Statt Torsk ASA (ST) aims to establish its farmed cod as a premium product with
fixed deliveries all year round to dedicated quality customers in Europe. The
feedback from the market confirms this strategy.

ST have had regular weekly deliveries to our pilot customer in Spain since
September, with a gradual increase in volume according to plan. We now see that
this model is scalable and a good foundation to build on. The main challenge now
is to develop the market within this strategy. This requires an efficient value
chain and close coordination between harvest and sales, which has been our main
focus.

The management at ST decided this autumn not to increase the harvest rate beyond
deliveries to the pilot customer. Our strategy is not to harvest before we have
sold the fish, in order to avoid selling products in the spot market. However,
we harvested a good number of samples for various potential customers as well as
for various smaller customers in Asia, and not least in Norway. The harvesting
rate was therefore scaled down compared to original plan, with the consequence
that we now have more fish than planned in our facilities. This should have no
negative consequences on issues like fish health, product quality or other
conditions.

This strategy has resulted in a delay in our development by about 6 months
according to the original plan, but we believe this was the right choice, to
secure the strategic establishment of the brand and the product.

In order to continue this strategy and with today's starting point, we now
operate with a harvest and sales plan of approx. 3.500 tons in 2023. Our focus
will be to develop the market and new customers and increase the sales further
in line with our product strategy. 

In 2022, ST informed about the approval of 7 additional licenses/7 MAB (MAB =
Maximum Allowed Biomass, 1 MAB = approx. 780 tons). This is both an expansion of
3 MAB in the existing facility in Rekvika, plus a new facility with 4 MAB at
Apalset. This increases our maximum permitted production capacity by 144%, from
3,900 tons to 9,360 tons of biomass. These approvals are important building
blocks towards our long-term target of 12,000 tons/year.

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