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http://www.theglobeandmail.com/servlet/story/LAC.20080705.BCHARVEST05/TPStory/National#
An ill wind is blowing for world's biggest salmon-farm company
JAMIE KOMARNICKI
July 5, 2008
It's been a tempestuous year for global salmon-farming powerhouse Marine Harvest Group.
The Oslo-based company is the biggest player on the salmon farming scene. It has about 7,500 employees worldwide and produces one-third of the world's farmed salmon and trout in Norway, Chile, Scotland, Canada and the Shetland Islands.
It's also the largest aquaculture company in Canada, where 500 employees based in British Columbia produce 45,000 tonnes of Atlantic salmon a year.
The Marine Harvest Group is the offspring of a massive merger in December, 2006, among international industry heavyweights Pan Fish ASA, Fjord Seafood ASA and Marine Harvest N.V.
But 2007 proved to be a tough year for Marine Harvest, says a Canadian spokesman for the company.
An outbreak of infectious salmon anemia in Chile, Marine Harvest's second-largest production country after Norway, led to a massive cull, culminating with the announcement of plans to close a processing plant. "That's been a huge challenge," said Clare Backman.
With the merger, the company shouldered significant restructuring costs and posted negative financial returns last year, he said.
Returns in Canada were also dented by decreasing prices for salmon and currency fluctuations.
"The [2006] merger happened when the U.S. dollar was going down and Canadian dollar was coming up. We grow fish in Canada and sell it in the U.S.," Mr. Backman said.
"Our profit was eroded as a result of the change in the value of the loonie."
Marine Harvest has also tussled with environmental and social movements in its major markets, Mr. Backman said.
The industry in B.C. has been the focus of strong interest over environmental impact, Chilean operations have come under scrutiny for social issues, and people in Norway have expressed concerns about escaped salmon and food-safety contamination, he said.
Jim's Fishing Charters
www.JimsFishing.com
http://ca.youtube.com/user/Sushihunter250
An ill wind is blowing for world's biggest salmon-farm company
JAMIE KOMARNICKI
July 5, 2008
It's been a tempestuous year for global salmon-farming powerhouse Marine Harvest Group.
The Oslo-based company is the biggest player on the salmon farming scene. It has about 7,500 employees worldwide and produces one-third of the world's farmed salmon and trout in Norway, Chile, Scotland, Canada and the Shetland Islands.
It's also the largest aquaculture company in Canada, where 500 employees based in British Columbia produce 45,000 tonnes of Atlantic salmon a year.
The Marine Harvest Group is the offspring of a massive merger in December, 2006, among international industry heavyweights Pan Fish ASA, Fjord Seafood ASA and Marine Harvest N.V.
But 2007 proved to be a tough year for Marine Harvest, says a Canadian spokesman for the company.
An outbreak of infectious salmon anemia in Chile, Marine Harvest's second-largest production country after Norway, led to a massive cull, culminating with the announcement of plans to close a processing plant. "That's been a huge challenge," said Clare Backman.
With the merger, the company shouldered significant restructuring costs and posted negative financial returns last year, he said.
Returns in Canada were also dented by decreasing prices for salmon and currency fluctuations.
"The [2006] merger happened when the U.S. dollar was going down and Canadian dollar was coming up. We grow fish in Canada and sell it in the U.S.," Mr. Backman said.
"Our profit was eroded as a result of the change in the value of the loonie."
Marine Harvest has also tussled with environmental and social movements in its major markets, Mr. Backman said.
The industry in B.C. has been the focus of strong interest over environmental impact, Chilean operations have come under scrutiny for social issues, and people in Norway have expressed concerns about escaped salmon and food-safety contamination, he said.
Jim's Fishing Charters
www.JimsFishing.com
http://ca.youtube.com/user/Sushihunter250
