NZ King Salmon Advantages Omega 3 Content in Asia

New Zealand King Salmon Advantages Omega 3 Content in Asia

The New Zealand King Salmon Co Ltd has agreed to be a keystone shareholder in a new Malaysian company, Cambrian (Malaysia) Sdn. Bhd., and has entered in to supply arrangements with that company to enable the extraction of Omega 3 oils, capsulation and subsequent sale in Asia.

“We have known for some time of the hugely beneficial properties of Omega oils naturally contained in our salmon and have considered a range of potential opportunities to take advantage of the Omega oils that remain in the low value byproduct arising from our value added product range,” comments Chief Executive Paul Steere.

“For the last two years we have worked with leading food scientist Kee Tan who has developed a proprietary extraction method and development work has confirmed the efficacy of the extraction process and the resultant natural Omega 3 oil. Market studies confirmed the substantial demand in Asia and Kee Tan was able to advance the process requirements in Malaysia to enable us to form the Cambrian company,” Mr Steere says.

“In our value added processes, a significant amount of by-product is set aside and often ends up in pet food or extenders for soup or similar. This new venture provides for substantially raising the value of the material by extracting the oil and providing a natural product.

“Our strategy is to capture and manage as much as possible of the downstream activity and get as close as possible to the ultimate consumer. Hence we were pleased to be a substantial shareholder in the processing and marketing company Cambrian. We expect our expertise in processing, technical, food safety and marketing will prove of significant benefit to the company,” Mr Steere says.

Don Everitt, General Manager- Sales and Marketing for New Zealand King Salmon note: “The innovative attributes of the extraction process were particularly appealing. The process ensures that the pure nature of our New Zealand king salmon and its Omega 3 content is not compromised.

“It provides a high grade, high quality and healthy product in keeping with the full range of products available from New Zealand King Salmon.

“The NZ connection is seen as very positive by Asian consumers. Not only our pure and natural environment but also New Zealand King Salmon’s reputation for natural food without using chemicals, antibiotics or vaccines in the husbandry of our salmon.

“Analysis has shown that New Zealand King Salmon product has the highest content of the extremely advantageous long chain Omega-3s of any salmon available – it makes compelling commercial sense to advantage that,” Mr Everitt says.

“While Cambrian will initially target demanding Asian markets, we envisage offering this product further afield under the New Zealand King Salmon banner including Australasia, North America and Japan as we obtain regulatory approvals.”

Kee Tan, who will be Executive Chairman of Cambrian, advises that locating the extraction and encapsulation process at the Technological Park Malaysia in Kuala Lumpur provides a range of benefits not available in NZ.

“First, we are able to have the operation up and running within six months of application. Second, it is near our target markets and third, there are significant incentives and support from the Malaysian Government,” says Kee Tan.

“The Omega 3 extraction business using NZ King Salmon by-product will be the first of a range of healthcare products that also extend in to cosmetics, many of which will be based on marine material including collagen, seafood flavourings and fish calcium,” says Mr Tan.

Mr Tan further comments: “The experience and professionalism of NZ King Salmon evidenced in New Zealand and its international markets, has been very helpful in ensuring detailed analysis and strategies have been well developed. Working with NZ King Salmon’s technical team led by Richard Smith, has been very helpful in ensuring the feedstock material will maintain its foodgrade efficacy from Nelson to the Cambrian plant in Kuala Lumpur and ensure economical efficiency throughout the process.

“There is great commercial synergy between us and New Zealand King Salmon. Cambrian is very excited to be able to develop the next generation of Omega 3 nutraceuticals and take this to the international market with New Zealand King Salmon. We are looking forward to working together.”

“Signing the shareholder and supply agreements this week opens up an important new avenue in our value added strategy,” Mr Steere says.

“The Cambrian plant is on track to commence production next February and while our feedstock material is currently limited to our growout cap, market studies indicate around NZ$8m (equivalent) of sales can be generated from the Omega 3 oil extracted from that material. We will enjoy a much improved return for the feedstock plus share in the downstream profitability of Cambrian. With Cambrian’s intended high research abilities, participation in additional extracted products from our material will considerably enhance our own international product range,” notes Mr Steere.

Don Everitt, Paul Steere, Richard Simpson, Paul McHugh (General Manager, Processing) and Kee Tan

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