kontali

^* Loss rate = individuals / smolt release, where loss individuals = mortality, escape, culling and "other" (discards)

Material sustainability efforts

Carbon footprint

The industry is constantly working to make the value chain more energy efficient and has set targets for reducing greenhouse gas (GHG) emissions. Sourcing of feed raw materials is the largest contributor of GHG emissions in salmon farming.

Plastic management

The presence of microplastic in the world's ocean is an emerging issue that fish farmers have started to focus on. Fish farmers are undertaking various initiatives to reduce plastic waste, such as improving waste management, engaging in beach clean-up events around the world, using improved packaging and monitoring the presence of microplastics and plastic-related contaminants in fish.

Escape prevention

Because escaped farm-raised salmon may have a negative impact on the environment due to interactions and interbreeding with wild populations, fish farmers have a target of zero escapes.

Sea lice

Effective sea lice management is important for fish welfare and to ensure sea lice on our farms do not negatively impact wild salmonids. Farmers work intensively to improve their approach to sea lice management and to minimise the number of adult female sea lice, especially during the period when wild salmon migrate to sea. A number of non-medicinal tools have been developed over the last years reducing significantly the use of medicines to manage sea lice.

Medicine use

Licensed medicines may have a negative environmental impact if used too frequently. Farmers use antimicrobial medicines only when fish health and welfare are at risk from bacterial infection and only when absolutely necessary. Antimicrobials are not used for growth promotion, prevention of infectious diseases or for control of dissemination.

Fish health and welfare

Caring about fish welfare is an ethical responsibility. The industry works every day to safeguard the health and welfare of fish through effective sea lice management, and to reduce medicine use by optimising fish survival and preventing disease. Operational welfare indicators are also monitored during production.

Biodiversity

The industry needs healthy oceans to drive sustainable salmon farming and farmers must pay attention to the critical and highly sensitive environment they operate in. In all farming countries there are regulations in place to safeguard farming's impact on the seabed by monitoring the physical, chemical and biodiversity characteristics of the benthic environment.

Sustainability of fish feed1

Fish feed is a key component in ensuring the best possible fish health and performance. In any life cycle assessment (LCA)* of salmon farming, feed also makes the largest contribution to its environmental footprint. Important parameters for the carbon footprint arising from feed consumption are feed efficiency and feed ingredients.

Feed efficiency

The feed conversion ratio (FCR) describes the amount of feed used to produce a certain amount of salmon. Efficient feeding, that is to say releasing the minimum amount of feed beyond what is actually eaten, is important since the footprint of the feed released dominates the overall carbon footprint of the product. Improvements in feed formulations and in feed manufacture, combined with better on-farm feed management, can hugely reduce the quantity of feed (and thus the feed raw materials) used per kilogram of farmed aquatic food produced.

Feed ingredients

The current carbon footprint of farmed salmon shows that it is critical to change what the salmon is fed. Simply shifting between existing feed inputs, such as from marine to terrestrial inputs only leads to trade-offs between environmental impact categories.

In 1990 the average Norwegian salmon diet contained 65% fish meal and 24% fish oil. Marine ingredients have been reduced over time and in 2024 Mowi used 16% fish meal and 12% fish oils in its salmon feed. Production of fish meal and fish oils uses species from reduction fisheries and trimmings not suitable for human consumption.

^*Life Cycle Assessment (LCA) determines the environmental impacts of products, processes or services, through production, usage, and disposal

Source: SINTEF (2020) Greenhouse gas emissions of Norwegian seafood products in 2017, Ytrestøyl T., Aas T.S., Åsgård T. (2014) Resource utilization of Norwegian salmon farming in 2012 and 2013, NOFIMA, Mowi

Recaptured Fish in- fish out (rFIFO)

Recaptured Fish in- fish out (rFIFO) express the number of kg of wild fish (excluding trimmings and the fish meal and oil produced from by-products originated from salmon processing) it takes to produce 1 kg of salmon. In 2024 Mowi used 0.6 kg of low consumer preference wild fish (like anchovy and sardine) to produce 1 kg of Atlantic salmon.

Substitution of marine raw materials has not been found to have any negative effect on growth, susceptibility to disease, or quality of the fish if the fish's own nutrient requirements are being covered.

Major reductions in carbon footprint could potentially come from exploring and developing feed ingredients that close the nutrient loop in the salmon industry (that increase overall resource efficiency) and developing ingredients from resources that are not utilised today. For example, products derived from insects, alcohol fermentation, CO² capture and forestry are currently being explored.

Traceability is important to make sure that no raw materials originate from illegal, unregulated and unreported (IUU) catches, or from fish species classified as endangered on the International Union for the Conservation of Nature (IUCN) red list. Sustainable sourcing of vegetable feed raw materials such as soy is ensured by purchasing from Proterra-certified (or equivalent) deforestation-free suppliers.

Global sustainability initiatives 1

Achieving a sustainable future will require concerted action and new forms of partnership. One example of a key partnership is the Global Sustainable Seafood Initiative (GSSI). GSSI plays an important role in providing clarity on seafood certification. Third-party certifications can give consumers and stakeholders confidence that a product is sustainable. The Aquaculture Stewardship Council (ASC) and Global G.A.P. are examples of third-party certifications.

Global Sustainable Seafood Initiative (GSSI) aligns global efforts and resources to address seafood sustainability challenges. Governed by a Steering Board representing the full seafood value chain – companies, NGOs, governments and international organisations, including the FAO – GSSI promotes sector-wide collaboration to drive forward more sustainable seafood for everyone and maintains a benchmarking tool to assess sustainability standards.

The Aquaculture Stewardship Council (ASC) is an independent non-profit organisation with global influence. The ASC's primary role is to manage the global standards for responsible aquaculture. The ASC works with aquaculture producers, seafood processors, retail and foodservice companies, scientists, conservation groups and consumers.

Global G.A.P. is a recognised standard for farm production. Its goal is safe and sustainable agricultural production to benefit farmers, retailers and consumers throughout the world.

BAP (Best Aquaculture Practices), is a third-party certification programme that certifies every step of the production chain. BAP is part of GSA (Global Seafood Alliance), an international, nonprofit trade association dedicated to advancing responsible seafood practices through education, advocacy and third-party assurances.

Source: Mowi, www.orgssi.org, www.asc-aqua.org, www.globalgap.org

Transparency

Being transparent about environmental, social and product performance is key for building trust and correcting misinformation. The sustainability data is audited by third parties and reported according to global standards such as CDP (formerly the Carbon Disclosure Project) and FAIRR.

CDP is a not-for-profit charity that runs the global disclosure system for investors,

companies, cities, states and regions to manage their environmental impacts. CDP supports thousands of companies, cities, states and regions to measure and manage risks and opportunities relating to climate change, water security and deforestation.

The FAIRR Initiative20F 1 is a collaborative investor network that raises awareness of the material ESG risks and opportunities caused by intensive livestock production. The Coller FAIRR Index ranks the largest global meat, dairy and fish producers by looking at risk factors ranging from use of antibiotics to deforestation and labour abuses. The index is the world's only benchmark

dedicated to profiling animal protein producers and showcasing critical gaps and areas of best practice in the sector. Mowi is ranked as overall best performer for 4 times in a row, and there are three salmon producers in the top three.

The WBA Seafood Stewardship Index (SSI) measures the world's 30 most influential seafood companies and presents an overall ranking based on the results in five measurement areas. These areas reflect where stakeholders expect corporate action, pinpointing where companies can have the most impact; Governance and management of stewardship practices, Stewardship of the supply chain, Ecosystems, Human rights and working conditions and

Local communities. Mowi ranks 2nd in the benchmark and demonstrates a strong performance in all measurement areas.

Source: www.cdp.net, www.fairr.org, www.seafood.worldbenchmarkingalliance.org

Salmon Farming Industry Handbook 2025

Global trade flow of farmed Atlantic salmon1

The main markets for each production origin:

Norway Europe and Asia
Chile USA, South America and Asia
Canada USA
Scotland Domestic within UK, France

Each producing region has historically focused on developing the nearby markets. As salmon is primarily marketed as a fresh product, time and cost of transportation have driven this trend.

A relatively high price differential is therefore required to justify transatlantic trade as this incurs the cost of airfreight. Such trade varies from period to period and depends on arbitrage opportunities arising from short-term shortages and excess volumes from the various producing countries.

The Asian market is generally shared as transportation costs are broadly similar from all producing regions.

Distribution of frozen salmon is much more straightforward.

Note: Figures from 2024 and in thousand tonnes GWT. Not all markets are included. Source: Kontali Analyse

Farmed Atlantic salmon by market 1

EU+UK and USA are by far the largest markets for Atlantic salmon. On average consumption of Atlantic salmon has increased by 2% in all markets over the last 10 years due to constraints on supply. Although growth rates are relatively similar in the various markets the underlying demand in the US market has been the strongest. Underlying demand growth has also been strong in emerging markets such as Brazil and Asia (driven by China).

Note: Figures are in thousand tonnes GWT Source: Kontali Analyse

Top 10 markets by size (2024E)

In the 10 largest markets by country, consumption per capita varies from 0.1 kg WFE to 3.8 kg WFE in France, which is high. In Norway, Sweden and Finland, consumption per capita is between 6-8 kg WFE. This means that there is significant growth potential among the largest markets.

Source: Kontali Analyse, UN (2024) World Population Prospects 2024

The value of salmon sold has increased by 98% from 2014 to 2024 (CAGR 7%), while volume has increased by 27% (CAGR 2%) over the same period. This highlights the strong underlying demand for salmon. 2022 stood out due to postpandemic recovery, with global spending on salmon reaching EUR 20 billion, an all-time high level. In 2023 and 2024, market dynamics were normalising from the post-pandemic recovery experienced in earlier years. Hence, the price of salmon remained relatively stable in 2023 and 2024 despite stable global supply. We expect the structural undersupply to persist in the coming years, with global supply growth projected at around 3% annually, while demand continues to grow at approximately 7% p.a. giving favourable supply and demand dynamics for the salmon industry.

Source: Kontali Analyse

Price neutral demand growth – approx. 10% the past 20 years 1

	Global supply	Change in
Year	growth	avg. price
		FCA Oslo (EUR)
2001	15%	-25%
2002	8%	-3%
2003	7%	-11%
2004	6%	7%
2005	5%	23%
2006	1%	23%
2007	10%	-21%
2008	5%	1%
2009	3%	12%
2010	-4%	35%
2011	12%	-17%
2012	22%	-10%
2013	2%	42%
2014	8%	-5%
2015	5%	-4%
2016	-4%	46%
2017	2%	-5%
2018	6%	-2%
2019	6%	-6%
2020	4%	-14%
2021	9%	14%
2022	-2%	40%
2023	-3%	0%
2024	3%	-5%

The historical correlation between change in global supply and average FCA Oslo price (EUR) is very strong. In the period 2001-2011, change in supply explained 84% of the change in price using linear regression. In 2012 and 2013 demand for salmon significantly overperformed. In the period 2014-2024, the correlation is lower due to, amongst other things, changing market dynamics and external shocks.

Price correlation across regional markets is generally strong for Atlantic salmon.

Growth in global supply of Atlantic salmon was 186% in the period 2001-2024 (CAGR 5%), varying between -4% and 22% annually. Variation in growth rates has been the main determinant for the variation in prices. However, in 2020, demand was impacted by Covid-19 restrictions which reduced foodservice activity. Demand partially recovered in 2021 as the pandemic waned and market conditions strengthened, and this positive

Source: Kontali Analyse

The trend continued into 2022 as demand experienced a notable recovery as the pandemic's effects diminished further and market conditions improved. In 2023, global demand saw a slight dip, with volume decreasing by 3%. Nevertheless, spot prices managed to stabilise at the elevated levels observed in 2022. In 2024, global harvest volumes increased by 3%, although this was accompanied by slightly lower spot prices compared to the previous year.

Since 2014, prices have ranged between EUR 7.87 per kg (2022) and EUR 4.52 per kg (2015).

Historic price development 1

As salmon is perishable and marketed fresh, all production in one period must be consumed in the same period. In the short term, the production level is difficult and expensive to adjust as the planning/production cycle is three years long. Therefore, the supplied quantity is very inelastic in the short term, while demand shifts according to the season. This is the main reason for the price volatility in the market.

Factors affecting market price for Atlantic salmon are:

Supply (absolute and seasonal variations)
Demand (absolute and seasonal variations)
Globalisation of the market (arbitrage opportunities between regional markets)
Presence of sales contracts reducing quantity available for the spot market
Flexibility of market channels
Quality
Disease outbreaks
Food scares

Comparing FCA Oslo, FOB Miami and FOB Seattle, there is a clear indication of a global market as prices correlate to a high degree.

As in most commodity industries, producers of Atlantic salmon experience high volatility in the price achieved for the product. The average price (GWT based) for Norwegian whole salmon since 2014 has been about EUR 6.4/kg, for Chilean salmon fillet (3-4lb) D-trim fillet USD 5.2/lb (USD 7.4/kg GWT equivalent), and for Canadian salmon (10-12lb) USD 3.4/lb (USD 7.4/kg). The pricing of Scottish and Faroese salmon is linked to the price of Norwegian salmon. The price of Scottish salmon normally has a premium to Norwegian salmon. Faroese salmon used to trade at a small discount to Norwegian salmon. However, due to geopolitical events in last decade, salmon from the Faroes now trades at a premium over Norwegian salmon in selected markets.

Note: boxes represent yearly average price Source: Kontali Analyse, Nasdaq, Urnery Barry

Different sizes – different prices (Norway) 1

The main reason for differences in size is the biological production process in which individual fish grow at different rates. A farm holding fish of harvestable size will show a normally distributed size distribution. This leads to the majority of fish being harvested at 3-6 kg GWT with smaller quantities of smaller and larger fish.

The processing industry in Europe mainly uses 3-6 kg GWT but niche markets exist for smaller and larger fish. As these markets are minor compared to the main market, they are easily disrupted if quantities become too large. Generally, small fish are discounted, and large fish are sold at premium as shown in the graph above.

The graph to the left shows Norwegian harvest distribution for 2024, with the harvest size of 4-5 kg (GWT) being the most frequent. In addition to catering for production process and market requirement, another driver behind this size fluctuation is that farmers want to balance out

market risk and biological risk. Drivers behind smaller harvest size can be disease, early harvest when there is a need for cash flow, or early harvest to realise ongoing capacity. Larger fish (6-7 kg+) may be a result of economies of scale/lower production costs, production for niche markets or other market requirements.

