Norwegian Salmon Farmers Use Lasers and Robots to Cut Fish Losses

what happened

Norwegian salmon producers are turning to lasers, underwater cameras and cleaning robots to keep more fish alive until harvest, according to the Wall Street Journal. Mowi, the world's largest Atlantic salmon producer, uses cameras to count sea lice on each fish, and blue-light lasers then destroy the parasites.

Mortality remains a costly problem. More than 14% of farmed Atlantic salmon in Norway died before maturity last year, roughly 55 million fish, according to the Norwegian Veterinary Institute. Demand is strong: Norwegian salmon exports have risen 9% by volume this year, and expansion is limited by tight rules on new capacity.

Other companies are building larger systems: Nordlaks' Ocean Farm vessel holds around two million fish, and the Watermoon facility can house up to 800,000. Mowi's seawater survival rate reached 99.3% last year, versus 98.7% in 2020.

why it matters

For investors in Mowi and other Norwegian producers, higher survival lowers the cost of each harvested fish and supports supply growth in a market where licences cap output. Still, warm seawater and algae blooms can wipe out earnings, as happened to Mowi's Canadian operations last year, so the sector remains exposed to weather and disease shocks.

market impact

Mowi and Norwegian salmon producers: better survival lowers costs and supports supply, while weather shocks add risk.

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