March 28, 2012
Marine Harvest's salmon feed plans plunge Nutreco shares
As investors reacted on plans of possibly setting up an own salmon feed plant by Norwegian seafood company Marine Harvest ASA, shares in Dutch animal nutrition and fish feed company Nutreco plunged Tuesday (Mar 27).
The move could potentially have important long-term effects on Nutreco, according to SNS Securities. The analysts with the Dutch bank pointed that Marine Harvest is Nutreco's second-largest client accounting for fish feed sales of about EUR280 million (US$371 million) or some 6% of the group sales. SNS also argued that the additional feed capacity may cause price pressure.
Nutreco's share lost 6.2% to EUR54.04 (US$72) at 1029 CET in Amsterdam trading on Tuesday.
Marine Harvest said Tuesday (Mar 27) it was considering to establish a salmon feed company with a yearly production capacity of up to 500,000 tonnes. The Norwegian company has concluded a pre-study and based on this it was launching a detailed assessment of the business case for the plant.