Organic salmon farming–A profitable differentiation strategy
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https://hdl.handle.net/10037/35114Dato
2024-06-10Type
Journal articleTidsskriftartikkel
Peer reviewed
Sammendrag
This study examines the financial performance of six Norwegian
salmon farming companies to investigate the benefits of differentiation through organic salmon production. Utilizing panel
data from 2009 to 2020, the study analyses return on sales, prices, and production costs. The results show that the company
that has differentiated parts of its production into organic salmon consistently achieves higher returns on sales. Notably, this
company also maintains the lowest production costs despite
organic farming’s typically higher expenses. This efficiency is
seemingly attributed to the firm’s emphasis on “biological risk
management,” leading to reduced salmon mortality rates.
Contrary to Michael Porter’s differentiation versus low-cost strategy debate, this study indicates that a combined approach may
be possible. The findings underscore the potential competitive
edge of organic production in salmon farming and prompt
questions about why it is not more common in the industry.
Forlag
Taylor & FrancisSitering
Wærness, Bertheussen. Organic salmon farming–A profitable differentiation strategy. Aquaculture Economics & Management. 2024:1-21Metadata
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