January 18, 2024

photo credit: American Unagi

By Lynda Kiernan-Stone, Global AgInvesting Media

Impact investor RuralWorks, which is a joint venture between Community Reinvestment Fund USA and Conduit Capital, announced a strategic investment in American Unagi Inc. the only producer and processor of locally sourced and harvested American Eel (also known as unagi) in the U.S. 

Eel is considered a delicacy in many Asian and European markets, and as demand for seafood climbs and the Asian-American population continues to grow and gain influence on the market, it is gaining ground in the U.S. too. But if you’re in a U.S.-based sushi restaurant and order an eel-based dish, there’s an outsized chance it will have most likely been caught wild in the U.S. and raised overseas to be shipped back to the U.S.

However, American Unagi is disrupting this round-about system and is pioneering an American supply chain for the fish. Located in rural Maine, the aquaculture company produces and sells a range of traceable and environmentally responsible, live and value-added Unagi products to Michelin-star restaurants, independent customers, and distributors throughout the U.S. 

Early last year the company expanded its production capacity with the construction of a $10 million, 27,000-square foot facility able to meet output of half a million pounds, or 2 million eels per year. 

American Eels are known as a catadromous (the opposite of anadromous) and an amphihaline species, meaning they divide their life between the ocean and freshwater, migrating from freshwater back to the ocean again to spawn. They can be found along the U.S. Eastern seaboard, southeastern Canada, and the Gulf of Mexico, and as far inland as the Great Lakes, migrating back to the Sargasso Sea to spawn during the fall.

After spawning, the adult eels die at sea and ocean currents carry their larvae back toward the land. During this time they continue to grow and undergo three stages until they reach the coast at  stages called “glass eels” and “elvers”, which are migratory and reach estuaries by spring before reaching rivers.

However, no matter the geographic location, whether the U.S., Asia, or Europe, it is near impossible to breed eels in captivity, leaving the entire industry to rely on catching young eels in the wild to be raised in farming operations. 

American Unagi purchases its elvers from licensed Maine eel harvesters, and then raises them in their state-of-the-art aquafarm – a process that can take up to two years. Driven by increasing consumer demand for traceable and sustainable seafood, the company’s products are all accountable back to the specific fisherman who harvested the juveniles from Maine’s rivers. 

“With a strong focus on supporting local economies and preserving our environment, American Unagi leads the way in sustainable aquaculture,” said Sara Rademaker, founder, American Unagi. 

“Our mission is to offer consumers a responsible and traceable alternative to uncertain imported eel products, while championing community growth and responsible natural resource management. Our collaboration with RuralWorks is an important piece in achieving these goals.”

This business model fits well with RuralWorks’ goal of providing growth capital to ready-to-scale, rural businesses that are working to protect the planet while generating community wealth and economic resilience. 

With the capital from this RuralWorks’ investment and operating in partnership with the local Passamaquoddy Tribe, American Unagi stated it is well positioned to supply escalating U.S. demand for sustainably sourced, traceable seafood, particularly from the rapidly growing Japanese cuisine market. 

“We are thrilled to support American Unagi’s disruptive approach to sustainable aquaculture,” said Louisa Schibli, chief engagement officer, RuralWorks. “This investment aligns perfectly with our mission to help build local agriculture and food supply chains, create economic resilience within rural communities, and promote environmentally responsible solutions.”

~ Lynda Kiernan-Stone is editor in chief 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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