Mowi, Skretting forge strategic feed partnership to cut costs and boost innovation

NORWAY – Norwegian salmon farming giant Mowi has entered a strategic and industrial partnership with global aquafeed specialist Skretting that will see Mowi continue producing feed, but based on Skretting’s formulations and expertise. 

The move is designed to harness cutting-edge nutritional know-how and deliver significant cost savings across the feed value chain.

Under the agreement, Skretting will make available its proprietary research and development capabilities, data insights and procurement strengths to Mowi, which will incorporate these into its feed operations. 

Mowi says the partnership is expected to generate over NOK 650 million (about US$60 million) in annualised net cost savings through improved feed recipes, procurement efficiencies and logistics optimisation. 

The landmark announcement follows a strategic review of Mowi’s Feed Division announced on March 4, 2025, and comes as the aquaculture sector faces rising feed complexity and stronger demand for high-performance nutrition. 

Retaining production strengths with new expertise

Mowi will retain its existing feed business unit, including two state-of-the-art factories in Norway and Scotland, ensuring that production stays in-house while benefiting from Skretting’s formulations. 

The Norway and Scotland operations are projected to deliver an EBITDA contribution of NOK 825 million (about US$76 million) in 2026, according to Mowi. 

“Mowi and Skretting are a great match for each other, and the partnership with Skretting is our preferred outcome from the strategic review process,” said Ivan Vindheim, Mowi CEO. 

“With this agreement, Mowi Farming secures the best-performing feed at the lowest cost in the industry for the coming years.” 

The CEO added that improved formulations will “drive significant cost improvements while ensuring top quality feed performance in the years to come.” 

Vindheim stressed that the cooperative model offers a “low-risk solution” that delivers cost savings from day one, noting Mowi’s long history with Skretting as a feed supplier.

Financial impact and market outlook

Combined, Mowi’s feed partnership with Skretting and its retained feed business are reported to bring in total EBITDA of NOK 1,475 million (about US$136 million) for the company, corresponding to an EBIT of NOK 2.1 per kg (GWT) for the Mowi Group and NOK 2.6 per kg for Mowi Norway. The result also translates to earnings per share of NOK 1.7 (approx US$0.16).

One of the strategic advantages of maintaining Mowi Feed as an operational unit, the company says, is that it allows Mowi to retain embedded profit within the feed value chain even as feed markets tighten in the coming years, an outlook the firm describes as increasingly profitable. 

Feed formulation has become one of the most technically demanding and cost-sensitive components of salmon production, with nutrition science and supply chain agility emerging as differentiators in global aquaculture. 

By leveraging Skretting’s R&D and data assets, Mowi aims to stay ahead of competitors by combining its production scale with best-in-class feed design.

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