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100%
150.000 €

Settled by the promoter

Sustainable Aquaculture III

Location Pin Svg
Alvor, Algarve, PT

instalment

monthly

term

1 year

yearly interest

4.5%

risk rating

B

Working capital to portuguese company.

Description

NaturaFish is a seabass and seabream sustainable aquaculture. Harmoniously integrated into nature, it represents a sustainable alternative to wild fishing and high-density aquaculture in offshore cages, ensuring animal wellbeing and a positive environmental impact. 

Located in ria de Alvor, in the Algarve region (South of Portugal), it is part of Natura 2000, the nature conservation areas’ network created by the European Union to ensure the survival of animal species and protect Europe’s most valuable habitats. The farm has 19 hectares of total area and 19 tanks with the capacity to produce 500 tons of fish per year. Due to its ideal geographic location, NaturaFish has the right natural conditions (climate, water quality, and natural food) to produce the highest quality seabass and seabream.

The project started in 2018 with the reclamation of an abandoned shrimp farm built on old salt ponds. First sales occurred in June 2020 and the company sold over 100 tons of fish in five months, expecting to reach operational and financial stabilization during 2021, with an annual production of 500 tons. 

This is the promoter's third campaign with Goparity, after raising more than 220.000€ through Sustainable Aquaculture I (150.000€) and Sustainable Aquaculture II (77.500€), which were used as working capital and to buy a central oxygen production unit

The funds raised through this campaign will be used as working capital. This leverage on the working capital will allow the company to optimize the production capacity and prevent an early sale of the fish. 

The Impact

Marine Biodiversity Protection

  • Environmental integration: The Company’s facilities are harmoniously integrated into the Alvor Natura 2000 bird sanctuary waterway. The fishponds are old, converted salt ponds dug in the ground and built with native materials. The facilities were designed to blend with the natural environment of the estuary’s ecosystem, mindful of the local flora and fauna, including the farm’s neighbouring birds. Aerial cables were removed and replaced with under and on-ground cables. The ponds were covered with nets to keep both fish and birds safe.
  • Ecosystem equilibrium: The farm’s operations promote ecosystem equilibrium. Water from all 19 of the farm’s ponds is completely renewed each day with the tidal exchange. Water released back into the estuary is rich in nutrients that promote the development of microalgae that feed the shellfish farmed elsewhere in the estuary and provide nutrients as head of a complete chain. Equilibrium is maintained by the symbiotic activity of fish and shellfish farming in the same ecosystem.
  • Water quality: Ponds and waterways were designed for efficient water management and 100% water renovation every 24 hours with the tidal exchange. Critical variables such as water quality, flow, renovation, and oxygenation are actively monitored, managed, and controlled 24/7. Constant water renovation allows for dilution of excrements expelled by the fish, which at low levels of concentration are naturally used as nutrients with minimal impact on the ecosystem.
  • Sustainable feed: NaturaFish has a strong commitment to the use of sustainable animal feed. In partnership with Aquasoja, the Company is leading the development of a new type of feed for improved digestibility that uses a higher percentage of fishing industry byproducts, thus minimizing waste released by its fish and avoiding the killing of wild fish to use as feed. The Company is also using vegetable sources and alternative omega-3 and fatty acids sources for feed production. In addition to supplemental feed, fish raised in the NaturaFish estuary ponds benefit from the live feed that comes in naturally with each tidal exchange, twice daily. This combination of supplemental and natural feed gives the fish superior organoleptic qualities, such as taste, texture, colour, and form.

Animals wellbeing promotion

The fish swim freely in large, one-ha ponds dug in the estuary where they grow naturally as wild. Water oxygen levels are carefully monitored and controlled. Supplemental feed (in addition to the live feed that comes in naturally with the tidal exchange) is delivered automatically, following a careful plan that takes into account various factors, such as size, lifecycle stage, climate, and growth. Different feed formulas are used in response to different pathological risks. Water quality, the main driver of disease prevention, is carefully monitored and is maintained primarily through constant renovation. Essential oils are used to treat certain health conditions and as anaesthetics to numb the fish to reduce handling stress, during sampling, for instance. Finally, special techniques are used to cause minimal stress during harvest, resulting in minimal animal suffering and release of low levels of adrenaline, as well as improved preservation of natural flavours and increased shelf life while fresh.

An alternative to the importation of fish raised in high-density cages

Europe suffers from a huge seafood supply/demand imbalance. Ninety percent of the seabass and seabream consumed in Portugal is imported, primarily from large-scale aquaculture production in Greece, Spain, and Turkey. Industrial-scale aquaculture, using high-density cages offshore, although efficient, does not meet minimum standards of sustainability and animal welfare. European seabass and gilthead seabream grow naturally in the wild in estuaries and inlets, not offshore in the open sea. NaturaFish answers to this supply/demand imbalance in a sustainable way, producing 500 tons of fish annually.

