Proximar Seafood, a Norwegian land-based salmon farming company operating in Japan, has reported its third-quarter results, highlighting a mix of successes and operational challenges.
The company achieved premium pricing of approximately NOK 130 per kilogram for its first harvest of Fuji Atlantic Salmon, a figure about 10% higher than the cost of imported Norwegian salmon.
This pricing advantage underscores the benefits of local production near Japan’s fish markets. However, operational difficulties, including water turbidity issues, have affected growth rates, delaying planned harvests.
Operational setbacks impact growth rates
Proximar disclosed significant challenges with water turbidity at its Mount Fuji facility, a factor that has restricted feeding rates and slowed fish growth. The company attributed this to the delayed implementation of an ozone system, now operational in one module, with rollout to other modules expected by month-end. While improvements are already visible in the treated module, the disruptions have forced Proximar to postpone some 2024 harvest volumes into early 2025.
Joachim Nielsen, Proximar’s CEO, stated, “The measures implemented are showing positive results, but the reduced growth rates have inevitably impacted our harvesting plans for this year.” The company expects to produce approximately 80 tonnes in 2024, down from initial projections, but maintains its combined 2024/25 target of 4,700 tons.
Positive market reception in Japan
Despite the setbacks, Proximar celebrated strong consumer and media reception following the October launch of its Fuji Atlantic Salmon brand. The launch event, co-hosted with partner Marubeni Corporation in Tokyo, drew significant media attention and bolstered the brand’s visibility. The premium pricing, combined with local production advantages, has positioned Proximar as a unique supplier in the Japanese market.
“We’re thrilled with the market acceptance of our fish, evidenced not just in pricing but in demand,” Nielsen added. “As the first domestic producer of Atlantic salmon in Japan, we’re leveraging our proximity to key markets to capture consumer enthusiasm.”
Financial and capital adjustments
Proximar’s financials reflect the cost of addressing these challenges. An additional NOK 30 million ($2.7 million) in capital expenditures, reported in Q2, alongside higher working capital needs, has been funded through convertible bond sales and new loans in Japan totaling NOK 115 million ($10.3 million).
Path to full capacity
The company reaffirmed its goal to reach a full annual production capacity of 5,300 tons by 2027. Continued development of its grow-out facility, including the planned completion of two additional modules by year-end, is central to this target.
Proximar will host a webcast today to discuss its Q3 results, offering further insights into its strategy and outlook.
