The values and culture of Bakkafrost has been developed since the establishement of the business in 1968. However the culture and many of the basic values are still the same:

 

- Quality,
- Innovation, and
- Reliability

 

These terms mean a lot to our organisation and we want to stick to these values.

The salmon farming operation has gone through a huge change from its start in 1979 up to today, but the fundament to all Bakkafrosts business activities and strategies is its vision:

through long term relationships with its partners to offer its customers value added healthy quality products. Bakkafrost wants to build its operations on sustainable raw materials and resources.

 

Our Key competitive advantages
In terms of production costs, the farming operation has delivered strong results following the implementation of the new veterinary regime (A set of laws implemented from 2003 and onwards in the Faroe Islands, stating quite strictly how salmon farmers have to operate.) in the Faroe Islands during 2004. The improved biological control has improved fish health and reduced costs due to deceases and lice control. The increased biological control has also given the opportunity to increase the average harvest weight resulting in decreased costs per kg.

 

The Company has established an experienced sales force with long term relations to customers in the US. The Company has a running operation and ongoing sales of large salmon supported by efficient logistical systems for the distribution of the products (both fresh and frozen) from the Faroe Islands to the US. The US market prefers the higher than average size and weight and the high level of omega-3 offered in salmon produced from the Faroe Islands.

 

The Company has long time experience in producing and selling VAP products. Production facilities are state of the art, with very high production efficiency. Sold volumes have increased by 34% per annum over the last three years and approximately 18% per annum over the last 10 years.

Strong customer base
By focusing on meeting existing customers’ demands, Bakkafrost benefits from its long term relationships with a large number of customers. The relationships to customers have proven to give a competitive advantage for both Bakkafrost and it’s customers through product development and marketing.

 

Geographical location
Bakkafrost’s salmon farms are located in areas with very attractive qualities for salmon farming in terms of water quality, water temperature and circulation. The Faroese fjords provide separation between locations, which improves biological control and area management. Relatively short distances between farming areas and processing facilities and well developed infrastructure offers cost efficient transportation of both feed and fish on land and at sea.

 

Veterinary model
The veterinary model implemented in the Faroe Islands from 2003 and onwards, states quite strictly how salmon farmers have to operate. The main objective of the veterinary model is to increase the biological and veterinary security and support a sustainable and healthy operation.

 

Through total separation of salmon generations, vaccination against different diseases (ISA among others), strict regulation of movement of equipment and fish, and other regulations, the results for the 2005-2007 generation on feed conversion ratio, mortality and productivity are among the best results ever seen in the Faroe history of salmon production and solid compared to Norwegian peers. (see figures in section 6.5.2)