June 23, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Portugal-based food group Jerónimo Martins has invested NOK173.9 million (€16.8 million, US$17.66 million) in tech-driven Norwegian salmon farmer Andfjord Salmon.

Jerónimo Martins is the second highest-valued company on the Lisbon Exchange based on market capitalization, operating an international food production and retail business with 4,908 stores and 123,458 employees as of December 2021.

Through this investment, which was conducted through Jerónimo Martins’ agribusiness subsidiary Jerónimo Martins Aimentar, S.A., Jerónimo Martins is now one of the largest stakeholders in the company with an ownership share of 10.1 percent – which now joins Jerónimo Martins’ existing aquaculture holdings of three ocean-based fish farms in Morocco and Portugal. 

“We are delighted to attract such a major industrial investor to Andfjord Salmon,” said Martin Rasmussen, CEO, Andfjord Salmon. “We consider it an advantage to have an owner that possesses extensive competence about international food industry sales, marketing, logistics and distribution. Hopefully we can tap into this know-how when we are ready to bring our salmon to the market.”

Located on the eastern shore of Andøya, the most northern island of the Norwegian Arctic Archipelago of Lofoten – Vesterålen, Andjford Salmon, which is developing a farm at Kvalnes, Andøya,  stated that it is ushering in the future of salmon farming by integrating the different benefits of ocean net-pen and land-based farming.

Its innovative farming concept is based on a patented low-energy flow-through system. Completely different from traditional land-based recirculation aquaculture systems (RAS) that reuse water, Andfjord Salmon’s innovative production method provides a continuous flow of clean seawater a constant optimum temperature on a year-round basis.

By bringing in oxygen-rich fresh seawater from 160 meters during the winter months, and 30 meters during the summer, temperatures remain steady at between 7-12 degrees Celsius. This fresh water not only makes monitoring of the fish easier due to better visibility, but it is also sourced from depths below the survival level of salmon lice and harmful algae, eliminating the possibility of risks to the salmon populations. This unique land-based recreation of the salmon’s natural habitat reduces feed costs, fish escapes, and mortalities to produce salmon with very low-energy consumption and the smallest possible environmental footprint.

With a license-in-hand to produce 10,000 tons of salmon at Kvalnes, Andjford Salmon plans to release smolt in its first pool in June 2022, as blasting and excavation work continues on the next pools making up Phase 2 of the project.

“Andfjord Salmon’s project is focused on using efficient technology to produce salmon – a strategic seafood product – with less impact on natural resources, therefore contributing to conserving and sustainably using the ocean, the sea, and marine resources,” said Pedro Soares dos Santos, chairman and CEO, Jerónimo Martins.

“In a challenging backdrop of both high pressure on the ocean stocks and food security, we believe that investing in this innovative and sustainable production will also work for us as a learning curve accelerator in what regards best practices in aquaculture projects.”

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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