Good morning, everyone. My name is Ivan Windheim, and I'm the CEO of MoVI. It is with great pleasure I wish you all welcome to MoVI's Capital Markets Day of 2021, this time around digitally. Ideally, we would like to have you out on one of our many farms or in one of our many factories. But under the prevailing circumstances, I think this is a good compromise.
The disclaimer, I think, we leave for self study. With me today to present and answer questions, I have our entire group management team. A very complementary team, if I may say so, composed of highly skilled and very experienced executives. We have a rich agenda today. I started off at 800 to 825 with the business and strategy update.
Then our CFO, Christian Ellingsen, takes us through cost and financials. Then we have sales and marketing with our CEO of Sales, Ulla Brackfall, before CEO Farming Norway, Eben Wallan, rounds it up with Farming Norway. Then we have a short 5 minutes technical break at 9:20 before Ben Hadelfil, direct from Fort Williams in Scotland, via teams, who will take us through Farming Scotland, Ireland and the Faroes. And Fernando Villarroll from Puerto Mont, Chile, who will take us through Americas, farming Americas. Then Ottley Quist will walk us through FEED before our CSO and CTO, Katarina Martens, will address important topics as ESG and R and D.
Then I conclude it all before we finish the year off with our Q and A session facilitated by our IRO, Kim Dusswig, hopefully at 10:30. Then the first section, business and strategy update. MoWizz is one of the world's absolute leading seafood companies, number one measure in both market capitalization and Sustainability. We are also the world's by far largest producer of Atlantic salmon with 440,000 tons in 2020 or 440,000,000 kilos, equivalent to 2,500,000,000 meals per year. So we do not only make a difference in people's everyday life, we also play a role in global food supply.
That is something we are immensely proud of. We have a fully integrated value chain. We are listed on the Oslo Stock Exchange and we are headquartered in Bergen, the city we like to perceive as the capital of the salmon aquaculture industry. Moogis' vision is to lead the Blue Revolution where all that entails. You could say this role follow naturally from our size.
As this graph shows, we have already a clear number one position Inn and Platte Salmon. And our clear aim is to maintain and further strengthen this position in the years to come. Another takeaway from this graph is also how fragmented this industry still is. There is no clear number 2 or number 3 player in salmon, so it wouldn't surprise me if you see further consolidation of the industry as it evolves. As already said, MoVI has a fully integrated value chain from feed to plate.
We produce our own environmentally certified feed, especially designed for the Mohe salmon strain. Contrary to our competitors, 100% of the Moebis salmon is from our own breed with the opportunities that bring about. The seawater phase takes place in more than 160 farms all around the world. We harvest fish and filleting fish in 12 primary processing plants and produce elaborate products in additional 21 value added factories. Further to that, we have an extensive sales network, physically present in 25 countries, selling our products all across the world.
We have organized our value chain in 3 divisions: Feed, Farming and Consumer Products Sales and Marketing. In volume terms, we are, as already said, number 1 in farming. We are also number 1 in sales and marketing and number 4 in our latest addition to the Moevi family feed. Our 2 feed mills in Norway and Scotland have made us self sufficient for feed in Europe with our 2020 production of 540,000 tonnes. Capacity is 640,000 tonnes.
So in the short term, we have satisfactory room for growth. We are the only true global farmer in the salmon universe with our 440,000 tons in 2020 from 6 farming regions: Norway, Scotland, the Faroes, Ireland, Canada and Chile. As already said, 440,000 tons, of which 330,000 tons or 75% where originate in Europe, where Norway stands out as by far as our largest farming region with its 262,000 tons or 60% of MoWizz total farming volumes. Americas, for their part, accounted for 110,000 tons in 2020 or 25% of the volumes. We are also the only true global player in sales and marketing with our 21 value added factories and 28 sales offices in 25 countries.
In 2020, we produced as much as 239,000 tonnes per day. By farming, our main footprint is in Europe, by far the largest salmon market with 75% of our volumes. Reminder, all the volumes are equally distributed between Americas and Asia. So why always talk about volumes? Well, first, the driver of market capitalization In this industry, it's to a large extent volumes and volume growth.
The truth is that for various reasons, Neither MoWizz nor the industry have managed to meet the strong demand for the Atlantic salmon for the last 10 years. Demand is partly driven by supporting megatrends like population growth, growing health, conscience and issues, While fisheries, at its maximum level, a growing middle class with increased purchase power and aging population and Climate Changes. But demand is also strongly driven by the product itself. Salmon is scientifically proven natural superfood. It is nutritionally dense and great for one's health.
It is abundant in omega-three vitamins, high quality proteins, potassium and antioxidants. It has top appetizing taste, look, texture and color. It is versatile for traditional and evolving food occasions, both raw, grilled, cooked and smoked. It's appealing to all people of all ages. And last but not least, farmed Atlantic salmon It's the most sustainably produced animal protein.
So we have a lot to thank the salmon for. It ticks off all the boxes. This is indeed a very powerful slide. The blue line is demand and the red line is supply. And the graph demonstrates how demand has clearly exceeded supply in the previous 10 years.
We strongly believe that, that will be the case also in the coming 5 years. Alternative farming technologies will not change that. MoWizz Farming is working along 3 main pillars: volume, cost and sustainability. On sustainability, we are number 1 in the animal protein universe, cemented by MoWizz yet again being ranked as the world's most sustainable animal protein producer in the 2020 Colafair Protein Producer Index. The prestigious Colorfair Index assesses the world's 60 largest listed animal protein producers against 10 ESG related criteria, including, among others, greenhouse gas emissions, water use, animal welfare and working conditions for employees.
However, we are not satisfied with just being a front runner in this. We can and we will do more. Our CSO, Katarina Martens, will go in-depth on this under her sustainability session later today. On cost, we have been consistently number 1 and number 2 in the regions in which we operate. However, it is a fact that cost is still too high in absolute terms, particularly in some of the regions outside Norway.
The cost spread between the regions is also too high. Personally, I think it is more important than ever that conventional farming strengthen its competitive edge on cost as alternative farming technologies mushroom much closer to the markets with the logistic advantages that bring about. We will address further cost initiatives in the CFO session and under the various farming regions. On volumes and volume growth, we are not satisfied with our relative performance over the past few years. Despite having harvested record high volumes in 2020, You have been clearly lagging behind industry growth.
As already said, that is not satisfactory, and our clear goal is to grow our farming volumes at least in line with the industry going forward. Therefore, we will address several growth initiatives today and even more as we go along. Sorry. In sales and marketing, we put the customer at the core of everything we do through 3 key elements: the product itself, our MoVI branding strategy and through operational excellence. The ultimate goal is to create customer value.
We have a fantastic raw material, the salmon itself, that we must take care of and protect. We must also continue to develop new innovative high quality products that are easily accessible to our customers to keep pace with constantly evolving food habits. Further to this, we will continue our long term strive for decommoditizing the salmon category through our MoWizz branding strategy. Both the salmon and our customers deserves more than consuming the salmon like any other commodity. At the same time, I think we must acknowledge that the lion's share of the salmon today is sold as a commodity under fierce competition, particularly in Europe.
Therefore, it is key to be a cost leader in this part of the value chain too, so we can make a reasonable profit on our sales. In terms of growth, We also have a clear growth ambition in sales and marketing, albeit with focus on selected segments and markets. After having doubled with idea for some time, We decided to go ahead with our FEED plants in 2013, partly to break up the prevailing FEED oligopoly and its steadily increasing margins. And in 2014, we delivered our 1st feed pallets from our feed factory our feed mill in Bjorn, Norway and from our 2nd feed mill in Calakken, Scotland in 2019. It has truly been a challenging, but at the same time, very encouraging journey.
Although we recruited some of the best individuals in the industry, We started in practice on scratch with all the challenges that entailed. In all honesty, It has not been a journey without bumps in the road. However, that being said, we have overcome them all 1 by 1, and we now have a world class feed that performs well at a reasonable cost. The strategy from here is to grow MoWizz Feed with MoWizz Farming Europe. We have unutilized capacity in our feed mill in Scotland.
And in Norway, we can easily add on a new production line if needed with limited capital expenditure. The competition in the external market is currently too high to justify a general broadening of our strategy through going externally. But we are opportunistic and we will continue to cherry pick from case to case. In other words, the focus in MoWizz Feed going forward is to streamline our feed operations, working on costs and continue to produce high performing quality feed, especially designed for our MoWi breed. Then MoWizz 4.0.
This is perhaps one of the most exciting slides on the entire Capital Markets Day. The 4th industrial revolution is upon us and gives us unimaginable opportunities. My tip is that this will completely change our industry in just a few years' time. Therefore, in order to leverage the opportunities Industry 4.0 technology offers and will offer, We have developed our own Mowi 4.0 strategy to facilitate a digital transformation of our value chain from row to plate. The aim is to make it much more efficient than today.
In farming, we introduced the concept smart farming, which you may already know from agriculture, where we will use new technologies to increase productivity and peace welfare and minimize our environmental impact. In Norway, we are testing out 3 applications as we speak. By means of advanced imaging technology and intelligent sensors, we perform real time monitoring of biomass, digitalized counting and autonomous feeding. A tsunami of data combined with machine learning will enable us to grow the fish much more efficiently than today and in an even more sustainable way. By tracking the fish behavior and monitoring the seawater constantly, we can be proactive instead of reactive when it comes to acting on biological issues.
My tip is also that Industry 4.0 Technologies will offer much clearer scale advantages in the seawater phase than what we have seen to date. Finally, you could add to this. Bear in mind that even after 50 years, we are still feeding our fish manually, though with a camera and a mouse click and not a hand baler in Norwegian Alsikoy. We believe feeding maybe the most important component in our value chain will be 100 percent autonomous in the future. Artificial intelligence and machine learning will outcompete the craftsmanship.
This obviously offers opportunities, particularly for large players like MoVI. Therefore, in order to secure this high progress on this, we have set a target to have MoVI Farming Norway, our largest farming entity fully digitalized by 2025. It's definitely a hairy goal. But Because of its importance, we need a push on this. Say it out loud doesn't reduce our commitment either.
Ewin will elaborate more on this under his section. Digitalization and automation offer, of course, also huge opportunities in our more than 30 factories. As we all know, fish processing today is in many ways extremely labor intensive. And often, we are talking about just replacing manpower with existing machines. Advanced available scanning technology also opens up for a much more efficient production sophisticated product differentiation than what we have today.
We will also use blockchain solutions for selected customers. Ulla will talk more about this under his section. To give you a further teaser of the Moevi 4.0 farming concept, we have prepared a short movie.
Visual fillets, we can continually monitor fish development and control quality. To help To accelerate our innovation and achieve success, Maui chooses to partner with industry leaders. We have already started to implement these solutions into our value chain and have set the ambitious target to have Fully implemented smart farming in Norway by 2025. These actions will improve fish quality, Our environmental footprint. These advancements in technology will be key to realize our vision
Exciting things, I must say. Then Christian, the floor is all yours and you can walk us through the final section. Thank you.