Source: Kontali Analyse

7 Industry Structure

Salmon Farming Industry Handbook 2025

Industry Structure

Top 10 companies in farmed Atlantic salmon 20241

		Top 10 - Chile	H.Q.	Top 4 - United Kingdom	H.Q.	Top 4 - North America	H.Q.	Top 4 - Other Europe (Faroes / Iceland / Ireland)	H.Q.
Company		HOG Company	HOG	Company		HOG Company		HOG Company	HOG
1 Mowi ASA		303,000 Aquachile S.A		133,000 Mowi ASA		66,000 Cooke Aquaculture*		60,000 Bakkafrost (FO)	63,000
2 Salmar ASA	220,000 MultiX			80,000 Scottish Sea Farms		40,000 MOWI ASA		30,000 Mowi ASA (FO/IC/IE)	29,000
3 Lerøy Seafood Group ASA 148,000 Cermaq Chile S.A.*				85,000 Bakkafrost		28,000 Grieg Seafood ASA		23,000 Kaldvik (Måsøval) (IC)	15,000
4 Cermaq Norway AS*		90,000 Mowi ASA		73,000 Cooke Aquaculture*		27,000 Cermaq Canada*		9,000 Icelandic Salmon (SalMar) (IC)	12,000
5 Grieg Seafood ASA		55,000 Salmones Blumar	47,000
6 Nordlaks Oppdrett AS		53,000 Australis Mar	43,000
7 Nova Sea AS		42,000 Salmones Camanchaca	43,000
8 Alsaker*		30,000 Yadran S.A*	25,000
9 Sinkaberg-Hansen AS		29,000 Salmones Austral S.A.*	25,000
10 Bremnes Seashore*		25,000 Invermar S.A.*	20,000
Top 10	995,000 Top 10		574,000 Top 4		161,000 Top 4		122,000 Top 3		107,000
Others	369,800 Others			56,000 Others		9,500 Others		2,400 Others	37,900
Total	1,364,800 Total		630,000 Total		170,500 Total		124,400 Total		144,900
All figures in tonnes GWT			0.91

*The industry in the UK and North America are best described by top 4 producers

Mowi Group represents the largest total production, harvesting one fifth of the salmon produced in Norway and other Europe and approx. one third of total production in both the UK and North America.

In Norway and Chile there are several other producers of significant size. In Chile, several of the companies also produce other salmonids, such as Coho and large trout.

Source: Kontali Analyse

Industry Structure

Number of companies in producing countries 1

The graph shows the number of companies producing 80% of the farmed salmon and trout in each major producing country.

Historically, the salmon industry consisted of a larger number of smaller firms. As illustrated above, this was the case in Norway, and to some extent in Scotland and Chile.

During the last decades the salmon farming industry has been through a period of consolidation in all regions and this is expected to continue.

There are approx. 120 companies owning commercial licenses for salmon and trout in Norway, however some of these are controlled by other companies. The total supply is produced by around 90 companies (directly or through subsidiaries).

There are approximately 1,360 commercial licenses for on-growing of Atlantic salmon, trout and coho in Chile, whilst only 385 licenses are in operation. The 10 largest firms account for 90% of total licenses.

Note: See appendix for some historical acquisitions and divestments Source: Kontali Analyse

Salmon Farming Industry Handbook 2025

Establishing a salmon farm

The salmon farming production cycle is about 3 years. During the first year of production eggs are fertilised and fish are grown to approximately 100-250 grams in a controlled freshwater environment. In recent years, the industry has invested in freshwater facilities that can grow the smolt larger, up to 1,000 grams, thus shortening the time at sea.

The fish are then transported to seawater cages where they are grown to around 4-5 kg over a period of 12-24 months. The growth of the fish is heavily dependent on seawater temperatures, which vary by time of year and across regions.

When they reach harvestable size, the fish are transported to processing plants where they are slaughtered and gutted. Most salmon is sold gutted on ice in a box (GWT).

The Atlantic salmon life/production cycle1

The freshwater production cycle until smolt takes approximately 10-18 months and the seawater production cycle lasts around 10-24 months, giving a total cycle length of on average about 3 years, including fallowing. Postsmolt will normally have a longer production cycle in freshwater and a shorter production cycle in seawater depending on smolt size. In Chile, the cycle is slightly shorter as seawater temperatures are more optimal with fewer fluctuations.

In autumn, broodstock are stripped for eggs, and ova inlay takes place between September and April. The producer can speed up the growth of the juveniles with light manipulation which accelerates the smoltification process by up to 6 months.

Spring and autumn are the two main periods to release smolt in Norway. However, there are smolt being released in all twelve months of the year.

Note: See appendix for more information on the Atlantic salmon production cycle Source: Mowi

Harvesting is spread across the year, although most harvesting takes place in the last half of the year as this is the period of best growth. During summer the harvesting pattern shifts to a new generation, and consequently weight dispersion between large and small harvested salmon is greater at this time than for the rest of the year.

After a site is harvested, the location is fallowed for between 2 and 6 months before the next generation is put to sea at the same location. Smolts may be released in the same location with a two year cycle.

Influence of seawater temperature1

Seawater temperatures vary considerably throughout the year in all production regions. While the production countries in the northern hemisphere see low temperatures at the beginning of the year and high temperatures in autumn varying by as much as 15ºC, the temperature in Chile is more stable varying between 10ºC and 14ºC. Chile and Ireland have the highest average temperature of 11-12ºC, and the four other regions have an average temperature of about 9ºC, except forfrom Iceland which has the lowest average temperature of 6ºC.

As the salmon is a cold-blooded animal (ectotherm), water temperature plays an important role in its growth rate. The optimal temperature range for Atlantic salmon is 8-14ºC, but they thrive well from 4-18ºC. Temperature is one of the most important natural competitive advantages that Chile has compared to the other production regions as production time there has historically been shorter by a few months.

With high seawater temperatures the risk of disease increases, and with temperatures below 0ºC, mass mortality becomes more likely, both of which cause the growth rate to fall.

Source: Average sea temperatures 2019-2024 from Mowi's sites

Production inputs

Eggs

There are several suppliers of eggs to the industry. AquaGen, Benchmark Genetics and Rauma Stamfisk are some of the most significant by quantity. In addition to these suppliers, Mowi produces its own eggs based on the Mowi strain.

Egg suppliers can tailor their deliveries through use of broodstock with favourable genetics for different traits desired by customers, and several suppliers are able to produce eggs throughout the whole year. The market for salmon eggs is international, although this can be subject to import/export restrictions imposed by different countries.

Smolt

The majority of smolt are produced "in-house" by vertically integrated salmon farmers. This production is generally for a company's own use, although a proportion may also be sold to third parties. A smolt is produced over a period of 8-12 months from startfeeding to a mature smolt weighing 100-250 grams. Postsmolt production (250-1,000 grams) has become more common in recent years, accounting for 24% of the Norwegian smolt release in 2024 in terms of individuals. The idea behind larger smolt is to shorten production time at sea, thus reducing exposure to sea lice and fish diseases, and improving fish welfare.

Labour30F 1

According to The Directorate of Fisheries, the Norwegian aquaculture industry directly employed 10,644 people in 2024. According to a MENON publication in 2022, total direct and indirect employment within aquactulture was 19,000 people. Including the processing and supplier industries total employment amounted to 62,500 people.

According to the Scottish Salmon Producers Organisation (SSPO), more than 2,500 people are employed in salmon production in Scotland. The Scottish Government estimates that over 10,000 jobs are generated directly or indirectly by the aquaculture industry.

Estimates on Canadian employment say that around 14,000 people are employed in aquaculture, where Canada's farmed-salmon industry provides more than 10,000 jobs. Direct employment in Chilean aquaculture (including processing) was estimated at around 30,000 people in 2014.

Mowi Group employed 13,806 people (including third-party employees), in 26 countries worldwide as at 31 December 2024.

Electricity

Electricity is mainly used in the earliest and last stages in the salmon's life cycle. To produce a good quality smolt, production normally takes place in tanks on land where the water temperature is regulated and water may be recirculated, which requires energy (accounting for approx. 7-8% of smolt cost in Norway). The cost of energy consumption will depend on the price of electricity and the temperature. A cold winter will demand more electricity to heat the water used in the smolt facility. The size of the smolt will also influence electricity consumption as a larger smolt has a longer production cycle in the smolt facility. More energy is consumed when the salmon is processed. However, this depends on the level of automation (3-4% of harvest cost in Norway).

Source: Mowi, Kontali Analyse, Directorate of Fisheries, MENON, SSPO, Government of Canada, Estudio Situación Laboral en la Industria del Salmón", Silvia Leiva 2014

Cost component – disease and mortality

Production costs per kg decline with increasing harvest weight. If fish is harvested at a lower weight than optimal (caused by diseases for example), production costs per kg will be higher.

During the production cycle, some mortality will occur. Under normal circumstances, the highest mortality rate will be observed during the first 1-2 months after the smolt is put into seawater, while subsequent stages of the production cycle normally have a lower mortality rate.

Elevated mortality in later months of the cycle is normally related to outbreaks of disease, treatment for sea lice or predator attacks.

There is no strict standard for how to account for mortality, and there is no unified industry standard. Three alternative approaches are:

Charge all mortality to expense when it is observed
Capitalise all mortality (letting the surviving individuals carry the cost of dead individuals in the balance sheet when harvested)
Only charge exceptional mortality to expense (mortality, which is higher than what is expected under normal circumstances)

It is not possible to perform biological production without any mortality. By capitalising the mortality cost, the cost of harvested fish will reflect the total cost for the biomass that can be harvested from one production cycle.

Accounting principles for biological assets

Biological assets are measured at fair value less cost to sell, unless the fair value cannot be measured reliably.

Effective markets for the sale of live fish do not exist, so the valuation of live fish implies establishment of an estimated fair value of the fish in a hypothetical market. Fair value is estimated by the use of a calculation model, where cash inflows are functions of estimated volume multiplied by estimated price. Fish ready for harvest (4 kg GWT, which corresponds to 4.8 kg LW) is valued at expected sales price with a deduction of costs related to harvest, transport etc. to arrive at back-to-farm prices. For fish not ready for harvest (i.e. below 4 kg GWT), the model uses an interpolation methodology where the known data points are i) the value of the fish when put to sea and ii) the estimated value of the fish when it has reached harvest size. The valuation reflects the expected quality grading and size distribution.

Broodstock and smolt are measured at cost less impairment losses, as fair value cannot be measured reliably.

The change in estimated fair value is recognised in profit or loss on a continuous basis and is classified separately (not included in the cost of the harvested biomass). On harvesting, the fair value adjustment is reversed on the same line.

Operational EBIT

Operational EBIT and other operational results are reported based on the realised costs of harvested volume and do not include fair value adjustments on biomass.

Economics of salmon farming

The salmon farming industry is capital-intensive and volatile. This is a result of a long production cycle, a fragmented industry, market conditions and a biological production process which is affected by many external factors.

Over time, production costs have been reduced and productivity has increased on the back of new technology and improved techniques. In recent years, costs have trended upwards due to several factors including rising feed costs, biological costs and more stringent regulatory compliance procedures.

Reported revenues: Revenues are a gross figure; they can include invoiced freight from reference place (e.g. FCA Oslo) to customer, and have discounts, commissions and credits deducted. Reported revenues can also include revenues from trading activity, sales of by-products, insurance compensation, gain/loss on sale of assets etc.

Price: Reported prices are normally stated in the terms of a specific reference price e.g. the Nasdaq price for Norway (FCA Oslo) and UB price for Chile (FOB Miami). Reference prices do not reflect freight, and other sales reducing items mentioned above. Reference prices are for one specific product (Nasdaq price = sales price per kg head on gutted fish packed fresh in a standard box). Sales of other products (frozen products, fresh fillets and portions) will cause deviation in the achieved prices vs. reference price. Reference prices are for superior quality fish, while achieved prices are for a mix of qualities, including downgrades. Reference prices are spot prices, while most companies will have a mix of spot and contract sales in their portfolio.

Quantity: Reported quantity can take many forms. Quantity harvested = Fish harvested in a specific period in a standardised term; e.g. Gutted Weight Equivalent (GWT), which is the same weight measure as Head-on-Gutted (HOG), or Whole Fish Equivalent (WFE), the difference being gutting loss. Quantity sold can be reported using different weight scales:

Kg sold in product weight.
Kg sold converted to standard weight unit (GWT or WFE).
Quantity sold could also include traded quantity.

Feed: As in all animal production, feed makes up the largest share of the total cost. The variation in costs between countries is based on somewhat different inputs to the feed, logistics and the feed conversion ratio. In 2022, feed costs increased significantly due to higher feed prices and inflationary pressures.

Smolt: Atlantic salmon smolt is largely produced at land-based hatcheries either in flow-through or RAS systems. Cost per kilo is increasing as farmers increase the size of the smolt in the hatchery before release to sea. The cost is expected to be offset by shorter time in sea, less lice treatment etc.

Labour cost: Whilst salmon production is a capital-intensive industry, labour cost only accounts for a minor part of total costs. Labour cost increased in the period 2014-2017, partly because of increased employment in relation to lice issues, however, it has been stable the last few years.

Harvest/ Packing/ Well boat: Costs relating to transportation of live fish, slaughtering, processing and packing are all heavily dependent on quantity, logistics and automation.

Depreciation: The industry is investing heavily in new technology and automation, but also in equipment used to treat lice, which in turn leads to higher depreciation costs.

Misc. operating costs: Other costs include direct and indirect costs, administration, insurance, biological costs (excluding mortality), etc.

Source: Kontali Analyse, Nofima (2018) Kostnadsdrivere i lakseoppdrett 2018

Salmon Farming Industry Handbook 2025

Overview of feed market

Global production of manufactured feed was around 1,396 million tonnes in 2024. The majority was used for land-dwelling animals, where 88% was used in the farming of poultry, pig and ruminants. Only 4%, or 55 million tonnes, of global production of manufactured feed was used in aquatic farming.

Most aquatic feed produced globally is used for carp as this is the predominant farmed fish species. Feed for salmonids only accounts for 9% of the total production of aquatic feed.

Atlantic salmon is the most farmed species of salmonids and is therefore the largest consumer of salmonid feed. 33F 1

Most of the feed used in farming of salmonids is produced close to where it is farmed. Norway used 46% of the global feed directed towards the salmonid segment in 2023 and Chile used 28%.

Source: Kontali Analyse

Relative feeding1

The production of feed around the world varies as there are large deviations in sea temperature. Norway has the greatest seasonality in production. The low season is from February to April and the high season is from July to October, with the mid-season in between. Production in the low season can be as low as only 30% of the high season's production. Over a year, Chile has the highest relative feeding, measured by feed sold or fed during a month relative to the incoming biomass. Feed is considered a perishable product with limited opportunities to store.

^*Relative feeding: Feed sold or fed during a month / Biomass per primo in month Source: Kontaly Analyse

Salmon feed producers

During the last decade, the salmonid feed industry has become increasingly consolidated. Together with Mowi, three producers now control the majority of salmon feed output; Skretting (subsidiary of Nutreco which has been acquired by SHV, EWOS (Cargill), and BioMar (subsidiary of Schouw). These companies all operate globally.

In mid-2014, Mowi began production of feed from its first new feed plant. In 2019, Mowi completed its second feed plant located in Kyleakin, Scotland. Mowi has a total production capacity of 700,000 tonnes. In 2024 Mowi produced 582,061 tonnes compared with total global salmonid feed production of around 4.9 million tonnes.

The major cost elements when producing salmonid feed are the raw materials required and production costs.

The feed producers have historically operated on cost-plus contracts, leaving the exposure to raw material prices with the aquaculture companies.

Salmon feed ingredients

Atlantic salmon feed should provide proteins, energy and essential nutrients to ensure high muscle growth, energy metabolism and good health. Historically, the two most important ingredients in fish feed have been fish meal and fish oil. The use of these two marine raw materials in feed production has been reduced in favour of ingredients such as soy, sunflower, wheat, corn, beans, peas, poultry by-products (in Chile and Canada) and rapeseed oil. This substitution is mainly due to heavy constraints on the availability of fish meal and fish oil.

