Nutaaq cod has the perfect quality for selling as refresh, and the first customers have already started buying it. Value maximisation boosts earnings After the latest strategy periods, where the focus has been on volume growth, we must acknowledge that it is becoming increasingly difficult and costly for Royal Greenland to access larger quotas for our main species. Consequently, we decided to focus on increasing the value of the resources already at our disposal. This means that future growth will primarily come from deriving more value from our exist ing quotas. We need to find ways of increasing the price and earnings we can generate from every single quota kilogramme, thereby maxi mising the value of the available resources. How do we do this? It will depend on the spe cies and the markets and segments we sell to. Generally speaking, it’s a question of further penetration of our existing markets, in oth er words selling our products deeper into the market rather than, for example, selling to mid dlemen, who usually sell to the second or third part of the value chain. Selling deeper into a market often requires fur ther processing of our raw material. For fish, it might mean that we have to go from selling heads-off and gutted to selling fillets, while for crabs we might have to change our packaging sizes to suit slightly smaller wholesalers, larger retail customers or restaurant chains. Basically, the goal is to boost earnings by an additional DKK 150 million through a range of value-maximisation initiatives. Some of this in crease will already be realised in this financial year, while the rest will happen steadily over the following years. Specific initiatives We are working on several projects that aim to increase our activities in Greenland. From quali ty-enhancing projects to new activities that can contribute to job creation. For cooked and peeled prawns, we have a pro ject involving the packaging of foodservice bags at our factories in Ilulissat and Sisimiut. Packing in Greenland helps to increase the quality of our product, as we avoid repacking and extra handling. Also, it gives us an extra sales para meter, as we can say that the product is pack aged at the point of origin. Improving the quali ty and sorting of the prawns will also help us to achieve higher value in selected markets. 4 NAVIGATIO NO. 1 2019
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