IHN outbreak in the farming centre of Millar affected 1 million farmed fish of Mainstream Canada. (Photo: Stock File/FIS)
Cermaq quarter results affected by disease outbreaks
Monday, October 08, 2012, 01:30 (GMT + 9)
Cermaq will charge accounts in the third quarter of 2012 with a one-time charge of NOK 31 million (EUR 4.2 million) in connection to the outbreak of infectious haematopoietic necrosis (IHN) in Millar, Canada, as well as NOK 20 million (EUR 2.7 million) related to a pancreas disease (PD) outbreak in Finnmark, Norway.
The IHN outbreak at Cermaq’s site in Millar has impacted 1 million fish at an average weight of 0.4kg. The outbreak was reported on 31 July and 8 August 2012.
Despite a request for financial compensation, Cermaq has not been able to obtain virtual certainty for such compensation before the last quarter closed. The one-off cost will therefore be charged the group accounts in the reporting of Q3 whereas the segment reporting for Mainstream Canada will not include this provision.
In late August, the fish being raised at the Millar Channel farm were removed and taken to a rendering facility, leaving the site empty. Mainstream Canada, owned by Cermaq, then focused on developing a plan for cleaning and disinfecting the farm site, as per the requirements of the Canadian Food Inspection Agency (CFIA).
The IHN virus is a high risk to farmed salmon but a low risk to wild salmon, which carry it naturally with no health effects. IHN is of no risk to humans.
The pancreas disease (PD) outbreak in Finnmark, which affected 740,000 fish at an average weight of 0.75 kg, was reported on 23 August 2012. The total one-off cost will be charged the group accounts in the third quarter while the segment reporting for Mainstream Norway will not include this provision.
Separately, Mainstream Canada has experienced a high level of algal blooms, which have brought increased fish mortalities, and which will result in losses of NOK 5 million (EUR 672,971) in the third quarter of 2012. This provision will be included in the segment reporting for Mainstream Canada.
Cermaq will release the 2012 third quarter results on 23 October, in Oslo.
- Mainsteam's Millar Channel salmon farm is now empty
By Natalia Real