Feed group BioMar halts trading with Russia
Multinational aquafeed producer BioMar Group has stopped doing business with Russia as a protest over the invasion of Ukraine. The decision means BioMar will not sell its feed to Russian producers, or source raw materials from the country.
Danish-based BioMar is one of the world’s biggest producers of feed for aquaculture and the decision applies to all of its trading entities worldwide. The company concedes that substituting raw materials and losing sales volume will have “a significant impact”.
Carlos Diaz, CEO of BioMar Group, said: “This has not been an easy decision, but as a company driven by our purpose and values, we must take a stand. We believe it is our responsibility to make a positive impact on the environment and human rights around the world. Therefore, we will not collaborate with Russia while they are violating the sovereignty of Ukraine and causing a humanitarian crisis.”
The company said that the trade ban has been approved by the Board, and the company will start the process of closing all activities from today, evaluating commitments and goods in transit in the supply chain case by case.
BioMar employees in Russia and Ukraine are being kept in employment and supported by the BioMar organisation, despite business activities being disrupted.
Diaz added: “Unfortunately, our decision will have a significant impact on our customers in Russia, and it might impact our formulation costs going forward, but we needed to draw a line in the sand. We do not hold the Russian people responsible, and we will do what we can to find solutions for our customers and employees. Despite the impact this will have, we believe is the right thing to do.”
Last week the Dutch-owned group SHV, which owns aquafeed producers Nutreco and Skretting, announced that “no new investments, no new projects and no new exports to Russia” would be undertaken, but the BioMar decision appears to go further.