Special Market Brief
Interrupting our usual bi-weekly newsletter to report the latest responses to Norway’s proposed tax.
Following Norway’s proposed 40% resource rent tax applied to volumes above 5,000 metric tons (total tax rate for salmon and trout farming would increase from 22% to 62%), a flurry of termination and investment holds followed suite:
Cermaq terminates purchase of farming licenses in Norway worth USD 13m, and puts investments of up to USD 380m on hold
Norway Royal Salmon terminates purchase of 370 metric tons of max permitted biomass capacity worth USD 6m
Lerøy Seafood Group suspends USD 314m investment and cancels 614 metric tons of biomass increase worth USD 11.3m
Firda Seafood Group calls off USD 95m investment plan to avoid a 85% tax burden
SalMar terminates 1,223 metric tons of maximum-allowed biomass worth USD 22.5m
Nova Sea holds off on the construction of a new hatchery and slaughterhouse worth USD 307m
Mowi scraps USD 17.5m biomass increase
Grieg Seafood puts all investment decisions on hold
Nordlaks holds off on USD 668m investments for the next 6 years
'A good tax system must be both fair and predictable. The government's proposal for resource rent tax is neither,' said Norway Royal Salmon CEO Charles Hostlund.