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THE Faroe Islands is boasting an unusual fish farming success story despite the slump in salmon prices.
The Aquaculture company Bakkafrost, which was quoted on the Oslo Stock Exchange in the spring of 2010, says it has managed to ride the slide largely because it has signed many long term contracts with buyers.
So it did not come as a surprise two years ago when the fish farming company Bakkafrost was awarded the title 'Business of the Year' in the Faroe Islands. Originally established as a local herring factory in 1968, Bakkafrost has succeeded in developing strong herring and salmon farming operations as well as adapting to the demands of the global business environment.
A Faroese government business bulletin says that Bakkafrost's current success is part of a larger renewal in the fish farming industry, which went through major challenges in the 1980s and 1990s.
Like most other fish farming companies, Bakkafrost experienced difficulties in the years when disease affected fish farms around the world. However, unlike many other companies, Bakkafrost emerged from this crisis successfully. At the time when Bakkafrost gained control of the disease, the market conditions became more conducive and the company achieved rapid growth.
Bakkafrost is based in Glyvrar in the Faroe Islands. This spring they bought the pelagic fish factory Havsbrún in Fuglafirði, a nearby town. Havsbrún produces fish meal for the fish farming industry and is valued at €148 million. The acquisition was the largest deal to take place in Faroese business history.
Regin Jacobsen, the chief executive of Bakkafrost, who represents the second generation of the family business, was awarded the title 'Leader of the Year' in Faroese business in 2010.Bakkafrost had an operating profit of €39 million for the first nine months of 2011 compared to €21 million for the same period last year.
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