Thank you very much, Ivan, and good morning, everybody. Hope everybody is doing well. My name is Christian Allingsen. I always get a bit hungrier when I see such nice pictures of salmon, such as we see here in the presentation. But I hope that you're also having some appetite for some numbers.
We'll start with some exciting numbers showing that we are doing well. Today. The different business areas of MoVI will present their plans for the coming years, including how to grow their business, including how to improve our performance. But now at the beginning of my presentation, I will be a little bit backward looking look into the recent historical performance since 2015. And this is a benchmarking of EBIT per kilo versus our listed peers.
And over time, This benchmarking shows that we are consistently number 1 or number 2 in the different regions. This benchmarking captures the differences in operations and costs, because price differences, they tend to even out when looking at this over several years. And the overall conclusion is that Mohe is consistently number 1 or number 2 in the different regions and that is a strong achievement. Remember that Moebi is the only global company in our industry And we are measured against companies that can focus their entire resources on just 1 or 2 farming countries. So Mowi is performing well in the different regions and this is a good starting point for further improvements.
We know that conditions vary between the farming countries, both with regard to environmental conditions, legal framework, the supplier industry, culture and other factors. So therefore, the measurement must be fair and it must be performed region by region. We start with our largest farming region, Norway. In Norway, we are number 2 in total. If you take the most recent year, 2020 as an example, Moevi Norway performed well.
We are number 1 in Region North. We are number 1 in region South. We are a little bit behind in region Mid, which for Moavies is a large region encompassing 3 production areas with differences in performance. And the 2020 figures are adjusted for the currency effect on price from the weakening of the NOK. This is important when we are comparing Mowi, which is a euro company with our NOK peers, because again this is a proxy for cost and operational benchmarking and we Do not want that to be disturbed by the FX price effect.
If we move on and look to Scotland, We are number 2, but closer to number 1 than number 3. In Canada, we are number 1. In Chile, we are number 2, but note that in 2019 2020, we have been a clear number 1. In the Faroes, we are in line with number 1. And for the other regions, we are a clear number 1 in Ireland compared with the other regions.
If you move on to the cost graph here, the first graph we see up to the right. We see that the blended farming costs for Moave has been relatively stable for the past 5 years with an annual increase of approximately 2% or an inflationary increase. If you look at the graph below, we see that our costs in Norway, our most important farming unit, they have increased less than the industry. And this overview includes the total industry in Norway, not just the listed peers. So also some smaller high performing Farmers are included here and they can often be hard to beat on cost.
But as Ivan also mentioned, While costs are relatively stable and we have a good cost position as the number 1 or the number 2 in the different regions, the cost level is still too high. For many years, there has been an underlying cost pressure in the industry, also from Mowi, and cost cut initiatives are important to address this underlying cost pressure. And we have succeeded so far in keeping costs under control due to cost focus and cost cut initiatives. And with these cost drivers, more challenging biology, increasing feed prices, more complex regulations, It is a battle to manage a 2% annual cost increase in total. We have been able to offset not just the increase through our work on cost.
And the main driver for the cost pressure is biology, more specifically the change to more costly mechanical treatments. And health cost has increased approximately 6% annually during this period. In addition to biology, the feed price is a cost driver. Feed prices have increased approximately 3% annually. Also stricter regulations represent a cost driver.
So there are many forces working in the opposite direction offer cost cut initiatives. In addition to cost cut programs, We are working on many initiatives in farming, which are addressing biology. And we will hear more about that from our COOs today. And this goes hand in hand with our work on growing volumes in a sustainable way. This Slide shows the cost of programs since 2018.
We see that They represent and practice over 800 different initiatives throughout our business. And we see that the effect was the largest in the beginning, but there were low hanging fruits.
And then
the focus has moved more over towards procurement and other types of cost work. Cost savings in the years 2018 to 2020, they amount to EUR137,000,000 euro and the farming represents the largest part of our cost base and also of our savings. Each initiative today represents a verified permanent saving. Many are related to renegotiation of contracts, procurement savings due to improved coordination between departments and units, entering into frame agreements, volume discounts, tailoring of contracts to our leads, fee cuts, reductions on numbers of suppliers, cuts on external services and in general a careful review of our spend in all areas of the company. And the graph below indicates how the savings are split on different categories such as boats and treatment capacity, nets and net cleaning, vaccines and other health items, procurement savings and other initiatives.
And through these cost initiatives and this work, we have improved what we call our cost culture. We now have an organization which is more cost aware. And in the end, we are dependent on our organization to work in the right direction when it comes to cost. The target for 2021 program is €25,000,000 in annualized savings. This includes the productivity program where we are also addressing our 2nd largest cost item in the group, which is salary and personnel expenses.
Increased productivity by working smarter, utilizing technology, automation, what we call, Maui 40. It's an expectation not just from ourselves, but also from society in general. And the volumes we produce today, we must produce with 10% less FTEs by 2024. In 2020, we demonstrated that it is possible to set new volume records with less FTEs. We produced all time high volumes with 2% less FTEs than in 2019.
And 2020 was the 1st year with somewhat less employees than the previous year. Further FTE reductions will to a large extent be sold through natural turnover, retirement, reduced overtime, reduced contracted labor. And our expectation It's of course not to stay at today's volumes. Growth is one of the key pillars we are working along in farming. So in fact, we expect to be a net job creator in the coming years.
Our cost cut program also includes procurement initiatives. We have a long term program to systematically address the entire cost base to achieve lasting savings through a lean organization, coordination, standardization and working as one company, what we call 1 Mowi. And IT and automation initiatives are important work of our work on important parts of our work on cost. In order to realize our plans, we need a solid financing. And we have EUR 2,000,000,000 in committed financing.
The banks indicate of EUR 1,400,000,000 as the backbone of our financing, we expect that also to be the strategy going forward. We have a solid balance sheet with 52% covenant equity ratio. This is comfortably within the covenant requirement of 35%, and there is no earnings covenant. We have a robust cash position. The year end 2020 figure indicated here has increased due to the proceeds from the sale of Stas Aqua in January.
Currently 10% of our financing is green and we expect this to increase to over 80% by 2022 and 100% by 2026. And speaking of the green financing, we successfully issued the 1st green bond in the industry in 2020. CCRO signed off on our green bond framework and the first bond was issued at very attractive terms. The total book ended almost 5 times the digital mounts. The bond has been admitted to Euronext EFT bond section and the proceeds from the green bond is they are financing green projects across different categories in the company.
The first green bond was very well received in the market, and we see that there is an excellent fit between MoWizz Sustainability Strategy and the ESG Industrial Community. We believe in being transparent, accurate and consistent in our communication. Trust is an important value in the capital markets. We will issue our 1st green impact report next week on the 24th March, the same date we will release our annual report. Backed by solid financing, we will continue to grow in a profitable manner.
And this brings us over to the next topic, sales and marketing. And it is my pleasure to introduce Ola Batwal, CFO for Sales and Marketing.
Thank you very much, Christian. My name is Ulla Bratwahl. I'm the COO for sales and marketing. So I would like to take you through the sales and marketing division. As Ivan already mentioned, in sales and marketing, our main focus is customer value.
And Through our geographical footprint, we have the ability to serve customers all over the globe. As you can see to the right on this screen, We have sales offices across the entire planet, and we also have processing capacity in all main markets for salmon. Our main footprint is in Europe, the biggest market for Atlantic salmon, but we have grown our footprint in Asia and in the U. S. Over the last few years as we have seen demand growing faster there than what it has done in Europe.
In Europe, we have been working on restructuring of our processing footprint. And today, we have a footprint which is adopted to the current market. In putting the customer at the core in everything we do, we work along 3 main areas. First of all, the product itself. Salmon has intrinsic value as a raw material.
Our role in sales and marketing is to value add to that and to bring the quality of the raw materials to customers and consumers in the best way possible. Focusing on category management, customer intimacy, product development is key in order to bring more value to the salmon market. Our branding efforts was launched in 2018 and the first products were in the market in 2019. Our aim with the branding project is to decommoditize the salmon category. Having that in mind, we know that still private label is dominating market.
And in private label, you need to be cost efficient. So focusing on operational excellence and making sure that we have Operations also in the downstream part of our business is key. And we see further growth opportunities in value added products. We will focus on selected segments and markets to grow our value added volume in the years to come. As you can see from the bottom figure.
We had grown our value added volumes from 110,000 tons product late in 2015 to 239,000 tons in 2020. We will continue to focus on growth in selected segments and bring more value to Our customers going forward. Ivan already talked about the intrinsic qualities of salmon as a raw material. We believe that there are few proteins, few food products on the planet meeting the global megatrends better than what salmon does. And we think that salmon will continue to gain popularity among consumers all over the planet.
And we are brave enough to say that we believe salmon will be the food icon of the 21st century. It has already had a fantastic growth more than most other proteins, and we believe that will continue as the megatrends are evolving in a direction supporting salmon even more in the future than what it has done previously. And you can see that also when you look at per capita consumption and market size in the most important salmon markets. As you can see here, there is huge variation in terms of how much salmon each individual are eating in the different markets. Norway ranking at the top with 8.2 kilos per capita.
And you can look at big markets such as the U. S. With only 1.7 kilo per capita and China with only 100 gram per capita consumption. Looking to a market like the U. S, we have seen over the last few years of tremendous growth in the U.
S. Market with more consumer friendly products being introduced, pre packed fresh products across national retailers in the U. S. Market. That has increased the consumption in the U.
S. From 1.4 kilo only a 2 years back to 1.7 kilos last year. And we believe this trend is going to continue in the U. S. Market.
But you see also growth in most other markets across Europe and of course in Asia. So The global food trends combined with more products being made available to modern consumers will fuel growth in demand for the years to come as well. And we in Mowgys are well positioned to capitalize on these trends. We have a global processing and sales presence with 6 value added factories in Asia and 7 sales offices, 11 value added factories in Europe, 15 sales offices and 4 value added factories in the Americas with 6 sales offices. This processing and sales presence makes us able to Have relationship with all the key clients for salmon across the globe.
We have worked on adopting our processing capacity to the current market. And we have done footprint restructuring in Europe, taking down the number of factories and focusing more volumes into fewer factories, reducing cost by that restructuring. We are also focusing on growth in especially Asia and the U. S. And we are, as you saw from my previous slide, increasing our share of value added salmon.
Our global customer networks Makes us able to have a dialogue on category growth with all the key retailers across the planet. We have product knowledge and we have innovation capacity, which is something we are working closely with our partners on to bring more consumer friendly products to the market. Working with the full category and making sure that the category is presented to consumers in a way which meets their expectations It's a key part of the partnership that we established with our retail customers. But it's not only about the customers. We believe that salmon as a category are lacking someone who can talk directly to the consumer.
