Thai Union Feedmill establishes US$55M Ecuador aquafeed venture

ECUADOR – Thai Union Feedmill (TFM) has formally incorporated its planned aquafeed subsidiary in Ecuador, advancing a US$55 million project expected to increase the company’s total production capacity by around 80% by 2028.

TFM, the feed business of Thai Union Group, incorporated Thai Union Feedmill Ecuador S.A.S. on September 4 with registered capital of US$27 million, according to a filing with the Stock Exchange of Thailand.

The new subsidiary will invest in building an aquaculture feed production facility in Ecuador, formalising a project TFM first announced in February.

Avanti Feeds joins Ecuador project

India’s Avanti Feeds holds an 11.11% stake in the new company, following its agreement to participate in the project in April.

TFM holds 85.19%, while Ecuadorian shrimp farming consultancy Pacific Aqua Solution Pacsol S.A.S. holds 3.70%.

TFM plans to increase the subsidiary’s registered capital to US$30 million and restructure the shareholding.

Under the proposed structure, Ecuadorian seafood processor Fevalri S.A. will take a 10% stake, while TFM’s holding will fall to 76.67%, Avanti Feeds to 10% and Pacsol to 3.33%.

The subsidiary will be governed by an eight-member board, including Eduardo Arosemena Merino, Avanti Feeds’ Indra Kumar Alluri and Ecuador-based director Humberto Trujillo Illingworth, president of local shrimp producer Expalsa.

The investment will strengthen TFM’s presence in Ecuador’s shrimp and aquaculture feed market while expanding its production capacity to serve the country’s growing aquaculture sector

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