1. Chile Report: Salmon Farming
At the beginning of 2019, we took the opportunity to visit salmon farming operations in the Chilean summer.
In late January, Mowi announced it would increase its ownership in Nova Sea from 49% to 95%, marking another step in the consolidation of Norway’s salmon farming industry. On October 21, the Norwegian Competition Authority gave its final approval to the acquisition, officially bringing one of Norway’s finest independent farmers into the Mowi family.
Lovund: The Beating Heart of Nova Sea
About 66° North, between Trondheim and Bodø, lies the small island of Lovund, home to Nova Sea. Bonafide went north to see Mowi’s latest asset firsthand.
Unlike many small islands in Northern Norway, Lovund is full of light and life. Every house is lit, and the population is growing. In the early 1970s, the two teachers Olaisen and Meland, set out to create an industry that could counter population decline after several tough years for local fisheries. They had heard about salmon being farmed further south and decided to give it a go.
With 1,200 smolt flown in by seaplane and a few homemade cages, they began what would become one of the most successful aquaculture ventures in the world. Little did they know, back in 1972, that their experiment would grow into a company achieving world leading margins, and eventually be sold for EUR 625mln to the world’s largest salmon farmer, Mowi.
Nova Sea Today
Fast forward to today, Nova Sea stands as a benchmark for operational excellence and community driven aquaculture.
Some quick numbers:
- 42,100 tonnes harvested in 2024 (around 248mln meals)
- Leading margins: NOK 31/kg average Operational EBIT over the last three years
- 400 employees in 2024
- 27,400 tonnes of MAB license capacity
Nova Sea is a fully integrated producer, handling everything from broodstock and smolts to harvesting and sales, a rarity for a company of its size. Operating from the rugged coast of Helgeland, arguably the best salmon farming area in the world, Nova Sea also owns several “non-core” assets that keep the community running. This includes employee housing, workshops, water facilities, and even local restaurants.
The Acquisition and Mowi’s Strategic Play
When Mowi consolidates Nova Sea, it will add around 52,000 tonnes of harvest volume in 2025. This brings Mowi’s 2025 harvest guidance to 597,000 tonnes, of which 372,000 tonnes will come from Norway alone.
Mowi has communicated potential EUR 34 mln in annual synergies from the acquisition. We suspect that is conservative. The integration of Nova Sea’s efficiency, local know how, licenses efficiency, and strong operational base could deliver more. The question now is how Mowi will weave this northern powerhouse into its broader portfolio.
Building the Most Modern Harvesting Facility in the World
If you set foot on Lovund today, you will see a major construction site next to Nova Sea’s headquarters. The company is building a state of the art harvesting and processing facility, set to be one of the most modern in the world.
Spanning 17,200 square meters across four floors, the facility represents an investment of over NOK 2bln, with a processing capacity of up to 100,000 tonnes per year. It includes its own box factory and six 2,600 cubic meter holding tanks, together holding a biomass of over 2,000 tonnes of salmon.
These tanks not only increase fish welfare and product quality but also free up MAB capacity at sea, allowing Nova Sea to optimize production within future regulatory limits. It is a clear sign that Mowi and Nova Sea are positioning themselves for the next era of salmon farming, one where onshore and hybrid solutions will play an increasing role.
The Brand and the Future
Nova Sea has long been synonymous with quality, especially in Asian markets. It will be interesting to see how Mowi integrates the Nova Sea brand into its consumer products portfolio. Some industry observers believe the brand’s strong recognition, especially through its processing station number N1041, may live on under its own identity.
Note: In some markets, it is that number, not the logo, that customers recognize. N1041 has become shorthand for premium Norwegian salmon from the coast of Helgeland.
A Symbol of Quality and Continuity
Only time will tell how Nova Sea will evolve under Mowi’s ownership, but one thing is clear: the acquisition stands for quality, scale, and resilience. It is also a testament to how local innovation, born out of necessity on a remote island, can grow into a global benchmark.
Lovund, once a tiny outpost fighting population decline, is now home to one of the most modern processing plants in the world, and the newest cornerstone in Mowi’s global salmon empire.
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