Proximar Seafood secures first sales agreement, triples biomass in Q2 2024

JAPAN – Proximar Seafood, a land based salmon company in Japan, has announced the successful establishment of its inaugural sales agreement, a major milestone for the company, in its Q2 2024 production update released on July 2. 

The biomass of Proximar’s Atlantic salmon has more than tripled since the end of Q1 2024, reflecting significant growth in its land-based operations in Japan.

Maintaining its trajectory towards the first harvest scheduled for September 2024, Proximar has intensified its commercial and marketing activities alongside its partner Marubeni, a strategy that has yielded substantial results. 

The new sales agreement secures a fixed price per kilogram for a substantial portion of the company’s anticipated harvest volumes through 2024. 

While the exact pricing remains undisclosed, Proximar confirmed it aligns with industry benchmarks and carries a premium over Atlantic salmon imported from Norway. 

This agreement is expected to cover roughly one-third of the expected harvest volume for the year.

Joachim Nielsen, CEO of Proximar Seafood, expressed excitement over the achievement. 

“Securing our first sales agreement at a price that meets our expectations for a significant part of our 2024 harvest is a major milestone for us. This validates our business model and underscores our cost advantage,” said Nielsen. 

He also highlighted the importance of the customer relationship, noting that the high-end seafood chain would enhance the company’s branding and marketing efforts. 

Since its exclusive distribution partnership with Marubeni in 2022, Proximar has seen robust interest in its land-based salmon.

 According to the update, Marubeni is currently engaged in several other potential agreements, reflecting the growing demand for Proximar’s products.

The Q2 2024 update also highlighted the company’s resilience in overcoming challenges, including a significant setback in February when a tank breach led to the loss of approximately 50,000 fish. 

Despite this, Proximar has made remarkable progress. 

Standing biomass surged from 39.8 metric tons at the end of Q4 2023 to 111.9 tons by the end of Q1 2024. 

By mid-May, it reached 188 tons, culminating in an impressive 360 tons at the end of Q2 2024, more than tripling the previous quarter’s total.