Mowi ASA SWOT and PESTLE Analysis

Strength

1. Mowi ASA is one of the world’s leading seafood companies ranked number one for market capitalization: Mowi ASA is a Norwegian Seafood company and the world’s leading seafood companies, ranked as number one on both market capitalization and sustainability. With harvest volumes of 440,000 tonnes in 2020, Mowi is by far the world's largest Atlantic salmon farmer, with a global market share of roughly 20% in an industry that is still fragmented. Over 50 years later, Mowi’s investments in areas such as feed nutrition, genetics and value-added processing has transformed its business and the company is now placed in a leading position that few food producing companies can match. Mowi provides its customers with 7.5 million meals a day. Operations have been running close to normal despite extraordinary challenges from the global pandemic and the company in-fact harvested an all-time high volume of 444K tons of fish. Mowi is self-sufficient in its feed for Europe and Scotland’s feed mill produced a record high of 150,576 tons of feed. Mowi is also above industry benchmark on license utilization in Norway as of 2020.

2. Mowi ASA has a fully integrated value chain, providing its products to 70 countries: The company has a fully integrated value chain from roe to plate and produces its own environmentally certified feed specifically designed for the Mowi salmon strain. In terms of both volume and turnover, Mowi is the world's largest producer of farm-raised salmon. The company offers seafood products to approximately 70 countries, is represented in 25 countries and employs 12,200 people. Mowi is organized in three business areas: Feed, Farming and Sales & Marketing. The company has also acquired several brands around the world such as Rebel Fish and others to expands its operations. By sales, Mowi sells 69% of its products within Europe, 21% to the Americas, 9% to Asia and 1% to the rest of the world. Mowi experienced strong growth in retail in all markets, and in particularly in the German and the Southern European markets in 2020. Fresh in the Americas developed favorably in 2020 driven by strong demand for our value-added products and the shift from foodservice to retail as a consequence of Covid-19. Skin pack volumes were at all-time high and the Miami plant opened in 2019 has been an important enabler to achieve the growth. For Chilled in the Americas, volume development was stable, but also influenced by the lockdown measures in the foodservice segment. Asian operations experienced a slowdown in volumes in 2020. Asia the first region to be impacted by Covid-19, both related to severe restrictions and lock-downs as well as reduced availability of air-freight capacity and increased air freight rates. However, Mowi experienced an improvement in the market during the last quarter of 2020 and experiencing recovery in 2021.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Overfishing, escaped farm-raised salmon and carbon emissions by fishing companies create negative environmental impacts: Overfishing and excessive exploitation of water resources to procure seafood is causing an imbalance in aquatic ecosystems. Therefore, there is more pressure on seafood companies to become more eco-friendly and practice sustainable methods of procurement. Mowi ASA puts sustainability at the center of its operations. Mowi has adopted a global approach to climate change which is aligned with climate science (approved by the Science Based Targets Initiative, SBTi) and the Paris Agreement to limit the increase in the global average temperature to well below 2°C, and ideally no more than 1.5°C, above pre-industrial levels by the end of the century. The Leading the Blue Revolution Plan, developed by Mowi, is a sustainability strategy. It sets out ambitious goals to ensure that Mowi's salmon is raised in the ocean in harmony with nature and local coastal communities, while also addressing global issues like climate change and plastic pollution through an eco-efficient value chain. In 2021, the company’s actions towards the targets set in its sustainability strategy contributed to reducing the group's GHG emissions, further optimization of our packaging, increased recyclability of farming equipment, more efficient freshwater use at our processing plants and smolt/post smolt units, increased circularity of our waste streams like sludge from freshwater units and by-products from processing plants. Mowi decreased its GHG emissions by 3% from 2019. Currently, Mowi is taking action to reduce emissions further by operating energy-efficient plants, designing feeds for optimal FCR, purchasing deforestation-free soy, Increasing the share of renewable energy, optimizing logistics and promoting a climate-friendly supply chain among other efforts. Mowi ASA’s operations are certified for sustainability by ASC, BAP and Global GAP in 6 locations. Escaped farm raised salmon fish is a concern that seafood companies are required to take care of, since interbreeding of wild and farm-raised fish has a negative impact on the environment. As a result, in aquaculture, lowering escape rates is a top priority. The number of escaped salmon increased to 146 873 in 2020 (up from 68 145 in 2019), while the number of escape incidents remained unchanged at 17 in 2019. (16 in 2019). Only 6 out of the 17 incidents related with a number of escaped fish higher than 300 which is used in the ASC standard as indicative of nonconformity. The total of 146 873 escaped fish correspond to 0.09 % of the average number of fish in sea in 2020. Mowi ASA needs to make further improvements to reduce the escape incidents.

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