Several land-based projects in the pipeline, Samherji reports

According to a financial report released by fish farmer Samherji, who is in the process of constructing a land-based fish farm in Reykjanes Peninsula in Iceland, has reported a total investment of EU€400 million into the project, among other investments.

According to Samherji's CEO Thorsteinn Már Baldvinsson, the company has 'faith' in land-based fish farming but expressed the cost of the investments.

"All development in the sector is very costly. Therefore, the company must be financially strong now as before. The consolidated financial statements show that this is the case," Mr Baldvinsson explains.

Once the land-based facility is complete, the company expects for annual production to sit around the 40,000 tonnes mark. The facility will comprise of a hatchery, breeding farm, processing plant and service buildings, all of which have had a total investment of US$340 million.

"The total investment in aquaculture is estimated at around EU€400 million," says Mr Baldvinsson. "The Board of Directors of Samherji hf. has decided to provide funding for the project's first phase in Reykjanes by increasing the share capital … up to EU€50 million."

Image credit: Samherji

Other challenges face operation of their facilities as the price of oil "skyrockets" due to the conflict in Ukraine, and is the second highest cost in fish farming next to employee wages.

"How prices will develop in the future is entirely uncertain and will be affected by many external factors," he remarks.

Also in the company's project pipeline is another land-based facility which will be built in Öxarfjördur, northeast Iceland. Samherji is a main producer of Arctic char, but the facility marks its expansion into salmon production. The site produces 1500 tonnes of salmon annually but is expected to increase to 3000 tonnes when the facility is complete.

"The site in Öxarfjördur can be considerd a 'pilot project' for the development in Reykjanes," explains Mr Baldvinsson. "Next fall, construction will begin for a new hatchery in Stadur in Grindavík. The estimated cost for the project is around EU€6.6 million."

You can read in more detail about the construction of the facilities, HERE.

For more information on Samherji visit their website, HERE.