AI analyzes wellboat movements to predict salmon supply

The Icelandic tech startup Oceans of Data is leveraging artificial intelligence to refine its data processing capabilities, with a particular focus on predicting salmon supply through the analysis of wellboat movements near sea farms. Anna Björk Theodórsdóttir, the company's CEO and founder, is enthusiastic about developing predictive models that can generate buy and sell signals for the market.

Currently, the company is engaged in a two-year pilot project, funded in collaboration with four aquaculture companies. The goal is to create models that assist managers in timing their purchases and sales more effectively, thereby improving profit margins in an industry known for its thin margins. This initiative aims to bring greater predictability to the market.

Oceans of Data already operates a forecast model for Norwegian salmon supply, monitoring activity around fish farming sites. By purchasing location data that indicates the level of wellboat activity near farms in Norwegian fjords, the company gains insights into potential supply fluctuations. Increased activity around farms ready for harvest signals a potential increase in supply.

This data, when combined with information on biomass and past harvesting, allows for an estimation of future market supply and its likely effect on prices. Such information is highly valuable, as sudden shifts in supply can lead to significant price volatility. The direct relationship between supply and price means that a surge in supply typically leads to a price decrease, and vice versa. Therefore, having foresight into supply is crucial, as prices can fluctuate by tens of percent within a single week.

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There is a direct relationship between supply and price: when supply increases, the price decreases, and vice versa. Therefore, it is crucial to have predictability of supply, as prices can fluctuate by tens of percent within the same week.