December 4, 2020

By Lynda Kiernan, Global AgInvesting Media

With a feed conversion ratio (FCR) of 1.2:1, seafood is one of the most efficient means of meeting the nutritional demands of a global population. In regard to environmental impact, as demand for protein continues to climb, seafood production has a significantly lighter footprint compared to poultry with an FCR of approximately 1.7:1, pork with an FCR of 2.9:1, or beef with an FCR of about 6.8:1. 

Noting that more than 75 percent of key marine fish populations have been overexploited and overfished to the point of critical depletion, aquaculture is filling the gap.

Aquaculture is the fastest growing segment in animal protein production, and was named as one of the Ag Sectors to Watch in 2019 by Philippe de Lapérouse and Mark Zavodnyik of HighQuest Consulting.

“Since 1960, global demand for seafood has increased 3.2 percent annually, outpacing the 1 percent annual growth in the world’s population over the same time period,” noted de Lapérouse.

Predictive modeling by The World Bank estimates that by 2030, 62 percent of food fish will be provided through aquaculture, and from 2030 onward, driven by pressure to fill the gap, aquaculture will dominate supply in the industry, according to the report, Fish to 2030, Prospects for Fisheries and Aquaculture.

And with cutting-edge technology such as recirculating aquaculture systems (RAS), fish farmers are perhaps the most prepared to meet this challenge as they have ever been.

One such producer is The Kingfish Company in the Netherlands which produces Dutch Yellowtail, a high-quality, high-value marine finfish in land-based operations with the use of RAS technology. The Dutch Yellowtail has proven to be an ideal candidate for such production systems and is often grilled, smoked, or used for premium sashimi, and has been rated a “Green Choice” by the Good Fish Foundation. 

After years of R&D, the company built a production facility that went online in 2018 with a per-year capacity of 600 tons of Kingfish Yellowtail. Today, the operation is fully vertically integrated from breeding, to grow-out, processing, packing, and distribution. This type of facility also provides solutions to some of the most vexing issues facing open water aquaculture production such as parasites, escapees, inefficient feeding, micro plastics, temperature fluctuations, and fish mortality.

With the goal of funding an expansion in capacity to its existing facility in Europe, and to help fund regulatory hurdles for a new facility planned for the state of Maine in the U.S., The Kingfish Company has recently completed private placement raising NOK 535.5 million (US$58.6 million).

Eight cornerstone investors participated including ADM Capital’s Cibus Enterprise Fund; Creadev International, the company’s largest shareholder; Rabo Particpaties B.V., the company’s second largest shareholder; Claris B.V.; Tycoon Industrier AS; Kverva Finans AS; Lin AS; and Sortun Invest AS.

“Cibus Enterprise Fund is excited to add The Kingfish Company to its portfolio of sustainable agri-food tech investments,” said Alastair Cooper, head of venture investments, ADM Capital Europe. “The world consumes over 156 million tonnes of seafood today and with an ever-growing population demanding healthier and more sustainable protein, aquaculture is bound to fill the supply-demand gap.”

Cooper continued, “Kingfish has adopted a technologically advanced approach, using recirculating aquaculture methods, which offer a reliable, sustainable, and fully controlled production environment. Given its track record in biological gains, technical and operational excellence, we are very confident in the Company’s ability to successfully prosecute its ambitious expansion plans in Europe and the U.S.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.