Mowi ASA has entered into a strategic and industrial partnership agreement with Skretting, the aquaculture feed division of Nutreco, under which Mowi will produce fish feed based on Skretting’s feed formulations. The agreement marks the conclusion of the strategic review of Mowi’s Feed Division that the company announced in a stock exchange release on 4 March 2025.
As outlined by the company, the partnership is designed to strengthen Mowi’s salmon farming operations by combining its existing feed production assets with Skretting’s nutritional expertise and research and development capabilities. Under the agreement, Mowi Feed will continue to operate its two feed factories in Norway and Scotland, which will be retained without structural changes. While production remains in-house, feed formulation will now be based on Skretting’s proprietary know-how, data, D&D capacity and procurement capabilities.
According to Mowi, the partnership is expected to generate annualised net cost saving of more than NOK 650 million (approximately EUR 55 million). These saving are projected to come from improvements in feed formulation and recipes, as well as from more efficient procurement and logistics.
The company also noted that Mowi Feed is expected to contribute EBITDA of NOK 825 million (around EUR 70 million) in 2026, while further value could be realised if the feed market continues to tighten in the coming years.
Taken together, Mowi estaimates that the feed partnership with Skretting, combined with the retained Mowi Feed business unit, will deliver a total EBITDA contribution of more than NOK 1,475 million (around EUR 125 million).
As stated by the company, this corresponds to total earning of NOK 1,475 million, equivalent to an EBIT of NOK 2.1 per kilogram (gutted weight) for the Mowi Group and NOK 2.6 per kilogram for Mowi Norway, translating into earnings per share of NOK 1.7.
Commenting on the outcome of the strategic review, Ivan Vindheim, chief executive of Mowi ASA, said that the partnership with Skretting was the company’s preferred solution. “Mowi and Skretting are a great match for each other, and the partnership with Skretting is our preferred outcome from the strategic review process,” Vindheim said.
He added that the agreement would strengthen Mowi’s core operation and “an even better salmon farming company.”
Vindheim further noted that the partnership secures access to high-performing feed at competitive cost levels. “With this agreement, Mowi Farming secures the best performing feed in the coming years at the lowest cost in the industry,” he said, adding that the improved feed formulations would be rolled out across Mowi’s European salmon farming operations. According to him, these changes are expected to “drive significant cost improvements whilst ensuring top quality feed performance in the years to come”.
Mowi also highlighted that Skretting has been one of its feed suppliers for decades, with a long-standing reputation for delivering high-quality salmon feed at competitive cost. As feed formulation has become increasingly complex in recent years, the company noted that nutritional expertise and a strong R&D focus have become strategically more important.
In this context, Mowi described access to a partner at the forefront of feed innovation as a key factor in the review process, while confirming that it will pay a small annual consideration for the partnership.
Reflecting on the long-standing relationship between the two companies, Vindheim said that they know “the Skretting team extremely well and have enjoyed an excellent working relationship with them for decades.” He noted that the new agreement formalises this cooperation and provides a low-risk model for Mowi.
Mowi also underlines the strategic importance of retaining Mow Feed as an integrated part of its value chain. As noted by the company, keeping its existing organisation and feed factories allows Mowi to retain embedded profits in feed producton. The company added that there is reason to believe the feed market will continue to tighten, potentially making this segment even more profitable in the future.
“The partnership model whereby Mowi Feed is retained gives us the best of both worlds; teaming up with Skretting will all the benefits that it entails and at the same time retaining Mowi Feed with an improved market outlook make this the most compelling solution,” Vindheim said.
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