Skretting, the world's largest supplier of feed to the salmon farming industry, announced Wednesday it will construct a specialized state-of-the-art feed plant for land-based salmon in Florida to serve Atlantic Sapphire’s US operations.

Under the terms of the agreement, Skretting will build and finance the feed plant, while Atlantic Sapphire will commit to sourcing the majority of its salmon feed from Skretting over the contract period, which is expected to span 10 years.

Atlantic Sapphire is currently transporting its salmon feed from Canada at what it calls a "considerable cost disadvantage."