Atlantic salmon have specific nutrient requirements for amino acids, fatty acids, vitamins, minerals and other lipid- and water-soluble components. These essential nutrients can in principle be provided by the range of different raw materials listed above. Fish meal and other raw materials of animal origin have a more complete amino acid profile and generally have a higher protein concentration compared to proteins of vegetable origin. As long as a fish receives the amino acid it needs it will grow and be healthy and the composition of its muscle protein is the same irrespective of feed protein source. Consequently, feeding salmon with non-marine protein sources results in a net production of marine fish protein.

During the industry's early phases, salmon feed was moist (high water content) with high levels of marine protein (60%) and low levels of fat/oil (10%). In the 1990s, feed typically consisted of 45% protein, made up mostly of marine protein. Today, the marine protein level is lower due to cost optimisation and the availability of fish meal. However, the most interesting development has been the increasingly higher inclusion of fat. This has been made possible through technological development and extruded feeds.

Feed and feeding strategies aim to grow a healthy fish fast at the lowest possible cost. Standard feeds are designed to give the lowest possible production cost rather than maximised growth. Premium diets are formulated to give amongst other things better growth rate and higher survival.

Feeding control systems are used at all farms to control and optimise feeding. Feeding is monitored for each net pen to ensure that fish are fed to maximise growth (measured by the Relative Growth Index - RGI). At the same time systems ensure that feeding is stopped immediately when the maximum feed intake has been provided to prevent feed waste. The fastest growing fish typically also have the best (i.e. lowest) feed conversion ratio (FCR).

Feed raw material market

Fish oil: In general, fish oil prices are more volatile than vegetable sources mainly due to volatile supply as result of the quota systems for fisheries. The average price of fish oil was about USD 3,900 per tonne in 2022 mainly due to low availability of raw material. Throughout 2023, the price of fish oil continued its ascent following the cancellation of Peru's first anchovy season. The second season saw notably diminished oil yields, resulting in a mere 6,000 tonnes fish oil produced, which further increased prices. However, throughout 2024 and 2025 the anchovy fishing seasons in Peru have seen improved yields which has translated into higher production of fish oil, and prices have recently started to decline. Due to a good wild-catch season of pelagic fish, the current fish oil price as of May 2025 is approximately USD 2,500 per tonnes.

Fish meal: Fish meal has seen stable price development over the past ten years. Although prices have been stable based on a yearly average, there are large variations within the years. The market for fishmeal is small compared with that for vegetable proteins.

Rapeseed oil: Up until 2011, rapeseed oil price development was correlated with fish oil but from 2011 to 2015 prices fell each year and it traded significantly below fish oil. The price has been hovering around USD 800-900 per tonne in recent years, but in 2021 and 2022 the price increased. However, in 2023, the price moderated back to historical levels.

Soy meal: Soy and corn have traditionally been very important vegetable protein sources in fish feed. Prices have been under pressure in the last few years as a result of increased supply, especially from expanded production in Brazil. However, in 2021 and 2022 soy prices increased in line with other soft commodity prices.

Wheat: Prices for wheat have remained stable over the years with generally good production and balanced supply/demand. In 2022 wheat prices increased in line with other soft commodity prices, however, in 2023, prices softened and traded below historical levels.

Salmon Farming Industry Handbook 2025

Working capital

The long production cycle of salmon requires significant working capital in the form of biomass.

Working capital investments are required for organic growth, as a larger "pipeline" of fish is needed to facilitate larger harvest volumes. On average, a net working capital investment of approximately EUR 3.5/kg is required, split between the year of harvest and the year immediately preceding harvest, in order to obtain an increase in harvest volume of 1 kg. The working capital requirement has increased over time and fluctuates with variations in currency exchange rates and production costs. In 2022 working capital tie-up was impacted by inflation on input costs and increased somewhat in 2023 and 2024.

Net working capital varies during the year. Growth of salmon is heavily impacted by changing seawater temperatures. Salmon grows at a higher pace during summer/autumn and more slowly during winter/spring when the water is colder. As the harvest pattern is relatively constant during the year, this leads to large seasonal variations in net working capital. For a global operator, net working capital normally peaks around year-end and bottoms out around mid-summer.1

Source: Mowi

Cost of building biomass

For illustration purposes, the farming process has been divided into three stages of 12 months. The first 12-month period is from production from egg to finished smolt. 24 months of on-growing in the sea follows this. When the on-growing phase ends, harvest takes place immediately (illustrated as "Month 37"). In a steady state there will always be three different generations at different stages in their life cycle. Capital expenditure is assumed equal to depreciation for illustration purposes. The working capital effects are shown above on a net basis excluding effects from accounts receivable and accounts payable.

By the point of harvest there have been up to 36 months of costs to produce the fish, comprising the cost of producing the smolt two years ago, further costs incurred to grow the fish in seawater, and some costs related to harvest ("Month 37"). Sales price covers these costs and provides a profit margin (represented by the green rectangle).

Cash cost for the period in which the fish are harvested is not large compared to sales income, creating a high net cash flow. If production going forward (next generations) follows the same pattern, most of the cash flow will be reinvested into salmon at various growth stages. If the company wishes to grow its future output, the following generations need to be larger requiring even more of the cash flow to be reinvested in working capital.

This is a rolling process and requires substantial amounts of working capital to be tied up, both when in a steady state and especially when increasing production.38F 1

Source: Mowi

The illustration above shows how capital requirements develop when production/biomass is being built "from scratch". In phase 1, there is only one generation (G) of fish produced and the capital requirement is the production cost of the fish. In phase 2, the next generation is also put into production, while the on-growing of G1 continues, rapidly increasing the capital invested. In phase 3, G1 has reached its last stage, G2 is in its on-growing phase and G3 has begun to increase its cost base. 39F 1

At the end of phase 3, the harvest starts for G1, reducing the capital tied-up, but the next generations are building up their cost base. If each generation is equally large and everything else is in a steady state, the capital requirement will peak at the end of phase 3. With growing production, the capital requirement will also increase after phase 3 as long as the next generation is larger than the previous (if not, the capital base is reduced). We see that salmon farming is a capital-intensive industry.

To equip a grow-out facility you need cages (steel or plastic), moorings, nets, cameras, feed barge/automats and workboats.

Source: Mowi

Capital return analysis

Investments and payback time (Norway) - assumptions40F 1

- Normal site consisting of 4 licenses

- Equipment investment: MEUR 3.5 - 4.5
- Number of licenses: 4
- License cost (second hand market) MEUR: 60 (EURm ~15 per license)
- Output per generation: ~4,400 tonnes GWT
- Number of smolt released: 1,150,000
- Smolt cost per unit: EUR 2.4
- Feed price per kg: EUR 1.9 (LW)
- Economic feed conversion ratio (FCR): 1.3 (to Live Weight)
- Conversion rate from Live Weight to GWT: 0.84
- Harvest and processing incl. well boat cost per kg (GWT): EUR 0.40
- Average harvest weight (GWT): 4.5kg
- Survival rate in sea: 85%
- Sales price: EUR 7.7/kg
- Corporate tax rate: 22%
- Resource rent tax: 25% (seawater phase only), assumed 10% effective increase in tax (assumed 40% of value chain subject to resource rent tax)
- Farming contribtions only (no earnings contributions from rest of value chain)

To increase capacity there are many regulations to fulfil. In this model we focus on a new company entering the industry and we have used only one site, for simplicity's sake. Most companies use several sites concurrently, which enables economies of scale and makes the production more flexible and often less costly.

In this model smolts are bought externally, also in the interests of simplicity. Smolts are usually less costly to produce internally, but this depends on production quantity.

Fish performance is affected by numerous factors including feeding regime, seawater temperature, disease, oxygen level in water, smolt quality, etc.

The average price from the previous years' auctions is used as a basis for license cost.

Sales price reflects the average sales price from Norway in the period 2022-2025 YTD.

Source: Mowi, Kontali Analyse

Results41F 1

Due to high entry barriers in terms of capital needs, and falling production costs with increasing quantity, new entrants into the salmon farming industry will experience higher average production costs. During the production of each generation the working capital needed at this farm would peak at around MEUR 14.5.

With a sales price of EUR 7.7/kg the payback time for the original investments would be around 9 years. This result is very sensitive to sales price, license cost and economic feed conversion ratio (FCR). Note that the earnings contributions are from the farming operations only, and do not include earnings contributions from the rest of other parts of the value chain.

The sales price of EUR 7.7/kg is based on the average price in Norway from 2022-2025 YTD.

Source: Mowi

Currency overview

Norwegian exposure vs foreign currency – average last 5 years(1) 42F 1

Exporters deal in the traded currency, while the customer has an exposure to both traded and local currencies. For example, a French processor may trade salmon in NOK, but sell its products in the local currency (EUR).

Most Norwegian producers are exposed to currency fluctuations as most of the salmon they produce is exported. Most of the salmon is exported to countries within the EU and is traded in EUR. The second largest traded currency is USD. Some players in countries in Eastern Europe, the Middle East and some Asian countries prefer to trade salmon in USD rather than in local currency.

The price of salmon quoted in traded currency will compete with other imported goods, while the price of salmon quoted in local currency will compete with the price to consumers of domestically produced products.

There is a currency risk involved in operating in different currencies, and therefore many of the largest industry players hedge currencies often with back-to-back contracts. The currency risk arising from salmon sales denominated in the traded currency is usually absorbed by the exporter, while the currency risk in local currency is absorbed by the customer.

Note: (1) The table shows exposure against local currency weighted against total export volumes Source: Kontali Analyse

Exposure against local currency – 2024(1) 43F 1

Europe is the largest market for Norwegian produced salmon, so EUR is the predominant currency for Norwegian salmon producers.

Key markets for Chilean produced salmon are the USA and Brazil, so exposure to USD and BRL (Brazilian real) in local currency terms is followed closely.

Feed production: Currency exposure

The raw materials required to produce feed are as a rule of thumb quoted in USD (approx. 70%) and EUR (approx. 30%), based on long term average exchange rates. Raw materials generally account for 85% of the cost of producing feed. The remaining costs, including margin for the feed producer, are quoted in local currency.

Secondary Processing: Currency exposure

The biggest market for value added products is Europe, hence the vast majority of currency flows are EUR-denominated, both on the revenue and cost side. In the US and Asian processing markets currency flows are denominated largely in USD and EUR on the revenue side whilst costs are denominated in USD, EUR and local currency.

Note (1): The table shows exposure against local currency weighted against total export volumes Source: Kontali Analyse

Price, cost and EBIT development in Norway1

Atlantic salmon is seen as a healthy, resource-efficient, and climate friendly product. On the back of a growing global middle class, an aging population, a global trend towards healthy living, and a focus on carbon footprint, demand has been estimated to grow by 11% per annum the last decade. Product innovation, category management, long-term supply contracts, effective logistics and transportation have stimulated strong demand growth for salmon.

An essential characteristic of the salmon market is that supply is limited due to regulations and biological conditions. However, over the years there have been several supply shocks. In Chile, the ISA virus outbreak which lasted until 2010 and the algae bloom in 2016 caused negative supply shocks which in isolation caused positive price movements. In 2020, a temporary demand shock caused by Covid-19 restrictions, which partly closed the foodservice sector, resulted in negative price development. In 2021, the pandemic waned and markets partially recovered. In 2022 prices increased futher on foodservice demand recovery and a slight global supply contraction. In 2023, prices stabilised compared to the high base in 2022.

Over the last ten years, costs have trended upwards due to several factors including rising feed costs, biological costs and more stringent regulatory compliance procedures. The average EBIT per kg for the Norwegian industry has been positive with the exception of a few shorter periods. In the last 10 years it has been EUR 1.5 per kg in nominal terms.

Source: Kontali Analyse, Norges Bank

Effects of geographical diversification1

The illustration above depicts Mowi's performance across different countries over the last 5 years. In all regions, the biological risk is high, and this impacts cost significantly from period to period. The variance in EBIT per kg is high, however, the geographic specific risk can be diversified with production across regions.

Source: Mowi

Salmon Farming Industry Handbook 2025

Due to biological constraints, seawater temperature requirements and other natural constraints, farmed salmon is only produced in Norway, Chile, Scotland, the Faroe Islands, Ireland, Iceland, Canada, USA, Tasmania and New Zealand.

Atlantic salmon farming began on an experimental level in the 1960s and evolved into an industry in Norway in the 1980s and in Chile in the 1990s.

In all salmon-producing regions, the relevant authorities have a licensing regime in place. In order to operate a salmon farm, a license is the key prerequisite. Such licenses restrict the maximum production for each company and the industry as a whole. The license regime varies across jurisdictions.

Regulation of fish farming in Norway

License and location

Fish farming companies in Norway are subject to a large number of regulations. The Aquaculture Act (17 June 2005) and the Food Safety Act (19 December 2003) are the two most important laws, and there are detailed provisions set out in the various regulations which emanated from them.

In Norway, a salmon-farming license allows salmon farming either in freshwater (smolt/fingerling production) or in the sea. The number of licenses for Atlantic salmon and trout in seawater was limited to 1,164 in 2023. Such limitations do not apply for freshwater licenses (smolt production), which can be applied for at any time. Seawater licenses can use up to four farming sites (six sites are allowed when all sites are connected with the same licenses). This increases the capacity and efficiency of the sites.

Production limitations in Norway are regulated as "maximum allowed biomass" (MAB), which is the defined maximum volume of fish a company can hold at sea at all times. In general, one license sets a MAB of 780 tonnes (945 tonnes in the counties of Troms and Finnmark). The sum of the MAB permitted by all the licenses held in each region is the farming company's total allowed biomass in this region. In addition, each production site has its own MAB and the total amount of fish at each site must be less than this set limit. Generally, sites have a MAB of between 2,340 and 4,680 tonnes.

New seawater licenses are awarded by the Norwegian Ministry of Trade, Industry and Fisheries and are administered by the Directorate of Fisheries. Licenses can be sold and pledged, and legal security is registered in the Aquaculture Register. Since 1982, new licenses have been awarded only in certain years and growth in biomass is today regulated on the basis of the new system for growth implemented in 2017.

The Norwegian coast is divided into 13 geographical areas of production. The level of sea lice in these areas decide if the MAB can increase (green area +6%), stay the same (yellow area) or decrease (red area -6%) in these areas. Every second year the government announces the conditions for growth on existing and new licenses. Growth through the "Traffic Light System" has been sold by the government to the industry based on an auction process since 2018. The purpose of the auction has been to maximise the proceeds through a competitive closed clock auction by tonnes in all green areas. The average price paid for a new standard license in the auction was NOK 153 million and NOK 171 million in 2018 and 2020, respectively. Total proceeds for the government and local communities were approximately NOK 3.9 billion and NOK 6.9 billion in said years. The Traffic Light System has effectively ensured a form of capturing the resource rent, in exchange for growth. In 2022 the average price for a new license was significantly reduced to NOK 120 million due to the uncertainty in relation to the proposed resource rent tax scheme. In 2023, the auction for the unsold capacity was carried out at an average price of NOK 143 million. Total proceeds amounted to NOK 5.3 billion. During the Traffic Light System for growth in 2024 proceeds amounted to NOK 5.8 billion, with licenses values in the auction averaging NOK 238 million.

