Operational Update
Operational update - Detection of off-flavor and corrective actions at the Ningbo production facility
Nordic Aqua, a global pioneer in land-based Atlantic salmon farming, with its first farm located in Ningbo, China, announces, due to overloading of the purging unit, detection of high concentrations of the off-flavor compound geosmin in approximately 190 MT (HOG) of fish ready to be harvested.
Geosmin is a naturally occurring compound known to be absorbed by fish in all recirculating aquaculture systems (RAS). Although it is harmless to both fish and humans, it can, in elevated concentration, negatively affect the taste of the fish. The NOAP team has identified the root causes and is implementing both immediate and long-term solutions to prevent future occurrences, including enhancing our water filtration and management processes.
“Our Atlantic salmon has since its launch in April received very good feedback in the market. However, following recent quality checks, elevated levels of geosmin were identified in specific production sections. As a result, the affected salmon, 190 MT HOG, will not be sold for human consumption but thus at a substantially lower price,” says Andreas Thorud, the managing director of Nordic Aqua (Ningbo) Co., Ltd.
Mr Thorud continues, “Nordic Aqua does not compromise on quality and we relentlessly seek premium products at our facility. Hence, the decision to harvest is in line with our commitment to maintain the highest standards of quality and safety for our consumers while ensuring that the affected product is utilized responsibly”.
Further, as a consequence of the incident, after harvesting the 190 MT (HOG), the purging department (8 tanks) will be emptied, disinfected and refilled with pure, cleaned water, and new salmon will eventually be moved to purging. As one element of the incident was overstretching the purging capacity due to excellent fish growth, purging department will be restarted in a controlled manner. This will thus further impact the harvest volume for the whole 2nd half of 2024.
The alternative use of the 190 MT HOG and reduced harvest will negatively impact revenue in the third quarter and the slower than planned harvest, will possibly also influence the 4th quarter. NOAP will give an updated volume guiding for 2024 as a part of the Q2 presentation.
In parallel, the company is continuing its efforts, together with customers, of building a long-term position with unparalleled freshness and high-quality Atlantic salmon in the growing Chinese salmon market.
Ragnar Joensen, CEO, emphasize; “Nordic Aqua is in the forefront of the development of land-based salmon farming, and learning and minor surprises is a part of such development. Nordic Aqua has given focus on recruiting the best of competence and experience and have chosen to go for the highest quality partnership suppliers, such as AKVA Group and Skretting. This has again proven to be a critical part of our strategies, as issues like this are dealt with, in an efficient manner, based on deep and broad insight.
A full review of operations, biology, market development, the financials and volume guiding will be presented in the second quarter presentation which will take place on Thursday August 22.
For further information:
For further information please contact: CEO Ragnar Joensen
ragnar@nordicaquapartners.com Mobile +298 599 112