Ålesund, Norway-based Hofseth Biocare ASA is partnering with Atlantic Sapphire to produce salmon oil and other salmon by-products.
The two firms plan to build and operate a facility in Miami, Florida – where Atlantic Sapphire is based – to produce products from salmon off-cuts supplied by Atlantic Sapphire.
“HBC's proprietary intellectual property will be leveraged to produce refined products such as salmon oil, proteins, and calcium products for the feed, pet, and human consumption market,” said HBC in a press release.
"Utilizing the whole fish has been our vision since we founded HBC in 2009 and with our plants in Norway now running at stable, high volumes, a joint venture with Atlantic Sapphire is a right step in the direction of being a global producer of nutrition from fish off-cuts," added HBC CEO Roger Hofseth.
Atlantic Sapphire and HBC aim to enter into a definitive agreement in the first quarter of 2020. While limited production will not start until the fourth quarter of 2020, Atlantic Sapphire all increase output once it begins 20,000 tons (headed and gutted) of annual production.
“The full utilization of raw material goes in line with Atlantic Sapphire’s sustainability approach and strategy. Atlantic Sapphire chose to collaborate with Hofseth because of their expertise in the elaboration of high-value salmon byproducts,” Lola Navarro, sustainability, community and press engagement manager for Atlantic Sapphire, told SeafoodSource. “With this move, we will diversify the uses of our raw material as a healthy source of protein. We’re aiming for zero waste of our salmon, opening our frontiers to new markets and reaching more consumers while generating further value within our operation.”
Atlantic Sapphire will still focus on producing salmon for the fresh market, “due to the proximity of our production to the end consumer,” Navarro added.
HBC’s operational profit (EBITDA) for the third quarter of 2019 was negative NOK 7.6 million (USD 832,561, EUR 748,000). However, in July, HBC raised approximately NOK 118 million (USD 13 million, EUR 11.6 million) in gross proceeds through a private placement and around NOK 6 million (USD 657,000, EUR 590,000) in the following subsequent offering in the fourth quarter. Private and institutional investors from the U.S., the United Kingdom, and Europe invested in the company.
Hofseth also recently hired a new salesperson in Singapore with its increased focus on the Asian market, as well as a new sales partner in Denmark and Germany.
In addition, Hofseth North America hired Patrick Wagner, who was purchasing manager for Seattle Fish Co., as its purchasing manager for North America, in October.
Photo courtesy of Atlantic Sapphire
