Global aquaculture merger welcomed

Irish fish farmers have welcomed the merger of two of the world's leading players in the aquaculture market, Hydro Seafood AS of Norway and the Dutch-owned Nutreco Holding NV.

Both multinationals already have Irish interests as part of their existing global network. Hydro Seafood Fanad in Co Donegal employs 165 people, while the Nutreco subsidiary, Trouw Aquaculture, employs more than 40 people in its salmon feed production base in Westport, Co Mayo.

The merger will create the world's largest salmon farming company, with a projected output of 150,000 tonnes annually - some 10 times the size of the Irish production alone, and representing about 20 per cent of the global share of the salmon market.

Hydro Seafood has 1,500 employees internationally, and had a turnover of £220 million (€280 million) in 1999. Nutreco is market leader in five salmon feed markets - Norway, Chile, Canada, Britain and Ireland.

The Irish Salmon Growers' Association executive secretary, Mr Richie Flynn, said yesterday that both Hydro Seafood and Nutreco were very strong supporters of the Irish salmon rearing industry, through their respective commitments in Donegal and Mayo.

"The Irish industry needs increased scale and competitiveness," Mr Flynn added. "If the newly merged business can help us to focus on these priorities, then the entire Irish industry will benefit from this deal."

Commenting on the alliance, Mr Jan Feenstra, managing director of Hydro Seafood Fanad, said local staff and management were confident this move would support the Donegal company's development in the future. Situated between Lough Swilly and Mulroy Bay, with hatcheries near Falcarragh and Pettigo, his company produces some 3,000 tonnes of salmon here and sells juvenile salmon smolts to other Irish producers. The company was founded in 1979.

"Nutreco has an existing fish feed business in Westport, and together we should be stronger and achieve an increased momentum to expand our farming activities in Ireland," Mr Feenstra said in a statement.

Earlier this month, in another example of the global scale of the aquaculture industry, Hydro Seafood Fanad in Donegal entered into a joint venture with Chile to produce salmon stock. It linked up with Aquagen SA, a subsidiary of Aquachile SA, on a 50/50 joint venture basis to develop genetically improved Atlantic salmon strains.