Bakkafrost

Glyvrar, Faroe Islandswww.bakkafrost.com
Invested through
  • Triodos Pioneer Impact Fund
Asset ClassesListed equity
Impact strategyImpact Equities and Bonds
ISIN codeFO0000000179
Industry groupFood, Beverage & Tobacco
Aligned with SDGs
  • Zero Hunger
  • Good health and well-being

Bakkafrost is a fish farming company focused on salmon. The company is active in three segments:
• Farming - Faroe Islands and Scotland
• Value-added Products
• Fishmeal, Oil & Feed

The first segment (66% of revenues) focuses on growing salmon and selling to wholesalers, whereas the Value-added Products business (20%) packs and sells portions to retail clients. The third division produces fish feed (14%). This is mainly used for the two farming segments, as feed is important for the quality of the salmon.

Bakkafrost operates mainly on the Faroe Islands, but also in Scotland. Revenue is derived from selling to customers in Europe (66%, including Russia), the US (17%) and China (the remainder). The company was founded in 1968 by the Jacobsen brothers. It employs more than 1,500 people and is based in Glyvrar, Faroe Islands.

Investment rationale

Bakkafrost contributes to both the sustainable production of food, as well as a more environmentally friendly diet of humans.

Our current diets heavily rely on animal-based proteins, the production of which have a high environmental footprint. This needs to be changed if we want to feed the world in a sustainable way. Bakkafrost farms premium salmon, a healthy animal protein with a far lower environmental footprint than other animal proteins; the environmental footprint of cattle, for example, is more than 10 times higher than the one for salmon.

The company aims to have all of its Faroe sites ASC certified by 2021. Being the best sustainability standard for the aquaculture industry this shows that Bakkafrost takes its responsibility for sustainable food production very seriously.