- Mowi might see some tailwinds with the run-up in wheat as people shift their consumption to proteins.
- Input price increases are likely to be smaller than salmon price increases as that happens due to the variety of feeds.
- Mowi is vertically integrated in its feed production, which provides a further offset with feed being 6% of that in 2021, and 20% in 2020.
- Feed prices could rise as wheat prices rise, a major source of animal feed and quite a close substitute, with fishmeal constituting many livestock diets.
- But Mowi withstands that pressure and is a resilient, attractive exposure.
For further details see:
Mowi Is The Pick For The Wheat Crisis