Australian kingfish producer, Clean Seas Seafood, has announced plans to expand sales volumes by 50% to 4000 tonnes a year by 2022 and 6000 tonnes by 2025.
The South Australian company, which has recently announced a 23% increase in earnings, plans to fund its 'Vision 2025' strategic plan by raising up to AUS$21.9 million to expand its ocean farming operations in Spencer Gulf and also plans to use its new liquid nitrogen freezing technology to drive sales growth in the North American and Asian markets.
Clean Seas announced in July it had formally received certification by the Aquaculture Stewardship Council (ASC). Managing director and chief executive, David Head, said the certification was an exciting and important step for Clean Seas. “We have long been the global leader in the full cycle breeding, production and sale of Yellow Tail Kingfish,” he told the Australian Stock Exchange.
“This ASC Accreditation is formal validation of our environmentally responsible and sustainable farming practices," he added.
Turbulent decade
These recent events mark the end of a turbulent decade for Clean Seas which saw fish mortality rates soar from 15% to 80%. In 2012, the company discovered the cause - a taurine deficiency in its feed. This is the subject of an ongoing court case.
In 2017 Clean Seas moved its processing to a new facility in Adelaide to be closer to export markets and increase production capacity. It has also invested in rapid freezing technology to access markets further afield and at price points previously not achievable with a fresh product.
More recently, Clean Seas has established sales and marketing capability in North America and Asia and expansion into these markets is expected to be a key driver of sales. In August, Clean Seas completed an AUS$6.6m equity placement to major shareholder Bonafide and announced a proposed convertible note entitlement offer to raise a further AUS$15.3m to fund and implement its 'Vision 2025' strategic plan.