And our branding strategy is very important in that sense. It's a long term strategy, and it is adventure that we just have started and that we will continue to focus hard on going forward. We believe that the brand will leverage our category leadership role with the key customers. Bringing a brand to the category adds value to the category. It makes the category speak.
It makes us able to speak with consumers and to fuel demand with better information about the products available in the stores. And this will help us accelerate the value of the market and ultimately decommoditize the salmon market. We have built the brand based on our integrated value chain. And we believe that we can bring something special to consumers by the way we are organized. And the brand promise is caring.
And this is based on the fact that as an integrated supplier, we care about the best salmon, bringing the best quality, the best product to the consumers. We care about the environment, which you will hear much more of later from Katerina. We care about our consumers and making sure that we meet demand in a better way than anyone else. And the tagline for the brand, salmon is good, Moebys goodness, It's taking the category responsibility for salmon by saying that salmon is good and also differentiating ourselves through everything we do throughout the whole value chain by saying that Mobi is goodness. I will show you a short video from the TV commercial that we aired in France last year.
As I said, we launched the brand in 2019. And at the Capital Markets Day in 2018, we said that our long term target is to grow sales to €1,000,000,000 with a 10% EBIT margin. This is still the long term target. Last year was a challenging year for all of us, and COVID-nineteen significantly impacted the launch of the Mobi brand. It is delayed as a result, As we didn't get access to all the channels that we were planning to get access to and we were not able to execute all the brand support activities that we plan to do.
But what we see is that in the markets where we were able to launch and in the channels that we did launch, we have had a very good sales development. So we maintain our target of €1,000,000,000 in turnover and a 10% EBIT margin. Currently, we are selling the brand as Smoked and Fresh in Poland, France and the U. S. In Poland, we are in retail and food service, in France in retail and in the U.
S. Currently in e commerce only. But we see a very good sales development in the e commerce channels, both in Europe and in the U. S. We are continuing to roll out the brand and we'll focus on key European markets in 2021, and We will continue to grow with new clients in the U.
S. In 2021. Then we will focus more on Asia and Americas in the years to come. As I said, in our part of the value chain, cost efficiency is extremely important. As the largest value added producer, we will focused on yield improvements, labor efficiencies, overhead and fixed cost reduction to improve our competitiveness.
Yield It is extremely important. 80% of the cost of our final products is raw material. And by focusing on yield, we can improve cost performance significantly. And this is has been a very important area for us previously and will continue to be so in the future. We will we established last year our processing excellence team.
We will take a global approach to processing excellence An established benchmark and best practice, focus on yield and efficiency across our global factory footprint, introduce lean manufacturing and automation and new technology in our downstream business. They will have a full value chain perspective from primary to secondary processing and establish best practice, focus on yield, efficiency and cost reductions. We think this will gain a lot of benefits in the years to come. On top of that, we, as already mentioned by Ivan, will focused more on automation and digitalization to cut cost and build value to consumers. We have a labor intensive process, which gives a high potential for automation.
And our full value chain control gives digitalization opportunities. By knowing more about the raw materials produced from farming, We can tailor this to the end products that we produce, increasing our yield and improving our efficiency. We can also link raw materials to end products in a better way and securing differentiation to in a better way than what we can today. And we also see that consumers are becoming more and more aware and interested in the origin of the products that they buy and digital tools can help us communicate that in a better way in the future. So Our part of the Movie 4.0 downstream or 4.0 strategy is along three areas.
It's about cost cutting With raw material scanning and grading, so scanning the raw materials at the primary processing and directing the raw materials to the right factories for the right end products, We think can improve yield and efficiency in a very good way. It's about automation and robotization inside the factory, replacing labor with machines. It is about the planning and logistics, warehousing through digital tools. On top of that, we can increase our value from differentiation by making sure that we produce the right product to the right customers and by allocating the right raw material quality for the best end product quality. And that will give us differentiation opportunities, which are better than what they are today.
And the third part is consumer and customer communication, where we will use digital tools in a different way, both for end customer and consumer communication, but also for customer communication. And I would like to end my presentation with showing you a short video on how we communicate with our customers in the U. S.
Hi. Welcome to the 1st Mowi Virtual Trade Show of 2021. Today, I will walk you through some quick tips to navigate our 3 d outlook space. This year, we are bringing a custom, safe environment to the convenience of your home or office. This digital platform was developed for you to discover all that Mobi has to offer.
Let's get to the fun part. From pre packed fish to frozen indulgence, smoked seafood, kick bites and much more, discover today how we can help you expand The secret offerings to your customers. You're currently in the virtual lobby of the show, where you'll find 3 main areas to navigate to, the exhibit hall, The auditorium and the information desk. In the exhibit hall, don't miss any of the brands and product lines featured in Each of the virtual exhibition booths. Click here to learn more about each booth.
Now we have entered 1 of the Mowgys brand booths. To get started, simply click on the banner that has a click here hand and a pop up screen will appear to watch the clip. You can Access additional content by scrolling a little lower where the description, videos and documents tabs are found. If you find any document useful, you
You can save it to your
swag bag. In the gray area, we have various features to use. The chat box brings up the chat interface where you can initiate conversation in real time with a Mowi member. There are 3 ways of engagement. Chat text in the bottom bar.
Give a ring by Through the phone icon or initiate a video chat. Another great feature is the reserve a chat slot where you can plan a virtual meeting with a Moi team member. Once you've entered the auditorium, click on the screen to find all the webinars listed and their playtime. Throughout your
So this virtual trade show we held this week. And this was the first time for us to do this kind of communication with our customers and it proved very efficient and Very beneficial to us. We were able to communicate with our customers in ways which we didn't do before. To sum it up, we believe global demand for salmon will continue to grow. We think that the trends are even more strongly working in the favor of salmon going forward than what they have in the past.
And we believe that we have a very good starting point to bring more value to our customers and benefit from this demand growth by developing and producing products in line with consumer demand, by transforming the salmon category through branding and by increasing value on reducing cost in our part of the value chain. Thank you very much. And with that, I would like to introduce the next speaker, COO of Farming Norway, Eivind Wallan.
Thank you very much, Ulla, and good morning, everyone. My name is Eivind Ulland, and I've been COO for Farming Norway since April last year. I will during the next 20 minutes or so update you on the strategic direction that we take in Move In Norway in order to provide even more of the healthy, sustainable and fantastic products that you just saw in the presentation from Ulla. MoVI Norway, as been said, represents 60% of the total harvest volume of the MoVI Group. We organized in 3 different regions with activity along the whole coast from Agdalen south to north of Toms.
We have the full value chain from freshwater, woodstock, seawater and primary processing. We have 20 small facilities and more than 140 plants and high processing plants along the coast. We are producing and harvesting approximately 260,000 tonnes hog in Norway, and we are back on track on volume performance that is reasonable given the number of licenses that we control. But in my presentation, I will also share some highlights on our growth and productivity strategy as we do have an untapped potential for further growth that we will realize going forward. In Movers Norway, we are on our way in realizing a strategy that will take us up to volume above 300,000 tonnes hog by the next 6 years.
We're continuing our investments in freshwater capacity, realizing several smalt expansion projects, but we're also currently embarking on a considerable post smalt expansion. In seawater, we will enable our productivity increase through digitalization and automation with Mowis' smart farming concept. Our cost saving initiatives and productivity program continues. This is about preparing for increased competition and maximizing our earnings. We are addressing our cost control, both by cost cut, productivity initiatives as well as growth initiatives.
Farming animals is all about biological control. Good biosecurity practices are key and important, both for animal welfare, sustainability performance and maintaining and in some areas further strengthened biosecurity practices in Mowi and in the industry in an area we get high attention, both from a strategic perspective as well and as our in our day to day operations. Before I move into some more details on the well mentioned elements, I will also give a short presentation of the 3 farming regions in Norway. Moovis South consists of 5 freshwater sites and 27 seawater farms in production area 1, 2, 3 with activity in Flectifur in Agdal to Sutta outside Bergen. South operates 1 processing plant, refisk in Jelmenland, Raugeland and South produce and harvest property 50,000 tonnes fog and represents 19% of the move in Norway volume.
After a deep in harvest volumes the last years, Bridgeland South is now on a good track. We have potential for and will realize further improved license utilization over the next couple of years. Site availability is a bottleneck in South and better utilization of existing farms and also seeking extension and access to new farms and farm MAB is a priority area. We're also realizing several smolt expansion projects, which both increased the number of smolt stocking as well as increasing smolt size. We will significantly increase the post smolt availability for South through our post smolt strategy, which will mitigate both biological risks as well as ensuring a higher turnover per license and perform in the sea phase.
Movelis is by far our largest region with operations in production area 4 to 6 with more than 120,000 tonnes hog last year. We are running 9 freshwater sites and 54 seawater farms. And we have 2 processing plants in the region, Ulvan at Heathra in Trondlag and Egisponez in the area. And Moovey Mid represents 47% of Moove in Always production. Over the last 5 years, we have seen a reduction in production volume and site utilization in Mid.
The southern production areas in Mid Face similar challenges as region South with a more challenging biological situation evolving. And therefore significant investments have been made in small expansion projects and we also have several underway. That means our post mort strategy is also central part of increasing our production volumes in Region Mid going forward. VG Mid is also operating our most advanced remote operation center, an important part of the smart farming concept. Our North region is defined by production area 7 to 12, where we're operating 6 freshwater sites and 59 seawater farms.
We have 2 processing plants in the region, Heerei in the Sanddersjoe area in Norland and Jokulsjoe in Toms. MoVI North represents 34% of MoVI production. North is by far our best performing region, also in Mowi globally, with a very good cost control, good site availability and favorable biological conditions. We have been able to grow our production year on year during the last couple of years by increasing site availability and smelter output, and we are obtaining a very good license utilization. Focus in the region is to maintain the good growth and favorable biological conditions, which is also about attention to good biosecurity practices.
And we believe We still have potential to further increase the production volume also in region North. We have invested in freshwater capacity in North. And going forward, we will take out the potential from these smart expansion projects, among other, the most recently completed greenfield project at Sanddura in Cherwey in Troms. Apart from purchasing capacity, optimized and increased utilization of our current license portfolio gives opportunities for growth as well as reduced production costs. In Mowi, Norway, we harvested 10 80 tonnes gutted weight per license in 2020, which is good and above industry average.
However, if we break down and look at our utilization compared with our peers in the various regions. It is clear that we have a potential, particularly in region south and mid. North performs at more than 11 60 tonnes per license, well above average and ranking as top 2 in industry benchmark. In Mid and South, however, we are below industry average and ranking as number 3 and 6, respectively. As mentioned on the rating slides, We have invested significant amounts into freshwater in Norway in the past years, amounting to approximately NOK1.6 billion, which has given a steady increase in average smolt size and biomass release.
