An operational update from Nordic Aqua Partners – which is working on a recirculating aquaculture system (RAS) salmon farm in Ningbo, China – said 190 metric tons of its salmon harvest has been affected by off-flavors.
The company, which had its first harvest in April, said that due to overloading of its purging unit, 190 MT of its fish have high concentrations of the compound geosmin. Geosmin, while harmless to humans, causes an off-flavor in salmon that causes strong earthy flavors resembling dirt or mud.
"Our Atlantic salmon has, since its launch in April, received very good feedback in the market,” Nordic Aqua Ningbo Managing Director Andreas Thorud said in a release on the Oslo Børs. “However, following recent quality checks, elevated levels of geosmin were identified in specific production sections. As a result, the affected salmon will not be sold for human consumption but, thus, at a substantially lower price.”
Thorud said that the decision to not sell the salmon for human consumption is part of the company’s desire to seek a premium on its products and its commitment to quality.
The company added that it has identified the problem that caused the off-flavors and that it is “implementing both immediate and long-term solutions to prevent future occurrences, including enhancing our water filtration and management processes.”
Due to the incident, Nordic Aqua Partners is, after harvesting the 190 MT of salmon, purging the eight tanks, disinfecting them, and refilling them with new water. New salmon will then eventually be moved to the purging area.
The company said the issue was in part caused by the company’s excellent fish growth, which overstretched the facility’s purging capacity. The setback will continue to affect the company in the second half of 2024.
“The alternative use of the 190 MT HOG and reduced harvest will negatively impact revenue in the third quarter and the slower than planned harvest, will possibly also influence the fourth quarter,” Nordic Aqua Partners said.
Nordic Aqua Partners CEO Ragnar Joensen said the setback has highlighted the company’s ability to recognize and respond to issues quickly.
“Nordic Aqua has given focus on recruiting the best of competence and experience and have chosen to go for the highest quality partnership suppliers, such as AKVA Group and Skretting. This has again proven to be a critical part of our strategies, as issues like this are dealt with, in an efficient manner, based on deep and broad insight,” he said.
A full review of the company’s performance will be released with its Q2 update on 22 August.
