“Closed containment” project fails
After much promotion and spending of investor’s money and government tax dollars, AgriMarine sends fish to market at less than half the projected harvest size
Fish farmingXpert, March 23, 2012
The fish farming industry based in Campbell River on Vancouver Island is a lot smaller than it could have been, and one of the main reasons for this is the continuous insistence by environmental groups and Provincial political parties like the Green Party and the New Democratic Party that all salmon farms should be moved from ocean-based net pens to some form of “closed containment” rearing system. The justification for this is supposedly concerns about environmental impacts from conventional salmon farms due to –among else- the escape and subsequent crossbreeding with native, purely wild salmon stocks. The fact that most of the salmon farmed in British Columbia is Atlantic salmon- which can-not cross-breed with the native Pacific salmon species- doesn’t seem to matter.
One of the projects advocated by the anti-salmon farming industry and anti-net pen technology is the floating, solid-wall project initiated by AgriMarine Holdings at a site just outside Campbell River. One of the stated benefits of the company’s “Green technology” is stated to be “No Escapes”. As reported last week by FishfarmingXpert, damage was incurred during a recent storm to the facility’s 3,000 m³ tank which was stocked with some 56,000 native Chinook salmon smolt a year ago. A company statement at the time of the damage suggested that..” weather conditions compromised an outlet panel of the demonstration floating rearing tank and may have allowed some storm related losses”.
Today reports have been obtained by FishfarmingXpert that all of the remaining fish in the damaged tank have been removed and sent to a local fish processing plant. The fish would have been about half of the average 4.0 kg that the company had announced it planned to grow the Chinook salmon to. It will be interesting to see how many fish had remained in the tank following the storm damage. The fish, stated to be about 1.7 kg average size in January this year would mostly end up in the 2-4 lbs size category following processing and the customary gill removal, and likely generate less than CAD$ 400,000 (~€305,000) in net sales.
Following the report about structural damage and some potential losses last week, the Campbell River-based Positive Aquaculture Awareness (PAA) wrote on its blog;
“AgriMarine Holdings Ltd: broken system and broken promises”;
BC salmon farmers have been very patient with AgriMarine Holdings Ltd., but that patience is wearing thin. For those that don't know, AgriMarine is a salmon farming company based in British Columbia. A company that touts itself as being on the leading edge of salmon growing technology - finding new ways of sustainably growing fish. We don't think anyone inside or outside the business of aquaculture would argue that this isn't a great goal. After all, growing salmon sustainably is what all BC salmon farming companies do, and all strive to continually improve their sustainability.
But AgriMarine has driven for this goal the wrong way. Playing on the public's fears of salmon aquaculture generated by a few anti-salmon farming zealots and a few more funding driven environmental groups (no disrespect to the 99.999% that may have concerns but also listen to fact), AgriMarine has touted themselves as being better than everyone else - while not yet producing a fish to market. It has promoted itself on the backs of the alleged "ills" of all other salmon farmers. According to AgriMarine, fish raised in nets is inherently bad and therefore anything different is better.
In a statement posted on the AgriMarine web site in January this year, the company said that its “Middle Bay Project received further funding from Sustainable Development Technology Canada (“SDTC”). SDTC increased their contribution to the Middle Bay Project from the $2.36 million previously committed to a maximum of $5.77 million (~€4.4 million). AgriMarine subsequently signed a multi-year supply agreement with a major US retailer for the sale of the Chinook salmon raised in the Middle Bay facility. Additional tanks are scheduled for installation in 2012”. Earlier this month the company announced the proceeds from a private placement of about CAD$ 4.7 million (~€3.6 million).
As at December 31, 2011, there were 84,732,197 common shares outstanding- each valued at CAD$ 0.19 each today, for a company evaluation of just over CAD$ 16 million (~€ 12.2 million). AgriMarine also has similar but smaller tanks in operation in China, producing Rainbow trout and Chinook salmon in freshwater reservoirs.
