How do we secure the value and growth of TripleNine?

CEO Christian Bisgaard writes:

How do we secure the value and growth of TripleNine?
TripleNine Fish Protein is now off to a good start to the final fiscal year as a cooperative society with supply of raw products at the same level as last year.

In the course of 2012, it will be necessary for TripleNine Fish Protein to prepare the transition from a cooperative society to a limited liability company.

The reorganization means that the owners - the individual fisherman - will be in a new situation in which "ownership" takes on a whole new meaning. From having previously focused entirely on the settling price, it is now also essential to secure the development of the value and returns of TripleNine Fish Protein. So the question is how to develop TripleNine Fish Protein so that the value of the company is secured and increases over the years to come.

Geographical diversification secures supply of raw product
The reliance on the raw product is crucial to the production of fishmeal and fish oil. That's why it is important to place the production in areas where the security of supply can be maintained.

Therefore, it's important that the future production takes place in geographically diverse areas to reduce fishery fluctuations. In this case, I'm thinking of the establishment of production in areas such as Asia with focus on China, in Africa and in South America as well as retention of production in Scandinavia of course. In a situation in which production is carried out in different parts of the world, the risk of failing fishery is reduced.

Consolidation is necessary
It should be noted that maintaining an economically responsible production in Scandinavia necessitates a consolidation of the industry - a consolidation that TripleNine Fish Protein wants to be part of.

Moreover, TripleNine Fish Protein must be able to offer fishing rights to the suppliers - either by renting out fishing rights or through investment aid to associated vessels that land their haul for TripleNine Fish Protein.

Increasing demand
As far as the need for fish meal and fish oil goes, there are no problems. However, the prices will fluctuate depending on the growth of the global economy. But there's no doubt that the demand for proteins is increasing due to the increasing welfare, particularly in Asia.

As is apparent from the figure, the share of the world's population that are part of the middle class will increase from about 25% today to about 40% in 2020 - and about 55% in 2030. This is where the explanation lies to the increased demand for proteins and oils, as the growing middle class wants to eat fish, pork or chicken.
Thus the challenge for the industry is to source raw products for the increasing demand in a responsible and sustainable way that respects the individual species.