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Going as far back as 100 years ago, Skretting in Norway started out in the agriculture business. Forty years have passed since it decided to fully commit itself to the aquaculture trade, emerging as a company selling fish feed to the Norwegian salmon and trout industry.
Since then Skretting has become a global fish feed producer with production facilities in more than ten countries. Total annual production is more than one million tonnes of feed for more than 50 different fish species, which makes Skretting a world leader in its industry.
Skretting is owned by Nutreco Holding NV, an international animal nutrition and fish feed company. This Dutch company holds selective downstream positions in the poultry and fish chains and with aims to regain solid profit growth, reduce earnings volatility and improve return on invested capital.
With Skretting Norway’s turnover of 2.2 billion Norwegian kroner (approximately £190 million), managing director, Mr Hans Abrahamsen, is the man responsible for the success of the Norwegian part of this fish feed success. Recognised as one of the top three companies on environmental reporting in Norway in 2004, Skretting is known for its quality products that are strictly monitored. “Our industry depends very much on raw materials, both from fisheries and agriculture sectors.
Due to the fact that we only use sustainable resources, we work very hard and closely with our suppliers to ensure that we never use materials, which are not harvested or taken from sustainable industries. From our point of view, using proper natural supplies is our main challenge and we take it very seriously.
We also liase very closely with legislation in different countries in order to guarantee that inappropriate unrefined materials are not exploited or used. This strategy is also used all the way down the value chain to the supermarkets, letting them know how we deal with it,” comments Hans.
When asked how the company ensures that consumers are made aware of its quality, Hans elaborates that: “We have a full electronic traceability system that shows our clients, end-users and the supermarkets what kind of raw materials we use and where they come from.
They are also able to check the quality, giving them peace of mind because they are aware of what they’re buying. We all know that fish is very healthy and there-fore want to confirm that the farmers are producing a clean and healthy product, and with this advanced system, that can be traced all the way through to our suppliers.
“We have a very active profile and by utilising this technology there is an open dialogue with our customers and the fish buyers, making us very transparent. Customers are able to have a full view, any time they choose to, on what we deal with and how we go about doing this. I strongly believe that in order to be number one in the business and to survive in this competitive world, it is vital to build up this trust with the end-users,” Hans explains.
Being the first company worldwide with an internal electronic traceability system, Skretting works actively with Nutreco Aquaculture Research Centre, other companies and the EU, in order to strive to get a global traceability platform, making it much easier for end-users and supermarkets to get access to all the data the company already has.
Having a dedicated Nutreco research and development institute to concentrate on the growth and delve into the analysis required ensures Skretting continues to provide the best quality fish food and maintain being the best at what it does.
Not only a company that focuses on quality products, Skretting also makes certain that it invests in its employees. “We have training all the time using a lot of internal programmes by utilising some of our best people. An exam is held after these courses and we ensure that even the production, sales and marketing staff sit this. We also use external sources to increase the competence levels.
Another key issue is management training as good managers make good staff. We have witnessed an intensive increase in competence in all of our employees in all areas. We are number one in our market and to be number one you also have to invest in people significantly,” Hans clarifies.
Expansion is always on the horizon for Skretting with continuous organic growth for the business. However, currently, the Norwegian aquaculture market is stable and Hans mentioned that there are no further expansion plans, as he is satisfied with the capacity of the company to cater for the next period. Hans adds: “Today in Norway we specialise in producing and supplying fish feed for salmon and trout but over the next five to ten years, we’ll see an expansion into feeding cod, halibut and other species. We’re looking forward to this, as they are new species within the aquaculture industry in Norway.”
Being a world leader, Skretting has maintained a step ahead of all of its competitors. Hans believes that there are various aspects that differentiates it from others including its innovation inn all areas, as he emphasises on: “Innovation can’t be limited to the fish feed, it is important also within the production department, in sales and marketing, and not forgetting logistics.
I believe we are ahead of our competitors when it comes to both inbound and outbound logistics. Only in Norway we have to get raw materials of 300,000 tones in every year and then ship the finished feed to all the small and big farmers along the Norwegian coastline - that’s a lot of vessels and trucks. I would say that in all areas we aim to always be a small step ahead of our competitors.”
Many businesses are drawing benefits from the current Norwegian market situation. However, it’s not the same for the aquaculture industry since the country is not yet a member of the EU. Over the last ten to 15 years, the company has been actively having discussions with the EU.
“Fish farmers in EU are claiming that we are selling the fish from Norway too cheaply, and are not happy about the competition. So it is a little bit unstable but it is very important for the Norwegian salmon that we have market access,” explains Hans.
When asked on the company’s success, Hans mentions: “I think the main reason we are where we are today is due to us being very open and transparent and ensuring that we’re doing everything sustainably.
“Another important aspect is by having a very flat organisation, making people responsible in the different areas. A positive internal atmosphere emphasises this responsibility and the need to be innovative every day.
“Not forgetting our very close relationship with some of the NGOs, including the Bellona Foundation in Norway. There are open dialogues where we discuss everything with regards to sustainability, environment and all the challenges our industry, and all other industries, face. This close cooperation, in turn, helps us achieve much more together.”
Hans concludes: “I am optimistic that we will still be number one in our business five years ahead. We will still have more than 40 per cent of the Norwegian market share, if not more, making us very aggres-sive in the industry. We want to be and remain at the forefront and will have to work that extra bit harder, if needed. I’m proud to say we have very high ambitions and will certainly see them through.” FC
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