Aquaculture is the fastest-growing food production segment globally, and since 2022, farmed fish have outnumbered wild-caught fish. Salmon, in particular, has been one of the most valuable fish species since 2013, and its production is projected to continue growing significantly. However, this expansion is not without challenges, especially regarding the sustainability of its feed. A recent report by the FAIRR initiative, titled “De-risking Salmon Feed: The Wild-Caught Fish Dilemma – Sustainable Aquaculture Engagement Phase 3 Progress Report,” delves into how major salmon producers can reduce their dependence on wild-caught fish for feed production, a crucial topic for the long-term viability of the sector.
The rising cost of dependence: risks associated with traditional salmon feed
Salmon are a carnivorous species, and their diet in traditional farming includes fishmeal and fish oil (FMFO) derived from wild fish to replicate their natural nutrition. Feed represents between 40% and 50% of the total costs in salmon farming. This dependence on caught fish exposes producers, their retail customers, and investors to a series of material risks.
- Operational risks: Currently, 38% of fisheries are overfished, and 51% are exploited at the maximum sustainable level. This pressure limits the availability of marine ingredients, which can lead to higher and more volatile production costs, directly impacting profitability. Climate events and weather patterns can also exacerbate this volatility.
- Regulatory risks: Dependence on wild-caught fish exposes salmon farmers to supply restrictions or stricter fishing quotas set by different countries. A clear example was the cancellation of the first anchovy fishing season in Peru in 2023 due to weather conditions and high catch rates of juvenile fish, which had a significant impact on the global FMFO market, causing prices to soar. Mowi, the world’s largest salmon producer, attributed a 70% increase in feed costs between 2021 and 2023 to this instability.
- Reputational risks: The use of wild-caught fish to feed farmed salmon competes with direct human consumption, as 90% of the fish used in FMFO could be used for food. This raises concerns about food security and system efficiency. Investigations have revealed the import of fish from food-insecure regions to produce fish oil used in Norwegian aquaculture, which has led some companies, like Mowi, to cease sourcing from certain areas.
In addition to feed-related risks, the salmon industry faces other sustainability challenges such as disease outbreaks, sea lice, escapes, and the environmental impact of waste, which erode public trust and the social license to operate.
The FAIRR initiative and industry engagement
Between April 2024 and March 2025, FAIRR conducted the third phase of its sustainable aquaculture engagement, focusing on how major salmon producers can reduce their dependence on caught fish in feed. The initiative involved seven of the ten largest publicly listed salmon farming companies, representing 58% of global salmon production.
The goal was to encourage these companies to develop a strategic approach to diversifying feed ingredients, assess the climate and biodiversity risks of alternatives to FMFO, and reduce the use of wild-caught fish, while also addressing their greenhouse gas (GHG) emissions.
Progress and challenges in the transition to sustainable feed
The FAIRR report highlights several key findings from the engagement with companies:
- Increased disclosure: There has been an overall increase in the disclosure of information related to feed formulations. For example, all seven engaged companies now disclose the percentage of trimmings used, compared to only two in 2020. Five companies report their share of novel ingredients, whereas none did in 2020. However, disclosure of the absolute use of FMFO from whole fish is more limited.
- Main strategies: Companies have primarily adopted two strategies to mitigate their dependence on wild-caught fish:
- Use of trimmings: All companies aim to increase their use of fish trimmings, which are by-products of processing that would normally be discarded. This retains the nutritional value of marine ingredients and reduces waste. However, it is unclear how much more trimmings can be used without needing to fish more, and their availability is limited. In fact, the report notes that the absolute volumes of FMFO used have increased, and this increase cannot be solely explained by an increased use of trimmings.
- Novel alternative ingredients: No single novel ingredient has emerged that can completely replace FMFO. These ingredients, which include insect meal, single-cell proteins (algae, bacteria, fungi), and plant-based ingredients like algal oils or genetically modified oilseeds, offer advantages such as reducing pressure on wild fish stocks. However, they all involve trade-offs in of price, scalability, nutrition, carbon footprint, and consumer acceptance. Algal oil is considered promising by five companies due to its high omega-3 content, while four view insect meals as unfavorable, mainly due to their high cost and low production volume.
- Reduction and growth targets: Although five of the seven companies have production growth targets, none have established a goal to reduce the absolute amount of marine-based ingredients used in feed. This raises questions about how sustainable growth will be achieved without a sustainable feed supply. Salmon production has outpaced any improvements made in feed conversion ratios, in some cases leading to an increase in the absolute volumes of wild-caught fish used.
- Challenges in adopting alternatives:
- Price and scalability: The high cost of some novel ingredients limits their use. Insect meal, for example, can be up to ten times more expensive than soybean meal.
- Nutrition: Nutritional content is key; fish oil is particularly difficult to replace due to omega-3 fatty acids.
- Carbon footprint: Some plant-based ingredients may have higher GHG emissions compared to FMFO.
- Consumer acceptance: There might be reluctance to consume salmon fed with certain ingredients, such as salmon by-products.
- Traceability: All companies rely on certifications to ensure the sustainability of their ingredients, both marine (MSC, MarinTrust) and plant-based (ProTerra, Round Table on Responsible Soy). However, there is variability in the robustness of different schemes and challenges in complete traceability, especially for soy, which is often processed under a mass balance system.
The path to truly sustainable salmon feed
The FAIRR report concludes that while there have been improvements in disclosure and an increase in the use of trimmings, these efforts are still insufficient to decouple the industry’s growth from the use of limited supplies of wild-caught fish. Novel alternative ingredients have not gained the expected traction.
To move forward, FAIRR suggests that investors and the salmon industry should:
- Ensure fish availability is considered in nature-related financial disclosures (TNFD).
- Formalize targets to reduce the absolute use of wild-caught fish.
- Prioritize research and investment in novel and alternative feed ingredients and technologies.
- Consider including plant-based alternatives in their product portfolios, mirroring what large meat producers have done.
- the farming of aquatic species with lower environmental impact that do not rely on wild-caught fish feed, such as seaweed, oysters, and mussels.
The transition to a more sustainable aquaculture industry would not only improve global food security and provide environmental benefits but also diversify revenue streams for companies and their investors. The FAIRR report underscores that although the path is complex, ingredient diversification and continuous innovation are fundamental to the sustainable future of salmon aquaculture.
FAIRR Initiative
The FAIRR Initiative is a global investor network established by the Jeremy Coller Foundation. Its main objective is to raise awareness of the material risks associated with intensive animal agriculture and the opportunities in the global food sector.
FAIRR focuses on:
- Providing high-quality research.
- Facilitating engagement.
- Coordinating policy action for its .
This allows its to exercise their influence as responsible stewards of capital while safeguarding long-term investment value.
Reference (open access)
FAIRR Initiative. (2025). De-risking Salmon Feed: The Wild-Caught Fish Dilemma. Sustainable Aquaculture Engagement Phase 3 Progress Report – May 2025. Jeremy Coller Foundation. 27 p.
Editor at the digital magazine AquaHoy. He holds a degree in Aquaculture Biology from the National University of Santa (UNS) and a Master’s degree in Science and Innovation Management from the Polytechnic University of Valencia, with postgraduate diplomas in Business Innovation and Innovation Management. He possesses extensive experience in the aquaculture and fisheries sector, having led the Fisheries Innovation Unit of the National Program for Innovation in Fisheries and Aquaculture (PNIPA). He has served as a senior consultant in technology watch, an innovation project formulator and advisor, and a lecturer at UNS. He is a member of the Peruvian College of Biologists and was recognized by the World Aquaculture Society (WAS) in 2016 for his contribution to aquaculture.
