Will Cod Farming provide the long term solution to supply and sustainability?

One of the comments I have heard most in recent years is about fish stocks and reduced quotas with the resulting rise in prices to the end user. Being the largest source of protein eaten throughout the world, this adds further pressure to food supply chains including the restaurant and takeaway sectors in the UK, also burdened by increased

business costs and a cash-strapped customer base

Having been aware of salmon farming in Scotland through visits over the last 50 years, I asked the question of whether cod and other white fish could be farmed in a similar way to support the future availability and sustainability of this precious resource well into the future. Today around 80% of the salmon consumed in the world comes from the farmed market. I find the subject exciting and I plan to write a series of articles for Fast Food Professional magazine about this fascinating subject and the companies and people that are making the dream a reality.

My first conversations regarding the subject were with Björgvin Þór Björgvinsson, Head of Fisheries and Seafood for Iceland, Alexandra Leeper PhD, CEO of Iceland Ocean Cluster and Benedek Regoczi, Innovation Project Manager at Ocean Cluster. I learnt more about the history surrounding the concept and the challenges encountered in the early days of the 1990’s. During the NFFF trip to Norway with the 2025 winners of the UK National Fish & Chip Awards we visited the Holmøy farmed salmon processing site, and this prompted further conversations with Bjørn-Erik Stabell, UK Director for Norwegian Seafood Council which subsequently led me to contact Ode in Ålesund (www.ode.no),  Norway, a company founded in 2019 by Ola Kvalheim and Tor Olav Seim and they have developed a leading business in cod farming and I will cover more about their rapid development of ideas later in a Q&A session. The other main exponent in cod farming development is Norcod based in Trondheim with their Snow Cod operations. Both are pioneers in the field, and I will be letting our readers know how Norcod are also developing the concept in the next issue.

The History of Cod Farming

Atlantic cod has historically been the most important species for fisheries in the North Atlantic, and it has been of major importance for the settlements along the coasts on both sides of the ocean. The history of cod and cod fisheries is well described in the award-winning book: ‘Cod: A biography of the fish that changed the world.’  Cod is an unpredictable food source, and large fluctuations in quotas have been experienced over the years. The traditional cod fishery in Norway is also very seasonal, with most of the catch taken during the spawning season from January to May. Several solutions have been proposed to overcome the challenges of unpredictable and seasonally variable access to wild cod. These include stock enhancement, catching and holding cod alive, capture-based aquaculture (feeding live caught cod) and intensive cod farming.

In the 1990’s, around 400 licences were issued along the Norwegian coast and most were used for capture-based aquaculture rather than stocking intensively reared cod juveniles. However around 75% of these licences ended by 1999. The 1990’s saw many research companies work on intensive larval cod rearing but this was very much the early stages. With the reduced cod quotas in the late 1990’s and buoyed by the optimism from the salmon farming industry this triggered interest in commercial cod farming in the early 2000’s. At the time, various developments produced unstable and variable juvenile numbers so a new approach was needed.

In Norway, researchers and private companies switched their focus to developing cod hatchery technology, similar to that used in the Mediterranean for seabass and seabream, using adaptations of salmon sea cage farming. However, at this time the sector soon realised that cod is a distinct species in many ways such as feeding, robustness and diseases at various life stages.

Intensive farming was attempted in Norway, Scotland, Ireland, Canada, Iceland and Faroe Islands in the 2000s. But it was conducted hastily to cash in the demand for cod in the market even though there were many biological knowledge gaps that are required for a successful aquaculture venture. Problems were encountered along the way such as cannibalism in the nets, deformities in the fish and escapes by biting through the nets.

Other reasons for the failure of commercial farming in Norway during the 2000s were not only because of limited knowledge of the biology of cod but also the economic meltdown in Europe in 2008. Cod farming came to a halt; however, the Norwegian National Cod Breeding Program (NCBP) initiated in 2003 continued to operate and produced a fifth generation of a domesticated cod in 2019. Efforts to fill the gaps and the selective breeding for better growth and disease resistance within NCBP have improved the quality of the juveniles produced.