We do see significant volume, cost and environmental benefits of larger smolts. And our proportion of smolts stocked above 2.50 gram have increased significantly and ended at 17% of our total smot stocking in 2020. From a volume perspective, Big Post Mort's facilities growth through 2 main mechanisms. One is obviously the additional volume MAB effect through biomass growth on land and the other is reduced production time in sea, which in turn improves biological performance and growth as well as better site utilization. We will enable growth in MoVI Norway by further accelerating our investments into Freshwater.
And during the next 6 years, we will expand our post malt capacity to deliver 100% of our smolts in region south and mid at 700 grams. In addition, Mowi aims to grow further by application of new farming technologies, purchase of additional capacity and potentially M and A opportunities. Further into our post mort strategy, our plan is to include up to 10 sites in total, where our main strategy is to expand existing facilities. This is both due to its cost effectiveness, but also as the ability to move relatively fast. In region South, we are looking into expansion of 4 to 5 existing freshwater sites.
And in mid, we will expand 4 existing sites plus 1 greenfield project. The expansion will increase freshwater production of approximately 27,000 tonnes. And realizing the Bosmo strategy It's organized by a central project team with in house RAS and freshwater expertise, and we will also secure strategic partners for our portfolio going forward. The total CapEx for our Postma strategy amounts to NOK4 1,000,000,000 for the period 2021 to 2026. We expect first harvest from the PostMaster NTD in 2024 with approximately 10,000 tonnes budget weight.
And the post malt Expansion in total will contribute to an increase in harvest volume of approximately 40,000 tonnes with a full run rate in 2027. Post multi expansion opportunities in Region North will also represent additional potential, which we're also evaluating going forward. We are already well into realization of our strategy. And the first approved expansion project is at our existing facility in Norheim in Region Mid. Norheim is already a well run RAS facility producing 2,100 tonnes smalt.
And our the freshwater capacity at Noreen will be increased by another 3,500 tonnes up to a total of 5,600. This gives 8,000,000 smalts produced at 700 grams and the CapEx for the project is approximately NOK 450 NOK with the CapEx per kilo at NOK 115. The estimated contribution to increased harvest volume from the Nohreim project will be approximately 5,300 tonnes gutted weight. Groundwork has started at Nohheim, and we expect post malt from the new department to be released during Q2, Q3 and 2023, And we will see harvest during Q2 and Q3 in 2024. Smart farming was covered by Ivan in his introductory talk.
And MoWizz4zero and smart farming is an important concept for MoWizz Norway going forward. Smart farming in Norway means managing our farms more efficiently by using modern information and communication technologies to enable further productivity increase at our farms. This is about enabling remote operations of our seasides, taking into use advanced underwater sensing and software analyst platform based on machine learning, focused on automation and simplification as well as full value chain data capture and real time analysis for better practices and value creation through our MoVI inside platform that are currently in development. We are in advanced stages of innovative projects that will enable activity increase through our smart farming. And we will work towards having all our farms connected and operated at Smart Farms by 2025.
One of the key elements of smart farming is to take out the full effect of remote operations. From our remote operation centers, our trained personnel We'll manage feeding, monitor fish welfare, health and performance and communicate with our staff, performing service and maintenance operations on our infrastructure and also operations involving fish transfer, movement, treatment and harvest. 8 farms are currently connected to our operation center in Herei in Region North and 20 farms to our center at Technopollen in Morley in Region Mid. By 2021, all our farms in Production Area 45 will be connected. The infrastructure and setup at Technofol will be a model center for further rollout in the regions, including expansion of the region north center as well as establishing a center in South.
By end of the year, we will have more than 30% of our farms connected to remote operation center, and our goal is to have 100% of our farms connected and operated by 2025. As part of smart farming in MoVI, we're also implementing an advanced underwater sensing and analysis platform. Our R and D department have been testing a new intelligent sensing system based on machine learning that gathers intelligence about how our fish grow, how they feed their behavior, health and their living environment. This is an all in one system for real time growth, weight distribution, autonomous feeding, fish welfare surveillance and automatic lice counting. We are currently well into the commercial validation phase with 13 farms in Movelin Norway involved in testing and documenting the performance at different phases of our production in different geographical areas and gaining operational experience from the field as we speak.
Gathering value chain data combined with machine learning and artificial intelligence will enable us to grow the fish much more efficiently than today and in an even more sustainable way. By constantly tracking fish behavior, fish health and fish performance, We can be proactive instead of reactive when it comes to acting on biological issues. We will be able to better understand and implement optimal practices and we will reduce risks in the sea phase. Smart farming by 2025 and realizing our postmortem strategy set out for the next 6 years are key tools to facilitate organic growth beyond 300,000 tonnes scattered rate in MoVI Norway. But in parallel, We will continue our systematic and hard work of all our highly skilled employees to optimize growth and manage the biological situation for improved harvest rates and survival rate.
We're organizing MoWizz Norway with strength and focus on utilizing our vast knowledge and experience across the regions by a stronger coordination. We have established cross regional strategy teams for better utilization of resources, capacity and best practices within several key areas as listed here. We also recently rejoined Sjermatt Norge, the largest seafood industry federation in Norway. We strongly believe in the need for sector coordinated efforts, especially within the area of maintaining and in some areas Further strengthened by security measures to allow for continued growth. Farming salmon is about biological control.
It's about attention to details and daily control. So with this summarizes the highlights for Moove in Norway and how we are working strategically and targeted to accelerate growth going forward. So then in our program, a little bit ahead of schedule, for a short break. In 5 minutes' time, we will continue with Farming Scotland Ireland at EROS by CEO, Ben Hadfield, who will present from Fort William in Scotland. Thank you very much.
Yes. Then I think we are ready for the next section, Farming Scotland, Ireland and the Faroes with Ben Hadelfil, direct from Fort Williams via Teams. Can you hear me, Ben?
Yes, I can hear you fine. Thank you, Ivan. Good morning, everybody. It's my pleasure to present the business units in Scotland, Ireland and Faroes. I'll Okay.
Thank you. So as Ivan said, I'm Ben Hatfield. I'm the COO for Farming Scotland, Ireland and Faroes. The highlights of the business units, starting with Scotland. We've been farming in Scotland since 1965, and we have 2 modern RAS facilities.
We have one flow through hatchery where we produce organic smelter now, and we have 47 Seawater Stylus. As you can see today from Fort William where we have our primary processing plant.
What we
see in Scotland is that we have had growth. It's not been even growth, but we've had 3% per annum over the past few years. And we've been able to access and develop a number of new sites through an application process here in Scotland. We have had 7 new sites since 2015 and that makes us very confident that we can rise over the coming years To more than 80,000 tonnes gutted weight. Productivity is an issue in Scotland, and it's one that we must address.
One of the big things that we will have, and I'll come under this in some more detail, is the change from 120 meter to 160 to pence. Significant step forward for Scotland. It's double the size of the pens and allows us to reduce the units. We'll also Talk to you today about the post small strategy. We have enough smalls to grow organically going forward, But we would like them to be at a much higher average rate to reduce the time in the sea.
And then cost initiatives. Productivity is key, as Johan said previously, And we expect that to rise significantly in Scotland going forward. We also plan to expand and debott Existing processing plant with a compelling capital investment going forward. And we would point out that we're the U. K.
Largest food quarter. And in Scotland, the industry is subject to good regulation on a science based footing. We have made significant advances in oceanographic modeling to allow larger pens and consolidated farming base. It's a significant reduction in pen numbers and allows us to access deeper waters in more exposed locations. We've been successful in removing the 2,500 tonne cap, which existed in the Scottish industry until last year.
We will be the 1st company to expand and have size of 3000 to 4000 tons. Significant benefits of reducing the number of ends and reducing the cost base through that We expect to achieve in the next few years. We expect that this contribute an increase of organic growth in excess of 15,000 tonnes And about 50% of our sites are in scope for this change. Significant cost saving exists between FTE reduction and centralized feeding. And we also expect to see improved sustainability benefits through increased predator control, Access of deep water and more similar to capacity in the oceans that we farm in.
We do plan to reuse the equipment in Ireland. Many of the pens are not that old, in good condition, sanitized. They were transferred to Ireland and used to improve our operations there. One of the areas that we've succeeded in Over the last few years, it's expanding into new locations and developing new farming biomass. Over the last 5 years, we've had 17,500 tonnes.
And these are in very good biological areas, but they're also areas that are challenging from an exposure point of view. We strive to do these developments in partnerships with local communities, providing a lot of employment and providing significant infrastructure improvements. We expect to develop 5 new farms by 2025 and 2 of these sites will be determined by the authorities in 2000 I'm sorry, in this year. In addition to this, we plan a series of semi closed containment operations in Scotland. This is expansionary biomass and is aimed at increasing our post stocking potential.
We do this because we want to reduce the farming cycle and improve harvest volume And also improve this biology in the sea with increased following and better fish welfare. Like Norway, we plan to have post small facilities. And here we have the opportunity to transfer fish From our current recirculation systems into a post mall plan and we're consulting with the authorities to cite this at Kailakan. The aim like in Faroes, which I'll come on to you shortly, is to increase in small post small stocking weight Up to 800 grams. And we're confident that with the temperatures we have in Scotland, that this will allow us to farm and harvest fish within 12 months.
It is accretive biomass development. The consultation that has taken place now is for a 3,000 tonne post mort facility in Kailakan, which is on 182 Acres that we own and it's next to our feed mill, which was Commissions in 2019. Screening applications will be submitted for both the post malt plant and for the closed containment or semi closed containment at sea. And we do expect this to improve our ESG criteria forward. As I said previously, with increased following, increased harvest volume, reduced time C and reducing the intervention because of short term Michael.
We have significant potential for cost reduction in Scotland. But we must also see here that we have a differentiation strategy with higher cost feeds where we produce organic, La Belle Rouge and specially grown ranges of sound for key customers in the U. K. Market. We've had a period of exceptional product quality and improving harvest weights.
And we do expect The priority from the reduced number of pens and being able to select the best farming locations to improve our cost base going forward. We've also made significant expansions in our treatment capacity, particularly this year in 2021, where we have a new thermalizer with high capacity, which dries in July and a second wellbore for immediate gill disease treatment It is essential in Scotland. We're also quite pleased with the performance of our Cleanafish operation, which is based in Anglesey in Wales. We have now risen 3,400,000 Norsuckers and we've had exceptional success so far with our Balanras, which will be ready for deployment in July this year. And we expect that these, when the cohabiting of our salmon, will improve sea life control and provide us with a further reduction in medicinal treatment.