Sites complying with very strict environmental standards are offered additional growth. The conditions for this growth are A) below 0.1 lice per fish at every counting for the past two years in the period April 1st to September 30th and B) a maximum of one treatment during the last cycle of production. For sites meeting this standard a maximum of 6% growth is offered, regardless of the general situation in the different production areas. In "red" areas, companies will need to reduce production by 6%.

Resource rent tax on aquaculture was introduced in September 2022 with effect from 1 January 2023 and approved by Parliament on 31 May 2023. The resource rent tax rate of 25 percent applies to the production of salmon, trout, and rainbow trout in the sea phase, and implies a marginal tax rate of 47 percent. Activities outside the seawater phase are subject to ordinary corporate tax only. Revenues will be based on the market value when the fish are harvested, which the companies themselves will set/determine for 2023 and 1st half of 2024. From July 1st 2024, the Government will use an independent price board.

A tax-free allowance of MNOK 70 is granted at the corporate group level, making the smallest companies exempt from the resource rent taxation. The group definition includes companies with decisive influence over another enterprise by agreement. The tax-free allowance of MNOK 70 must be adjusted by the corporate tax rate of 22 percent, resulting in a net allowance of MNOK 54.6. In addition, the production fee introduced in 2021 has been increased to NOK 0.935/kg salmon produced from 1 January 2024. The production fee will be directly deductible in payable resource rent tax. The current auction system of licenses, which occurs every second year, will also continue in 2024.

In October 2021, the Government appointed a committee to review the licensing system in the Norwegian aquaculture industry. In September 2023, the committee assessed the objectives for the license regulations, the entirety of the system and how it can be adapted to existing and new challenges. Following the work of the Nøstbakken Committee, the Government decided in December 2023 that they would further review the license regulations and present a proposal to Parliament resulting in a white paper presented in April 2025.

The white paper titled "The Future of Aquaculture – Sustainable Growth and Food for the World" proposed fundamental changes to the regulation of the Norwegian salmon farming sector, including a shift from company-based maximum allowed biomass licences to lice-based quotas to hold farmers directly accountable for sea-lice emissions. In June 2025, the Norwegian parliament's Industry Committee debated the proposals and reached a cross-party compromise where the current traffic-light system and MAB framework is maintained whilst proposals for new regulations and their effects are assessed. The government was also instructed to introduce a new environmental technology scheme in 2025. On 12 June 2025, the Parliament voted in line with the committee's recommendations.

Access to Licenses

The figure below depicts an example of the regulatory framework in Norway for one company:

Number of licenses for a defined area: 5
- Biomass threshold per license: 780 tonnes live weight (LW)
- Maximum biomass at any time: 3,900 tonnes (LW)
Number of sites allocated is 3 (each with a specific biomass cap). In order to optimise production and harvest quantity over the generations of salmon, the license holder can operate within the threshold of the three sites as long as the total biomass in sea never exceeds 3,900 tonnes (LW).
There are also biomass limitations on the individual production sites. The biomass limitation varies from site to site and is determined by the carrying capacity of each site.

Average harvest per standard license 2024

The graph above shows the harvest per license in 2024 for the Norwegian industry as a whole and for the largest listed companies.

Please note that one standard license equates to 780 tonnes in the comparison above. A standard license of 945 tonnes in the counties of Troms and Finnmark has therefore been recalculated to 780 tonnes to make the overview comparable. In addition, a broodstock license is adjusted to 50% of a standard license for all companies whereas development licenses assessed not in commercial use are removed.

Because of the regulation of standing biomass (maximum allowed biomass - MAB) per license (780 tonnes LW), the production capacity per license is limited. Annual average harvest quantity per license in Norway was 1,097 tonnes GWT in 2024. Larger companies typically have better flexibility to maximise output per license which means that the average harvest figure for the industry as a whole is normally lower than the figure for the largest companies.

Number of grow-out seawater licenses for salmon and trout in Norway:

2014: 973 2015: 974 2016: 990 2017: 1,015 2018: 1,041 2019: 1,051 2020: 1,087 2021: 1,098 2022: 1,135 2023: 1,164 2024: 1,195

Maximum allowed biomass for commercial use by the end of 2024 was 1,019,043 tonnes of Atlantic salmon and trout. MAB-utilisation is normally at its highest in October-November, because rate of growth is higher than rate of harvest during the summer. It is at its lowest in April-May due to low growth during the cold winter months. Average utilisation of the MAB was 85% in 2024, down from 86% in 2023.

Regulation of fish farming in Scotland

Licenses and location

In Scotland, instead of a single aquaculture license, permissions are required from a number of organisations before setting up a fish farming site; Planning Permission from the local planning authority, a Marine license relating to navigational considerations from Marine Scotland; an environmental permit from the Scottish Environment Protection Agency (SEPA) and an Aquaculture Production Business authorisation, also from Marine Scotland, all these permissions are required to run concurrently for a farming operation to be licensed. Additionally, a seabed lease from The Crown Estate is required to install and operate a fish farm.

The Maximum Allowed Biomass (MAB) for individual sites is determined based on an assessment of environmental concerns, including the assimilative capacity of the local marine environment to be able to accommodate the fish farm. Setting MAB falls within SEPA's regulatory remit based against published Environmental Quality Standard for water and sediment in order to achieve a licensed discharge. During 2019 SEPA introduced a new regulatory framework for the licensing of marine fish farms in Scotland. This included new limits on the spatial extent of the impact mixing zone around farms, the use of more accurate modelling tools and more enhanced environmental monitoring. MAB is not uniform and varies depending on the site characteristics and location of the fish farm. The combination of the new regulatory standards, the more detailed, accurate modelling approaches supported by enhanced benthic monitoring has enabled the approval of larger farms than would have been traditionally approved previously (i.e., >2,500 tonnes) provided they are appropriately sited in sustainable locations with demonstrably higher assimilative capacity.

The environmental permit from SEPA can be reviewed and MAB reduced in the event of noncompliance with benthic environmental standards and potentially revoked in cases of significant and long-term non-compliance.

The Crown Estate owns and manages most of the seabed around the UK out to a distance of 12 nautical miles. Anyone who develops or operates in UK territorial waters is doing so on Crown Estate property. Because of this, you must apply for a lease from The Crown Estate and pay rent to install, maintain and operate your farm on the seabed. Most existing leases are automatically renewed at the end of their lease period. A Crown Estate lease is generally granted for a period of 25-year period and is dependent on securing Planning Permission.

All new fish farms or alterations to existing fish farms require planning permission. New site applications can take 6 months for planning permission to be granted with the determination period for applications for the environmental license being 4 months, however both can take significantly longer.

Expansion of existing facilities, subject to environmental suitability can be the most efficient route in terms of cost, time and timeline for securing regulatory changes; new sites will take a greater amount of time, reflective of the need for detailed investigations into the characteristics of locations, including collection of environmental data and will be subject to an Environmental Impact Assessment (EIA) to secure planning permission.

An annual rental is levied by the Crown Estate which from 1 January 2023 tracks market price, as 1.0% benchmark of notional business turnover calculated for the harvested production and referenced against the applicable average market price over a 6-month reporting and invoicing period. An increased 1.5% benchmark will apply from January 2026 onwards. A baseline minimum rent, scaled according to licensed MAB, is applied for calendar years where there has been no harvested production. An escalator is applied which doubles the minimum rent after 4 years of no production and then every two years thereafter where these circumstances persist to discourage 'land-banking' with unproductive sites. Nursey sites that

yield no harvested production but which are in productive use are liable for an annual rent equivalent to three time the applicable minimum rent to recognise productive value.

The SEPA environmental permit for an existing fish farm attracts an annual charge calculated according to three elements: activity and environmental components, and a compliance factor. The annual charge can in some cases be >30,000 GBP. Applications fees for a new environmental permit from SEPA are assessed according to the type and scale of aquaculture facility with a new marine finfish farm with a MAB >1500 tonnes would attracting the maximum application fee of 38,280 GBP.

The fees for new or modified marine aquaculture site planning applications are set by the Scottish Government and apply across the whole of Scotland. They are based on a combination of the surface area occupied by the surface equipment and the seabed area occupied by the anchors required to maintain the equipment in place. Fee levels are calculated using the following principles: the placing or assembly of equipment in any part of any marine waters for the purposes of fish farming. A fee of 200 GBP for each 0.1 hectare of the surface area of the marine waters to be used in relation to the placement or assembly of any equipment for the purposes of fish farming and a further fee of 75 GBP for each 0.1 hectare of the seabed to be used in relation to such development, subject to a maximum of 29,760 GBP. A reduced fee of 500 GBP applies to certain permitted aquaculture development.

Regulation of fish farming in Ireland

Aquaculture in Ireland is licensed by The Minister for Agriculture, Food and the Marine, (MAFM) under the Fisheries (Amendment) Act, 1997 and its associated Regulations which have been amended to give effect to various EU environment protection Directives. The licensing process is complex.

The Aquaculture and Foreshore Management Division, (AFMD) of the Department manages the processing of aquaculture licenses on behalf of the Minister. The Marine Engineering Division (MED) of the Department undertakes site mapping and provides certain technical advice on applications as well as undertaking certain post-licensing inspection duties. The Marine Institute (MI) provides scientific advice on a range of marine environment and aquaculture matters and in the case of applications which require Appropriate Assessment (AA) under EU Birds and Habitats Directives. Advice is also provided by Bord Iascaigh Mhara (BIM) and the Sea Fisheries Protection Authority (SFPA). The National Parks and Wildlife Services (NPWS) are consulted in relation to habitat protection. Inland Fisheries Ireland (IFI), An Taisce, Irish Water, Failte Ireland, the Department of Housing, Local Government and Heritage (DHLGH), the Marine Survey Office (MSO) and the Commissioners of Irish Lights (CIL) are also consulted. Where relevant, the Local Authority and/or Harbour Authority are consulted. Land based fin fish units also require planning consent from the local authority. All applications are released for public consultation and comment.

An Environmental Impact Assessment Report (EIAR) is mandatory for marine finfish applications and applicants are required to submit an EIAR with their initial applications. The obligation to carry out an Appropriate Assessment (AA) applies if the application is within a Natura 2000 site or likely to impact on a Natura 2000 site. Decisions of the Minister in respect of aquaculture license applications, including license conditions, may be appealed to the Aquaculture Licenses Appeals Board (ALAB). ALAB can confirm, refuse or vary a decision made by the Minister or issue licenses itself under its own authority.

Licenses are typically issued for 10 years. The 1997 Act provides for license duration of up to 20 years. Foreshore (seabed) leases and licenses are companion consents to Aquaculture Licenses. Foreshore Acts allow for leases and licenses to be granted for terms not exceeding ninety-nine years, respectively. Terms of current licenses vary between harvest output (tons) per annum, smolt number input, maximum number of fish on site or a combination of these. Prior to expiry of a license, an application for renewal of the license must be made.

Currently the processing of a marine fin fish license takes between 87 and 902 weeks. Most licenses will be appealed to ALAB which can take at least a further 272 weeks to determine. The process of renewing expired fin fish licenses takes as long as a new application. However, in the past two years there is evidence of license applications being dealt with by the licensing authority in a more proactive manner with gathering momentum in engagement with license applicants.

In 2017, the Minister for Agriculture, Food and Marine initiated an independent review of the Aquaculture licensing system in Ireland. The report of this review was published in May 2017 with the overarching conclusion, that a root-and-branch reform of the aquaculture license application processes is necessary which encompasses a further 30 recommendations.

Annual fin fish culture license fees for a marine based fin fish site are €6.35 per tonne for the first 100 tonnes plus €6.35 for each additional tonne. Foreshore rental fees are charged at €63.49 for up to and including 5 hectares of foreshore with each additional hectare up to 10 ha at €31.74 and each additional hectare >10 and up to 20 at €63.49. Annual culture license fee for a land-based site is €127.97 per annum.

Regulation of fish farming in Chile

License and location

In Chile licensing is based on two authorisations. The first authorisation is required to operate an aquaculture facility and specifies certain technical requirements. It is issued by the Undersecretaries of Fisheries and Aquaculture (under the Ministry of Economy). The second authorisation relates to the physical area which may be operated (or permission to use national sea areas for aquaculture production). This is issued by the Undersecretaries for Armed Forces (Ministry of Defence). The use of the license is restricted to a specific geographic area, to defined species, and to a specified limit of production. The production limits are specified in Environmental and Sanitary Resolutions for the issued license. Under certain conditions, owners can choose to reduce their whole stocking, producing at maximum density (17kg/m3 for Atlantic salmon), or to maintain or increase their stocking, using a limited density (from 4 to 17 kg/m3 for Atlantic salmon) determined by productive, sanitary and environmental conditions of each neighbourhood, any increase over previous stocking numbers means going to 4 kg/m3. Owners can choose only one alternative to stock each semester. From January 2021, all producers have the option to increase the smolt stocking based on a combined score of fish health parameters, related to losses, sea lice treatments and antibiotic use. The individual company's performance on the parameters in the previous period will determine the size of the potential increase in the next smolt stocking. A positive assessment will result in an increase of 9%, 6% or 3%, while a negative assessment will result in a decrease of -3%, -6% or -9%. For example, if antibiotic consumption is below 300 g / tonne, mortality is less than 10% and the indicator related to bath treatments against Caligus is below 50%, the model will allow farmer the option to grow by 6% in the next stocking.

Access to Licenses

The trading of licenses in Chile is regulated by the General Law of Fisheries and Aquaculture (LGPA) and controlled by the Undersecretaries of Fisheries and Aquaculture of the Ministry of Economy. Aquaculture activities are subject to different governmental authorisations depending on whether they are developed in private fresh water inland facilities (i.e. hatcheries) or in facilities built on public assets such as lakes or rivers (freshwater licenses) or at sea (seawater licenses).

To operate a private freshwater aquaculture facility requires ownership of the water-use rights and holding of environmental permits. Environmental permits are issued when operators demonstrate that their facilities comply with the applicable environmental regulations.

Licenses for aquaculture activities in public assets are granted based on an application, which must contain a description of the proposed operations, including a plan for complying with environmental and other applicable regulations. Licenses granted after April 2010 are granted for 25 years and are renewable for additional 25-year terms. Licenses granted before April 2010 were granted for indefinite periods. License holders must begin operation within one year of receiving a license and once the operation has started, the license holder cannot stop or suspend production for a period exceeding two consecutive years. Subject to certain exceptions, license holders must maintain minimum operational levels of not less than 5% of the yearly production specified in the RCA (Environmental Qualification Resolution). Until August 2016, all licenses not used could be kept by the holder if they prepared an official Sanitary Management Plan.

License holders must pay annual license fees to the Chilean government and may sell or rent their licenses. For the moment, no new licenses will be granted in the most concentrated regions, Regions X, XI, and XII (Chile is made up of 16 administrative regions).

Regulation of fish farming in Canada

License and location

Fish farming companies in Canada are subject to different regulations depending on the geographical area where they operate. To operate a marine fish farm site, provincial and/or federal authorisations are required. . All Commercial Aquaculture Licences in Canada may be reissued but may be rescinded or suspended for non-compliance issues and/or non-payment of fees The principal Federal laws are the Fisheries Act, the Canadian Navigable Waters Act, The Health of Animal Act, and the Species at Risk Act. The Aquaculture Activities Regulations (AAR) are national regulations that apply throughout Canada. Each province has specific Acts and Regulations that also apply. The three primary fish farming areas in Canada are, Newfoundland and Labrador, New Brunswick and British Columbia.

