December 4, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

An investor consortium comprising Continental Grain Company (Conti), publicly listed, Mexican food and beverage-focused holding company Organización Cultiba SAB de CV (Cultiba), and private equity firms Equity Group Investments (EGI) and Castle Harlan, have made an investment in Baja Aqua-Farms, a leading vertically integrated Bluefin tuna rancher in Baja California, Mexico. 

The company is being divested by New York-based AMERRA Capital Management, who has owned Baja Aqua-Farms along with a group of unnamed investors. Since its inception, AMERRA has completed more than 380 investments with an aggregate value exceeding $5.7 billion, and of these, Baja Aqua-Farms has been affiliated with AMERRA for more than 10 years.

 “Baja Aqua  Farms (“Baja”) has been affiliated with AMERRA for over a decade,” said Pat Morabito, chief risk officer, AMERRA Capital Management. “Initially lending money in  2011, AMERRA worked closely with Baja executives and shareholders to transform the company  from a struggling company into a fully vertically-integrated enterprise. As a result, Baja is one of  the premier integrated Bluefin Tuna ranching companies in the world.” 

As sushi and sashimi have gained popularity, demand for bluefin tuna also soared. Its market value was on full display in 2019 when a huge Bluefin tuna sold for an astounding $3.1 million at the Toyosu fish market in Tokyo, showing exactly to what lengths buyers will go. This sale however, also raised alarm bells. What is this saying about availability and wild population levels? This can’t be sustainable, can it? 

“It’s definitely the most important fish in sushi restaurants,” Mark Okuda, chef and owner of the Brothers Sushi in Woodland Hills and Santa Monica, told the LA Times in May 2023.  “Like beef patties to a burger shop, bluefin tuna is essential to sushi.”

There are three species of Bluefin tuna: the Atlantic, Pacific, and southern. Pacific Bluefin have a maximum reported length of 9.8 feet and weight of 450 kilograms, or 990 pounds. Their maximum lifespan is approximately 26 years, but live for an average 15 years. They reach maturity at five years of age and eat squids and a wide variety of smaller fish such as anchovies, along with crabs and krill. 

However, due to their large size and slower growth rate, matched with an outsized demand, wild populations have been severely threatened. This, combined with mismanagement of quotas etc. had led to the Pacific Bluefin tuna population falling to only 2.6 percent of its un-fished level before a joint recovery plan was enacted by the Inter-American Tropical Tuna Commission (IATTC) and the Western and Central Pacific Fisheries Commission (WCPFC) in 2017, according to Pew Trusts. 

In recent years, there has been greater awareness about the need for sustainable sourcing and responsible consumption. And while its culinary popularity continues to support rising demand, efforts toward achieving sustainable practices and conservation of Bluefin tuna are proving critical to ensuring the long-term survival of the species.

Aligned with this goal is Baja Aqua-Farms, an established leader in Bluefin tuna ranching with 1,210.6 hectares (2,992 acres) of farming locations along the Baja coast and a mission to produce and distribute the highest quality Pacific Bluefin in a sustainable and environmentally responsible manner.

And buyers have taken notice – the company noted that its fresh sashimi-grade tuna is highly sought out by the world’s top chefs for its consistent quality and year-round availability. 

This partnership will give the company the strategic support and a source of additional capital needed for it to meet the growing demand in the seafood industry. As part of the transaction,  Ignacio Sanz from Conti, Juan Ignacio Gallardo Thurlow from Cultiba, Rahul Sen from EGI, and Patrick Zyla from Castle Harlan will join Baja Aqua Farms’ board of directors.

“We look forward to partnering with the investor consortium,” said Manuel Vazquez, CEO, Baja Aqua-Farms. “Their combined operational expertise will be a major asset in driving the growth and expansion of our business going forward.”

“In addition, the incoming investor group shares our passion to remain a leader in environmentally sustainable practices, offering unique opportunities for our customers, suppliers, and employees.”

~ 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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