Nutreco-backed group says it can get $15 per kilo markup for China-grown land salmon

Nutreco-backed land-based salmon farmer Nordic Aqua Partners said new calculations show the group could make operating margins of up to NOK149/kg (€15.13/$15.18) on salmon raised at its plant in Ningbo, China.

Nordic Aqua said wholesale prices in China in the second quarter averaged NOK 200/kg (€20.30/$20.37) for gutted head-on (HOG) fish.

In the meantime, the group has budgeted earnings before interest and taxes (EBIT) cost per kg of NOK 51 ($5.20/€5.18) when his farm is operational, implying that the margin will reach the level of NOK 149 per kilogram.

The margin would be NOK 103/kg (€10.46/$10.49) more than the current price of salmon delivered to Oslo.

Nordic Aqua Partners is on track to harvest its first salmon from its factory in Ningbo, China, in the first quarter of 2024, it said in its second quarter update.

The first egg placement took place in March and the second in early June.

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Originally, Nordic Aqua Partners planned to harvest 8,000 metric tons in the country by 2026. The company has since said it is “increasing” that business plan to 20,000 metric tons. The first stage of the project will have an annual production capacity of 4,000 metric tons.

Total capital expenditure during the second quarter amounted to DKK 56 million (€7.3 million/$7.3 million), mainly related to the purchase of the systems technology. recirculating aquaculture (RAS) of the Akva group.

As of June 30acumulative capital expenditure for the project was DKK 188 million (€24.4 million/$24.4 million). The company has available cash of DKK 428 million (€55.6 million/$55.6 million).