In Newfoundland and Labrador and New Brunswick, the Provincial government is the primary regulator and leasing authority. The Provinces regulate the activity and operations of aquaculture and issue the Aquaculture Licence, Crown Land lease and Water Use License (Newfoundland and Labrador only) where fish farms are located. In Newfoundland and Labrador, the Crown Land Lease for the site is issued for 50 years, the Aquaculture License is issued for 6 years, and the Water Use License is issued for 5 years. In New Brunswick, individual sites are typically granted a lease for 20 years. Farms in New Brunswick are also issued an Approval to Operate with a 5 year term limit by the provincial Department of Environment and Local Government. . In Newfoundland and Labrador new licence application fees and annual licence fees are \$145/hectare (i.e., \$5,075 for a 35 hectare sea farm); Crown land application fees and title are \$150 and \$300 respectively, and annual rental fee \$8/hectare (i.e. \$280 +HST for a 35 hectare sea farm); and water use licence fees are \$300 and annual marine water use charges are \$1,000. In New Brunswick the application fee is \$2,400 and the application fee for designation of aquaculture land is \$500, and annual the rent for a lease is \$250/hectare (i.e., \$8,750 for a 35 hectare farm).

In British Columbia, Federal and Provincial authorisations are required to operate a marine fish farm site. The Federal Government regulates the activity and operations of aquaculture while the Provincial Government administers the Crown lands where fish farms are located. The Province grants a licence to occupy an area of the ocean associated with the individual fish farming site. The tenure encompasses the rearing pens, ancillary infrastructure and all moorings. Individual site tenures have a specific timeline ranging from five to twenty years. The term of tenure is based upon the provincial policy at the time of offer. In 2024, the annual fee for a typical 35 hectares tenure is \$22,000 CAD per year. This fee is calculated based on the tenure size and a provincially indexed land value. Each tenure license contains a renewal provision once expired. After the tenure term has expired, it becomes a month to month occupancy until it is either renewed or returned to the Crown. It is uncommon for a tenure to not be renewed, however breaches to a tenure agreement can result in non-renewal.

The production limitations in Canada are regulated as either a "Maximum Allowable Biomass" or a fixed number of smolt per cycle. "MAB" is specific to each Aquaculture licensed facility in British Columbia. Smaller farms are typically licensed for 2,200mt. with larger capacity facilities licensed to produce 5,000 mt. per cycle. In Newfoundland and Labrador and New Brunswick, a maximum number of smolt per cycle is given to a farm. Farms are typically licensed for 600,000 to 2,000,000 smolt per cycle in Newfoundland and Labrador, and 250,000 to 600,000 smolt per cycle in New Brunswick.

In British Columbia, the Federal Government grants an Aquaculture Licence with conditions that a farm must meet. The Aquaculture licence conditions are linked to The Fisheries Act. Aquaculture licence conditions specify the species being farmed, the Maximum Allowable Biomass (MAB) on the site, the type of rearing equipment and the allowable environmental impact. Production or "MAB" is specific to each site. The annual licence fee is calculated at

\$2.95 CAD per ton of MAB for operational sites. Facilities that are fallow pay only a \$100 CAD administrative fee.

Access to Licenses

All permits and licences require consultation with First Nations and local stakeholders. The time taken to acquire licences for a new farm can vary from one to several years. The cost for preparing a new site application averages approximately \$500,000 CAD. The location of aquaculture farms is regulated by both the Provincial and Federal governments. The Province regulates the land use and the Federal government regulates navigation and sets out site specific requirements to limit impacts to critical species and habitats. Companies with the support of local First Nations can still obtain new tenures.

In December 2020, the Federal Government instituted policy for salmon farming in British Columbia prohibiting the restocking of farms in the Discovery Islands area and removal of all sites by June 2022. A court challenge by all affected operating companies was initiated and is ongoing. The Minister's decision is subject to a judicial review in Federal Court. . All other farm licences have been renewed in 2024 for a 5 year term to allow for the development of a transition plan for salmon farming in British Columbia. New licences will only be considered by the federal government if the application includes advanced barrier technology as the main containment infrastructure. This has not been achieved in practice, Mowi Canada West continues to work with First Nations and government to secure a future for sustainable salmon farming in British Columbia. .

In Newfoundland and Labrador (NL), proponents must submit a sea cage licence application to the Newfoundland and Labrador Department of Fisheries, Forestry and Agriculture for each new or acquired marine site. In New Brunswick, companies must submit an Aquaculture licence Application for Marine Sites to the Department of Agriculture, Aquaculture and Fisheries.. It takes about twelve months to transition an existing site to a new owner, and approximately 18- 24 months for a new application in both places (including collection of environmental data). This includes obtaining all necessary approvals and licences, and a review from The federal Department of Fisheries and Oceans. Fisheries and Oceans Canada utilises the Canadian Science Advisory Secretariat (CSAS) review process to prepare science advice for DFO Aquaculture Management; advice is then provided to the Provinces of NL& NB to inform their licensing decision. Consultation with residents, towns, development groups and commercial/recreational fishermen is required. In Newfoundland and Labrador, all new sites of the same company must be 1 km apart, 5 km if sites are operated by different companies. Consultations with First Nations is now required in both New Brunswick and Newfoundland and Labrador prior to submission of the application. Any changes to the existing footprint (through changes to lease boundaries or increases to biomass limits) of a marine aquaculture site triggers the AAR, which could require the completion of habitat surveys, depositional modelling, and amending TC Navigation Approvals.

In Newfoundland and Labrador, Provincial approvals can be assigned to a different operator through a government sub-lease assignment process, however, licences are not transferable. A company may transfer licences to another company providing the rationales for the assignment are supported by the government processes in New Brunswick.

Regulation of fish farming in the Faroe Islands

License and location

Fish farming companies in the Faroe Islands are subject to extensive regulation. The most important legislative instruments are the Aquaculture Act (Act No. 83 from 25 May 2009 with latest amendments from 2023), the Environmental Act (Act No. 134 from 29 October 1988 with latest amendments from 2021), the Food Safety Act (Act No. 58 from 26 May 2010 with latest amendments from 2017) and the Parliamentary Act No. 65 from 30 May 2024 on a harvesting fee.

In addition to the above-mentioned acts, several Executive Orders with more detailed provisions covering fish farming have been issued under the provisions of the acts.

The right according to a specific license is provided for a specific geographic area and with a limit of production specified in the individual license. Production and stocking density limit is specified in an Environmental and Sanitary Resolution issued for each specific license. The density limit may depend on production conditions as well as sanitary and environmental conditions.

The size of the area and density limits etc. for each of the 20 sea licenses vary greatly. Production limitations in the Faroes are not regulated through limits on "maximum allowed biomass", MAB. As a consequence, MAB for salmon farms varies between 1,200 tonnes and 5,800 tonnes a year per license, depending on site characteristics and the geographic location of the individual farm.

In 2012 and 2018 the Government of the Faroe Islands announced revised aquaculture regulations with the aim of securing sustainable growth in the industry and in order to implement anti-trust regulations.

Mowi Faroes is first and foremost affected by the anti-trust regulations in the Aquaculture Act. These rules set a cap of 20% for either direct or indirect foreign ownership in Faroese fish farming companies. If the limit is exceeded with regard to a fish farming company, the company must adjust its ownership to be within the limit within a short deadline set by the authorities or face possible loss of the right to conduct fish farming activities.

Mowi Faroes is 100% owned by Mowi ASA (NO). This ownership is protected by transitional provisions in the Aquaculture Act, securing that the company can remain owned by a foreign company and nonetheless keep its licenses. The consequence for Mowi Faroes of the Anti-trust regulations is that the company cannot expand its business with additional commercial licenses to farm fish in the sea. Mowi Faroes can however apply for development licenses and licenses on land.

It is stipulated in the Aquaculture Act that a fish farming company cannot hold more than 50% of the total sea licenses. The new restrictions do not apply to licenses held by each individual company today, but the new regulations specify that Mowi Faroes can keep its 3 seawater licenses and 1 smolt license, even though the company does not comply with the new cap on foreign-held capital.

Access to Licenses

In order to conduct fish farming activities in the Faroe Islands, the fish farming company must obtain authorisation from Heilsufrøðiliga Starvsstovan (The Faroese Food and Veterinary Authority) to operate an aquaculture facility. The authorisation specifies certain technical requirements with regard to conducting fish farming activities.

Fish farming companies with the above mentioned authorisation can apply for licenses to conduct fish farming activities from the Ministry of Foreign Affairs and Trade. New sea licenses can be awarded by the Ministry of Foreign Affairs and Trade. There is today a limit of 20

commercial seawater licenses and no limit for licenses on land. If new licenses are to be awarded, they may be awarded through auction.

An application for a seawater license must contain a description of the proposed operations, including a plan for complying with environmental and other applicable regulations.

The government of the Faroe Islands in April 2018 announced a new category of licenses, i.e. development licenses. Development licenses are intended to motivate investment in new fish farming technologies. Due to the anti-trust regulations, Mowi Faroes can only obtain development licenses, as the limits regarding foreign ownership do not apply to such licenses.

Licenses are granted for 12 years and are renewable for additional 12-year term. License holders must pay an annual fee of DKK 12,000 for each individual license.

Licenses can be sold and pledged, and legal security is perfected by registration with the Land Registry. Licenses may be withdrawn in cases of material breach of conditions set out in the individual license or in the aquaculture or environmental legislation.

Fish farming companies must also pay a harvesting fee based on the harvesting of farmed fish. The fee is based on the weight of gutted fish harvested in a month, multiplied by the average international market price in the same month.

From 1 January 2025 the harvesting fee will be calculated according to the formula below:

The system is called a bipartite system, which consists of a harvesting fee and a special tax on profits of fish farming companies.

The harvesting fee will start at 0.5 percent and end at 7.5 percent, set relative to the international salmon price. The special tax will be 8 percent of the profits of fish farming companies.

The payment will be set as follows:

P = average international market price in DKK per kg.

K = average weight of gutted fish harvested in a month.

If P is lower than K, the payment is 0.5%.
If P is higher than or the same as K, but lower than K + DKK 5, the payment is 2.5%.
If P is higher than or the same as K + DKK 5, but less than K + DKK 15, the payment is 5%.
If P is higher than or the same as K + DKK 15, but less than K + DKK 20, the payment is 7.5%.

The special tax:

The fish farming companies pay an extra special tax on their taxable income from their activities from the production of fry until sea production and harvesting.

Calculation of Production Costs

Production costs will be calculated and set every three years based on the accounts of the fish farming companies. In the intervening years, production costs will be indexed based on the ordinary price index and the price of feed. This will be done as follows:

a) Year 1 (2025) production costs, K, will be calculated based on the latest audited annual accounts of the fish farming companies.
b) Year 2 production costs will be indexed based on the price index, which shall weigh 50%, and the increase in the cost of feed, which shall weigh the remaining 50%.
c) Year 3 production costs will be indexed in the same way as in year 2.
d) Year 4 production costs again be calculated based on the latest audited accounts of the fish farming companies.

Regulation of fish farming in Iceland

Licenses and location

Salmon farming companies operating in Iceland need two types of licenses to obtain a right to farm salmon: an industrial license from the Environment Agency, and a production license from the Food and Veterinary Authority. The industry is governed by the Ministry of Industries and is subject to extensive regulation. The most important laws and regulations include the Aquaculture Act no. 71/2008 with later amendments, most importantly Act 101/2019, as well as regulation on Aquaculture no. 540/2020. Other relevant laws and regulations include: Regulation no. 550/2018 on Industrial Emissions and Pollution Control, Act no. 36/2011 on Water Management, Act no. 33/2004 on Marine and Coastal Antipollution Measures, Act no. 89/2019 on The Collection of Fees for Aquaculture in the Sea and the Aquaculture Fund and Act no. 111/2021 on Environmental Impact Assessment of Projects, Public Plans and Programmes.

Before applying for a license in Iceland, salmon farmers are required to undertake an environmental impact assessment (EIA) of their production plans, overseen by the National Planning Agency. An EIA involves the thorough analysis and evaluation of potential environmental effects stemming from the proposed salmon farming operations that are likely to affect the surroundings. This entails examining the environmental impact, assessing the significance of the effects, and suggesting mitigating measures. The results of an EIA may necessitate adjustments to the proposed farming operations, aimed at minimising their adverse environmental impact. Throughout the EIA and licensing procedure, all proposed operations and applications are subject to public consultation and comment.

Once an EIA has been finalized, salmon farming companies operating in Iceland must acquire two types of license to commence salmon farming: An industrial license from the Environmental Agency (UST) and a production license from the Food and Veterinary Authority (MAST). For these licenses to be granted, the EIA must ascertain that the proposed production aligns with various environmental and fish welfare legislation and regulations. Companies apply for both permits simultaneously, with the process overseen by MAST, with licenses valid for up to 16 years.

Access to licenses

Farming is allowed in the West Fjords and in the East Fjords of Iceland with possible expansion into a single fjord (Eyjafjörður) in the north-east of the country. The rest of the coastline is closed for farming. Since new legislation in 2019 all new sites for farming are to be auctioned off with the exception of applications that were applied for before the change. Before areas are put up for auction the Icelandic Maritime Agency (i. Hafrannsóknunarstofnun) must produce an estimate of the allowed biological load, so-called load-bearing capacity (i. Burðarþolsmat) and an estimate on how much farming of fertile salmon is allowed in a given area without risk for genetic mixing in rivers with wild salmon stocks, so called risk assessment (i. Áhættumat).

As of May 2025, the load-bearing capacity assessment for Iceland stands at 144,500 tonnes and the risk assessment for genetic mixing stands at 106,500 tonnes (maximum allowed biomass of fertile salmon). Issued licenses amount to 105,750 tonnes MAB whereof 93.000 tonnes are fertile salmon, 9.300 tonnes are sterile salmon, and 3.450 tonnes are for trout. Of the 14,500 tonnes of fertile salmon available, 6,500 tonnes have been applied for and the remaining 8,000 tonnes are available to be auctioned off, all in fjords with existing farming, making entry for new farmers difficult. Additional available locations within allowed farming areas are awaiting loadbearing assessments in accordance with Act 101/2019, however, no load-bearing capacity assessments have taken place in Iceland since the enactment of the amendment in 2019.

Farming areas as defined by the load-bearing capacity assessment can contain multiple license holders. Each license is fixed to a pre-determined location within the area, defined by GPS co-ordinates and usually comprising 2-3 sites on one license within the same water system. Farming locations are fixed within license boundaries and the total biomass farmed in the

designated area cannot exceed the load-bearing capacity of that area. License holders are subject to regular audits by both MAST and UST.

In March 2024 the Minister of Seafood put forward a new bill on fish farming in Iceland with many new requirements such as the possibility of moving biomass between fjords, higher penalties for escapes and poor biological performance, and a proposal of one farmer per fjord and further development of taxes. The bill did not pass but it is assumed that a new proposal will be published autumn 2025.

Taxes and Fees

A production tax is being introduced to the industry from 2020 to 2026 with 1/7 less discount every year. For 2024 the highest step of the tax ladder was increased from 3.5% to 4.3% of Nasdaq prices. Farmers also pay a harbour fee at the harbour where fish is harvested, appropriately 0.7%-0.8% of monthly Nasdaq prices and a fee to the environmental fund, equivalent to approx. 3,700 ISK ≈ 284 NOK per tonne license. All this adds up to some ~6% of turnover when fully implemented.

