Feed giant Cargill is investing $5m in land based fish farmer Salmon Evolution, as part of a strategic deal that will also see Cargill supply all of the aquafeed for a new farm due to start production next year.
Salmon Evolution’s RAS (recirculating aquaculture system) farm at Indre Harøy, Norway, is due to start production in March 2022. Cargill will be supplying 100% of feed for the plant and has pledged to dedicate “significant resources” to research and development in order to ensure good biological performance and product quality.
Cargill’s investment in the farmer will be by way of a private placement of new shares to be issued, with a subscription price of NOK 7.71 per share.
As well as its RAS site at Indre Harøy, Salmon Evolution is also investing, through K Smart Farming – a joint venture with Dongwon Industries – in a land-based salmon farm in South Korea. Salmon Evolution listed on the Oslo stock exchange in July this year. Indre Harøy is planned to produce around 31,500 tonnes annually and the Korean facility, 16,800 tonnes.
Håkon André Berg, CEO of Salmon Evolution said: “Having the best possible feed is essential for every salmon farmer. Particularly, in our HFS system where we create optimal and stable living conditions for the salmon, we see a strong and untapped potential in tailoring a feed focused on maximizing biological performance and product quality.
“Given Cargill’s solid reputation and track record as a supplier of high-performance feed solutions, combined with their substantial R&D capabilities and capacities both in Norway and abroad, we are confident that we have found an ideal partner.”
Fredrik Witte, Managing Director of Cargill Aqua Nutrition, North Sea commented: “Cargill works with salmon farmers around the world, providing feed that supports fish welfare and improves farmer productivity and earnings potential, while reducing the environmental impact of aquaculture. One of the key areas to realizing the massive potential in land-based salmon farming is having optimal feed tailored to the salmon’s specific living environment – and we’re committed to working with Salmon Evolution to help them realize this potential.”