Employment promotion 

The Company will create 19 direct jobs (and many more indirect jobs) as it reaches stabilization. These are permanent, year-round jobs in a region that is highly dependent on seasonal tourism. The NaturaFish Team includes specialists in marine biology, pharmacy, nutrition, and ocean sciences. The Company is conducting R&D in partnership with various entities from industry, government, and academia, including highly skilled professionals, several of them with PhDs.

Impact Indicators

Metrics Svg

6,33

Hectares for biodiversity

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6

jobs created

Sustainable Development Goals

6 image
14 image

Financial viability

Viveiros da Espargueira's business appears to have picked up significantly in 2021 when compared to 2020, amid a year characterized by the global pandemic. Overall, the promoter is very close to achieving the numbers projected in their business plan and also reassures that business trends and global economic recovery put the business on the right track for growth and increasing profit.

All of the aquaculture sites are already working and the company has been producing bass and golden bream on them. In the case of the first one, production has been very positive, exceeding the expectations. On the other hand, the production of sea bream has presented poorer-than-expected results, given by the quality of the alevins and the weather conditions, that caused some diseases. Fortunately, the two opposite effects have offset each other, making the company present overall good results.

The company wishes to obtain a bullet loan of 12-months maturity and an 11-months grace period of capital to better manage its working capital.

The project will have a total investment of 7.6M€, from which 1.23M€ were secured by the non-refundable MAR2020 Program, 1.97M€ by a convertible debt from BlueCrow Capital, 2M€ from long-term bank financing, and the remaining through several Goparity loans and equity.

The loan repayment will be supported by the expected increase in revenues and profits.

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The Promoter

About Viveiros da Espargueira - Actividades de Aquacultura S.A.

Viveiros da Espargueira Lda was founded in 2005. From that date to 2018, the company used the existing infrastructure to produce shrimps and did some tank improvements with the goal of adapting it to sea bass and bream farming. However, during this period the production was residual, and therefore the facilities ended up neglected.

In June 2018, the company started a new project with the goal of becoming a National reference in Aquaculture, NaturaFish. In that year, It developed a profound renovation of its facilities and have introduced the first alevins in September of that same year. Due to the 2-year cycle of production, the first sales occurred in June 2020.

NaturaFish was created to meet the growing global demand for natural, sustainable aquaculture by becoming Portugal’s leader in the farming of valuable local species for which demand exceeds biologically sustainable fishing levels, such as European seabass (Dicentrarchus labrax) and gilthead seabream (Sparus aurata). Its farming methods ensure animal wellbeing and create a positive environmental impact.

Location, experience, technology and innovation are success keys, working with nature, not against it.

NaturaFish’s first site is a 19-ha, salt-water, natural-pond farm in the Alvor estuary, in the Algarve southern province of Portugal. The farm is located 2.6 km from the river mouth. The farm’s ponds are part of the estuary and benefit from the natural water renovation occurring with the tidal exchange. Since there is no runoff from intensive agriculture or other industrial land uses upriver, the water quality in Alvor is excellent – clean and nutrient rich – key features in the raising of natural seabass and seabream, which feed on what the tide naturally brings with each water renovation. Salinity levels, water renovation, biodiversity, nutrition, weather, and other environmental conditions are all ideal for the farming of European seabass and gilthead seabream, which as wild fish are a part of the estuary ecosystem.

The Alvor farm is a parcel fully licensed for aquaculture inside a bird sanctuary that is part of Natura 2000, the EU network of nature protection areas. The heightened level of environmental protection that comes from being inside the Natura 2000 park ensures the long-term preservation of the environment surrounding the farm, including biodiversity and water quality, both key to the production of natural fish. Effectively, the Natura 2000 designation offers environmental insurance protection that substantially increases the value of the site.

NaturaFish’s proprietary farm management system gathers data from each pond allowing its team to remotely monitor and in some cases control water renovation, oxygen levels, temperature, feeding activity, and pathogens. The system is accessible via a proprietary mobile app allowing for 24/7 remote monitoring and management. Automatic SMS notifications inform of changes in conditions requiring the attention of a human. E.g., unusual changes in water temperature, water levels, feeding activity, or the suspected presence of pathogens.

Presets direct the system to automatically respond to changes in conditions in each individual pond without human intervention. For example, when oxygen concentration falls below a certain preset level, the system fires off the respective oxygen pumps until adequate oxygen concentration levels are restored to within acceptable limits, at which point the pumps are automatically disconnected. The system notifies the team of the occurrence – the change in conditions as well as any action taken.

