Nordic Aqua launched its 'Nordic PureAtlantic' brand on April 29 at a ceremony in Shipu City, Xianshang County, Ningbo, attended by, among others, the head of the Royal Norwegian Consulate General in Shanghai.
Photo: Royal Norwegian Consulate General LinkedIn page.
"The first quarter was a pivotal chapter in the journey to becoming a premium supplier of Atlantic salmon to the Chinese market." So began CEO Ragnar Joensen's comments on the results of Nordic Aqua - China's first commercial-scale RAS Atlantic salmon farm - in Q1 2024.
After a successful test harvest in mid-February, and slightly behind schedule due to some adjustments in the water circulation systems, Nordic Aqua carried out its first commercial harvest in April. "This milestone was not only a technical success but a testament to Nordic Aqua's superior quality," Ragnar Joensen said.
"The harvested salmon branded as Nordic PureAtlantic achieved an average weight of 6.1 kilograms and 99% was classified superior quality. This reinforces the high-quality standards and positions Nordic Aqua to establish a premium brand in the Chinese market," Nordic Aqua CEO continued.
Started in April - as mentioned -, by May 10, the cumulative harvest volume reached 92 tons. Along with this first harvest and the launch of its commercial brand, the first quarter of 2014 was also when the China-based RAS salmon producer successfully transitioned from the project phase to operational status.
With good operational and biological performance in all batches, excellent fish health and welfare - with no signs of maturation -, and a biomass production in Q1 of 967 tons, Nordic Aqua has reported a total biomass of 2,046 tons at the end of the quarter.
"These excellent biological results underscore Nordic Aqua's capability to maintain superior fish health and welfare standards, which translates into premium product quality for the highly attractive Chinese consumer market," Ragnar Joensen already highlighted a month ago, when the land-based salmon farmer presented its first harvest.
In the weeks following first harvest, Nordic Aqua has focused on building market distribution and exposure for its 'Nordic PureAtlantic' brand. To this end, it announced two additions to the team: Andreas Thorud - who resigned from his position as Director of the Norwegian Seafood Council in China in October last year to become General Manager of Nordic Aqua in China - and Tom Johan Austrheim, who has been appointed as the new CFO.
In the Q1 2024 results release, the company stated that strategic partnerships with experienced seafood distributors have been important in reaching a broad customer base, including retailers, HoReCa (Hotels, Restaurants, and Catering), and top chefs.
"Feedback has been positive, particularly regarding the salmon's color, texture, and quality, supporting the company's premium positioning objectives," Nordic Aqua Partners claimed in its Q1 2024 results presentation.
Regarding the outlook for the coming months, the company said its harvest volume for the second quarter of 2024 is expected to be between 500-600 tons HOG. For the full year, Nordic Aqua expects it to reach 3,400 tons HOG, with a full EBIT cost of EUR 6.70 /kg (HOG) increased with EUR 0.80 /kg (HOG) in company expansion costs. In total EUR 7.50 /kg (HOG).
Precisely looking ahead, Nordic Aqua is expanding its production capabilities. During the quarter, the first stage of construction was completed at the Gaotang facility, which includes a smolt facility and a 4,000-ton HOG fattening facility. Construction of the second stage is underway, and preparations for the third stage are in progress.
According to the company, this expansion is driven by strong market demand and its strategic advantage in local production - as said, Nordic Aqua is the first commercial-scale RAS Atlantic salmon producer in China -, which significantly reduces logistics costs and improves the freshness of the fish.
Nordic Aqua Partners is a Nordic land-based Atlantic salmon farming company setting up the first fully integrated and commercially scaled Recirculating Aquaculture System (RAS) farm for Atlantic salmon located in Gaotang, Ningbo, China, providing excellent logistics to Greater Shanghai and the rest of the Asian giant.
Using cutting-edge Nordic technology and expertise, the site has the potential to accommodate an annual production capacity of 16,000 tons, with an option to expand to an annual capacity of 40,000 tons. It is listed at Euronext Growth under the ticker NOAP.
