Perth-headquartered US-focused aquaculture company Australis Ltd has announced its new US hatchery is now fully operational with approximately 1 million juvenile barramundi currently in production.
Perth-headquartered US-focused aquaculture company Australis Ltd has announced its new US hatchery is now fully operational with approximately 1 million juvenile barramundi currently in production.
Australis' managing director Josh Goldman said "Development of this new hatchery at our Turners Falls facility [Massachusetts] improves the reliability and cost of our fingerlings supply; crucial prerequisites to undertaking further expansion beyond the 1,000 tonne level."
The new hatchery is to be expanded from its current capacity of 2 million fingerlings per year to up to a total of 7 million, sufficient to support the company's medium-term growth target of 5,000 tonnes per annum.
The company also announced it had secured an option to purchase a 7 hectare parcel of land less than 1 kilometer from its existing plant at Turner Falls, Massachusetts, with the new site benefiting from fast-track permitting, and would share management and technical resources with the company's existing operations.
The company believes these benefits would reduce development and ongoing operational costs. The new site will host a sophisticated grow-out facility.
In May, the company announced the resumption of the expansion of its $2.6 million North American barramundi hatchery in Massachusetts.
The expansion of the hatchery and grow-out facility at Turners Falls is due for completion in November, and will expand capacity by 43 per cent, to 1,000 tonnes per annum.
First sales from the expanded facility are expected to occur in February 2007.
The company believes that its expanded customer based and coordinated marketing efforts are creating sufficient demand to support the increased capacity.
Australis has established a national wholesale distribution network in the US, and also sells to North American supermarket chains. The company is one of a handfull of WA headquartered barramundi farmers which include Marine Produce Australia and Cell Aquaculture.
Fremantle-based Cell Aquaculture recently announced thirteen thousand Australian baby barramundi arrived in the United States as part of the company's expansion plans.
The milestone means the U.S. production facilities through joint venture partner Delta Aquaculture Services were now operational.
At 1130 WST, shares in Australis were at 35.5 cents.
Below is the full announcement:
New US Hatchery Operational, Site for Expansion Secured Laying Foundation for Significant Growth
- New hatchery now fully operational with approximately 1 million juvenile barramundi in production
- 7 hectare site secured less than 1 km from existing plant; will expand production from 1,000 to 5,000 tonnes, generating sales of ≈$45m per year
A Hatchery is Born - Australis is pleased to announce that its new US hatchery is now fully operational, making it the only commercial-scale barramundi hatchery operating in North America. Approximately 1 million juvenile barramundi are currently in production.
"Development of this new hatchery at our Turners Falls facility improves the reliability and cost of our fingerlings supply; crucial prerequisites to undertaking further expansion beyond the 1,000 tonne level," said Australis' newly appointed Managing Director, Josh Goldman. The new hatchery is provisioned to be expanded from its current capacity of 2 million fingerlings per year to up to a total of 7 million, sufficient to support the company's medium-term growth target of 5,000 tpa. Integrated fingerling production will generate considerable savings, and is one more step towards realizing economies of scale. Australian hatcheries will continue to play a role in assuring reliability while maintaining genetic diversity of the stock.
New Site Secured for Additional Plant - Australis has secured an option to purchase a 7 hectare parcel of land less than 1 km from its existing plant. The new site will benefit from fast-track permitting, and will share management and technical resources with the company's existing operations. These benefits will reduce development and ongoing operational costs.
The new site will host a sophisticated grow-out facility making use of Australis' proven technology. The facility will feature low-cost modular nursery and grow-out units, supporting staged expansion over time of up to 4,000 tpa. With total production of 5,000 tpa the company will generate an estimated AUD$45 million of revenue from its US operations. A scoping study will be completed within 90 days and, subject to due diligence and financing, construction is expected to commence during 2007. With what Australis believes to be the barramundi industry's lowest capital and operating costs, the company is well positioned to capture a large share of the expanding market for healthy and sustainable seafood.
About Australis - Australis Aquaculture, Ltd. is the first and only significant producer of barramundi operating in North America. The company owns and operates the US' largest indoor aquaculture facility, located in Turners Falls, Massachusetts. The company single-handedly established barramundi as a growing seafood trend in the US, and is considered a leader in sustainable aquaculture. Australis' unparalleled expertise in controlled-environment aquaculture will enable it to expand more quickly, and at a significantly lower cost, than potential competitors.
