Turkish seabass and seabream producer Lucky Fish is waiting for the right time to expand amid a shaky market for the species, but has managed to gain a foothold in up-and-coming markets such as Russia and the Middle East, Lucky Fish CEO Ismail Aksoy told IntraFish.

"We are waiting for the right time for expansion because right now the market prices are quite low," Aksoy said.

The key, the executive added, is to keep production in line with sales, and fulfill requirements of customers when it comes to animal welfare, environmental and social governance, and food safety.

"There are always sale rumors but it is not affecting our strategy and investments," Aksoy said. "We have commitments with niche markets and somehow are doing quite fine.

Tough market conditions are limiting the private equity-backed company's ability to drive better results and grow operations, Aksoy said.

The current challenges aren't simply the result of a supply-versus-demand problem, he noted, since most producers currently have their lowest production volumes due to seasonal cycles.

Stocking of older generation seabass are at low levels, but stocking of the newer generation are expected within the next 2-3 months. In addition, seabream stocking was limited during the first four months of the year, but pricing remained low.

"We are also having difficulties understanding the situation between Greece and Turkey," Aksoy said. "Some Greek companies are equally affecting the market negatively."

Sustainability boost

Lucky Fish sees sustainability and certification as a way to expand its market presence. The company earned Aquaculture Stewardship Council (ASC) certification for all three of its bass and bream farms on June 14 -- a big step forward in gaining access to more discerning markets.

Several other producers in Turkey and Greece recently nabbed sustainability certifications, but Aksoy said his company's ASC certification is more impressive for its scope.

"The main difference with us is all our sites are approved, whereas most of the other companies applied for a couple of farms and not all production sites," Aksoy said.

Up? Down?

Prices for seabream and seabass are expected to increase -- at least according to the law of economics -- given the limited supply, Aksoy said. However, when that will happen remains to be seen.

Lucky Fish's main markets are the United Kingdom, Europe and the United States, and the company is also selling into developing markets in Russia and the Middle East. Lucky Fish has held an advantage over European producers in the Russian market since the country implemented a ban on European Union products.

The company has managed to crack open the North American market as well, but the main problem remains price, Aksoy said.

Established in 1986, Lucky Fish was acquired by private equity firm Mediterra Capital in 2013 and re-branded as a result.

In 2017, Mediterra Capital announced plans to sell Lucky Fish. Aksoy declined to disclose any updates on the process.

"There are always sale rumors but it is not affecting our strategy and investments," Aksoy told IntraFish. "We are relatively in a positive position as we have commitments with our long term customers and we are currently gaining market share in developing markets."

Aquaculture

PE-backed Turkish bass and bream producer cautious with growth plans