Brunei company Myinvesco Hi-Q Biotech on Friday signed a joint venture to meet China’s growing demand for grouper.
The agreement with Taiwan firm Planet Hi-Q Marine Biotech, a subsidiary of Hi-Q Biotech International, will build Brunei’s first indoor fish farm to raise red grouper.
The USD 3.4 million (EUR 2.5 million) farm, built on a two-hectare site in Kg Serdang, Kin Kota Batu, will use a patented Ecological Recirculating Aquaculture System (ERAS) technology and have an annual production capacity of 50 metric tons. The project will also have the opportunity to grow with the early 2010 completion of a 40-hectare Eco Aquaculture Park in Sg Paku. China’s anticipated red grouper demand next year is 12,000 metric tons.
The deal also includes buy-back and purchase agreements. Under the buy-back agreement, Planet will purchase the fish at USD 32 (EUR 23) per kilogram. Myinvesco will also become a sub-licensee of the ERAS technology held by Planet. Brunei is the first country to rear red grouper using ERAS technology.
Planet also announced a plan to expand the use of ERAS technology in the Sultanate of Brunei, aiming to produce 2,000 metric tons of red grouper annually in the next five years. It is currently searching for prospective parties to become sub-licensees. In 2007, Malaysia was the first country to grow tiger groupers using the technology.
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