Moving on to Ireland. In Ireland, we have a high quality overproduction business. We also take eggs from Ireland to Scotland. We have 3 freshwater sites and 8 seawater sites and a processing plant at Rinmore. Ireland produces exceptionally high quality salmon and there's huge demand for the organic salmon that's produced in Ireland.
It's a smaller volume and it's focused on customer service and flexibility in volumes. Capacity. We have a capacity of 10,000 tons in Ireland, but there has been a reduction from that in previous years. This we intend to reverse working in partnership with local communities and working with the regulators. We expect to leverage on significant synergies with Scotland, utilizing clean effect oils, both Lomsoakers and Ballinas.
And we expect to be able to use the treatment resources that we have in Scotland in a biosecure way with Ireland. I mentioned previously the reuse of equipment from Scotland. The smaller pens, which Are made available from Scotland will be sanitized and they're going to use environmental net systems, which is essentially 2 nets sewn together. And instead of net cleaning, the net is simply passed underneath the fish. It provides a very high quality farming environment and improves Removes any requirement for anti violence.
And I'll just move on to the Faroes. The Faroes is the 1st region in Norway to demonstrate sorry, the 1st region to demonstrate the improvement of post smolts. We have now a number of smolts here, which is start at 500 grams. We expect that to rise to 800 grams, and that will help us make incremental improvements towards 10,000 tonnes production hog weight in ferros. We also expect to use passive grading techniques here to make further minor improvements to growth and we expect to be able to continue to access the Russian market and the premium U.
S. Market. Mobi ferros has a high average weight with exceptional quality and focuses on high color of the fish. Okay. With that, I'll hand you over to Fernando Guarola, who is in Port Mance, Chile.
Can you please unmute Fernando?
Okay. Thank you for the introduction. I am Mando Villarreal, CEO of Farming Americas and also the MD for Mogo Chile. I am connected from Chile now in the other side of the world. I am 4 hours behind, and it was fairly early starts.
Then let's hope the connection work well. And I will put the presentation up now. I hope it's there already. Well, I have the pleasure to be presenting today our Farming Business in Americas, in Canada and Chile. Farming in America represent about 25% of the harvest volume for MoVI Group With 110,000 tons in 2020, where about 90% of the volume was sold within Americas, being U.
S, our largest market and Brazil followed by Brazil. The main focus of the presentation today seeks to Explain what are we doing in the region to secure an efficient production at low cost, while we try to, of course, grow the business in a sustainable way. But also, I will try to cover some particular aspect of our Canadian operation. I will start for Chile first. Our producers in Chile Close to 70,000 tons for 2021.
All this is headcount and equivalents. We have 2 production regions in Chile, Rio 10 and Rio 11. And these two regions are fully integrated from egg to processing and more or less than the distribution in Israel. We operated 26 sites per year Out of the 180 licenses that we own. As you may know, in Chile, one license is equivalent to one site.
In that regard, it means that we have a large and used in license capacity, but also means that the licenses in operation can be strategically located in our best production areas. In terms of growth, our strategy seeks to maximize the stocking within the existing regulatory regime, Which will give us in Chile a 3% to 4% annual growth. I will come back to the point in the next slide. To achieve such growth, we are concentrated in developing our existing capacity. At this time, we have no plans to enter into new production reuse in Chile.
Our focus is having an efficient production at low cost. For the last few years, we have focusing on building And developing a very competitive saltwater operation, both in term of cost and bio biology. And for competing, we don't necessarily focus on Chile, but we aim to beat our best performing area in Norway. And this has been a very successful move to improve our operations in Chile. In addition now, we're adding we're focusing We are building freshwater capacity and improving our productivity in harvest and processing by adding more automation and technology, And I will go more in detail on those 2 ideas in the presentation.
The current regulatory regime in Chile use future small stocking to control the industry sanitary situation, but Also consider certain incentives to grow for those farmers that have a good sanitary performance. It is a sort of traffic light system, which is based on low mortality, good life management and minimal medicine use. As mentioned previously, our strategy is to maximize destocking within our framework, which should give us a 3% growth per year. In terms of priority, we are building internal capacity to reduce the dependence on third party supply because after we finished the production of the Smolting Lakes, The Molcan production in 2015 destroyed 1 of our facilities, up to 60% of the small were produced in the internal facilities. The goal is to reach 80% internal production within 2021.
The remaining is in a long term contract With a local company that has been producing or growing, actually, our small for the last 6, 7 years. In the seawater, we are focusing on largest and fewer sites, trying to use the best licenses in term of Biologics, Biologics Performance and Environmental Impact. This will allow to optimize the utilization of the new tools we are incorporating for non medical treatments to manage For non medical treatments to manage sealies like flashers or use of wetter on wetter within In addition, this will facilitate the limitations of future technologies Like centralized video system, real time monitoring or artificial intelligence for the users in order to increase the efficiencies on unproductivity in our farms. In terms of SRS, which is a particular issue for Chile, the strategy is simple, but also complex to execute. The use of vaccine, reduce stress, like having a low prevalence of calvios as one of the main stress factors and a close monitoring for an early detection of the disease.
In the area of harvesting and processing, we're adding well capacity with 2 new vessels on hire And adding more and new technology in the processing plants in order to increase the capacity and improve productivity. The two main areas we're investing in adding capacity and improving productivity are freshwater and processing. We just mentioned the expansion of 1 of facility in Region 11. And we have way in the contraction of to adding more capacity in the oil hatch in Chile in Rio Tende. All this investment will Significantly, reduce the cost of our smots in addition to make the operation more efficient.
The other area that we're focusing in the Q1 is Advancing our internal genetic program by incorporating the latest genomic technology for total selection. And for this year, we have the plans to commence the contraction of our Movel facility that will consolidate our brewstalk and genetic program, Which will result in considerable reduction in costs and improving productivity, but also our we'll bring our genetic program to the next level. The addition of new technologies and automation of Certain processes has been the latest investment in harvesting and processing. The increase of harvesting capacity in both plants We'll allow better utilization of larger vessels, the larger vessels will be added and to substantially reduce the wellbulk cost, Which is an important course here in Chile. On the repetitive and labor intensive processes in the plant, We are incorporating more automation that will improve capacity and productivity.
In that respect, We see the knowledge that we can access within the MoWizz Processing Excellence team that was mentioned by Ulla Brat for early in his presentation. What I have to say in Chile is he explained We're trying to explain in summary the focus on our core business and how we aim to have efficient production with low cost. I am moving now to Farming Canada. Our business activities in Canada are located at the door of 1 of the largest market as is U. S, a market that probably has the largest growth potential in terms of consumption of salmon.
Our Canada West operation are in British Columbia on the Pacific Ocean side. Here, we operate the busy sites in 5 cluster areas. We see as a province itself as a coastline larger than Norway, but historically have had a challenging political environment to our salmon farming. Our strategy in the region is to maintain and establish production of 30,000 tonne of high. And in the other side of the country, in the Atlantic Ocean side, is our Canadian is our Canada based operation, located within 3 provinces, Newfoundland, New Brunswick and Precedar Island, where we operated 40 licenses and 29 of those are in Newfoundland, a region where we have a significant growth potential.
On this coast, the provincial government, whom are the primary regulator of the industry. I'm very supportive on developing a strong salmon community. Our strategy in this region is to reach a stable production of 25,000 tons per year. But unfortunately, in both of our operations in Canada, we have faced significant environmental, sanitary and political challenges that require a restoration of the operation. As You probably have heard, on December 2020, the federal government announced the decision to phase out some farming licenses in the Discovery Island area by June 2022.
The announcement also mandate that no new fees can be stocked in the Skoure Island licenses during this time, but it's allowing existing biomass to end its production cycle. In consideration, the decision and restructuration plan was necessary to be implemented. Such plan proceed within other Important points, the closure and decommissioning of the site in Haiti, a new production plan to maintain harvest volume at or above 30,000 ton and establish a new organization that will reflect the new company size. The decision made by the government will have an estimated impact of a reduction of up to 200 employees by the time all these sites are out of operation in 2022. And going forward, A priority on the political side will be to secure business certainty through key relationships and agreement with local groups of interest.
This in order to support an outlook as a plan with both provision and federal government that can bring security to our investment in the region. In terms of operation, the optimization and reduction of expenses related to sea life and net management and net cleaning It's a key priority in the short term to reduce cost to a more sustainable level. This is in addition to continue With a high focus on gilt health prevention and Tenasi Vacuum inflation, the 2 most important challenges official challenges in BC after sea life, of course. The resizing and streamlining of the operation in the West Site of Canada with a strong focus on biology and cost can make this operation a very profitable business conceal its competitive advantage given by the proximity to the U. S.
Market. The operation on the East Coast has been badly impacted by biological environmental events since its acquisition in 2018, resulting in falling behind in our well growth plan. Then a turnaroundrestructuring plan has been defined, including the change in management. With the appointment of a new MD with our extensive farming experience in this region. Our aim is to return to profitability and its growth path as soon as possible.
But the execution plan has changed. The initial plan was a bit too ambitious in terms of growth pace. Considering the challenge on this region, particularly in Newfoundland, one Key success factor on the strategy is obviously improving the biological performance. And on that component, we're focusing the 2 most important issues there. I SA and Life Management.
I SA has been the most difficult biological challenge that we have encountered As did hit us on a fast growth plan and consider a long production cycle in this region, It will take longer to recover the expected harvest volume in the short term. It has been an issue in ISA has been an issue in our production program. And in all of them, it has been successfully managed. Then we're confident that the recipe exists and will be implemented in the ISKOS. In the other hand, now we are much better equipped in terms of treatment capacity for sea lice.
Then we will be more efficiently manage the sea level in our farms. In terms of operation, the priority right now right sized organization to an appropriate scale, including the rationalization in the use of resources, considering the new time line to achieve the expected production volumes. An important point is that Canada is, particularly Newfoundland, is one of the few farming regions with a significant potential for growth. And Mowi As the fundamentals already in place to capture such potential, like having established drilling program of a localized trading And a fresh water capacity to do so. Well, I am coming to an end of my presentation for Americas.
And I will leave you now with Atul Quiz, Cioffi, to present our FEED division. Thank you very much.
Thank you, Fernando, And good morning, everyone. My name is Atrik Vist, and I'm the CEO of FEED. We have, as mentioned earlier, 2 feed mills in Europe, 1 in Norway and 1 in Scotland. Our daily focus is on making efficient, high performing feed at a low cost. We are turning out this stone in our value chain to identify and attack cost drivers going forward.
Going forward, our production growth will, as Ivan mentioned, Be in line with volume growth in Europe. Our current capacity is approximately 640,000 tonnes, which is sufficient to supply internal demand and in addition, some external sales. The development since our 1st year of operation has been, I must say both fantastic and impressive. 2019 production wise It was more or less all about bringing the new feed mill in Scotland into operation. That we did with success.
