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Navigating change: The path forward for Norway's aquaculture industry

To overcome challenges like declining social license and ensure sustainable growth, the aquaculture industry must prioritize fish welfare, embrace collaboration, and adopt a long-term approach, as emphasized at the North Atlantic Seafood Forum.

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Panel discussion during the Salmon Welfare in Aquaculture session at the North Atlantic Seafood Forum. Credits: NASF

The Norwegian public's perception of the aquaculture industry is undergoing a significant shift. The industry, which has long been a symbol of success, now faces heightened concerns over high mortality rates and the welfare of farmed salmon, as well as questions about sustainability. This shift in perception was evident at the North Atlantic Seafood Forum (NASF), where discussions moved from last year's focus on sustainability targets to addressing these pressing issues, especially during the sesion Salmon welfare in aquaculture.

Industry challenges

Edgar Brun, academic director of the Department of Fish Health and Welfare at the Norwegian Veterinary Institute, provided an analysis of the challenges confronting the salmon industry. Despite Norway’s aquaculture sector being highly profitable and a major contributor to global food production, Brun emphasized that it has historically overlooked critical issues such as animal welfare and biological health, in its pursuit of efficiency.

Brun explained that while the industry experienced substantial growth, it did so at the expense of fish health, resulting in high mortality rates and growing media backlash. He also pointed out the lack of collaboration between different industry stakeholders, which allowed diseases to spread along the coast.

The high mortality rates reported in Norway’s aquaculture sector in the past two years underscore the urgent need for better fish health management and sustainable farming practices. Geir Fuglerud, CEO of Supply Chain and Product Assurance at DNV, noted that the situation presents both biological and reputational risks for the industry. Fuglerud warned that if current trends continue, they could lead to stricter regulations, reduced production allowances, and declining market demand.

"Fish welfare must be prioritized—not just for ethical reasons but because it is fundamentally linked to the long-term success of our industry," Fuglerud emphasized. He called for urgent reforms to balance productivity, sustainability, and ethical responsibility, stressing that collaboration, innovation, and commitment are key to ensuring the industry’s future success.

Brun also addressed the industry's short-term focus on market prices rather than the long-term health of the fish or sustainable growth. According to Brun, “while the industry used technological solutions to mitigate problems, it had failed to address the biological and ethical aspects of fish farming.”

Tonje Osmundsen, research director, NTNU Social Research, discussed the growing skepticism towards the aquaculture industry in Norway, particularly from local politicians and municipalities where production sites are based. She noted that there is increasing reluctance to support the industry, which is a concerning shift given the global need for seafood. She argued that the unwritten contract between the public and the industry has been breached, making it challenging to gain support for future growth and innovations, including finding new production sites.

Osmundsen further highlighted that national politicians and authorities are no longer willing to take creative or innovative steps to support the industry, especially when it comes to regulations that could encourage its development. Osmundsen stressed that without the social license, it becomes more difficult for the industry to pursue growth, improvements, and changes needed for a sustainable future. This shift in public sentiment, according to Osmundsen, marks a significant challenge for the industry as it tries to navigate a path forward while addressing its complex issues. Osmumdsen called for a shift in mindset to foster collaboration and trust between the industry and authorities in order to make meaningful progress.

Progress in biosecurity

However, there is positive news. Krister Hoaas, Head of Farming Region West, The Norwegian Seafood Federation, acknowledged the progress being made in the aquaculture industry, particularly in the area of biosecurity. Hoaas emphasized that significant strides have been made in recent years, with nearly all farmers in Norway now participating in a large-scale biosecurity initiative. This initiative involves specific goals and measures, with strong regional discussions driving the efforts. While Hoaas recognized that these changes take time to show impact, he noted that the latest reports from the Institute of Marine Research and the Veterinary Institute indicate positive signs for 2024, particularly in terms of reduced mortality rates and a decrease in the spread of diseases.

Brun also expressed optimism, suggesting that 2023 was a turning point. With improvements observed in 2024, particularly in biosecurity measures, there is hope that the industry is on the right path. However, he acknowledged that collaboration remains a critical area that requires further attention to ensure continued progress.

The example of Norsk Kylling

The case of Norsk Kylling, a Norwegian poultry producer that successfully overcame similar challenges, was highlighted during the plenary session at NASF. A decade ago, Norsk Kylling faced significant criticism over its environmental impact and animal welfare practices, which caused its reputation to suffer. However, rather than retreating, the company decided to overhaul its operations and become the best food producer in the world. This bold vision required fundamental changes, including building trust with farmers, increasing transparency, and adopting sustainable practices throughout the supply chain.

Norsk Kylling’s strategy is centered on five core principles: uncompromised animal welfare, emission reduction, efficient land use, social responsibility, and food safety. The company transitioned to a slower-growing chicken breed in 2018, which significantly improved animal welfare, reducing mortality rates and sickness rates. The company also made strides in sustainability by adopting renewable energy for its processing facility, cutting greenhouse gas emissions, and reducing plastic use in packaging.

These efforts restored its reputation, and today, Norsk Kylling holds a market share of around 30% in the Norwegian retail grocery industry. Looking ahead, Norsk Kylling aims to halve emissions by 2030, and the company continues to invest in research and development, particularly in refining feed compositions and optimizing logistics. Norsk Kylling’s success story serves as a potential model for the aquaculture industry, demonstrating that with bold changes, it is possible to overcome challenges and set a new standard for sustainability and animal welfare.

Call for long-term thinking and collaboration

In the plenary session, Skretting CEO Bastiaan van Tilburg urged the industry to collaborate. “This industry is intrinsically more sustainable than many other food solutions and has the potential for significant impact because there are relatively large players in each part of the value chain. By joining forces, we can make a real difference.”

He described aquaculture as a young and innovative industry with huge demand, adding, “We could be growing at double our current rate because the demand and prices are there. In my opinion, not achieving that is a failure. It's a failure, first of all, because we are not generating the value for this industry to continue to grow and innovate at the level we could.”

Drawing from his experience in the dairy industry in the Netherlands, where consumer trust was also lost, he warned that failing to adopt a long-term perspective could lead to a loss of social license and consumer trust.

“We can build a profitable and sustainable future for this industry, but we need to take these two lessons to heart. We need to be long-term focused and recognize that we need each other. The willingness, awareness, capability, and ability to invest are there. Let's do it. Let's embark on this journey together,” Van Tilburg concluded.

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Lucía Barreiro
Editor