The NaturaFish team has decades of experience in natural pond farming in Portugal’s clean inlets and estuaries.

The team

Miguel Theriaga

linkedin
CEO

Partner & CEO at Viveiros da Espargueira SA, Portimão, Portugal (2018-present) Manager at Aqualvor Lda and Piscicultura Vale da Lama Lda, Lagos, Portugal (2000-18) Assistant Manager, Production at Janssen Cilag Farmacêutica Lda, Oeiras, Portugal (1992-2000)

Ricardo Costa

linkedin
Production Manager

Production manager da Viveiros da Espargueira SA, Portimão, Portugal (2018-present) Site manager – Sole ongrowing at SEA8 Aquacria SA, Portugal (2013-2016) Sole Pre-ongrowing manager at SEA8 Aquacria SA, Portugal (2012-2013)

Nuno Battaglia

linkedin

Chairman at Algarve Partners, Lagos, Portugal (2015-present) Co-founder National, Partner at Public Development Partners LLC, Utah, USA (2008-14) Co-founder, EVP, CFO, Director at HealthEquity Inc., Utah, USA (2002-07)

António Castel-Branco

linkedin

CFO of Algarve Partners, Lagos, Portugal (2018-present) Investor and CFO of The Presidential Train, Lisbon, Portugal (2016-present) Regional Manager of Banco BPI, Algarve, Portugal (2014-2018)

Jorge Grave

linkedin

Partner at Battaglia Capital SA, Lagos, Portugal (2016-present) Partner at Jilmarés Lda, Lagos, Portugal (2001-2018) Project Director at Angola LNG, Soyo, Angola (2014-2016)

Bernardo Empis Meira

linkedin
Board Member

BLUE CROW Partner - SOCIEDADE DE CAPITAL DE RISCO, S.A

Business Model

NaturaFish produces 400g and 800g European seabass (Dicentrarchus labrax) and 400g gilthead seabream (Sparus aurata). Its per-kg price targets for 2020, 2021, and 2022 are between 7€ and 12€.

The Alvor farm has the capacity to produce 500 tons of fish per year. The company plans on growing its production capacity through the acquisition of sites on which to develop farms similar to the Alvor installation, with the same care for the animals it raises and the environment.

The Company’s sales strategy before the Covid-19 outbreak was to sell to HoReCa wholesalers. Since hotels and restaurants in 2020 saw a massive reduction in activity, the Company redirected its sales efforts to large retailers and distributors to local fish markets, institutional cafeterias, and small retailers.

In the short sales history, penetration into large retailers has steadily increased, with NaturaFish’s product positioned at the top of the market in both quality and price. In the medium to long-term, the goal is to position NaturaFish as a leader in the natural and sustainable aquaculture space by highlighting the Algarve as the origin and the organoleptic qualities of its products, highly appreciated by influencer chefs. In parallel with large retail distribution, and as hotel and restaurant operations normalize, the Company will increase penetration into the HoReCa channel through wholesalers.

Finally, NaturaFish is currently developing a direct-to-consumer communication strategy that may lead to direct-to-consumer distribution, which would allow it to shorten the distribution chain, increase margins, improve traceability and quality control and eliminate or mitigate certain distribution disruption risks. Even so, this is a long-term plan, involving an extended study of several operational and supply-chain issues.

Important to highlight is that, even during the Covid-19 period and having changed the distribution channels, the company was still able to consistently penetrate the big retail and maintaining their market top’s positioning in terms of quality and price.

Clients

  • National Large Retail: Continente, Auchan; in advanced discussions with others.
  • National Wholesale: Portfolio of 50+ clients.
  • Exports: Wholesale distribution in Madrid, Seville, Vigo, Marseille, and Paris. Under advanced discussions with a global distributor of fish from sustainable aquaculture. Also developing contacts in the Benelux and Scandinavia and expanding client portfolio in Spain and France.

Suppliers

  • Eeed: Aquasoja (R&D partner) and SkrettingL
  • Fingerlings: Sourced from European nurseries

Active since

2005

Fiscal country

PT

Operating In

"Portugal"

Industry

Aquaculture

Number of Goparity Loans

5

Women Shareholders

No

Updates

2022-10-17

Project End

This project has successfully reached its payment plan maturity. All investors have received their full capital invested and interest. Nevertheless, its impact will keep growing for many more years!

2021-11-15

First payment

First instalment was paid to all the investors

2021-10-14

100% funded

668 investors successfully raised 150.000€

2021-10-08

New target

After raising almost 100.000€ in two days, the promoter decided to increase the global investment amount of its campaign to 150.000 €, instead of launching several additional campaigns in the future. All the other offer conditions remain the same.

2021-10-06

Open for investment

This campaign is open for investment

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