BioMar CEO: Ecuador is ‘best way to start’... BioMar CEO: Ecuador is ‘best way to start’ new shrimp feed venture
Danish aquatic feed giant BioMar Group has no immediate plans to ramp up shrimp feed production at newly-acquired Alimentas, but CEO Carlos Diaz told Undercurrent News expansion is on the horizon.
Last week, (June 4) BioMar announced the acquisition of 70% of Ecuadorian shrimp feed company Alimentsa in a deal worth $121 million. The Guayaquil-based company has annual shrimp feed production capacity of 110,000 metric tons and commands a 10-15% share of Ecuador's shrimp feed market.
In an email to Undercurrent shortly after the announcement, Diaz said for the time being the plan is to maintain capacity, but with a view to complement and expand sales on the back of Ecuador's growing shrimp aquaculture sector.
“We have sufficient capacity, but of course we will expand the business, not only in Ecuador but in the region. Now [we have] a very good footprint combining the plant in Ecuador and the one in Costa Rica, which produce feed for tilapia, cobia, shrimp and other species," he said.
BioMar’s Costa Rica plant has been servicing shrimp farmers in Latin America since 2016.
“We have been around the shrimp world for some time now, looking for interesting targets. I have to say, what I see in Ecuador is very good,” he continued. “There are many areas and countries producing shrimp, but in my view the industry in Ecuador does it in a very sustainable way.”
He said Ecuadorian farms are “extremely efficient farms”, while others have “great potential for improvement, in terms of productivity per hectare.” He added that farms in Ecuador benefit from “fantastic natural conditions, very good people and know-how". He also added that many farms stock ponds in lower densities.
"Our shrimp feed products are quite successful in performance in central America and we will complement this with Alimentsa products.... From a country and from a company point of view, it is the best way to start,” he said.
Ecuador is one of the fastest growing countries for shrimp production in the world. Last year, Ecuadorian shrimp exports increased by 11% to 362,000t.
Most recently, one of Ecuador's leading shrimp exporters Songa told Undercurrent it plans to double processing capacity to 250t a day.
Beyond Ecuador, BioMar's largest market in South America is in Chile, where the firm is a significant supplier of salmon feed to the country's salmon farmers.
https://www.undercurrentnews.com/2017/06/05/biomar-ceo-ecuador-best-place-to-start-new-shrimp-feed-venture/