The current tax system is:

0.5% of Nasdaq price when prices are lower than 4.3 EUR/kg;

2.0% of Nasdaq price when prices are between 4.3 EUR/kg and 4.8 EUR/kg;

4.3% of Nasdaq price when prices are above 4.8 EUR/kg.

The farming fee for 2025 is 45.0 ISK/kg ≈ 3.57 NOK/kg for 2025

Introduction discount of the taxes decreases by 1/7 each year. In 2025 the payment is 6/7 of 4.3%. In 2026 the introduction discount will have expired.

The fee is based on previous year average prices. In 2025 tax is paid of the volume for 2025 and based on average Nasdaq salmon prices for 2024.

A new ladder has been proposed with more steps where the fee changes monthly based on the monthly Nasdaq average.

The Fishery Directorate (i. Fiskistofa) is responsible for collecting the fee in two instalments per year. As mentioned above, all new licenses will be auctioned off, however details of the auction process remain unclear as of now.

Salmon Farming Industry Handbook 2025

Salmon health and welfare

Maximising survival and maintaining healthy fish stocks are primarily achieved through good husbandry and health management practices and policies, which reduce exposure to pathogens and the risk of health challenges. The success of good health management practices has been demonstrated on many occasions and has contributed to an overall improvement in the survival of farmed salmonids.

Fish health management plans, veterinary health plans, biosecurity plans, risk mitigation plans, contingency plans, disinfection procedures, surveillance schemes, as well as coordinated and synchronised zone/area management approaches, all support healthy stocks with an emphasis on disease prevention.

Prevention of many diseases is achieved through vaccination at an early stage and while the salmon are in freshwater. Vaccines are widely used commercially to reduce the risk of health challenges. With the introduction of vaccines a considerable number of bacterial and viral health issues have been effectively controlled, with the additional benefit that the quantity of licensed medicines prescribed in the industry has been reduced.

In some instances medicinal treatment is still required to avoid mortality and for the well-being and welfare of the fish. Even the best managed farms may have to use licensed medicines from time to time, if other measures are not sufficient. For several viral diseases, no effective vaccines are currently available.

Most important health risks to salmon

Sea lice: There are several species of sea lice, which are naturally occurring seawater parasites. They can infect the salmon skin and if not controlled they can cause lesions and secondary infection. Sea lice are controlled through good husbandry and management practices, the use of lice prevention barriers (e.g. skirts, lasers), by submerging the salmon using Tubenet, cleaner fish (different wrasse species and lumpsuckers, which eat the lice off the salmon), mechanical removal systems and when necessary licensed medicines.

Cardiomyopathy syndrome (CMS): CMS is a chronic disease that can develop over several months and is caused by the piscine myocarditis virus (PMCV). Mortality typically occurs in large seawater fish. A typical disease event can last one to six months. Control is achieved mainly by good husbandry and management practices and keeping the fish in conditions that satisfy their biological needs for food, clean water, space and habitat.

Salmonid Rickettsial Septicaemia (SRS): SRS is caused by intracellular bacteria. It occurs mainly in Chile but has also been observed, albeit to a much lesser extent, in Norway, Ireland and the UK. It causes lethargy and appetite loss, and can result in elevated mortality. SRS is to some extent controlled by vaccination, but medicinal intervention may also be required.

Heart and Skeletal Muscle Inflammation (HSMI): HSMI is currently reported in Norway and to a lesser extent Scotland. Symptoms of HSMI are reduced appetite, abnormal behaviour and in most cases low mortality. HSMI generally affects fish in their first year in sea and control is achieved mainly by good husbandry and management practices.

Infectious Salmon Anaemia (ISA): ISA is caused by the ISA virus and is widely reported. It is a contagious disease that causes lethargy and anaemia and may lead to significant mortality in seawater if not appropriately managed. Control of ISA is achieved through culling or harvesting of affected fish and the application of stringent biosecurity and mitigation measures. Vaccines are available and are in use in areas where ISA is considered to represent a risk.

Gill Disease (GD): GD is a general term used to describe gill conditions occurring in sea. The changes may be caused by different infectious agents; amoeba, virus or bacteria, as well as environmental factors including algae or jellyfish. Little is known about the cause of many of the gill conditions and to what extent infectious or environmental factors are primary or secondary, how they interact, and causes of disease.

Fish health and vaccination (Norway)1

The incidence of bacterial disease events increased in the 1980s. In the absence of effective vaccines, the use of approved antimicrobial medicines reached a maximum of almost 50 tonnes in 1987. Following the introduction of effective vaccines against the main bacterial challenges at the time, the quantity of antimicrobials used in the industry declined significantly to less than 1.4 tonnes (by 1994) and has since then continued to be very low. These developments, along with the introduction of more strict biosecurity and health management strategies, allowed for further expansion of the industry and an increase in production.

During the last two decades there has been a general stabilisation of mortality in Norway, Scotland and Canada, which has been achieved principally through good husbandry, good management practices and vaccination. The trend in the Chilean industry stems from infection pressure from SRS, which has declined in recent years.

Source: Kontali Analyse, Norsk medisinaldepot, Norwegian Institute of Public Health

Fish health and vaccination (Norway)1

Fish Welfare and Robustness

Development of better solutions for prevention and control of infectious diseases
Minimisation of production-related disorders
Optimisation of smolt quality
Real-time monitoring of fish welfare
Plankton & jellyfish monitoring & mitigation
Automated plankton & jellyfish monitoring

Product Quality and Safety

• Continuously develop better technological solutions for optimised processing, packaging and storage of products, while maintaining consistently high quality.

New Growth

Development of methods to reduce production time at sea
Production in more exposed areas
Production in closed sea-going units

Production Efficiency

Development of cost effective, sustainable and healthy salmon diets which ensure production of robust fish
Identify the best harvesting methods, fillet yield optimisation and the most efficient transport and packaging solutions
Net solutions and antifouling strategies
Development of AI-based tools for value chain optimisation and accelerating seawater-phase production efficiency

Footprint

Develop, validate and implement novel methods for sea lice control
Reduce dependency on licensed medicines and limit the discharge of medicinal residues
Escape management and control
ASC implementation; R&D projects that facilitate and make ASC implementation more efficient

According to Zacco and Hamsø (Norwegian patent offices), the rate of patenting in the salmon farming industry has grown rapidly in the last two decades. Considerable R&D is being undertaken in several areas and the most important developments have been seen in the feed, sea lice control and vaccine sectors, carried out by large global players. In this industry most producers are small and do not have the capital to undertake and supervise major R&D activities. This is expected to change as consolidation of the industry continues.

Smolt, on-growing production and processing

The technology used in these phases can be bought "off-the-shelf" and very few patents are granted. Technology and producers are becoming increasingly more advanced and skilled.

Source: Kontali Analyse, Norsk medisinaldepot, Norwegian Institute of Public Health

Salmon Farming Industry Handbook 2025

Projecting future harvest volumes

The three most important indicators for future harvest volumes are standing biomass, feed consumption and smolt release. These are good indicators for medium- and long-term harvest, while the best short-term indicator is standing biomass categorised by size. As harvested size is normally above 4 kg, the available biomass of this size class is therefore the best estimate of short-term supply.

If no actual numbers on smolt releases are available, vaccine sales could be a good indicator of number of smolt releases and when the smolt is put to sea. This is a good indicator of long-term harvest volumes as it takes up to 2 years from smolt release to harvest.

Variation in seawater temperature can materially impact the length of the production cycle. A warmer winter can for example increase harvest volumes for the relevant year, partly at the expense of the subsequent year.

Disease outbreaks can also impact harvest volume due to mortality and growth slowdown.

Yield per smolt 1

Yield per smolt is an important indicator of production efficiency. Due to the falling cost curve and the discounted price of small fish, the economic optimal harvest weight is in the area of 4-5 kg (GWT). The number of harvested kilograms yielded from each smolt is impacted by disease, mortality, temperatures, growth attributes and commercial decisions.

The average yield per smolt in Norway is estimated at 3.28 kg (GWT) for the 23 Generation.

In 2010 and 2011 the Chilean salmon industry performed well on fish harvested, due to the low density of production (improved yield per smolt). In line with increased density in subsequent years, biological indicators deteriorated. In 2016, an algae bloom caused high mortality, and the Chilean salmon industry started to rebuild its biomass once again and improved yield per smolt. The yield per smolt increased slightly in Chile for 23G to 3.99 kg (GWT) from 22G's 3.91 kg (GWT).

Average yield in the UK, North America and Faroe Islands for 23G is estimated at 3.05 kg, 3.21 kg and 4.12 kg, respectively.

Source: Kontali Analyse, Mowi

Development in biomass during the year 1

Due to variations in seawater temperature during the year, the total standing biomass in Europe has a S-curve, which is at its lowest in May and at its peak in October. The Norwegian industry is focused on minimising natural fluctuations as license constraints put a limit on how much biomass can be in sea at the peak of the year.

In Chile the situation is different due to its more stable seawater temperature and opposite seasons (being in the Southern hemisphere). A more consistent water temperature allows for smolt release throughout the year and enables more uniform utilisation of facilities.

Source: Kontali Analyse

Salmon Farming Industry Handbook 2025

In processing we distinguish between primary and secondary processing.

Primary processing is slaughtering and gutting. This is the point in the value chain at which standard price indexes for farmed salmon are set.

Secondary processing is filleting, fillet trimming, portioning, producing different fresh cuts, smoking, marinating or breading. Depending on the setup of the processing plant, products are fresh packed with Modified Atmosphere (MAP), vacuum packed or frozen and stored for distribution.

Products that have been secondary processed are called value-added products (VAP), as they represent an additional value to the retailer and foodservice operator but most of all to the final consumer.

European value-added processing (VAP) industry

A total value of > EUR 25 billion
Employees > 135,000
Extremely fragmented more than 4,000 companies
About 50% of all companies have fewer than 20 employees
Traditionally EBIT-margins have been between 2% and 5%
The average company employs 33 people and has a turnover of EUR 4.2 million

The seafood industry in Europe is fragmented with more than 4,000 players. Most of the companies are fairly small, but there are also several companies of significant size involved in the secondary processing industry: Mowi, Icelandic Group, Deutsche See, Caladero, Royal Greenland, Labeyrie, Parlevliet & van der Plas and Lerøy Seafood. Some of these companies are integrated into fish farming or wild catch, others are buying external and processing.

Most of the largest players base their processing on Atlantic salmon, producing smoked salmon, salmon portions or ready meals with different packing techniques. Others are into white fish processing.

Consumers are willing to pay for quality and added value. This means that we expect to see an increase in demand for healthy convenience products such as ready-to-cook fish, together with a packing trend towards MAP as this maintains the freshness of the product longer for than fish sold in bulk.

Market segment

Market segment in the EU (2024E)49F 1

In the EU, around 75% of Atlantic salmon supply went to retailers while the remainder was sold to foodservice establishments. The foodservice share was back to prepandemic levels in 2022. Approximately 75% was sold fresh. Of the different products, fillets had the largest market share of 40% followed by "Other VAP". "Other VAP" consists of all value-added processed products, except smoked salmon.

Market segment other regions (2024E)50F 2

Source: Kontali Analyse

111 | P a g e

The European market for smoked salmon1

Smoked salmon is the most common secondary-processed product after fillets. The European market for smoked salmon was estimated to be 323,200 tonnes GWT in 2024, with Germany and France the largest markets. Assuming 50% yield from gutted weight to product weight, the European market consumed 161,600 tonnes product weight of smoked salmon in 2024.

Source: Kontali Analyse

European smoked salmon producers (2024E)

The ten largest producers of smoked salmon in Europe are estimated to have a joint market share of more than 60%. The production is mainly carried out in Poland, France, the UK, the Baltic states and the Netherlands.

Mowi produces its smoked salmon in Poland (Ustka), UK (Rosyth), France (Brittany), Belgium (Oostende) and Turkey (Istanbul), and its main markets are Germany, France, Italy and Benelux. After the acquisition of Morpol in 2013, Mowi became the largest producer of smoked salmon. Labeyrie is the second largest and sells most of its products to France, and has also significant sales to the UK, Spain, Italy and Belgium.

Estimated Annual Raw Material - Tonnes HOG
70 - 90 000	20 - 40 000		5 - 20 000
Mowi Consumer Products	Labeyrie (FR-UK)	Norvelita (LT)	Martiko (ES)
(PL-FR-BE-UK-TR)	Milarex (PL)	Mer Alliance (FR-PL)	Young's Seafood (UK)
		Lerøy (NL-SE-NO)	Moulin de la Marche (FR)
		Foppen (NL)	Viciunai (LT)
		Suempol (PL)	Zalmhuys Van Wijnen (NL)
		Delpeyrat (FR)	Krone Fisch (DE)

Branding and product innovation

As the world around us is changing, and consumer needs and behaviours are changing with it, we see an increased interest in seafood and salmon. As consumers, we want to buy products and support companies which provide something good for me, my family and the planet – it's about taking greater responsibility through our product choices.

Salmon farming overcomes many of the key barriers our planet faces in terms of climate and biodiversity when it comes to increased food production. This provides an opportunity for farmed salmon as it can be supplied steadily yearround to markets which in the past had less access to seafood.

Mowi's brand strategy is a great example of putting the final consumer at the centre of our innovation strategies. Based on trends in the market and evolving consumer habits, Mowi is developing products ranging from fresh cuts, coated, smoked and specialty products all the way to ready-meals and on-the-go products to suit customer needs. Mowi sees a huge opportunity in driving the creation of new occasions and new uses for salmon, for example by integrating the product into the local cuisine and thus driving higher and more frequent salmon consumption, especially in those markets where salmon is not a "native" ingredient.

Product innovation is key to achieving Mowi's objective of de-commoditising the salmon market.

Salmon Farming Industry Handbook 2025

	Atlantic salmon
Live fish	100%
Loss of blood/starving	6%
Harvest weight / Round bled fish (wfe)	94%
Offal	10%
Gutted fish, approx. (HOG)	84%
Head, approx.	7%
Head off, gutted	77%
Fillet (skin on)	56 - 64%
C-trim (skin on)	60%
Fillet (skin off)	47 - 56%

Net weight52F 1

Weight of a product at any stage (GWT, fillet, portions). Only the weight of the fish part of the product (excl. ice or packaging), but including other ingredients in VAP

Primary processing

Gutted Weight Equivalent (GWT) / Head on Gutted (HOG)

Secondary processing

Any value added processing beyond GWT

Biomass

The total weight of live fish, where number of fish is multiplied by an average weight

Ensilage

Salmon waste from processing with added acid

BFCR

IB feed stock + feed purchase – UB feed stock Kg produced – weight on smolt release

EFCR

IB feed stock + feed purchase – UB feed stock Kg produced – mortality in Kg – weight on smolt release

Price Notifications

Nasdaq (FCA Oslo) – Head on gutted from Norway (weighted average superior quality) FOB Miami – fillets from Chile (3-4 lb)

FOB Seattle – whole fish from Canada (10-12 lb)

Source: Kontali Analyse

Price indices vs. FOB packing plant53F

Several price indices for salmon are publicly available. The two most important providers of such statistics for Norwegian salmon are Nasdaq/Fish Pool and Statistics Norway (SSB). Nasdaq is a 100% spot-based price, Fish Pool is primarily a forward price, and SSB is a mix of spot and contract prices. Urner Barry in the US provides a spot reference price for Chilean salmon in Miami and Canadian salmon in Seattle and Boston/New York.

