In the latest update, James Kwan, CEO, Barramundi Group Ltd (“Barramundi Group†or the “Companyâ€) (EURONEXT: BARRA) announced that its Brunei operations have secured a facility offer of BND $15 million from a Bruneian financial institution. This is for expansion of the operations in Brunei.
The facility, subject to finalisation and completion, will be used to fund the first phase of the Brunei expansion and pivot to BG 2.0. The financing allows the group to execute the 2 key components of this first phase:
• The construction of a RAS Broodstock and Hatchery center, complementing the existing RAS Nursery operations; and
• Immediate deployment of sea cages at our existing sea lease, Pelong Rocks. This deployment is slated for mid 2024.
With the new broodstock and hatchery facility, the Brunei operations will be able to capitalise on the genetic nucleus from our Singapore broodstock – naturally bred and selected over 20 years – to spawn and culture fry and fingerling within Brunei. The capacity of this facility will allow Brunei to be sufficient not only for the Phase 1 Pelong Rocks grow-out cages, with an annual capacity of 1,000 tonnes, but also for Phase 2 requirements of the planned 3,000 tonne land-based RAS facility.
The immediate deployment of Pelong Rocks will help to smoothen the gap in production and revenues, but also provide the Group with an opportunity to re-enter the China market – one of our largest and key markets, previously unreachable with a Singapore-grown product.
The securing of this initial funding, in the present economic climate, and following the many difficulties the Group has faced in recent years, is encouraging. We now focus on the work ahead to establishing the funding requirements of Phase 2 of BG 2.0, as well as the Group.
In this update, Kwan also reiterated the decision to move grow-out operations out of Singapore due to the heavy outbreaks of scale drop disease (SDD) in the southern waters of Singapore. Kwan reported that the two rounds of SDDV vaccine field trials at St John’s sea grow-out was inconclusive. Therefore, the group ceased grow-out operations in Singapore in June 2023. This means that the group farming will be focussed on the Brunei operations. However, they are also working with a global pharmaceutical company to develop a vaccine.
In the August 2023 update, Kwan updated on the Brunei operations. In Brunei, the group produces harvest-size fish from its ocean site. It has over 8,000ha of sea and land leases, a fully operational recirculating aquaculture system (RAS) nursery and UVAXX diagnostic lab in Serasa. It has signed a distributorship agreement with Ben Foods, a premium retailer chain.
With stellar feed conversion ratios in RAS farming for 2kg fish, Kwan said that this will be the farming system in Brunei. Data strongly supports the case for investing in RAS grow-out, broodstock and hatchery facilities. The cost benefit of farming in Brunei includes the low costs of energy, which Kwan says is 7-10 times lower on per kWh basis than that in Singapore as well as low labour costs. There is also the government support. The group has a land-based aquaculture facility with a capacity of 3,000 tonnes of barramundi.
“With viral diseases endemic in waters in Singapore and other parts of Southeast Asia, RAS is a way forward. RAS gives us the predictability in terms of biomass,†said Kwan. The Brunei operations will supply several markets, the local market in Brunei and in Singapore where the target is to supply 30% by 2030.
Singapore operations: In Singapore, production of superior barramundi fry and fingerling from the genetics and breeding program will continue. On broodstock genetics research and selective breeding improvements, Kwan said that the group with be working in tandem with external researchers. UVAXX will actively engage with regional animal health authorities and farms
interested in autogenous vaccines and diagnostics. The group continues to leverage on the success of its Kühlbarra premium fish, popular among top chefs in Singapore.
Barramundi Group started its first farm in Singapore in 2008. In 2012, it set up proprietary autogenous vaccination capabilities through UVAXX and in 2020, acquired Allegro Aqua, bringing genetics and husbandry practices in-house. Listed in Euronext Growth Oslo since 2021, it is the only Asian aquaculture company and the first for a tropical species. It is also the first company in Singapore to get BAP certification. barramundi.com