If you are interested in finding out more about the detailed history and scientific background to the subject, a great read would be https://onlinelibrary.wiley.com/doi/10.1111/raq.12599.

From this background, Ode in Ålesund, Norway, was founded in 2019 by Ola Kvalheim and Tor Olav Seim. Before this, Ola was a Norwegian international footballer for Norway’s youth team, coached by Ole Gunnar Solskjaer (Manchester United supporters will recognise this legendary name), but chose cod farming over football. Tor Olav swapped a background in the consulting industry and a Nordic Investment fund to co-found Ode.

Together, they have built a formidable company named Ode, based in the cold, deep fjords that feature along the coast of Norway. They currently have 10 farms from Svartekari in the south to Jønskjaer in the north with a hatchery at Rødberg and a processing plant at Vartdal.

The company slogan is “Ode to Excellence” and reflects the dedication to quality, integrity, and craftmanship in every part of the operation. Inspired by the growing global demand for sustainable seafood, the ambition is clear: to lead the cod revolution and contribute to a thriving, resilient future for seafood and coastal communities alike.

The cod currently produced in Ode farms is of a very high quality and the flesh is firmer than wild-caught cod. This makes it ideal for the Japanese Sushi market and for high-end hotels and restaurants around the world. Currently, the price commands a premium of around 10% over wild caught cod, but is expected to fall as the volumes increase and will provide a year-round supply of high quality fish with a less volatile price which can only be good news for the fish & chip and restaurant sectors. Ode cod is currently distributed in the UK by New England Seafood International (NESI) who are taking fresh HOG Cod and processing it primarily for the retail and Sushi sectors in the UK.

Ode reached a major milestone in 2025, becoming Norway’s largest supplier of cod following a year of strong biological performance and solid operational execution. Total production reached 10,018 tonnes, representing a decisive step forward for farmed cod in Norway. For the first time, a cod farming company emerged as the country’s largest single supplier of cod.

You can read more about Ode on their website, but I have been fortunate enough to speak with Ola Kvalheim, CEO at Ode, and Falk Øveraas, Head of Public Affairs for Ode, to answer the many questions that the topic has raised for me, and the following summarises our conversations to date. This list is not exhaustive, but you have to take a break at some stage! – More to follow, I’m sure!

Athol: Of the current 10,000 tonnes per annum that Ode currently produces, how is that split between countries and how much currently is delivered into the UK market?

Ola: The majority of our volumes have been sold to large retailers in continental Europe, where France, Spain, Switzerland, and Italy have long been some of our most important markets. The UK currently represents approximately 5% of our total exports.

Athol: How many companies are currently actively engaged in cod farming in Norway and what is the current annual total weight of farmed cod from Norway versus wild-caught cod?

Ola: There are currently four active cod-farming companies in Norway, with a combined annual production of around 20,000 tonnes for 2025 and 30,000 tons for 2026. Ode has about 65% market share, while the 3 other players share the remaining 35%. While this remains only modest compared to the wild-caught cod fishery, the farmed segment is growing steadily year by year and next year is expected to make up about 20% of total cod exports from Norway. We are now seeing farmed cod account for an increasingly larger share of the total market. Looking specifically at fresh cod, Ode’s production has represented around 25% of Norway’s total exports this year.

Athol: What are the major challenges that you face in the next five years in cod farming?

Ola: The key challenge in the coming years will be to continue to grow in line with the demand through securing sufficient capacity in our value chain. Demand for farmed cod is already very strong and ensuring enough suitable new farms are opened and invested in will be crucial to meeting that demand sustainably.

Athol: In the past problems have led to issues with early maturation and escape of male cod affecting wild genetics – how is this being handled?

Ola: At Ode, we have focused on maturation control since day one. We use high-intensity LED lighting systems installed at multiple depths in each cage to prevent the cod from reaching sexual maturity. This system has been very successful in avoiding early maturation over the last 5 years. Regarding escapes, we have worked closely with our suppliers to develop cod-specific net designs that take the species’ behaviour into account. This has proven highly effective in preventing escape incidents.

