BioMar, one of the largest aquaculture feed manufacturers, sees continued consolidation in the shrimp market as "almost a natural law," VP LATAM Shrimp and Hatchery Henrik Aarestrup told IntraFish.

Consolidation is critical in supporting year-round supply, ensuring traceability and competing for retail market share with other aquaculture products, Aarestrup said.

"Working professionally with sustainability is very difficult for small-scale farmers to get the full benefit out of," Aarestrup said. "It's difficult for them because of the way the value chain is put together."

BioMar is always on the lookout for consolidation opportunities in the shrimp feed sector, but has its own organic growth journey, Aarestrup said.

Since 2012, shrimp has only gotten bigger for BioMar. The group has been engaged in the development of feed and technical services for shrimp, utilizing the capabilities of global research and development in combination with trial facilities around the world, most recently through its advanced dedicated shrimp Aquaculture Technology Centre in Ecuador.

"The overall ambition we set out was to create a third leg for BioMar in the shrimp world," Aarestrup said.

"We have a strong position in trout and salmon and Mediterranean species but we see that a big part of the future growth will come from the shrimp sector."

BioMar expects the biggest growth from Southeast Asia, but sees potential for continued growth in both Central America and Ecuador as well.

BioMar was not as present in the shrimp sector a decade ago, which is why it reshaped its strategy to invade that market.

The first big step was acquiring Ecuador's Alimentsa in 2017, which delivers feed solutions to more than 300 Ecuadorian shrimp farmers and employs 145 people.

This year, BioMar and Vietnam’s leading shrimp hatchery, Viet-UC, signed a memorandum of understanding with the intention of BioMar becoming part owner and operational lead in the feed factory currently owned by Viet-UC.

The agreement has been slightly delayed over COVID-19, but will be finalized soon, Aarestrup said.

BioMar is also supplying shrimp feed to Honduras, Nicaragua and Mexico from its facility in Costa Rica, which was not originally intended to serve that market.

"In the last couple of years, we have had increasing sales of shrimp feed from that facility and are hoping to target larger customers in that region," Aarestrup said.

Potential for shrimp RAS

Aarestrup estimates growth will also come out of recirculating aquaculture system (RAS) shrimp facilities in Europe, the United States and other regions, however, that will be further down the line.

"I still believe that will be a minor share if we look on the next five years even though it will be growing," Aarestrup said.

Obviously, this market will require a different diet, which BioMar already has the capacity to support.

BioMar is also capable of supplying diets needed for RAS systems from its facility in Denmark.

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BioMar: Consolidation in shrimp farming sector is 'almost a natural law'