2020, we produced 540 tons of well performing feed, The 2 feed mills combined, an all time high force. This also achieved with less FTEs than in 2019. Our modern facilities, combined with efficient logistics and supply chain, Gives us a good basis for low cost operation. We have a high focus on sourcing sustainable raw materials, widening our raw material basket and last but not least, to develop new Sustainable Feed Ingredients. Swimming in a little bit On our feed mill in Norway, the picture shows our 1st feed mill at Valsnasa that opened in June 2014.
It has 2 high capacity production lines for production of seawater grower feed. Finn Mill has a premium coastal location in Mid Norway with deepwater access. We can handle up to 3 vessels efficiently at the same time. At the picture, you can see 2 of our state of the art feed vessel LNG forward being loaded and 1 raw material busing vessel get another for unloading. In 2020, the feed mill set a new production record at 390,000 tonnes of FEED, which is really close to full capacity utilization.
MoWizz Norwegian farming operations were 95% supplied with Mowis' own feed in 2020. This will feed from both feed mills. The picture shows our 2nd feed mill in Kalakken at the Isle of Skye. We opened the feed mill in May 2019. It's a highly flexible feed mill with 2 production line, 1 high capacity line and 1 medium capacity line set up to produce the smallest feed sizes.
Also at Karlaken, we can handle 3 vessels at the same time. It's no secret that starting up a new field build can be challenging, but the start up has been really good, well supported by transfer of knowledge from our Finnell in Norway. From Kraken, we deliver freshwater, seawater and organic feed to our operation in Scotland, Ireland, the Faroes and Knob. All location and our own deepwater peer allow for efficient port transportation of raw materials to the feed mill and feed out to the farms by larger vessels. Our calculation shows that on an annual basis, we save more than 3,000 tons of CO2 compared with transportation by road and smaller, less efficient vessels.
Mowi 4.0 has been mentioned several times by my colleagues earlier today. Going forward, we are convinced that 4.0 will make our interaction with farming even better. In short, we see 4.0 as a fantastic tool in making high performing feed specially designed for the Mowi salmon strength. We will see productivity increases through smart operations. Progress in data collection, sensors, robotics, Automation and AI Technologies will help us improve going forward.
There's no doubt that the 4.0 will give established methods a new edge. It will drive trade change through the entire value chain. It will reduce manufacturing and supply chain cost. And last but not least, it will increase sustainability by increasing energy efficiency and improve raw material utilization. A small example of how we use 4.0 technology today We use sensors to monitor status of critical bearings.
Earlier, we changed bearings when we had a breakdown or in a planned maintenance stop. Today, monitoring them by sensors, We can run them longer and change them in due time before breakdown occur, for securing production uptime and reducing cost. Our product range satisfied farming speed requirements. The portfolio includes feed for all life stages in seawater, both organic and conventional. The portfolio also includes feed for freshwater par and fish larger than 2 grams.
As can be seen on the pie charts, Scotland has a higher product complexity than the Norwegian one. It produces more feed types and more of the smaller sizes. But with this highly flexible setup, the female in Scotland is designed to handle this complexity. We tailor our feed to match the changing requirements of the fish through the life cycle. The pie chart gives an overview of the main ingredients in our feed.
Fish meal and fish oil accounts for about 26% of the ingredients. Modern feed formulas and feeding skills makes us a nut producer of fish with a fish in fish short ratio of 0.68. With the continued investment in feed R and D, We continue to pursue alternative feed ingredients that provide a necessary nutrients for state of the art feed. We are testing a lot of novel feed raw materials. Novel feed raw materials that have a low carbon footprint, that have the required nutrient value, that are available in sufficient volumes and that are cost competitive will be a part of our raw material basket going forward.
Our feed, good for the fish and good for the environment. We are sourcing feed raw materials globally with a clear target on sourcing as local as possible. We have and we follow a strict policy on sourcing of sustainable raw feed raw materials. All ingredients we use shall have a feasibility system in place. Raw materials marine raw materials we source from suppliers who adhere to responsible fishery and that are certified as sustainable.
The soy used in our feed is 100% deforestation free. We have also a 0 tolerance approach to modern slavery and the MoWizz code of conduct for suppliers shall be followed. Thank you very much. And then I hand over the floor to Katarina presenting ESG and R and D.
Thank you, Atla. Good morning. It's a pleasure to be here and introduce you sustainability strategy and the R and D work we are doing at Maui. I would like to start with really taking a helicopter view. And ask ourselves a quick question, which drives the passion we bring to work every day.
And that is what is the contribution of Maui to making the world a better And in fact, if we think that we have to feed 9,000,000,000 people in the future, we actually will need to produce about 50% more food than what we do today. Now it's not only about producing more food. That food has to be produced in a way that does not add to the problem of large environmental issues that our planet is facing like climate change. In fact, seafoods and salmon Has a proven record of low carbon footprint as compared to land animal proteins. So not only seafood It's a climate friendly alternative, but it's actually an excellent combination of like vitamins, omega-three fatty acids, potassium, which are important to keep a good health status for human population.
So if we actually think on a big picture, Food from the ocean is very important for people because it's healthy. It's very important for the planet because it's climate friendly. And it's also important for business because at the end of the day, it supports both local and global economies. So food from the ocean is really a triple win. And Maui is very well positioned to have a significant contribution to make the world a better place because the core of what we do, which is producing seafood, which is sustainable and healthy, is part of the solution to both climate change and food security.
So ocean based Atlantic salmon farming is on the right side of sustainability. And I have to say that biology is On our side here because fish, if we compare it with mammals, for example, with pork and beef, they do not need to spend energy on keeping their body temperature just like as we humans have to. So in the end of the day, that is reflected in a much more resource efficiency use basically because every kilo of feed that we give to a fish is then very easily converted in kilo of weight gain, which is not happening in the other land animal proteins. So that is also reflected in a lower carbon footprint, as you can see here the figures on this slide. In addition to the carbon footprint, water consumption, fresh water use in our production is also much lower, 2,000 liters per kilo of edible meat as compared to, for example, almost 16,000 in the case of beef.
This is actually a very interesting slide, which I would like to spend a few seconds. The message here is really important because it talks about the avoided carbon emissions from our business. So basically, if we think that 4 440,000 tonnes of salmon production would have actually been produced by a mix of animal proteins being poultry, pork and beef. We would have ended up with 44,000,000 tons of CO2 being released As compared with the 2,000,000 tons of CO2 that Maui has released in 2020, considering the combination of all our scopes, scope 1, 2 and 3. So that actually the difference of these two actually gives us what we call the net avoided CO2 emissions, which is close to 2 1,000,000 tons of CO2.
Converting these numbers into a figure that all of us will connect to, this represents 380,000 cars removed from the road every year. Now that's a significant impact. Maui, as we have heard already several times across this presentation, has been ranked number 1 on sustainability among food producers. We are very happy that if we take, for example, the FAIR index, FAIR stands for farm animal investments risk and return. And as Ivan has mentioned in the beginning of these sections, it ranks the 60 largest animal protein producers in the world in important ESG metrics covering environmental aspects like deforestation, water use, antibiotic use, climate footprint, but also other very important aspects such as food safety and also working conditions for our employees.
So meaning that the social pillar of sustainability is also considered in these ratings. In addition to Ferrer, I also would like to mention, at CDP, we have been rated in the A leadership category, both on climate action and also in for supplier engagement rating, which is really important for the Scope 3 activities we are doing connected with our climate footprint. So in addition to the fare and the CDP rating and several others that you have seen on that slide, I also would like to point out a number of other sustainability highlights. 100% of our harvest volumes in 2020 Our were and still are certified sustainably accordingly to GSSI recognized standards, which means either ASE, BAP or Global GAAP. We have also seen for the first time in 2020 a reduction by 2.7% of our greenhouse gas emissions, which is the sum up of all the scopes, including Scope 3, 100% compliance with our sustainable sourcing on FEED policy, as you have heard Atla mentioning about.
The majority of our sites, 93% of our marine sites, they have a minimum Bantik impact. And that's really an important element For us as well in terms of the seabed biodiversity, which we monitor and the results here show that the impact is at the minimum level. A further reduction in dependency of medicines to manage CLIs, And that is really as a result of all the integrated sea life management approach that we have been taking over the last years. Now when it comes to sustainability certification, I've mentioned the 100% harvested volumes being certified. And because we are a fully vertical integrated company, it becomes quite important that our sustainability credentials are strong along the value chain.
And therefore, both in feed, we have heard Global Gap, we have also heard about our soy 100 percent deforestation free certified using the Proterra certification, but we also are very strong on marine raw material certifications using, for example, the Marine Trust or equivalent certification schemes out there. And then on more the downstream side of it, we on the processing side, we follow the ASE chain of cost of this certification. And on the food safety, the GEFSI recognized standards. So I would really like to welcome So everyone who is watching this presentation to dive into our sustainability strategy, which we call Leading the Blue Revolution Plan. You will be able to find it publicly available at mawi.com.
And there, you will be able to find all the details and all the commitments that we have set in our sustainability strategy. These are targets that are smart targets. They are specific and they are time bound. And they cover elements on the planet section, as you can see here, on being part of the solution to global challenges. There we have set science based targets on greenhouse gas emissions reduction.
We have also targets on both our plastic packaging and also the farming equipment that we use. We aim to run an eco efficient value chain and there recover both waste and circular economy and also freshwater use. We farm in harmony with nature and there recover elements of sustainable certification that we have heard about, also escapes, sea life, fish health and welfare and Sustainable Feed. Now sustainability wouldn't be complete if we wouldn't also look at the people side. And that's really an important element for Maui as well.
We live our vision, values and leadership principles every day. We run an operational excellence program, which really drives and the purpose that we have in our company of leading the Blue Revolution. We comply and make our suppliers also follow our code of conduct across group, and we promote a safe and meaningful work, focusing on absence rates, reduction on LTIs, but also a culture of diversity where gender ratio equality is also important, both in the operations, but also at management level. And finally, when it comes to communities, this is really an important part. We operate locally in coastal communities, and we create a very positive ripple back there as well.
Transparency and communication about our sustainability progress. I've mentioned already our sustainability strategy, leading the Blue Revolution plan. You will be able to find all the sustainability metrics being reported in our annual report, which will be released next week, but also on the industry handbook, which is really an important piece of work And as well our CDP reporting our United Nations Global Compact report. Our impact report of the green bond, Which will also be released for the first time next week. The way we report we follow standard guide lines when it comes to sustainability reporting.
We follow the Global Reporting Initiative and also the Sustainability Accounting Standards Board. And for the first time, we will be releasing together with our annual report, our task force on climate related financial disclosures, the TACFD report, where you will be able to read more about the risks and opportunities to our business connected with climate change. Now I would like to spend a little bit of time on our low carbon transition plan. We have talked about the opportunity it represents to our business, But that doesn't mean we are on a standstill and do not act to make our business even more sustainable. We We have a plan, and that plan covers our 3 business areas.
