June 29, 2018

BioMar strengthens position in Ecuador through Alimentsa

Less than a year after acquiring the majority stake in Alimentsa, BioMar has accelerated the development of the Ecuadorian shrimp feed producer in terms of capacity as well as human capabilities.

"We have continued to build on the legacy of Alimentsa", said Danny Velez, who took over as general manager shortly after the acquisition. He stressed the importance of ensuring continuity while fortifying the company in a highly competitive market.

Velez said that sales volume has continued increasing since the acquisition by the Danish fish and shrimp feed company, adding that Alimentsa is in the middle of a series of new investments including a fifth production line in order to secure sufficient capacity next year. It is a relatively small investment as the new line fits into our present facilities, and thereby we expect it to be ready already early next year", Velez said.

Velez said their new feed trial and development facility announced in November is also progressing according to schedule and will be operational later this year.

Further investments are planned for the near future to fulfill the strategic ambitions of the company. Velez sees the current price drop for shrimp as a temporary correction that should not impede investment.

"Overall global shrimp consumption continues to increase, and in terms of quality and sustainability Ecuador has the upper hand. China is the largest market for shrimp, but the local production in China is facing new tough environmental restrictions and this will limit the supply. At the same time the Chinese consumers become more and more demanding, so I strongly believe that the market will return to equilibrium soon", he said.

BioMar's investment programme in Ecuador is accompanied by a strengthening of the organisation in Alimentsa. "We want our customers to see the tangible benefits of becoming a part of BioMar, so especially product development and technical customer support are being reinforced. However, also other areas of the company are being strengthened while we integrate Alimentsa into BioMar", Velez said.

As a consequence, the Technical Director for BioMar Central America, John Tinsley, relocated to Guayaquil in May, joining Alimentsa's R&D Manager Laurence Massaut in a first step to build a highly competent team for feed trials and product development around the new Aquaculture Technology Centre.