In Norway, using Nasdaq, the farmer's FOB packing plant price is found by deducting freight costs from the farm to Oslo and the terminal cost (~1.50 NOK).

Calculating Urner Barry – Chilean fillets, back to GWT plant is more extensive. It can be done by using prices for 3-4 lbs and adjusting for size mix share, trucking, handling and customs (USD 20-30 cent), and market commission (1.0%-3.5%). In addition, there are some adjustments which vary over time; premium fish share (~90%), reduced price of downgraded fish (~30%), airfreight (USD 1.40- 1.60/kg) and GWT to fillet yield (60-70%). Airfreight rate to USA has started to reduce following the Covid-19 pandemic.

Source: Fishpool, Nasdaq, SSB, Norwegian Seafood Council, Urner Barry, Kontali Analyse

Historic acquisitions and divestments

In Norway there have been 'countless' mergers between companies over the last decade. The list below shows only some of the larger ones in transaction value. In Scotland consolidation has also been very frequent. In Chile, there have been several acquisitions over the last two years. Canada's industry has been extensively consolidated with a few large players and some small companies.

See table on the next page.

Year	Norway	Year	Norway
1999	Hydro Seafoods - Sold from Norsk Hydro to Nutreco Aquaculture	2008	Altafjord Laks - Sold to Norway Royal Salmon
2001	Gjølaks - Sold to PanFish	2008	Lerøy Seafood Group - Purchased by Austevoll Seafood
2001	Vest Laks - Sold to Austevoll Havfiske	2009	Skjærgårdsfisk - Sold to Lingalaks
2001	Torris Products - Sold from Torris to Seafarm Invest	2009	Brilliant Fiskeoppdrett - Sold to Norway Royal Salmon
2001	Gjølanger Havbruk - Sold to Aqua Farms	2009	Polarlaks II - Sold to Nova Sea
2001	Alf Lone - Sold to Sjøtroll	2009	Fjordfarm - Sold to Blom Fiskeoppdrett

2001	Sandvoll Havbruk - Sold to Nutreco Aquaculture	2009	Fyllingsnes Fisk - Sold to Eide Fjordbruk
2001	Fosen Edelfisk - Sold to Salmar	2009	Salaks merged with Rølaks
2001	Langsteinfisk - Sold to Salmar	2009	65 new licenses granted
2001	Tveit Gård - Sold to Alsaker Fjordbruk	2010	Espevær Fiskeoppdrett - Sold to Bremnes Fryseri
2001	Petter Laks - Sold to Senja Sjøfarm	2010	AL Nordsjø - Sold to Alsaker Fjordbruk
2001	Kråkøyfisk - Sold to Salmar	2010	Nord Senja Fiskeindustri - Sold to Norway Royal Salmon
2002	Amulaks - Sold to Follalaks	2010	Marøy Salmon - Sold to Blom Fiskeoppdrett
2002	Kvamsdal Fiskeoppdrett - Sold to Rong Laks	2010	Fjord Drift - Sold to Tombre Fiskeanlegg
2002	Matland Fisk - Sold to Bolaks	2010	Hennco Laks - Sold to Haugland Group
2002	Sanden Fiskeoppdrett - Sold to Aqua Farms	2010	Raumagruppen - Sold to Salmar
2002	Ørsnes Fiskeoppdrett - Sold to Aqua Farms	2010	Stettefisk / Marius Eikremsvik - Sold to Salmar
2002		2010
	Toftøysund Laks - Sold to Alsaker Fjordbruk		Lund Fiskeoppdrett - Sold to Vikna Sjøfarm (Salmonor)
2003	Nye Midnor - Sold from Sparebank1 MidtNorge to Lerøy Seafood Group	2010	Sjøtroll Havbruk AS - 50.71% of the shares sold to Lerøy Seafood Group
2003	Ishavslaks - Sold to Aurora to Volden Group	2011	R. Lernes - Sold to Måsøval Fiskeoppdrett
2003	Loden Laks - Sold to Grieg Seafood	2011	Erfjord Stamfisk - Sold to Grieg Seafood
2003	Finnmark Seafood - Sold to Follalaks	2011	Jøkelfjord Laks - Sold to Morpol
2003	Ullsfjord Fisk - Sold to Nordlaks	2011	Krifo Havbruk - Sold to Salmar
2003	Henningsværfisk - Sold to Nordlaks	2011	Straume Fiskeoppdrett - Sold to Marine Harvest Norway
2004	Flatanger Akva - Sold to Salmar	2011	Bringsvor Laks - Sold to Salmar
2004	Naustdal Fiskefarm/Bremanger Fiskefarm - Sold to Firda Sjøfarm	2011	Nordfjord Havbruk - Changed name to Nordfjord Laks
2004	Fjordfisk - Sold to Firda Sjøfarm	2011	Villa Miljølaks - Sold to Salmar
2004	Snekvik Salmon - Sold to Lerøy Seafood Group	2011	Karma Havbruk - Sold to E. Karstensen Fiskeoppdrett and Marø Havbruk
2004	Aure Havbruk / M. Ulfsnes - Sold from Sjøfor to Salmar	2012	Skottneslaks - Sold to Eidsfjord Laks
2005		2012	Villa Arctic - 10 licenses, etc. sold to Salmar
	Follalaks - Sold to Cermaq
2005	Aqua Farms - Sold to PanFish	2012	Pundslett Laks - Sold to Nordlaks Holding
2005	Aurora Salmon (Part of company) - Sold from DNB Nor to Lerøy Seafood Group 2012		Strømsnes Akvakultur – Sold to Blom Fiskeoppdrett
2005	Marine Harvest Bolga - Sold to Seafarm Invest	2012	Ilsvåg Matfisk – Sold to Bremnes Seashore
2005	Aurora Salmon (Part of company) - Sold from DNB Nor to Polarlaks	2013	Morpol – sold to Marine Harvest
2005	Sjølaks - Sold from Marine Farms to Northern Lights Salmon	2013	Villa Organic – 47.8% of shares sold to Lerøy Seafood Group
2005	Bolstad Fjordbruk - Sold to Haugland Group	2013	Villa Organic – 50.4% of shares sold to SalMar
2005	Skjervøyfisk - Sold to Nordlaks	2013	Salmus Akva - Sold to Nova Sea
2006	Fossen AS - Sold to Lerøy Seafood Group	2014	Skarven (Sømna Fiskeoppdrett and Vik Fiskeoppdrett) - Sold to Nova Sea
2006	Marine Harvest N.V. - Acquired by Pan Fish ASA	2014	Cermaq – sold to Mitsubishi
2006	Fjord Seafood ASA. - Acquired by Pan Fish ASA	2015	EWOS - 2 licenses, sold to Bolaks
2006	Marine Harvest Finnmark - Sold from Marine Harvest to Volden Group	2015	Senja Akvakultursenter - Sold to Lerøy Aurora
2006		2016
	Troika Seafarms/North Salmon - Sold to Villa Gruppen		Fjordlaks Aqua - Sold to Hofseth International and Yokohama Reito
2006	Aakvik - Sold to Hydrotech	2017	NTS acquired Midt Norsk Havbruk
2006	Hydrotech - Sold to Lerøy Seafood Group	2019	Mowi acquired K.Strømmen Lakseoppdrett
2006	Senja Sjøfarm - Sold to Salmar ASA	2019	Tombre Fiskeanlegg, Lingalaks and Eidesvik Laks acquired NRS Region South
2006	Halsa Fiskeoppdrett - Sold to Salmar ASA	2021	Nekton Havbruk - 51% of shares sold to Salmar
2006	Langfjordlaks - Sold to Mainstream	2021	Refsnes Laks - 45% of shares sold to Salmar
2006	Polarlaks - Sold to Mainstream	2021	Pure Farming sold to Måsøval
2007	Veststar - Sold to Lerøy Seafood Group	2021	Aqua Farms Vartdal sold to Måsøval
2007	Volden Group - Sold to Grieg Seafood	2021	Salmonor and Midt-Norsk Havbruk - Merger and named Salmonor
2007	Artic Seafood Troms - Sold to Salmar ASA	2021	NTS acquired 65% of Norway Royal Salmon
2007	Arctic Seafood - Sold to Mainstream	2021	Erviks Laks og Ørret AS - 33.35% of shares sold to Gåsø Næringsutvikling
2007	Fiskekultur - Sold to Haugland Group	2022	Salmar aquired 52.96% of NTS and Norway Royal Salmon was merged with Salmar
2007		2022
	UFO Laks - Sold to Haugland Group		Salmar aquired 51% of Øylaks AS
2007	Anton Misund - Sold to Rauma Gruppen	2022	Akvakulturpartner AS aquired 6 development lisences ("Egget") from MOWI
2007	Mico Fiskeoppdrett - Sold to Rauma Gruppen	2023	Bewi Invest aquired 44.4% of Sinkaberg-Hansen
2008	Hamneidet - Sold to Eidsfjord Sjøfarm	2023	Bewi Invest 44.4% share of Sinkaberg-Hansen sold to a new joint seafood company
2008	Misundfisk - Sold to Lerøy Seafood Group	2023	Bewi Invest sold 37.7% share of Frøya Laks to Frøy Kapital
2008	Henden Fiskeoppdrett - Sold to Salmar ASA	2024	Troland Lakseoppdrett and Telavåg Fiskeoppdrett acquired 30% each of Engesund Fiskeoppdrett.
2008	AS Tri - Sold to Norway Royal Salmon (NRS)	2024	Cermaq acquired 30% of the shares of Ballangens Sjøfarm
2008	Feøy Fiskeopprett - Sold to Norway Royal Salmon	2024	Salmar acquired the remaining 55% of the shares in Refsnes Laks to a 100% ownership
2008	Salmo Arctica - Sold to Norway Royal Salmon	2025	Salmar acquired a controlling stake in AS Knutshaugfisk
2008	Åmøy Fiskeoppdrett - Sold to Norway Royal Salmon	2025
			Holmøy Havbruk acquired 100% of the shares in Mortenlaks AS
2008	Nor Seafood - Sold to Norway Royal Salmon	2025	MOWI acquired 46% of the shares in Nova Sea, increasing their ownership to 95%
		2025	Firda Seafood acquired a controlling stake of 51% in Landøy Fiskeoppdrett

1996	Shetland Salmon products - Sold to HSF GSP	1999	Chisal - Sold to Salmones Multiexport		1989 Cale Bay Hatchery - Sold to Kelly Cove Salmon
1996	Straithaird Salmon to MH	2000	Salmo America - Sold to Fjord Seafood	1994	Anchor Seafarms Ltd., Saga Seafarms Ltd., 387106 British Columbia Ltd., and United hatcheries merged into Omega Salmon Group (PanFish)
1996	Gigha, Mainland, Tayinlaoan, Mull Salmon - All sold to Aquascot	2000	Salmones Tecmar - Sold to Fjord Seafood		1997 ScanAm / NorAm - Sold to Pan Fish
1997	Summer Isles Salmon - Sold to HSF GSP	2000	Salmones Mainstream - Sold to Cermaq		2001 Scandic - Sold to Grieg Seafoods
1997	Atlantic West - Sold to West Minch	2001	Pesquera Eicosal - Sold to Stolt Nielsen		2004 Stolt Sea Farm - merged with Marine Harvest
1998	Marine Harvest Scotland - Sold from BP Nutrition to Nutreco	2003	Marine Farms - Sold to Salmones Mainstream		2004 Atlantic salmon of Maine (Fjord Seafood)- Sold to Cooke Aquaculture
1998	Gaelic Seafood UK - Sold to Stolt Seafarms	2004	Salmones Andes - Sold to Salmones Mainstream		2004 Golden Sea Products (Pan Fish) - Sold to Smokey Foods
1998	Mainland Salmon - Sold to Aquascot	2004	Stolt Seafarm - Merged with Marine Harvest		2005 Heritage (East) - Sold to Cooke Aqua
1999	Hydro Seafood GSP - Initially sold to Nutreco as part of Hydro Seafood deal	2004	Pesquera Chillehue - Sold to GM Tornegaleones		2005 Heritage (West) - Sold to EWOS/Mainstream
1999	Joseph Johnston & Sons - Sold to Loch Duart	2005	Aguas Claras - Sold to Acua Chile		2006 Marine Harvest - Sold to Pan Fish
2000	Aquascot Farming - Sold from Aquascot to Cermaq	2005	Salmones Chiloè - Sold to Aqua Chile		2007 Target Marine - Sold to Grieg Seafoods
2000	Shetland Norse - Sold to EWOS	2005	Robinson Crusoe - Sold to Aqua Chile		2007 Shur-Gain (feed plant in Truro)- Sold to Cooke Aquaculture
2000	Hydro Seafood GSP - Sold to Norskott Havbruk	2006	GM Tornegaleones - change name to Marine Farm GMT		2008 Smokey Foods - Sold to Icicle Seafoods
2001	(Salmar & Lerøy Seafood Group) from Nutreco Laschinger UK - Sold to Hjaltland	2006	Merger Pan Fish - Marine Harvest - Fjord		2011 Vernon Watkins' Salmon Farming (NFL -
2001	Wisco - Sold to Fjord Seafood	2007	Seafood Pacific Star - Sold to Andrè Navarro		Canada East) - Sold to Cooke Aquaculture 2012 Ocean Legacy/Atlantic Sea Smolt (NS -
2002	Wester Sound / Hoganess - Sold to Lakeland	2007	Salmones Cupquelan - Sold to Cooke		Canada East) - Sold to Loch Duart
	Marine		Aqua Patagonia Salmon Farm - Sold to Marine		2014 Cermaq – sold to Mitsubishi
2004	Ardvar Salmon - Sold to Loch Duart Hennover Salmon - Sold to Johnson Seafarms	2009	Farm GMT Camanchaca (salmon division) - Sold to		2016 Icicle Seafoods sold to Cooke Aquaculture
2004	Ltd. Bressay Salmon - Sold to Foraness Fish (from adm.	2010	Luksic Group		2016 Gray Aqua sold to Marine Harvest
2004	Receivership)	2011	Salmones Humboldt - Sold to Mitsubishi Pesquera Itata+Pesquero El Golfo -		2018 Northern Harvest sold to Marine Harvest
2004	Johnson Seafarms sold to city investors	2011	merged into Blumar		2020 Grieg Newfoundland sold to Grieg Seafood
2005	Unst Salmon Company - Sold from Biomar to Marine Farms	2011	Landcatch Chile - Sold to Australis Mar
			Salmones Frioaysen & Pesquera Landes'	Year	Iceland
2005	Kinloch Damph - Sold to Scottish Seafarms	2012	freshwater fish cultivation sold to		2015 Salmar acquired 22.91% of Arnarlax
2005	Murray Seafood Ltd. - Sold from Austevoll	2012	Salmones Friosur Cultivos Marinos Chilé – Sold to Cermaq		2016 Måsøval acquired 53.5% of Laxar Fiskeldi
2005	Havfiske to PanFish Corrie Mohr - Sold to PanFish	2013	Pacific Seafood Aquaculture – Prod rights&permits for 20 licenses sold to Salmone Friosur		2018 Salmar increased ownership in Arnarlax to 41.95%
2006	Wester Ross Salmon - MBO	2013	Salmones Multiexport divest parts of coho and trout prod. Into joint venture with		2019 Salmar incraesed ownership to 59% in Arnarlax
2006	Hjaltland Seafarm - Sold to Grieg Seafood ASA	2013	Mitsui Trusal sold to/merged with Salmones Pacific Star, with new name Salmones Austral		and reduced ownership to 51%
2006	Orkney Seafarms - Sold to Scottish Seafarms	2013	Congelados Pacifico sold to Ventisqueros		2020 Måsøval acquired 55.6% of Ice Fish Farm
2007	Lighthouse Caledonia - Spin-off from Marine	2014	Nova Austral sold to EWOS		2020 Salmar listed Icelandic Salmon (prev. Arnarlax) 2022 Ice Fish Farm acquired Laxar Fiskeldi - both
	Harvest Northern Aquaculture Ltd - Sold to Grieg				controlled by Måsøval
2010	Seafood Lighthouse Caledonia - changed name to	2014	Acuinova sold to Marine Harvest Chile		2022 Mowi acquired 51.28% of Arctic Fish
2010	Scottish Salmon Company	2014	Cermaq – sold to Mitsubishi Comercial Mirasol – sold to Salmones
2010	Meridian Salmon Group - Sold to Morpol	2014	Humboldt (Mitsubishi) Landcatch Chile - Sold from Australis Mar
2011	Skelda Salmon Farms Limited - Sold to Grieg Seafood	2015	to AquaGen
2011	Duncan Salmon Limited - Sold to Grieg Seafood	2018	Salmones Magallanes & Pesquera Eden aquired by AquaChile
2012	Uyesound Salmon Comp – Sold to Lakeland Unst (Morpol)	2018	Salmones Friosur, Salmones Frioaysen & Piscicola Hornopiren aquired by Los Fiordos (Agrosuper)
2013	Lewis Salmon – Sold to Marine Harvest Scotland	2018	AquaChile aquired by Agrosuper
2013	Morpol sold to Marine Harvest	2018	Australis Seafood aquired by Joyvio Group Co. Ltd
2014	Part of Morpol/Meridian sold to Cooke Aquaculture	2019	Salmones Ice-Val aquired by Blumar
2015	Thompson Bros Salmon - Sold to Cooke Aquaculture	2019	Cabo Pilar aquired by Nova Austral (4 licenses)
2016	Balta Island Seafare - Sold to Cooke
	Aquaculture The Scottish Salmon Company acquired by
2019	Bakkafrost Grieg Seafood Hjaltland UK Ltd sold to Scottish

