Russia's largest processor planning to boost farmed salmon output 9-fold

One of Russia's largest seafood processor Saint-Petersburg-based Baltiisky Bereg has launched a project aimed at a nine-fold boost of its Atlantic salmon output. Experts say if the company's plans come true it may win up to 15% of the Russian market of Atlantic salmon, reports www.fishnet-russia.com (www.fishnet.ru) with reference to Commersant.

At a recent economic forum in Murmansk the local authorities and Baltiisky Bereg signed a letter of intent providing for investments RUB3 billion strong into the development of the Atlantic salmon production capacities up to 12,000 tonnes per year, 9 times up on the current output of farmed salmon.

The largest facility owned by Baltiisky Bereg is Lakhtisnky RPK. At present the combine is at the closing construction stage. The targeted output of final products amounts to more than 35,000 tonnes of fish products at the total value of RUB4.9 billion per year. According to the company's estimates, the consumption of delicatessen products, mostly from salmon species, accounts for ca.30% of the market (Atlantic salmon shipped from Norway, Scotland and Chile). Import of Norwegian salmon in chilled form last year amounted to ca.75,000 tonnes worth ca, 490 million USD in terms of net prices for raw fish (less import of same fish from other countries) and ca.780 million USD in terms of consumer prices. Taking into account shipments from other countries and domestic production the annual market turnover amounts to less than 1 billion USD.

Baltiisky Bereg was founded in Saint Petersburg in 2000. Now the company is a large importer, producer and processor of seafood. It claims to be one of Russia's top ten processors taking the second place on the market of the nation's Northwest. The company's largest assets are Terminal Baltiisky Bereg and Lakhtinsky RPK (fish processing complex). The firm produces seafood under the TMs of Baltiisky Bereg, Barkas Udachi and Sushenka. The company's main owner is Mikhail Bobrov.

According to Russia's Federal Statistics Service Rosstat, the total volume of fish farmed in the nation's ponds and other water basins in 2008 amounted to 25,600 tonnes only. In this connection BB's project seems promising, especially against the background of generally dwindling fish production. More than one half of the market supply is contributed by small and medium regional companies showing no potential of large growth rates. As the government has been paying more attention to the fish farming sector where the net profit may reach 10%, the project has been found as very promising by the market analysts.