A well-crafted fish-farming strategy and aggressive marketing have brought Asmak acceptance in fastidious markets.

UAE fisheries company Asmak, which has expanded its aquaculture operations through joint ventures in the last few years, expects to see its overseas sales rocket this year to record levels.

For the first time, Asmak, the better-known name of International Fish Farming Company, began sending consignments to North America in the second half of this year following a deal signed with the Montreal-based seafood trading company Solgelco.

Soon afterwards, Asmak appointed Al Oneizi Trading Establishment of Dammam to distribute its fresh farmed and seafood products in the eastern and central provinces of Saudi Arabia. The contract with Al Oneizi should see Asmak supplying up to 250 tonnes a year of seafood to the Saudi company.

“This contract is in line with our strategy to increase our share of the regional aquaculture market,” said Asmak general manager Bernard Durin. “We are looking at several other opportunities which could lead to long-term regional and international supply contracts in the near future.”

 In the North American deal with Solgelco, Asmak will be shipping 250 tonnes of sea bream and sea bass annually.

 “Asmak views North America as an important and potential growth area for all seafood products, and we are looking to expand our business there in the years ahead,” said commercial manager Graham Benjamin. “Asmak has not conducted any specific market survey for that market but has knowledge of the products and required product specifications,” he added.

This year Asmak expects to export 740 tonnes of various farmed species against 69 tonnes in 2002 and 37 tonnes in 2001. The company also supplies wild fish it procures under agreements with traders and has a thriving domestic market as well. Overseas sales account for 60 per cent of the turnover.

 The company posted a 650 per cent growth in revenue in the first half this year over the same period last year.

“The strong performance is a result of the introduction of new aquaculture products and opening of additional retail outlets, which are continuing to consolidate our customer base,” said Durin in a statement. Asmak started exporting frozen lobsters to the US in the second quarter of 2003.

“Lobsters are a high-priced item and have the potential of adding extensively to Asmak’s revenue in the near future. Asmak plans to increase its lobster exports to the US and other countries during the current season from September 2003 to February 2004,” said Durin.
Asmak is opening shops in the UAE, introducing new products to its retail customers and focusing on improving its marketing strategy. The company expects to continue improving sales throughout 2003.

It has opened new markets in the Middle East for farmed fish including Mediterranean species such as sea bass and sea bream and local species including sobaity and shaem.
In addition to the newly served North American market, the company’s main destinations for farmed fish are Kuwait, Jordan, Lebanon and very recently Saudi Arabia. Consignments also go to the UK, Spain, Germany, France, Italy, Switzerland and Yugoslavia.

“Asmak’s business with EU countries is growing steadily, mainly with the UK, Spain, Germany and France,” said Benjamin. “We signed an agreement in February with a subsidiary of Nestle (Davigel) for the supply of frozen sea bream fillets. The new product has been launched very successfully to the market and we will export 70 tonnes this year and our target is 120 tonnes in 2004.”

Exports to the EU picked up well once Brussels lifted a four-year ban on the entry of UAE seafood products in mid-2002.  Asmak had lobbied hard in conjunction with the UAE Ministry of Agriculture and Fisheries to have the restriction withdrawn. It also prepared, in coordination with the UAE government, health and hygiene standards for the local fisheries industry, which contributed to the lifting of the ban.  

The company is seeking strategic export alliances worldwide. “We offer potential export partners a full range of products both farm-raised and wild-caught, and this mix gives advantages over competition which can only offer one or other of the product lines,” said Benjamin.

Asmak was set up in May 1999 through the efforts of the UAE Offsets Group (UOG) and with the support of the Abu Dhabi Government.  The paid-in capital of Dh300 million ($82 million) was subscribed 45 per cent by founder shareholders and 55 per cent by ordinary UAE citizens who were offered shares priced at Dh10 each through an initial public offering (IPO). Asmak has a 10-year management services agreement with Athens-based aquaculture firm Nireus SA, which is also one of its founder shareholders.

The company has four fish faming sites: Fujairah and Ras Al Khaimah in the UAE and Quriyat and Bandar Khairan in Oman. Fish are farmed in floating cages of 20m diameter. Juveniles are produced in the company’s Kuwait hatchery in a joint venture with the Kuwait Institute for Scientific Research (KISR) and five Kuwaiti companies. On reaching 1 to 2g, they are transferred by truck to the company’s farms where they are grown to a minimum of 300g and a maximum of 1.5kg.

KISR’s facility comprises stock of such local species as hamour, shaem and sobaity, all of which are utilised to produce juveniles.

“Asmak’s agreement with KISR to lease their existing hatchery facilities in Kuwait for the commercial production of finfish juveniles is a vivid example of the company’s continuous efforts to achieve maximum efficiency of operations as well as fulfill the aspirations of its regional scope of operations,” commented Durin.

For the Oman production, Asmak has taken a 65 per cent share in Quriyat Aquaculture Company, which is engaged in cage farming of marine warm water finfish. The targeted production is 2,000 tonnes per year by 2005. Quriyat has established a processing plant  - Ocean Fish of Oman - that adopts European standards and has a production capacity of 4,000 tonnes per year.

Asmak plans to build soon a new state-of-the-art hatchery in the UAE to develop the production capacity of its farms and to introduce local species through research and development.  The company’s diversification plans include shrimp farming, tuna ranching and the production of value-added items.

It has taken a 40 per cent stake in Feedus SA, a Greek fish feed operation, and is assured of receiving feed supplies of a quality in line with European standards.
“The prime reason for going in this direction is to take no risks whatsoever in terms of quality. Furthermore the reliability and continuity of supply is very vital. The European factories are of very high European standards and they are regulated and monitored by the EU, which is one of our potential growth markets,” says Durin.

In the UAE, Asmak has two fully owned subsidiaries  - the Ocean Fish Processing Company and the Arabian Gulf Fisheries Company.

As well as its involvement in fish farming and procurement of other fish products, Asmak offers services in feasibility studies, licence approval, funding proposals, site sourcing in the region and project establishment and commissioning.

Other services it offers are research and development, environmental evaluation and solutions, design of aquaculture systems, design of downstream systems for utilisation of fresh or marine waste water, quality assurance, sourcing of broodstock and marketing.