Placing new emphasis on fresh products, Faroe Seafood has invested heavily in state-of-the-art fishing vessels as well as process and product development to secure its position as Europes leader in portions of saithe.
In the course of the last decade, Faroe Seafood has quietly grown to become Europes biggest supplier of frozen portions of saithe. And with its firm entry into the harvesting side of the business, the company is now poised for the number one position in fresh portions as well.
As the largest seafood producer, processor and trader in a country where fishing is everything, Faroe Seafood has become a vertically integrated operation with its own state-of-the art catching fleet which means it can now offer its clients a whole new level of delivery reliability.
With a staff of more than 1,000 people, Faroe Seafood is one of the largest employers in the Faroe Islands. Exporting more than 36,000 metric tons of seafood on an annual basis, at a total value of 900 million dkk (120m eur) mainly products of saithe, cod, haddock, and salmon the company is known as a trusted supplier of quality seafood from a sustainable resource that has been fished for many years.
Were the number one European supplier of portions of saithe, managing director Meinhard Jacobsen noted earlier this year. And were probably also going to be the biggest in Europe when it comes to fresh portions of saithe. With our latest development programs finally in place, well be in a position to shape our own strategy in terms of 100 percent utilization of every fish caught.
He added: Were a preferred supplier with everything that goes with it: a proven track record, established systems with stringent regulation, good internal control procedures, excellent traceability, a legal infrastructure with a high level of accountability, and we have carefully steered clear on any association with IUU fishing.
Faroe Seafoods new schedule of catching and processing was put into top gear in February 2008 immediately spelling success with exceptionally good fishing.
As for 2007, the company reported a 17 million dkk (2.3m eur) loss and some extraordinary write-offs after another year of disruptions and acclimatization to changed conditions. The winter was one of the toughest in living memory, keeping fleets tied up with processing plants crying out for fish. In three short years, Faroe Seafood went from uncertainty of ownership through mergers and acquisitions to privatization.
The 2006 acquisition of fishing company Beta included its one operational team Bakur and Stelkur, and another pair under construction in Vigo. The deal included fishing licenses for three pair teams and the company purchased two similar, relatively new trawlers from Scotland and Ireland, Rókur and Lerkur, and converted them to work together. At the end of 2007, the final pair, Heykur and Falkur, was delivered to bring the fleet up to full strength, giving the company the reliable source of raw material it needed.
We still buy from other sources, Mr Jacobsen notes, but were now able to supply ourselves to a great extent. A problem with relying solely on third party vessels is the lack of control that can leave you unable to supply your clients because someone else had a different schedule. With our own boats, its a different story.
Faroe Seafood also has a two-third share in another pair, Jaspis and Amethyst, and a 50-percent share in the trawler Eydna, all of which contributes to the stability of supply that overseas customers look for.
As contrasted to aiming at the chiller cabinets of mainland Europes supermarkets, the food service sector is becoming increasingly important for Faroe Seafood.
In the US, for instance, seafood consumption in restaurants and canteens far exceeds home consumption, so we have to ask ourselves where to best place our business. This market also doesnt have the hypercompetition that characterizes the retail business. Whether in terms of fresh, frozen or salted products, the food service market could well become our primary outlet.
However, Mr Jacobsen said, were still in the retail market and intend to keep our niche there. Although this presents challenges in unpredictable North Atlantic winters, developing the fresh segment of its activities is a priority for Faroe Seafood, according to Mr Jacobsen.
With a new infrastructure in place for Faroe Seafood, a whole world of opportunities is unfolding. Fresh products is one of the areas well now be in a position to work more with after all, we have put a lot of time, money and effort into development and new technology. And our new fleet of fishing vessels is already starting to make a tangible difference.
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