Athol: Do farmed cod now generally avoid deformities, lice, viruses, and cannibalism?

Ola: Yes – the health situation for farmed cod today is significantly improved compared to the early 2000’s. Better breeding, improved biology, new vaccines and more sophisticated production regimes have reduced risk substantially. Cod is not affected by salmon lice, and serious deformities are now rare compared to earlier. Breeding and improved size grading during production also helps to provide a calm farm environment.

Athol: Does it take around 18 months for cod to reach 3–4 kg, and how does that compare with wild cod?

Ola: That’s correct – our farmed cod reach market size of 3–4 kg in about 18 months, which is faster than their wild counterparts. In the sea cages, they have ample access to high-quality feed every day, do not starve and live in a stable, protected environment that promotes optimal health, welfare and growth.

Athol: With global warming, will farms need to move further north in the future?

Ola: Ode view most of the Norwegian coast as suitable for cod farming today and in the future. Our existing sites have excellent water exchange and suitable temperatures. In addition, we have started implementing submerged cages, allowing us to avoid warmer surface layers during summer and colder surface layers during winter. Summer heat waves have been seen also in Northern Norway recently, so our strategy is to avoid the surface during such events. Global warming will not materially impact this picture.

Athol: Is there a production target for the next five years?

Pla: Ode would like to grow and develop over the next 5 years like we have done over the last 5 years. We work very hard every day to make sure that becomes a reality and we believe there is significant room for growth. As market demand increases and farming performance remains strong, we expect production volumes to expand steadily over the next few years and beyond. The benefit of a sustainable aquaculture system is that it can grow over time and as a result support our customers with growing volumes in their businesses as well.

Athol: Which UK fish merchants are currently taking Ode products and how does current pricing measures against wild caught cod?

Ola: Over the last few years Ode have worked to establish supply of our farmed cod into the UK market with several customers. Currently New England Seafood International is our leading customer and partner for the distribution of farmed cod into the UK.

We only rely on average export prices to compare our farmed cod with that of wild. What we see is that historically farmed cod has been priced about 10-15% premium to wild cod, but that with the falling wild cod quotas and short supply of wild cod, this premium has fallen to about 5% in the last few months. Across the last 4 years the price of the farmed cod has been more stable, both within the year, but also year after year over time.

Athol: How does the price compare with Norwegian wild-caught cod, and who are the main customers?

Ola: Wild-caught cod prices are naturally volatile due to fluctuating catches, seasonal availability, and quality variation. At Ode, we focus on long-term contracts that ensure price stability for our customers throughout the year. Our farmed cod is positioned as a premium product, typically supplied to high-end retailers, restaurants, and specialty markets. On average there has been a price premium of NOK ~10 per kg whole farmed vs whole wild the last 3 years. This is mainly driven by higher fillet and loin yield, lower cost to customer, driven by longer shelf life, more stable and predictable supply driving less waste and lower cost in the supply chain.

Athol: What are the plans for expansion of nets – will you continue with surface nets or move toward Nautilus-style submerged cages?

Ola: We plan to expand using both surface and submerged systems, depending on the site characteristics. The choice largely depends on topography, water current characteristics and environmental conditions of each farm. Each farm is unique and our strategy is to optimise conditions for the cod with the best and most suitable solutions at each site.

Athol:  How much more expensive is the Nautilus system compared to surface nets?

Ola: For cod, which do not require an air dome at the top of the cage, the Nautilus-style solution is about twice as expensive as traditional surface cages. Deep farming requires increased investment to drive better sustainability, and there is also added costs associated with operating the technology. But overall, it is not prohibitive and it has been an important innovation to improve the farm performance.

Athol: What percentage of escapees do you currently experience, and how do you manage this?

