Bakkafrost lays off 140 employees – blame Faroe Islands salmon tax – E24

Bakkafrost lays off 140 employees – blame Faroe Islands salmon tax – E24

The Faroe Islands breeder, who is also big in Scotland, says he is cutting staff to pay taxes.

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In contrast to Norwegian breeders, the company is exempt from ground rent tax. On the other hand, the Faroe Islands tightened the imposition of an additional excise tax.

As a result of this “salmon tax”, Packafrost adjusted its further processing strategy to reduce contract risk in 2024. Consequently, the company received advance sales of only 9 percent of the total slaughter, compared to 22 percent in the same period. Time last year.

-We hoped that we could agree a sufficient amount of long-term contracts, so that we could retain all our employees. But circumstances have changed, especially after the new income tax was imposed. We also hoped that the new political changes would come in time as promised, but unfortunately they let us down, says Backafrost CEO Regine Jacobsen in an interview. message.

As a result, 140 employees at the company’s additional processing plant will lose their jobs.

Both the Conservative Party and Sjømat Norge have asked the government to investigate alternatives to the ground rent tax, and among other things pointed to the system in the Faroe Islands.

Loss of results

The Oslo Børs listed company reported its results last week. The operating result fell to DKK 269 million in the third quarter, from DKK 428 million at the same time a year earlier.

Our Fish Meal, Fish Oil and Feed segment had another strong quarter, but we are not satisfied with the results of our Agriculture segments this quarter,” said Regin Jacobsen, CEO of Bakkafrost.

Jabori Obasanjo

Jabori Obasanjo

"Coffee trailblazer. Certified pop culture lover. Infuriatingly humble gamer."

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