Norway's smolts are now twice as big – but three times as expensive

"The weight of smolts has doubled in the last ten years, while the price of smolt has tripled. It is an interesting observation."

This was said by Nina Santi, general manager of INAQ, when she presented findings from the company's 2026 hatchery report during the Future Smolt 2026 conference at Sunndalsøra.

Sharp increase in large smolt

One of the clearest developments in recent years is the increase in smolt weight.

Santi showed that in 2018, only 3% of the smolts stocked into sea pens were over 250 grams. By 2025, the proportion had increased to 23% (see figure below).

"Smolt weight in Norway is increasing. It has increased quite sharply in recent years. Three percent were over 250 grams in 2018, while in 2025 it was 23%. It is a fairly significant development," said Santi.

But the development differs greatly between the regions.

"What is perhaps even more interesting is to look at how this is distributed between the counties. It is perhaps no surprise that Rogaland leads the way. Over 60% of the smolts there are over 250 grams," she said.

At the other end of the scale we find Trøndelag.

"But perhaps the surprise is that Trøndelag is at the bottom. Here there are only 5.3% large smolts."

Fewer, but larger facilities

The INAQ report also shows large regional differences in how hatchery production is organised.

In the southern production areas 1-4, there are 65 hatcheries that collectively produce around 122 million fish.

In Central Norway, production areas 5-7, 40 plants produce around 128 million fish. In the north, production areas 8-13, there are also 40 plants, but these produce a total of 203 million fish.

"So, many players and smaller facilities in the south, and fewer players and larger facilities in the north," summarised Santi.

She emphasised that the geographical distribution is important, as smolts cannot be transported freely between all parts of the country due to the restrictions related to pancreatic disease (PD).

At the same time, the number of hatchery farms has declined significantly over time.

"The total number of hatchery farms has decreased by 40% since 2000. Some of the smallest ones have gone out of production or been given other purposes," she said.

The gram surcharge has skyrocketed

The trend towards larger smolts has also affected the price.

Santi explained that the smolt price usually consists of a base price per individual, various surcharges and a gram surcharge that provides higher payment for larger fish.

While the gram surcharge had a relatively flat development for a long time, there was a clear change from 2023. From 2022 to 2025, the gram surcharge increased by 47% (see figure below).

"We all know that something happened in 2023. That's when the resource rent tax came. It led to a number of reallocations, as we call it, in the companies. So could that have something to do with it? Well, other things are happening too."

She highlighted, among other things, that the costs of hatchery production have also increased significantly.

From 2021 to 2024, the cost per fish sold increased by 55% (see figure below). Increased feed prices, higher vaccine costs and higher interest expenses are among the explanations.

But the increased fish size has also had a major impact. 

"A full 40% of the cost increase is due to the fish becoming larger."

Better profitability in integrated plants

Although costs have risen sharply, price developments have contributed to improved profitability in hatchery production.

"The price has increased, and the costs have increased, but perhaps they have not increased at the same rate. This has also improved our profitability during the period."

INAQ has taken a closer look at facilities that were in operation in both 2015 and 2024, and compared the profitability between integrated hatchery facilities and independent producers.

A significant difference

"When we look at them in isolation, we see that the operating margin has become even better in the integrated hatchery facilities than in the independent ones."

In 2024, the operating margin was 26% in the integrated companies, compared to 12% among the independent producers that had been operating since 2015.

"So, maybe the independents are a little more exposed to competition. They have settled on a slightly lower price," said Santi.

At the same time, there is increasingly less independent hatchery capacity available.

According to INAQ, 95% of hatchery farms are now integrated into food fish farming companies or other vertically integrated farming companies.

May cause capacity challenges in the north

In conclusion, Santi pointed out the consequences that further development towards larger smolts could have.

"If the weight is to continue to increase, we need capacity and space to produce these large fish."

She referred, among other things, to the Faroe Islands, which have come a long way in developing larger smolt.

"It is exciting to look at the Faroe Islands, which may have led the way in increasing weight and increasing production using larger smolts. If Norway is to follow the same development as the Faroe Islands, it will have consequences in the future."

According to Santi, Northern Norway in particular could face challenges if the average weight continues to increase.

"When we look a little ahead and at the balance of smolts in the different parts of the country, we see that it is perhaps the north in particular that will have challenges keeping up with an increase in smolt weight," she said.