Page 7 - grieg-seafood_Neat

Grieg Seafood 7 From the CEO dear Shareholders: 2010 has been an extraordinary year for Grieg Seafood. We have delivered the best annual results ever for the Group, which is largely the result of record-high salmon prices in combination with a 31.7% growth in sales volume. The salmon market started to develop very favourably in 2009, a attracts signifcant media attention, and has also made its way situation that continued throughout 2010, with high and stable higher onto the political agenda. The truth is not always measured prices. These high prices have mainly been due to constraints on the by the level of media attention received. So it is in this case. We supply side, especially following the outbreak of the iSa disease in will continue to make our own operations refect fact-based best Chile. demand has also proven to be robust, solid in both the large practice. That does not mean that we do not face challenges. established salmon markets and in populous emerging markets. Salmon farming like most human activity has an environmental footprint. This we need to minimise, and we work to do so. There in addition to the favourable market balance, we have seen improved are other challenges that raise concern with us, the industry, and productivity and an improved biological situation in all our regions. the general public: Sea lice levels, diseases in certain production areas, and escapes are among these. yet from its beginnings, this in the fall of 2010 Grieg Seafood and Bremnes Seashore established industry has been through tremendous development in its continual together a sales and marketing company in norway called Ocean effort to deal with the challenges it has faced. in norway we have quality. The purpose of the company is to facilitate the norwegian the World’s strongest regulatory regime, the best global research supply of our own products to different markets internationally. and knowledge institutions, as well as equipment, feed, and salmon Ocean quality’s main offce is located in Bergen, while two regional farming companies that are World leading. i think we can be confdent offces operate in alta in northern norway and Bømlo on the south that again, now as in the past, with effort and determination we will west coast of norway. Grieg Seafood ownes 60 % of Ocean quality fnd the right solutions for whatever challenges we might be facing, aS, while Bremnes Seashore holds the remaining 40 %. and that these solutions will both be fact based and sustainable. Grieg Seafood´s operational performance continues its very in addition to continually improving what we do, we must also positive trend, indicating that the past three years of implementing recognise that the salmon farming industry has been poor at our growth plan have begun to pay off. The performance was conveying its great positive contribution to human life and to the particularly positive in norway and Shetland. broader society as a whole. We produce food, and healthy food, for an ever growing global population. We do this through some in times of high earnings, it is more important than ever to of the most effcient production of proteins that are known, far maintain focus on improved operational effciency. Our focus better than chicken or beef. We utilize the natural temperature of remains unchanged, with the priority being on implementing our sea water; energy could hardly be more renewable than that. Finally, improvement plans. in 2010, the board of directors decided to we create signifcant direct and indirect economic activity in rural accelerate implementation of our smolt strategy, approving a 200 areas. This means jobs, schools, infrastructure, and opportunities million nOk investment into new freshwater recirculation facilities for growing service and supply industries: all the things that make in all regions during 2011 and 2012. This strategy is the single rural communities alive and thriving. it is a long way from a coastal most important improvement project in the Company, and will mean community in northern norway to the urban lifestyle and priorities direct cost savings on smolt, higher utilization of our seawater in the large cities in the South. if we want these benefts and our production capacity, and improved biological performance - all of perspective to be appreciated, then we as industry players need to which will reduce unit costs. be better at sharing this view and this information with the greater public. Grieg Seafood has taken important steps to emphasise and optimise our human capital. We understand that our ability to keep growing Grieg Seafood is proud to represent fsh farming as an important and improving our performance is dependent upon motivated and business for providing jobs in rural areas of the World. Our high-performing personnel. Therefore, we are implementing an production is an important basis for stable income and continued array of human resources initiatives across all locations. settlement in many coastal communities. These are the World’s best locations for producing healthy, protein rich food for a growing 2010 has been an extraordinarily positive year in what may be population. high quality seafood truly is made at the World’s end… the best and longest business cycle for salmon farming ever. Grieg Seafood will use this as an opportunity to focus on the environment and our contribution to local jobs, economic activity, rural development, human welfare and hope. morten vike The past number of years has shown an increasing and vocal CEO opposition to salmon farming, in particular in norway. The opposition