Nordic Aqua upbeat despite off-flavour issues

Land-based salmon farmer Nordic Aqua Partners said today that the geosmin problems, which affected production at its facility in eastern China location during the summer, have continued into the third quarter.

Geosmin can build up in recirculating aquaculture systems (RAS) due to bacterial growth. It is harmless to fish and humans, but can lead to an unpleasant earthy flavour, reducing the value of the stock.

No commercial slaughter in the third quarter, the company said, but 651 tonnes of biomass were removed during the July to September to optimise the stock.

Nordic Aqua Partners said it expects to bring the geosmin situation under control in the coming months.

“As part of handling the biological situation, around 2,000 tonnes of salmon are expected to be slaughtered, but no commercial harvest is expected in the fourth quarter of 2024,” it added.

“Alongside a gradual normalisation of operations, Nordic Aqua expects to slaughter around 4,000 tonnes for 2025.”

“Nordic Aqua is on track for the second construction phase at the plant in Ningbo in China, and has completed the first roe [egg] insert.

“The company has raised new equity of NOK 350m (£24.7m) which, together with debt financing, through a strategic agreement with the Bank of China, will ensure financing through the completion of other construction stages in addition to repayment of short-term debt, capex related to geosmin improvements, working capital and other general company purposes.”

CEO Ragnar Joensen added: “ We are encouraged by the progress over the last few months and are pleased to see the resilience of our operations as we come back from the geosmin setback.

“With strict measures in place and strengthened biological performance, we are now positioned to continue expanding our Nordic PureAtlantic brand in the Chinese market.

“We are well underway with the development of the second construction stage, which will double our capacity to 8,000 tonnes.

“The technical installations are expected to start by January 2025 with the first harvest planned for the second half of 2026. Preparations for stage 3, expanding the capacity to 20,000 tonnes, are ongoing and a final decision on the timeline will be made during the first half of 2025.”

Nordic Aqua Partners, Ningbo