Shark liver oil: Australasia’s largest fish-oil refiner signs deal with Portuguese supplier
10. March 2014
SeaDragon signs significant raw material supply contract
Agreement overcomes historical supply constraints
Australasia’s largest fish-oil refiner SeaDragon (NZX: SEA) announces a new raw material supply agreement has been signed that will underpin its Nelson-based squalene manufacturing operations, and enable the business to seek new market opportunities in the pharmaceutical and cosmetic sectors.
SeaDragon has entered into an unconditional agreement with Pescarias Cayon & Garcia LDA for the supply of shark livers and shark liver oil to be landed in August and October of this year and in January of 2015.
The shipments will deliver quantities more than sufficient to cover the squalene production SeaDragon has budgeted for in the 2014 calendar year and beyond. The prices SeaDragon will pay for the shipments are linked to the squalene content of the material and are internationally competitive.
The agreement, also envisages SeaDragon acquiring further raw material from Pescarias Cayon & Garcia in the future.
SeaDragon Chief Executive Ross Keeley said: “The agreement locks in raw material supply for the immediate future, overcoming the shortages that have historically constrained the growth of our squalene operations and limited sales activity into new sectors such as cosmetics and pharmaceuticals”.
“This agreement will ensure the success of the existing squalene business and will further strengthen our position as we prepare to expand our Omega-3 fish oil activities. Our existing shark liver refinery will now be able to be run at full capacity for at least the next 12 – 18 months.”
The high volume of squalene will also enable SeaDragon to launch an Alkoxyglycerol product onto the market. Alkoxyglyercols are found in the co-product when squalene is fractionated and removed from shark liver oil. There is a growing international market for these compounds, with a variety of proposed health benefits.
Source: NZX: SEA
SeaDragon (NZX:SEA) is Australasia’s largest refiner and blender of high-quality
internationally certified concentrated fish oils and fractions, including Omega-3 oils. Our
oils are sourced from fish caught in the clean and pure waters around New Zealand, in
the Southern Ocean, and elsewhere. We have more than 20 years’ experience
processing fish oils and we are recognised for the quality and purity of our products.
We supply health supplement manufacturers around the world to meet the burgeoning
demand for pure, high-quality fish oils, which are scientifically proven to deliver
significant human health benefits such as lowering the risk of heart disease, improving
brain function and joint health. The majority of our supply is exported.
SeaDragon recently raised $6.1 million in part to fund the development of its new
refined fish oil plant in Stoke in Nelson. The plant will allow SeaDragon to take
advantage of the considerable and growing demand it sees for fish oils rich in Omega-
3s, and particularly those oils sourced from New Zealand.