If I start with FEED, the focus to achieve An improved carbon footprint to the group is operating energy efficiency feed plants and optimizing logistics. You have heard the examples From ATL on how many trucks we have been managing to pull out of the road because of the strategically well located feed plant in Scotland. We are also designing feeds for an optimal FCR, meaning that in the end of the day, with lower FCRs, low a less amount a lower amount The feed raw materials need to be used and also purchasing only deforestation free soy. When it comes to farming, Reducing the dependency of diesel to run our farming sites by connecting them to land power, this is significant. In farming Way more than 60% of our sites are already connected to Landpower.
And in locations where it's difficult to do that, then We will install hybrid generators where we know we can reduce the diesel dependency by up to 60%. Increasing the share Renewable electricity at our freshwater plants and processing plants is also an important action we are taking. On sales and marketing, optimizing logistics, working with our suppliers to promote a climate friendly supply chain and also running more efficient, energy efficient processing Thanks. When it comes to plastics, it is a hot topic these days, and we take a big responsibility on having a responsible plastic use. We do that really through 3 main actions: reducing the amount of plastic used in packaging, reusing plastic equipment and recycling packaging and farming equipment.
A few interesting examples I would like to share with you. For example, in 2020, we were able to reduce by 2,000 tons the amounts of virgin plastic use by a number of win win solutions, as we call them. For example, lightweighting our packaging, For example, redesigning, making it more simple. We don't need double layers of packaging and also using recycled PET in our Maui packaging. We also reduced plastic equipment.
For example, in Scotland, some Nice examples, 124 tons of returnable crates instead of disposable boxes have been implemented. And also in the recyclability dimension, close to 16,000 tons of packaging and farming equipment, And that includes both nets and feeding pipes have been recycled in 2020. And here are some really interesting pictures. We actually recycle the nylon of our nets into materials that you might well come across in your daily Like for example, carpets, swimwear, socks and even those beautiful green chairs that you see there on the picture. So next time you see a green share, maybe you can think about these recyclability actions that we are taking at Maui.
So talking about recyclability, it connects very nicely with our circular economy approach. As we know, avoiding waste is crucial, Also on the fight against climate change. And I think MoWizz has excellent examples of how we are addressing circularity. We have mentioned already the examples on our farming equipment, but I also would like to show you some examples across our value chain. So So if we think about our freshwater plants, in 2020, we were actually able to use 14,000 tons of sludge as compost in agriculture.
This is not waste. It's actually a valuable raw material for other purposes. And then if we think about downstream, We have the beautiful example of Maui Nutrition. And actually what we do there is approximately 40,000 tons of byproducts Like trimmings and offcuts, they have been upcycled to fish meal and fish oil used in non salmon aquaculture, Pet food and even human oil capsules. So you see how what the traditional term of waste is by far waste.
These are valuable Raw materials for other sectors, and we are making sure that we do that. So going from planetary aspects and environmental sustainability, I would like to touch base on the human aspects again. And this brings me actually to put this together into a concept that maybe some of you have heard, which is called the planetary health diet. And salmon It is extremely well positioned to be and it is already considered an emphasized food together with fruits and vegetables. And that is really obvious.
If we look at this beautiful combination of nutrients that the salmon has and the proven effect that it has being shown by health authorities and experts all around the world on promoting cognitive development on children, on preventing cardiovascular diseases and elderly people. So it is really a proven record on health benefits. So going back to the social dimensions of sustainability. We create a positive impact on local communities. The ripple effect through local suppliers, through local employment is significant.
And in addition to that, we really want to promote a safe culture within our organization, which focus on develop our people and also on promoting diversity. So I will change hats now from my sustainability hats to the R and D aspects, and I have 2 slides to share with you. The first one really illustrates our global focus when it comes to R and D. These are Examples of our R and D and innovation hubs all around the world. We have R and D hubs that support innovation and technology development in farming in our farming business areas in Norway, in Chile and also in Scotland.
Feeds as well, we have our R and D Feed Centers in Norway and Scotland. And then in the business area of sales and marketing, we have in the U. S, Poland and Asia several new product development centers. So from farm to fork, innovating for the future and making sure that Maui is well positioned to bring value to our stakeholders and shareholders. I think it's really important this slide as well puts together again the Maui 4.0 that we have been hearing about and smart farming into the context of all our value chain.
And from breeding and genetics, where we focus on using the best genomic tools to enhance fish robustness and product quality to feed production where we maintain the raw material flexibility and focus on ensuring an optimal nutrient composition to our freshwater plants, making sure that our Haas systems are operating in the best way Possible and where we optimize our smolt and post smolt production. Also in seawater, we have heard about these Really well examples of how we aim to have our eyes in the water in a way that I've never seen before with our smart farming concept and then processing with our processing excellence team focused on online scanning and capitalizing on all these data that we are collecting as well at the end with product, sustainable packaging and new product development. So Thank you very much. I'm very happy to bring our CEO back on stage to wrap up our Capital Markets Day. Thank you.
Thank you, Katarina, and thanks for a very convincing presentation. And if anyone still wonders out there. Salmon is on the right side of sustainability. Salmon is part of solution. So to each and everyone out there, Eat More Salmon.
Then we have come to the summary of this Capital Markets Day. As already duly stated, MoVI Farming is working on 3 main pillars: volume, cost and sustainability. They are all equally important. However, contrary to sustainability and costs where we are very competitive, we have been lagging behind on farming volume growth compared to the industry. Therefore, we will particularly focus on addressing growth initiatives in farming going forward.
That being said, to put all doubt aside, our main focus is conventional farming. We strongly believe in the future of conventional farming, particularly with the phasing in of Industry 4.0 Technologies and opportunities that entail, especially for the large farmers like ourselves. We think this will transform the way we operate today, increase our productivity, reducing our costs and make our operations even more sustainable. So we believe the lion's share of both volumes and volume growth will come from conventional farming in the coming 5 years. For Moebius' part, with the right measures, We believe we have an intrinsic growth capacity from our current licenses to go well beyond 500,000 tons.
In addition, we will pursue accretive acquisitive growth opportunities when it fits with our operational strategy. That being said, we also monitor alternative technologies closely and may introduce it when and if it's timely and profitable. And for order sake, we do not see alternative farming technologies as a threat, but as a potential opportunity for Mowi. So far, neither Mowi nor the industry have managed to keep pace with the demand growth we have seen. We think that will be the case also in the coming years.
We will continue to build sales and marketing through product innovation, operational excellence and branding with focus on growth in elaborated products. In mobile feed, we will focus on feed performance and costs and grow it in line with Farming Europe. If we need extra capacity down the road, we will just add on new lines in 2 existing feed mills. And last but not least, we will deliver on the Mowi 4.0 digital strategy in every element of our value chain from feed to plate. New technologies offer huge opportunities that we want to take advantage of.
Further to this, smart farming shall be rolled out in Farming Norway, our by far largest entity by 2025. With this, Kim, I think we are ready for the Q and A session.
Then we move on to the Q and A session scheduled to last approximately 30 minutes. We have received a range of questions from analysts, investors. The first one is from DNB, Alexander Ochner. He is asking what Will the Maui 4.0 digitalization cost CapEx be? And what cost savings can be expected?
Thank you, Alexander. I think our CFO, Christian Ellingsen, shall answer this question. Please, Christian.
Yes, this is Mojang, of course. We believe that There will be a split between CapEx and OpEx for the smart operations for the smart farming. For Smart Farming, there will be some subscription costs, some data subscription costs and some And there will be some CapEx. But remember that we have already dealt 1 Operations Center. This is something we have done within the CapEx already used.
We will continue to do this within the farming expansionary CapEx in the coming years in Norway. So We don't foresee any major additional CapEx beyond the levels we have included in the CapEx estimates so far. This is something we will do within the framework we have. And when it comes to the OpEx We will, of course, see that the aim here is to substantially reduce The health and the lives related costs. So in total, this will be a net cost saving.
Okay. And then his second question is regarding Norway farming volumes. He's asking on organic Norway farming volumes of 300,000 tonnes in the next 6 years. Will the growth be evenly spread during the years or back end loaded?
Ruben, I think this one is for you.
The major contribution for the organic growth will be from the 1st and foremost from the post malt strategy, and that will be a phasing a gradual phasing on expansion projects. So we will see the first volumes, as I indicated, in 2024 from our first post malt projects, but then we'll have a phasing gradually year by year on towards the full effect in 2027. So it will be a gradual increase from 2024.
Kerstern Obi, Kepler Cheuvreux. How should we think about your overall CapEx profile for the coming years relative to the past 2 to 3 years. Given the NOK4.04 billion postmold CapEx in Norway, will you skew more CapEx towards the farming division And reduce CapEx in other parts of the value chain?
Christian, I think this one is for you.
Yes. So the CapEx for the coming years. In general, we will come Back to the CapEx guiding for each year. We have guided for the CapEx for this year, euros 265,000,000 As we have indicated in the guiding, we have approximately €10,000,000 for expansion CapEx in Consumer Products related to automation. This is something we also will have to do in the coming years in order to support the digitalization of automation in our factories.
When it comes to feed, we have 2 brand new factories. So we don't estimate any major investments in those factories. That means that the rest of the CapEx is allocated to farming and will support the growth in farming in the coming years. When it comes to the Postmalt project, this will be something that will now be invested in over the coming 5 years. So accordingly split over several years and that is also of course the case for Smart Farming.
So the focus, I think it's fair to say based on what I said, On an increased focus on farming and on farming CapEx in order to support the volume growth in farming.
And then Karl Emil Johannessen from Pareto. He is asking, Can you say something about the time line to reach the capacity of 80,000 tons in Scotland and the 55,000 tons in Canada?
Right. Then I think we start with Scotland, Ben. Can you hear me?
Yes. I can hear you fine. So in Scotland, we have Potential to increase smolt stocking from the existing units that we have at Loch Islet and Inchmore. The post malt plans, if they're approved, will obviously give us a significant boost in volume, but that won't be in So another 3 to 4 years. The main improvement that we have is of the new locations and the extra biomass, which will kick in over the next 2 to 3 years.
So you will see an increase in Scottish volume this year and going forward.
Fernando, the second part of the question goes to you. Can you hear me from Pivotal Monte, Chile?
Hello, Ivan. Yes, I can hear you well. Well, the answer about the 50,000 tonne For the operations in Americas, particularly Canada, we in Canada, Well, we're already 30,000 ton or a little bit over. And in the case of The Canada East, we will be there around end of 2020 sorry, 2024 more probably Due to the length of the cyclists in Canada is. The stocking is already in This coming year will be in the 7,000,000 months.
Thank you.
Not sure you can hear me or not.
I think that was a good answer. Kim is nodding, so then I expect it's okay.
