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| Shrimp farm, Ecuador - Image courtesy of BioMar |
Since 2016 BioMar has been servicing Latin American shrimp farmers from the factory in Costa Rica with focus on sustainability and feed efficiency. With the acquisition of Alimentsa, BioMar will create a solid foothold into Ecuador which is one of the world's leading shrimp producing countries with a volume of more than 450,000 tonnes of shrimp. The country is generally recognised for shrimp products with emphasis on high quality and sustainability by both end-consumers and retailers. The acquisition is subject to approval by competition authorities in Ecuador.
Carlos Diaz, CEO, BioMar Group explains, "It is our ambition to become a major player within high-end shrimp feed. With the acquisition Alimentsa we can immediately deliver an attractive value proposition to the shrimp farmers in Latin America and we believe that we in the future - together with Alimentsa and the customers - can develop new product solutions based upon shared interest in innovation, cooperation, sustainability and performance. During our due-diligence process we have been confirmed that the acquisition will enable us to build a strong relationship towards the Latin America shrimp farmers. Alimentsa is recognised for high-end feed and a professional technical service. That is very much in line with our focus in BioMar."
The acquisition represents an investment of US$119 million. BioMar estimates that the market will prove to be very attractive with growth rates if eight - 12 percent. Shrimp production in Ecuador is characterised by optimal conditions that allows up to three production cycles per year. Furthermore the farming densities in Ecuador are quite low compared to other markets allowing much better and sustainable sanitary conditions. Alimentsa holds a market share around 12-15 percent.
Mr Diaz continues, "We foresee solid business potential in Ecuador, but first and foremost we believe that the combination of a strong local company with recognised products and deep insights into the market together with a global company with the size and innovation muscle as we have in BioMar Group will enable us to meet with the future requirements of the market as well as the end-consumers. We are very confident in the local management and the organisation."
He summarises, "We have during the last few years expanded the business significantly. In 2016 we established in production in Turkey. In 2017 we are forming a solid footprint with two factories in the Chinese market and in 2018 we have planned and announced the construction of a green field factory in Australia. Now we are taking a leap into the world of shrimp. All of those initiatives are part of our growth strategy: Shaping the Future. We believe in being 100 percent devoted to aquaculture and we have clearly stated that we strive to be innovators dedicated to an efficient and sustainable global aquaculture."
For further information contact:
CEO, BioMar Group, Carlos Diaz - cdiaz@biomar.com
Director, Global HR and Corporate Communication, Sif Rishoej - sri@biomar.com
Visit the BioMar website here.
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