While our meal prep might not be fully automated yet (sadly enough), the same cannot be said for the Yellowtail Kingfish under the Aussie aquaculture business Clean Seas Seafood (ASX: CSS). The Company, a leader in full cycle breeding, production and sale of Yellowtail Kingfish, has purchased a new automated feed barge. The barge is designed to significantly reduce production costs, and enhance operational efficiencies, stability, and productive capacity.
That means well-fed and healthier Yellowtail Kingfish.
To make this possible, Clean Seas has teamed up with Southern Ocean Solutions. Together, they will build a state-of-the-art automated feed barge for the Company’s Arno Bay fish farm site, which has a capacity of 2,850 tonnes. The new feed barge is scheduled to be delivered in early 2024 and is expected to be fully operational by the end of June 2024.
The total cost of the new automated feed barge, along with separately contracted feed delivery hardware and remote operating systems, is estimated to be $5.7 million. Progressive payments will be made over the construction period throughout the remainder of 2023, with a final payment of 10% due after delivery in early 2024. Clean Seas plans to utilize part of its $14 million undrawn senior debt facility to fund the purchase.
Clean Seas’ CEO, Rob Gratton, noted, “Our recently reported positive cash flow and the transition to profitability has allowed us to make this significant and exciting investment which clearly demonstrates our confidence and aspirations for Yellowtail Kingfish and Clean Seas Seafood. We are confident that this long-term asset purchase will drive substantial reductions in cost of production, deliver operational efficiencies and stability, and unlock productive capacity. As such it represents a significant milestone for Clean Seas.”
Currently, at the Clean Seas’ Arno Bay farm, employees manually feed the fish, which leads to slower growth compared to their automated Louth Bay farm in Port Lincoln. That’s because, sometimes, bad weather prevents them from feeding the fish regularly. But now, with the new automated feed barge, this problem will be solved as the Company can feed the fish remotely at Arno Bay regardless of the weather.
The new feed barge can store a lot of feed, about 650 tonnes, and it gets the feed directly from the mill through ocean transportation, without needing to transport it by road. This means Clean Seas will save money on freight and won’t have to handle the feed multiple times, reducing production costs. As a result, it expects to recoup the investment in less than four years, and the new equipment is expected to last for about 20 years. Clean Seas will benefit from improved efficiency and cost savings while ensuring the fish get the right amount of feed at the right time.
Acknowledging that there are plenty more fish in the sea, the Company plans on installing such feed barges for bigger farms in the coming years. Along with the existing feed barge, it will automate a total of 4,850 tonnes of fish farming capacity across Clean Seas’ current lease capacity of 10,850 tonnes. This serves as a blueprint for future expansion, enabling the company to efficiently manage bigger fish and support its growth strategy.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.