The CEO of Danish aquatic feed giant BioMar Group told Undercurrent News that expanding into shrimp feed in China would be a "logical step".
In an email to Undercurrent shortly after BioMar secured a $120 million deal for Ecuadorian shrimp feed company Alimentsa, Diaz said his company would be “very active” in the shrimp feed segment, including possibly the Asian country.
“We are already in China, so of course it is a logical step,” he said.
“We are always looking to all shrimp feed producing countries, searching for opportunities. We believe our focus in innovation has created a very good base in other species, and we will do the same in shrimp," he said. “Other countries in Asia are always under evaluation, but we need to find the right targets and consolidate our position.”
BioMar currently produces mainly aquatic feed for coldwater fish species in China. However, China's shrimp production is the world’s largest.
In 2016, Guangdong Province, south China, shrimp feed demand alone was 800,000 metric tons, according to Guangdong Feed, although the figures are disputed. BioMar's partner in China, Tongwei, is also increasing shrimp feed production.
“Things are changing fast,” said Diaz. “There’s more environmental awareness, good safety and sustainability. So Biomar has an important role to play, together with our big partner here, Tongwei.”
Currently BioMar operates one plant in China through its joint venture -- called BioMar-Tongwei Biotech (Wuxi) -- with Tongwei, while another is under construction. In November of last year, the joint venture acquired Chinese aquatic feed manufacturer Haiwei, which subsequently opened a new production line in February of this year.
Back in November, Diaz said stricter Chinese environmental and food safety regulations, together with consumer trends, are requiring higher standards in the fish feed sector.
But Diaz would not rule out any country as long as the opportunity is right, with both greenfield development and M&A a possibility depending on the market.
“We are always looking for opportunities. We have a clear strategy of shaping the future, which is ambitious in growth," he said.
“Right now we are the only focused global aquaculture feed supplier, this is what we do. So, definitely you will see us active in the important aquaculture markets around the globe,” he added.