Okay. And then the second question from Karl Emil from Pareto. In terms of post smolt strategy. Do you see 700 to 800 gram smolts to be the optimal size to produce on land related to CapEx per kilo of increased production in sea or can you increase production in sea even at the same CapEx per kilo by producing even larger smolts?
A tricky one, I must say, Wven, can you please elaborate a little bit on our thinking on this. We have spent a lot of time on maximizing the size of the smalt.
Yes. We do have lot of experience on increasing sizes of post malt. So the 7 100 gram target is predominantly related to the utilization of the seawater farms. We see that when you get towards 700 gram, you go you reach a 1 year cycle in sea And different from today's up to 2 years between the following periods. So the biggest effect then and why we have targeted R700 is the turnover in sea and the utilization of the capacities of our seawater farms.
Yes.
So in short, we think that is the ideal size of the smalt.
And then a question from the investor community about land based salmon farming. What's your view on land based grow out facilities and the viability of projects companies we see in the market today? And should we expect that Maui will move into this market?
Well, I guess I can take this one. First of all, I would like to say that salmon is on the right side of sustainability and the competition is not between the various farming technologies. The competition or the competitors are actually other animal protein producers. So to MoWizz, as we said in the presentation here, we regard land based farming as a potential opportunity for us. But that being said, it's very much about the right timing.
We also have to be convinced about the profitability. So I know maybe this is not the answer once. But at least according to me, the jury is still out. So let's see. But we really hope this succeeds.
When we find the time right, if we get there, then we will Use this technology as we do with other technologies today. But I think we just have to be patient and wait. When we decide this, if we decide it, then we will report it to the market. So let's see.
Very good. Changing topic to HR. People can be a key differentiator between corporations. What does MAUI do to attract And retain the best people.
Yes. I guess this goes to you, Anna Lorgenris. She is our Chief HR Officer for those who do not know her. Please, Anna.
Thank you, Ivan. So we see that especially young people take a great interest in sustainability in climate friendly food production and in new technology. And in recruitment, we are Focusing highly towards these future opportunities in our company, in the possibility of taking part in the future of food production and working with new technologies that we believe will change the business already mentioned here today on AI, for And this will open new and interesting career opportunities for a really a wider group of talents. When it comes To the retention of people, the fight, totality is real, and it's going to get tougher in the time to come. But we will continue to announce our strong messaging on our purpose, on our culture to continue to develop our leaders to the highest standard.
We have recently just launched an executive program to develop our future leaders in the company. We will continue to fight to retain people in the company with an interest in and a passion for seafood, for sustainable food production, for making Friends in the world and people who are adaptable to fast paced change. We believe that we will also have To a greater extent, reskill and upskill the people, the workforce internally in the company, and we'll continue Our relationship with great academic institutions around the world and the regions where we operate to provide education and Learning in house and to continue to build our strong learning culture.
Thank you, Ona. Never underestimate the value of good people. Over time, that's more or less the only component that distinguishes good companies versus less good companies. Kim?
Okay. Then moving on to sales and marketing, a question From Holbegfone, Jan Molnes. And also combining this with a different investor question, The sales of the Maui brand in the U. S, is that related to Norwegian fish or Chilean fish? And the second question is, can you update
I guess this one goes without saying, Ulla,
please. Thank you. When it comes to the origin of the raw materials on the MoVI brand In the U. S, we have a product range with 2 different set of products. We have what we call the MoVI Pure range, Which is a high end part of the brand portfolio.
And there, we use Norwegian origin fish. And then we have what we call the Mowgysentials range, which is more an everyday meal component of the brand. And for that, we use Chilean ASC approved fish. So actually, we use both origins in the brand in the U. S.
Market. And the brand itself is not specified towards any of the origin. It is a set of criteria as to quality The raw materials and we are indifferent in a way in which raw materials we use. So when it's suitable, we use Norwegian and when it's better for us, to U. S.
Chile. To the second question on the rollout plans of the U. S. Market, as I said in my presentation, we are currently selling And I have to say selling very well in e commerce with Amazon as our key client in the U. S.
Market. So can go to the Amazon portal and see our products there and see what range we have We just recently launched with 1 bricks and mortar retailer in the U. S, and we have plans to continue the rollout in bricks and mortar in U. S. This year.
This was very much hampered by the COVID-nineteen pandemic last year, and it prohibited us from going to bricks and mortar in the scale we wanted to, but that we are reinitiating this year, and we are going to launch in several bricks and mortar retailers in the U. S. Market this year. Thank
you. Thank you, Ola.
Then Alexander Sloane from Barclays Capital. He's got a question about feed. Can algae omega-three oil become a much bigger part of salmon feed replacing wild fish oil given significant sustainability advantages And key algae oil suppliers claiming yield improvement in 2020.
A very important topic. Atle, maybe you can elaborate a little bit on this.
We have over the years carried out an extensive R and D to enable us to incorporate new raw materials when it's required. However, by comparison to More traditional commodity derived ingredients. They do not typically represent good value in terms of nutritional value per unit cost. But as I said earlier, we are We will widen our raw material basket going forward, again, condition that They have a low carbon footprint. Nutritional value is okay.
Last but not least, they are available in sufficient quantities. And of course, that our cost capacity.
Thank you, Adler. Next one, Kim.
On ESG and the taxonomy, do you think Maui will become taxonomy compliant? And if so, what are the biggest pros and cons in your view to achieve that?
Katrina, I think this goes directly into your expertise. Please enlighten us.
Good question. We are following, of course, very closely the developments Sonamy, we welcome the EU decision to classify sectors from a sustainability perspective. So far, we haven't seen For culture included yet. And that's actually a positive signal because what has been covered so far has been sectors or Industries, which have a high climate footprint impact. So 93.5 percent actually of those companies and sectors that have been included, they are assumed to have 93.5 percent direct greenhouse gas emissions in Europe.
So these two environmental categories, climate change mitigation and adaptation, which are covered now. They focus, let's say, more on the negative sides of climate. And as we have heard before, we are really a solution to climate challenge. So that's why aquaculture hasn't been included yet.
Thank you, Catalina, and very good to hear. Next one, Kim.
Then a question from Nils Thomason at Fearnleys. He's got a question about volumes in Chile. Is the 3% to 4% growth in harvest volumes based on 2020 harvest or 2021 harvest. And do you expect improvements in KPIs like harvest weights and mortalities To achieve this goal or will the increase come from increased small stocking?
Fernando, are you still there? Can you hear me?
Yes, I can hear you.
I think this one Basically,
on the question, The framework we're referring to is a small stocking. Then base is every year you can get, Of course, from 0. But in our target, it's 3% to 4% growth based on the small stocking. Then we the 20 'twenty one, we are seeing already some of it updated in 2020.
Good. Thanks. Sebastian
Bray from Berenberg. He has A few questions. The expansion of MoWizz feed capacities seem to have gone well. Could the same logic of backward integration also apply to the Americas? And if so, what's the time scale?
I think this one I can take. Right now, we are fine with being self sufficient for Feed in Europe. So we will grow MoVI Feed going forward in line with the growth initiatives we take in MoWizz Farming Europe. In terms of Americas, in the short term, I think we are okay with the current situation. In the longer term, That's something completely else.
But today, I think we stick to the short term part of that answer. Sorry, question.
And then a second question on CO2 emissions. I assume the CO2 emissions figure on Slide 78 include CO2 cost of airfreight. What is The impact on carbon footprint of removing airfreight. Put another way, what's the percentage of total
Catherine, I think this one is for you.
Thank you for that question. So the answer is 10% actually Of the total Scope 3 emissions. So since 2018, we have a good overview of our Scope 3 emissions. This is publicly available in our annual reports. So you will be able to see it next week The 2020 figures, but it's 10% of the Scope 3.
So for the total scope emission of the group is even less than that. So it's quite important to have that number into perspective, which maybe a lot of people think it has a huge contribution. But in the end of the day, the majority of our Scope 3 emissions come from feed raw materials. So that is the most important action we are taking to reduce the Scope 3 emissions.
Thank you, Katarina.
Then two questions from Alexander Jones, Bank of America. Smart Farming. I appreciate this is an early stage, but are you able to give any indication of the magnitude of cost savings you expect To see from these digitalization initiatives in farming or what do you or what you have seen so far In the forms using this technology.
Cost, Christian, I think this is your
Phil. Yes. We, of course, believe that the ability To be more proactive when it comes to acting on biological challenges, we'll have a very positive impact on costs. We prefer not to quantify it. We don't generally guide on costs.
But of course, this is something We believe in very much and we think that this will have a net positive effect on health costs, on feed costs due to the feed conversion ratio, which has increased and mortality costs, partly offset by some higher license subscription cost for the data subscriptions. But all in all, we believe this to be a positive effect in the coming years.
On CapEx, given all of the optimization and growth initiatives You have discussed this morning. Can you give us an idea of the organic CapEx budget over the next 5 years?
It sounds like you have to come up again, Christa, CapEx. A lot of CFO questions today. So interesting.
Yes. So I think I browsed upon it briefly also in a previous We have given a CapEx guiding for the coming year, 2021, And we prefer to come back to that, regarding for the individual years as we usually do. So we are not ready to give the full CapEx guiding for all of the coming years. But in general, we have indicated a major initiative on Postmoltz. We have indicated that farming growth is a priority And farming will be a big part of the investment program in the company in the years to come.
And the NOK 4,000,000,000 indicated that those will be distributed over the coming 5 years. So I don't think we have to or able To go into all the specifics at this point, we will come further back to that in the CapEx guidance in the coming presentations.
Thank you, Christian.
Okay. We are nearing the end of the Q and A session. A question from Arctic, Thomas Loch. He is asking about the brand strategy. Can you state any figures on revenues and EBIT for 2019 2020 versus the target revenues of 1 €1,000,000,000 and 10 percent EBIT margin.
It's about numbers, but I think you can take this one.
Thank you for that question. We do not make public The numbers of our sales, this we see as a competitive number for us to protect. But what I can say, of course, as I said already, is that we are significantly delayed from the delayed from the original plan. The branding strategy is a long term strategy and the SEK 1,000,000,000 target is a long term target. What we have seen is that in the channels where we have been able to launch, we have had good progress and sales Have in large been very well also compared to what we were expecting from the beginning.
The issue has been to get access to the relevant channels and to activate the support programs in the channels which you normally do. This has been significantly hampered by the COVID-nineteen situation. As this ease up, we believe that we will have more access and that this will take a better turn in terms of speed. So I would say that we are Progressing. We are seeing good response from consumers and customers, but we are delayed compared to where we plan to be from what we said in 2018.
Thank you, Ola.
That concludes the questions we have received so far From the audience.
Okay. Then I would like to say thanks for having us and thanks for listening to us. Stay safe. It's still difficult times, and take care. Thank you.