Musholm to acquire 51 per cent stake in Latvian trout farmer

Danish aquaculture firm Musholm, a subsidiary of Japanese seafood group Okamura Foods, has signed an agreement to acquire a 51 per cent stake in Latvian company Riga Bay Aquaculture (RBA).

RBA was established to farm trout in Latvia and has won a tender for the use of two designated sea areas in Riga Bay. An official aquaculture licence for up to 10,000 tons of farmed fish is expected to be issued to the company following an environmental impact assessment.

Okamura Foods stated the acquisition is part of its strategy to expand its aquaculture business, which has been limited by restrictions on new farming licences in Denmark.

The company views Latvia as its third aquaculture base after Denmark and Japan and noted that its current total aquaculture volume is approximately 7,000 tons.

A key goal of the new Latvian operation is to secure a stable supply of trout roe for the group's processing business in Japan.

The company stated that difficulty in securing raw materials has hampered growth and that producing its own roe will help stabilise profits by reducing exposure to price fluctuations.