Yuehai Feed Group to acquire majority stake in artemia producer I&V Bio

CHINA – On August 15, 2024, Guangdong Yuehai Feed Group announced its plans to acquire a 51% equity stake in I&V Bio Asia Co., Ltd., a leading producer of live Artemia, to enhance market competitiveness and expand its reach in the global aquaculture industry.

Established in 2013, I&V Bio Asia Co., Ltd. specialises in brine shrimp nutrition and feed technology, boasting over 25 years of professional experience in aquaculture. 

The company operates subsidiaries and affiliates in key aquaculture regions, including Thailand, India, Indonesia, Vietnam, Bangladesh, Ecuador, and Belgium, where it produces and markets its products.

The proposed acquisition aims to leverage I&V Bio’s expertise in Artemia and feed technology to boost sales in the Chinese market. 

This move is expected to significantly improve the quality of shrimp larvae in China by utilising Yuehai Feed’s extensive network in aquaculture and financing and its established presence in the Chinese market. 

The collaboration is anticipated to enhance the success rate of shrimp farming for local farmers, thereby increasing Yuehai Feed’s competitiveness, sales, and market share.

Furthermore, I&V Bio’s international market footprint is set to play a crucial role in Yuehai Feed’s strategic expansion into regions such as Thailand, Ecuador, India, Indonesia, Vietnam, and Saudi Arabia. 

This acquisition will serve as a bridgehead for Yuehai Feed’s international market development, fostering new profit growth opportunities and promoting sustainable growth for both companies.

While the Framework Agreement has been signed, the formal transaction documents are yet to be finalised, indicating that this deal represents a preliminary intention among the parties involved.

Artemia, commonly used as live feed in shrimp farming, plays a crucial role in the early life stages of shrimp larvae due to its high nutritional value and digestibility. 

The global aquaculture industry, which now produces half of the world’s seafood, relies heavily on Artemia, whose populations are currently threatened by overharvesting and climate change. 

According to the World Aquaculture Society, there has been significant growth in the shrimp industry over the last decade. 

Currently, shrimp production faces several problems that influence its development and consolidation worldwide. A Global Seafood Alliance 2022 survey to industry stakeholders mentions feed cost, market prices, diseases, and broodstock quality as the most relevant.

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