Ola: Ode has experienced only minor incidents in recent years, none of significant scale. Last year and this year combined the share of escaped fish has been around 0.01%. Our main preventive measure is the use of high-strength, cod-specific nets designed to withstand the fish’s natural behaviour and environmental stress.

Athol: Does Norway’s hydroelectric power help keep operational costs low?

Ola: Yes, all our sea farms are connected to the national power grid, which enables low-emission operations. Since Norway’s electricity is almost entirely sourced from renewable hydropower, it provides both environmental and operational benefits. While we cannot control market electricity prices, we have benefited from relatively stable and affordable power in our regions.

Athol: How much of the fish is utilised and is this processed in-house or outsourced?

Ola: At our processing facility, Ode Processing, we currently use more than 95% of the fish for human consumption. For example, the liver is canned and used as a healthy source for fat and omega 3, and we are exploring new ways to utilize even more of the by-products in the future.

Athol: Do you sell cod heads to export markets such as Nigeria?

Ola: At present, we do not export heads to those markets, though it remains a potential opportunity for future utilization of by-products.

Athol:  Could similar farming methods be used for haddock, saithe, or hake?

Ola: Our focus is firmly on cod, which is a species we know well and have strong broodstock and operational competence with. In theory, other whitefish species like haddock or saithe could be farmed, but it would require substantial long-term investment in breeding and biological development before becoming viable.

Athol: Do the LED lights have benefits beyond preventing maturation?

Ola: Their primary function is to avoid early maturation, helping the fish maintain high growth and quality.

Athol: How is seabed pollution monitored and managed under the cages as this has been raised in the past?

Ola: Norway has a well-developed environmental monitoring framework. Independent third-party companies regularly survey the seabed beneath our sites and report directly to the authorities. This ensures that the environmental footprint remains well within accepted limits.

Athol: What will cod farming look like by 2050 – could it involve cooperation with Iceland or Greenland?

Ola: By 2050, cod farming is expected to be a well-established global industry, with Norway at its core. Today, Norway is the only country with industrial cod farming, giving it a unique position in terms of genetics, biology, and production know-how. This foundation provides a decisive competitive advantage and makes Norway the natural hub for future development of sustainable and efficient cod farming worldwide.

Athol: Do you foresee land-based cod farming becoming common in Norway?

Ola: For cod, sea-based farming will remain the most natural, pure and relevant approach. Unlike salmon, cod do not suffer from sea lice, and the marine environment offers ideal conditions for growth. Operating in sea cages is therefore both the most practical, cost effective and sustainable solution for this species. Ode is technology agnostic, but do not foresee land based cod farming to be commercially viable currently.

Athol: I understand that the current output is of high quality and probably priced at a premium, but do you have any idea of at what stage farmed cod will become a financially viable alternative for UK fish and chip operators, and if so, would the current price variations during the year be evened out with continuous supply?

Ola: It is difficult for us to predict the future price of wild cod, but we believe the customers will continue to demand an ever-growing volume of farmed cod. As you mention the quality is high and the price and availability is stable and predictable for the customers. This is beneficial for customers such as restaurants and retailers that need stability, which could also extend to fish & chip operators if farmed cod became a key part of the market to help stabilize supply.

What is more important for many customers is that with large growth projected in farmed cod volumes the next 10 years, this new supply will completely change the situation for markets and customers globally. Historically global markets have been competing for a limited and variable supply of wild cod with no growth. With farmed, there will finally be long term structural growth in cod, which allows for exciting business development and a more stable price environment over time.

The demand and consumption of cod will continue to grow globally going forward. So, if there is no growth in farmed cod while supply of wild cod will continue to be flat and low, the price for cod will continue to grow much faster than inflation. Therefore, growth in farmed cod adds crucial new supply into the global cod market to help stabilise prices in the future, but to access the quality, shelf life, stability and long term supply security, farmed cod offers comes at a price.

The subject represents ground-breaking technology and scientific development, and I am sure I will be writing lots more about Ode and Norcod in future issue.

I would like to thank Ola and Falk at Ode for allowing me the time to learn more about the about this fascinating topic.