Cites sustainability and food security as key drivers
Novo Holdings, the investment arm of Denmark’s Novo Nordisk Foundation, has made significant inroads into the aquaculture sector, acquiring two major companies in under two months.
The moves are part of a broader strategy to address global food security while improving sustainability in animal protein production, according to a report from Danish news site Borsen.dk.
In October, Novo Holdings acquired Norway’s Stingray Marine Solutions for an undisclosed sum. Last week, it followed up with a DKK 2 billion ($286 million/€268 million) purchase of Benchmark Genetics, a Norwegian-British company specializing in breeding disease-resistant salmon.
Established in 1999, Novo Holdings manages the Novo Nordisk Foundation’s assets, which in 2023 reached an estimated DKK 1,114 billion ($163 billion/€150 billion). The company generated DKK 31 billion ($4.6 billion/€4.2 billion) in income and investment returns in 2023.
These acquisitions aim to combat one of the industry’s most costly challenges: sea lice, a parasite that plagues farmed salmon and results in losses of DKK 45 billion ($6.4 billion/€6 billion) annually worldwide. Stingray’s solution involves laser technology to eliminate lice without chemicals, while Benchmark Genetics uses advanced breeding techniques to produce more resilient fish.
Novo Holdings acquires majority stake in Stingray Marine Solutions
A Necessary Investment
Aleks Engel, a partner in Novo Holdings’ Planetary Health Investments division, told Borsen.dk: “We are interested in improving the ways we produce proteins, which is clearly necessary on a more fragile planet. On the animal side, salmon farming is one of the best and most sustainable methods.”
Engel acknowledged the environmental footprint of salmon farming but argued that it is less impactful than traditional livestock farming. He added, “You could say we should all turn vegan, but that won’t happen overnight. Salmon farming is in the better range, and we’re working to improve it further.”
Sea lice remain a significant hurdle for the industry. In Norway, the world’s largest salmon producer, lice-related issues contributed to the death of 63 million farmed salmon last year, equivalent to 16.7% of the total production.
“Solving the sea lice problem would be a game changer for the industry,” Nielsen told Borsen.dk. “It’s currently the most economically significant issue in aquaculture.”
Strategic Vision
While Engel stated that Novo Holdings does not plan further aquaculture investments in the short term, he emphasized the importance of advancing food production technologies. “We now have two significant investments in aquaculture, which we need to digest. But within the broader framework of improving food production, you’ll see more investments,” he said.
With the global population expected to grow from 8 billion to 10 billion by 2050, and the UN projecting a 70% increase in food production requirements, Novo Holdings views sustainable aquaculture as a critical piece of the solution.
