Sold salmon for NOK 130 per kilo

Proximar Seafood says it received prices for its first harvest well above the import price for Norwegian salmon in Japan

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"We can now finally deliver domestically produced Atlantic salmon to the Japanese population. Achieving a premium price for our fish is another confirmation of our business model, which demonstrates the significant cost advantages of local production in Japan," Proximar Seafood chief executive Joachim Nielsen said in the company's report for the third quarter of 2024.

An average price achievement of NOK ~130/kg (Yen 1,826 / £9.26) corresponds to about a 10% premium compared to imported Norwegian salmon based on relevant reference prices, according to the company.

Turbidity challenges

Q3 2024 highlights

  • First harvest and sale conducted with a premium price of NOK ~130/kg
  • The launch of Proximar's brand "Fuji Atlantic Salmon" received significant media attention in Japan
  • Continued biomass growth, with 733 tonnes at the end of Q3 2024 (compared to 360 tonnes at the end of Q2 2024 and 877 tonnes by mid-November)
  • Increased operational activity in the post-smolt building, with nine batches transferred to the two operational modules by the end of Q3 (10 by mid-November)
  • Good progress towards completion of the last two modules in the grow-out building by the end of the year (third module is completed, first fish planned to be transferred in November)
  • Several measures implemented to manage turbidity, resulting in limited feeding in the grow-out building in Q3. The measures are already showing positive results, with low turbidity (clear water) in the module receiving full dosing
  • Additional investments of ~NOK 30 million reported in Q2 and extra working capital was financed through the sale of its own convertible bonds (NOK 40 million) and new loans in Japan (~NOK 75 million).

 

The company has previously reported challenges with high turbidity in the water of its recirculating aquaculture system (RAS) facility, which has led to reduced feeding and lower growth in the grow-out building.

"The ozone plant is now installed and delivers full dosing to one module (module C), which shows very clear results and significantly reduced turbidity. The last modules will be ready to receive full dosing this month, and the company expects that turbidity will return to normal levels after this," the company said.

Only 80 tonnes this year

The lower growth rates, along with customers' timing preferences, affect the company's planned harvest volumes for 2024.

The company says it plans to harvest approximately 80 tonnes this year, while the remaining volumes that were previously planned to be harvested in 2024 will be moved to the first quarter of 2025.

However, the company maintains the expected combined harvest volume for 2024/2025 at 4,700 tonnes. Proximar still expects that full capacity for phase 1 of 5,300 tonnes will be reached in 2027.

Launched brand

Proximar's brand and logo were officially launched in Japan in October at a launch event with the company's partner Marubeni Corporation in Tokyo, with 18 media channels present.

"External attention after the launch has been very strong, which has increased awareness and created further interest," said the company. Through sales in supermarkets, emphasis is placed on the brand and product, which builds consumer awareness. The company believes that the strong enthusiasm for 'Fuji Atlantic Salmon' in Japan is partly due to it being the first and only supplier of domestic Atlantic salmon, combined with the location at the foot of Mount Fuji, said Nilsen.

 

 

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