Deal will enable the company to pursue a position in the high-end shrimp feed market in Vietnam
The acquisition will establish a partnership with one of the leading seafood groups in Vietnam active in shrimp hatcheries, fish hatcheries and shrimp farming, and will create synergy with BioMar’s existing shrimp businesses in Latin America.
The company said its ambition is to grow the market for high-end feed products focusing on sustainability, traceability, quality and performance.
“With this partnership, we open an important door into the Vietnamese market, one of the world’s leading shrimp producing countries with a production close to 500,000 tons of shrimp,” said BioMar Group CEO Carlos Diaz. “Considering the performance and agility of the Vietnamese shrimp industry during the last decade, and not at least during this last year of pandemic, I am sure the market holds a great potential for growth.”
Looking at market forecasts and the increasing consumer focus on healthy and sustainable seafood, BioMar expects there will be an increasing market share for high-end feed, ensuring customers can capture value by delivering certified and tailored products toward global retail channels. Building upon the BioMar business model of promoting local market agility in combination with global excellence, BioMar will shortly be able to turn research and knowledge within shrimp feed into new product and service offerings to the Vietnamese market.
“BioMar is already a significant shrimp feed producer in South and Central America and it is our ambition to continue the journey to become a major player within high-end shrimp feed,” Diaz said. “Within the past five years, we have established a significant production of shrimp feed in Ecuador and Costa Rica in partnership with large-scale local farmers. Now, adding Vietnam into the equation will enable us to build a strong relationship both to the market in Vietnam but also to the nearby countries, and at the same time creating benefits from the relation between genetic and nutritional development. Partnering with one of the leading companies within this field in order to develop high-performance feeds, concepts and value chain collaborations makes a lot of sense in order to promote a positive development of the shrimp industry.”
The acquisition is subject to customary approvals by authorities.
According to Feed Strategy’s Top Feed Companies database, BioMar Group is a global provider of aquafeed, primarily for salmon and trout in Norway, the United Kingdom and Chile. It also provides feed for trout, eel, sea bass and sea bream in continental Europe and for shrimp and tilapia in South and Central America. BioMar Group subsidiaries supply feed to at least 80 countries and to more than 45 fish species. BioMar is a holding of the Danish investment firm Schuow & Co.