January 8, 2007

 

Australis buys into Western Kingfish to farm yellowtail kingfish

 

 

Barramundi grower Australis Aquaculture Ltd is investing into Western Kingfish and setting up a joint venture to cultivate yellowtail kingfish.

 

Australis said it had bought 2.5 million shares, or 10 percent of the issued capital, of Western Kingfish Ltd in exchange for the use of its technology and services.

 

Western Kingfish is spending US$6 million redeveloping an aquaculture site, in waters near Jurien Bay, about 270km north of Perth, to farm yellowtail kingfish.

 

The facility is to become Western Australia's first major finfish production unit, with the first kingfish to be ready for harvest in 12 months.

 

Western Kingfish would be the second company in Australia to produce yellowtail kingfish on a commercial scale - after the South Australian-based Clean Seas Tuna Ltd.

 

Australis non-executive chairman and Western Kingfish founder Stewart Graham said it planned to joint venture with Western Kingfish to produce yellowtail in the US.

 

Adding kingfish cultivation into the operations of Australis would be distracting so a new company was created to develop an understanding and capability in kingfish for the US market.

 

Australis, currently investing in barramundi production, would provide Western Kingfish with access to its network of 160 wholesale distributors and more than 600 supermarkets in the US.

 

Graham said there was huge market potential for yellowtail kingfish, he said.

 

Under the deal, Australis will provide a species specific licence to use its patented recirculation technology in Australia.

 

Western Kingfish owns a land-based fish hatchery and grow-out facility, and a sea bed lease with 10 sea pens.