Year	U K	Year	Chile	Year	North America
1996	Shetland Salmon products - Sold to HSF GSP	1999	Chisal - Sold to Salmones Multiexport		1989 Cale Bay Hatchery - Sold to Kelly Cove Salmon Anchor Seafarms Ltd., Saga Seafarms Ltd.,
1996	Straithaird Salmon to MH	2000	Salmo America - Sold to Fjord Seafood	1994	387106 British Columbia Ltd., and United hatcheries merged into Omega Salmon Group (PanFish)
1996	Gigha, Mainland, Tayinlaoan, Mull Salmon - All sold to Aquascot	2000	Salmones Tecmar - Sold to Fjord Seafood		1997 ScanAm / NorAm - Sold to Pan Fish
1997	Summer Isles Salmon - Sold to HSF GSP	2000	Salmones Mainstream - Sold to Cermaq		2001 Scandic - Sold to Grieg Seafoods
1997	Atlantic West - Sold to West Minch	2001	Pesquera Eicosal - Sold to Stolt Nielsen		2004 Stolt Sea Farm - merged with Marine Harvest
1998	Marine Harvest Scotland - Sold from BP Nutrition to Nutreco	2003	Marine Farms - Sold to Salmones Mainstream		2004 Atlantic salmon of Maine (Fjord Seafood)- Sold to Cooke Aquaculture
1998	Gaelic Seafood UK - Sold to Stolt Seafarms	2004	Salmones Andes - Sold to Salmones Mainstream		2004 Golden Sea Products (Pan Fish) - Sold to Smokey Foods
1998	Mainland Salmon - Sold to Aquascot	2004	Stolt Seafarm - Merged with Marine Harvest		2005 Heritage (East) - Sold to Cooke Aqua
1999	Hydro Seafood GSP - Initially sold to Nutreco as part of Hydro Seafood deal	2004	Pesquera Chillehue - Sold to GM Tornegaleones		2005 Heritage (West) - Sold to EWOS/Mainstream
1999	Joseph Johnston & Sons - Sold to Loch Duart	2005	Aguas Claras - Sold to Acua Chile		2006 Marine Harvest - Sold to Pan Fish
2000	Aquascot Farming - Sold from Aquascot to Cermaq	2005	Salmones Chiloè - Sold to Aqua Chile		2007 Target Marine - Sold to Grieg Seafoods
2000	Shetland Norse - Sold to EWOS	2005	Robinson Crusoe - Sold to Aqua Chile		2007 Shur-Gain (feed plant in Truro)- Sold to Cooke Aquaculture
2000	Hydro Seafood GSP - Sold to Norskott Havbruk (Salmar & Lerøy Seafood Group) from Nutreco	2006	GM Tornegaleones - change name to Marine Farm GMT		2008 Smokey Foods - Sold to Icicle Seafoods
2001	Laschinger UK - Sold to Hjaltland	2006	Merger Pan Fish - Marine Harvest - Fjord Seafood		2011 Vernon Watkins' Salmon Farming (NFL - Canada East) - Sold to Cooke Aquaculture
2001	Wisco - Sold to Fjord Seafood	2007	Pacific Star - Sold to Andrè Navarro		2012 Ocean Legacy/Atlantic Sea Smolt (NS - Canada East) - Sold to Loch Duart
2002	Wester Sound / Hoganess - Sold to Lakeland Marine	2007	Salmones Cupquelan - Sold to Cooke Aqua		2014 Cermaq – sold to Mitsubishi
2004	Ardvar Salmon - Sold to Loch Duart	2009	Patagonia Salmon Farm - Sold to Marine Farm GMT		2016 Icicle Seafoods sold to Cooke Aquaculture
2004	Hennover Salmon - Sold to Johnson Seafarms Ltd.	2010	Camanchaca (salmon division) - Sold to Luksic Group		2016 Gray Aqua sold to Marine Harvest
2004	Bressay Salmon - Sold to Foraness Fish (from adm. Receivership)	2011	Salmones Humboldt - Sold to Mitsubishi		2018 Northern Harvest sold to Marine Harvest
2004	Johnson Seafarms sold to city investors	2011	Pesquera Itata+Pesquero El Golfo - merged into Blumar		2020 Grieg Newfoundland sold to Grieg Seafood
2005	Unst Salmon Company - Sold from Biomar to Marine Farms	2011	Landcatch Chile - Sold to Australis Mar
				Year	Iceland
2005	Kinloch Damph - Sold to Scottish Seafarms	2012	Salmones Frioaysen & Pesquera Landes' freshwater fish cultivation sold to Salmones Friosur		2015 Salmar acquired 22.91% of Arnarlax
2005	Murray Seafood Ltd. - Sold from Austevoll Havfiske to PanFish	2012	Cultivos Marinos Chilé – Sold to Cermaq		2016 Måsøval acquired 53.5% of Laxar Fiskeldi
2005	Corrie Mohr - Sold to PanFish	2013	Pacific Seafood Aquaculture – Prod rights&permits for 20 licenses sold to Salmone Friosur		2018 Salmar increased ownership in Arnarlax to 41.95%
2006	Wester Ross Salmon - MBO	2013	Salmones Multiexport divest parts of coho and trout prod. Into joint venture with Mitsui		2019 Salmar incraesed ownership to 59% in Arnarlax
2006	Hjaltland Seafarm - Sold to Grieg Seafood ASA	2013	Trusal sold to/merged with Salmones Pacific Star, with new name Salmones Austral		2020 Salmar listed Icelandic Salmon (prev. Arnarlax) and reduced ownership to 51%
2006	Orkney Seafarms - Sold to Scottish Seafarms	2013	Congelados Pacifico sold to Ventisqueros		2020 Måsøval acquired 55.6% of Ice Fish Farm
2007	Lighthouse Caledonia - Spin-off from Marine Harvest	2014	Nova Austral sold to EWOS		2022 Ice Fish Farm acquired Laxar Fiskeldi - both controlled by Måsøval
2010	Northern Aquaculture Ltd - Sold to Grieg Seafood	2014	Acuinova sold to Marine Harvest Chile		2022 Mowi acquired 51.28% of Arctic Fish

2022 Mowi aquired Wester Ross Fisheries in Scotland

The history of MOWI

Mowi entered into a share purchase agreement to increase ownership in Nova Sea from 49% to 95% Recognised as the world's most sustainable animal protein producer for the fifth year running Mowi enters Iceland with the acquisition of 51.28% of Arctic Fish Mowi 4.0 digital strategy is launched Self-sufficient for feed in Europe MOWI brand is launched The company once again becomes Mowi 2017-18 Acquires Gray Aqua Group and Northern Harvest, and establishes Mowi Canada East Enters into joint venture with Deep Sea Supply to build, own and operate aquaculture vessels Acquires Morpol Feed division is established PanFish acquires Marine Harvest Marine Harvest and Stolt Sea Farm merge PanFish acquires Fjord Seafood John Fredriksen acquires PanFish Nutreco acquires Hydro Seafood. New company name: Marine Harvest Nutreco acquires the Scottish farming operations started by Unilever Mowi is discontinued as a company name Hydro Seafood has sites in Norway, Scotland and Ireland Hydro Seafood acquires Frøya holding Hydro Seafood registered 25 June Restructuring and consolidation of the industry starts Hydro increases its holding to 100% Mowi buys GSP in Scotland and Fanad in Ireland Mowi becomes a recognised brand Hydro increases its holding to 50% Mowi starts working with salmon in Norway The adventure of Mowi begins

Mowi

Mowi is the world's largest producer of farm-raised salmon measured by both volume and turnover. We offer seafood products to more than 70 countries, are represented in 26 countries and employ 11 700 people. Mowi is organised into three business areas: Feed, Farming and Sales & Marketing.

Total revenue for Mowi in 2024 was MEUR 5,600 and the harvest quantity of Atlantic salmon was 502,000 tonnes (GWT), equivalent to a global market share of approximately 20%.

	Feed	Farming	Sales and Marketing
Position	582,000 tonnes vs. global salmonid feed production of ~4.9m tonnes	Clear #1. Approx. two times larger than #2.	Leading position in Consumer products Global sales network
Operations	Started in Norway in 2014 and Scotland in 2019	Norway, Chile, Scotland, Canada, Ireland, Faroe Islands, Iceland	Operations in 26 countries
Volumes	700,000 tonnes capacity	502,000 tonnes harvested	247,000 tonnes product weight
Op EBIT 2024	EUR 46.8m	EUR 443.4m	EUR 352.3m

Business areas

Feed

(Tonnes)			Production
Country	Capacity	2024	2023	2022	2021	2020
Produced Norway	460 000	399 568	404 538	371 876	358 769	389 750
Produced Scotland	240 000	182 493	123 213	143 140	123 133	150 576
Total	700 000	582 061	527 751	515 016	481 902	540 326

Farming

(Tonnes)

Country	Guidance 2025	2024	2023	2022	2021	2020
Norway	315 000	303 501	294 501	293 720	273 204	262 016
Chile	77 000	72 694	69 199	65 737	65 958	64 570
Canada	33 000	30 426	28 575	41 095	4 5311	43 953
Scotland	70 000	65 977	54 950	48 374	64 405	52 739
reland	00006	8 887	4 534	6 845	6 790	7 961
Faroes	11 000	9 378	11 027	7 864	9 932	8 590
Ice and	15 000	10 667	11 878	na	na	ர்க்
Total	530 000	501 530	474 664	463 635	465 600	439 829

Sales & Marketing

Regions	2024	2023	2022	2021	2020
Europe	182 111	170 816	169 071	183 920	179 928
Americas	29 393	30 812	31 317	30 684	29 687
Asia	35 829	30 541	29 046	32 973	29 812
Total	247 333		232 169 229 434	247 577	239 427

Sources of industry and market information

Other

Kontali Analyse: www.kontali.no Intrafish: www.intrafish.no Norwegian Directorate of Fisheries: www.fiskeridirektoratet.no Norwegian Ministry of Trade, Industry and Fisheries: www.fkd.dep.no Norwegian Seafood Council: www.seafood.no Norwegian Seafood Federation: www.norsksjomat.no Chilean Fish Directorate: www.sernapersca.cl FAO: www.fao.org International fishmeal and fish oil org.: www.iffo.net Laks er viktig for Norge: www.laks.no

Price statistics

Fish Pool Index: www.fishpool.eu Kontali Analyse (subscription based): www.kontali.no Urner Barry (subscription based): www.urnerbarry.com Statistics Norway (SSB): www.ssb.no/laks\_en/ NASDAQ: www.salmonprice.nasdaqomxtrader.com

Mowi: www.mowi.com

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3665_rns_2025-06-24_b113ee35-7495-4b75-a33b-a1ea035f93d9.pdf

Salmon Farming Industry Handbook

2025

Forward-looking Statements

Mowi Salmon Farming Industry Handbook

Table of contents

1 Introduction

Introduction

Seafood as part of global food consumption

Seafood as part of overall protein consumption

Atlantic Salmon as part of global protein consumption

Fish consumption

Salmonids contribute 4.3% of global seafood supply1

Supply of farmed and wild salmonids 1

Global macro trends 1

Favourable attributes of salmon

3.2.1 A healthy product1

3.2.2 Resource-efficient production1

3.2.3 Climate friendly production1

Total harvest of Atlantic salmon 2005-20241

Diminishing growth expectations 1

UN's Sustainable Development Goals

Environmental impact of aquaculture1

Carbon footprint

Genetic changes in wild salmon

Environmental effects of discharges of dissolved nutrients

Environmental impact on the seabed as a result of particulate organic emissions

Environmental effects on non-target species when using medicine16F 1

Fish welfare

Monthly Mortality Rates

Material sustainability efforts

Carbon footprint

Plastic management

Escape prevention

Sea lice

Medicine use

Fish health and welfare

Biodiversity

Sustainability of fish feed1

Feed efficiency

Feed ingredients

Recaptured Fish in- fish out (rFIFO)

Global sustainability initiatives 1

Transparency

Farmed Atlantic salmon by market 1

7 Industry Structure

Industry Structure

Top 10 companies in farmed Atlantic salmon 20241

Industry Structure

Number of companies in producing countries 1

Establishing a salmon farm

Production inputs

Eggs

Smolt

Labour30F 1

Electricity

Operational EBIT

Economics of salmon farming

Overview of feed market

Relative feeding1

Salmon feed producers

Salmon feed ingredients

Cost of building biomass

Capital return analysis

Results41F 1

Currency overview

Norwegian exposure vs foreign currency – average last 5 years(1) 42F 1

Exposure against local currency – 2024(1) 43F 1

Feed production: Currency exposure

Secondary Processing: Currency exposure

Regulation of fish farming in Norway

License and location

Access to Licenses

Regulation of fish farming in Scotland

Licenses and location

Regulation of fish farming in Ireland

Regulation of fish farming in Chile

License and location