Oslo-listed China-based RAS salmon farmer Nordic Aqua has reported the detection of high concentrations of the off-flavor compound geosmin in approximately 190 metric tons (HOG) of fish ready for harvest at its Ningbo, China facility.
The issue arose due to overloading of the purging unit, according to a statement from the company issued on Wednesday.
Geosmin, a naturally occurring compound in all recirculating aquaculture systems (RAS), is harmless to fish and humans but can affect the taste of the fish when present in elevated concentrations.
Nordic Aqua has identified the root causes and is implementing immediate and long-term solutions, including enhancements to water filtration and management processes, according to Managing Director Andreas Thorud.
“Our Atlantic salmon has received very good market feedback since its launch in April. However, recent quality checks identified elevated geosmin levels in specific production sections. Consequently, the affected salmon, 190 MT HOG, will not be sold for human consumption but at a substantially lower price,” said Thorud.
“Nordic Aqua does not compromise on quality. The decision to harvest is in line with our commitment to maintaining the highest standards of quality and safety for our consumers while ensuring the affected product is utilized responsibly.”
As a result of the incident, the purging department (eight tanks) will be emptied, disinfected, and refilled with clean water before new salmon are moved to purging. The purging department will restart in a controlled manner, impacting the harvest volume for the second half of 2024.
The alternative use of the 190 metric tons and the reduced harvest will negatively impact revenue in the third quarter, potentially affecting the fourth quarter as well. Nordic Aqua will provide an updated volume guidance for 2024 as part of the Q2 presentation, according to the statement.
CEO Ragnar Joensen, commented, “Nordic Aqua is at the forefront of land-based salmon farming development, and learning from minor surprises is part of the process. Our focus on recruiting top talent and partnering with leading suppliers like AKVA Group and Skretting has proven critical in efficiently addressing issues like this.”
A comprehensive review of operations, biology, market development, financials, and volume guidance will be presented during the second quarter presentation on Thursday, August 22.
