Green Plains and Optimal Fish Food Announce Formation of Aquafeed Joint Venture
December 12 2018 - 8:30AM
Green Plains Inc. (NASDAQ:GPRE) and Optimal Fish Food LLC. today
announced the companies have formed Optimal Aquafeed, a 50/50 joint
venture to produce high-quality aquaculture feeds utilizing
proprietary techniques and high-protein feed ingredients. The joint
venture brings together Green Plains’ production capabilities,
commodity expertise, and back office knowledge and combines that
with Optimal Fish Food’s intellectual property, industry expertise
and customer relationships and does not require a material capital
investment for success.
Green Plains and Optimal Fish Food believe there is significant
room for nutritional improvements in aquaculture feeds through
research and understanding today’s rapidly changing availability of
ingredients, especially next generation high-protein feed
ingredients that will be produced at Green Plains’ ethanol plants
in the future. By incorporating high-quality agricultural products
along with plant-based proteins, algae, and other single-cell
protein ingredients, Optimal Aquafeed will be able to meet the
unique and growing needs of aquaculture producers globally.
“Aquaculture is one of the fastest-growing industries in the
world, and we have an opportunity to become a key supplier of
high-quality protein aquafeed,” said Todd Becker, Green Plains
president and CEO. “This joint venture perfectly aligns with our
strategy to invest in high-protein process technology, providing us
a pathway to a significant, growing customer base. We have
partnered with global leaders in aquaculture feed formulation that
will bring higher realized values not only for the high-protein
products we will produce, but will also service customers worldwide
that are looking for alternatives to traditional fishmeal based
feeds. We believe this relationship will maximize the value of our
products, further reducing the volatility of our earnings in the
future, as well as accelerating our confidence to invest in the
transformation of our current ethanol platform.”
“This new partnership will help change the relationship between
ingredient suppliers, feed manufacturers, and fish producers to
bring a new approach to transparency, quality, and fish performance
within the industry,” said Bill Harris, a Principal of Optimal Fish
Food. “The market is moving away from traditional fishmeal diets,
and the development of new high-protein products from Green Plains
will not only enhance feed conversion in many species of fish, but
also allow aquaculture producers to better serve a growing market
of consumers looking for products that are not widely available in
the market today.”
Incorporating novel high-protein feed ingredients into Optimal
Aquafeed’s complete feed products offering, provides growth and
health benefits far beyond today’s protein feed levels. As
consumers globally demand increasing ingredient transparency, we
believe that Optimal Aquafeed is ideally positioned to bring these
non-animal based, next generation ingredients to market in both
conventional and recirculating aquaculture system specific
feeds.
Aquaculture is expected to supply approximately 62 percent, or
93 million tons of the world’s seafood supply by 2030, according to
a study by the World Bank. To serve this growing industry, Optimal
Aquafeed will match appropriate feed formulations to the unique
needs of producers’ fish species, rearing systems, and locales. The
ability to create high-quality, high-performance feeds in
specialized formulations will be key to sustaining and expanding
aquaculture’s tremendous global growth.
About Green Plains Inc.Green Plains Inc.
(NASDAQ:GPRE) is a diversified commodity-processing business with
operations related to ethanol production, grain handling and
storage, cattle feeding, and commodity marketing and logistics
services. The company is one of the leading producers of ethanol in
the world and, through its adjacent businesses, is focused on the
production of high-protein feed ingredients and export growth
opportunities. Green Plains owns a 49.1% limited partner interest
and a 2.0% general partner interest in Green Plains Partners. For
more information about Green Plains, visit www.gpreinc.com.
About Optimal Fish Food LLC.Optimal Fish Food
is a feed company targeting the recreational fish marketplace by
providing high performance fish feeds designed to grow trophy fish.
The company employs a rigorous approach to feed formulations,
ingredient selection, biological assessment, and specialized
extruder technology. Optimal Fish Food sells aquafeeds
throughout the United States through distributors as well as direct
from their online store. For more information about Optimal
Fish Food, visit www.optimalfishfood.com
Forward-Looking StatementsThis news release
includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements reflect management’s current views,
which are subject to risks and uncertainties including, but not
limited to, anticipated financial and operating results, plans and
objectives that are not historical in nature. These statements may
be identified by words such as “believe,” “expect,” “may,”
“should,” “will” and similar expressions. Factors that could cause
actual results to differ materially from those expressed or implied
include risks related to Green Plains’ ability to realize the
anticipated benefits of the Optimal Aquafeed joint venture and
other risks discussed in Green Plains’ reports filed with the
Securities and Exchange Commission. Investors are cautioned not to
place undue reliance on forward-looking statements, which speak
only as of the date of this news release. Green Plains assumes no
obligation to update any such forward-looking statements, except as
required by law.
Green Plains Inc. Contact: Jim
Stark | Vice President Investor & Media Relations |
402.884.8700 | jim.stark@gpreinc.com
Optimal Fish Food LLC. Contact:Dustin Schulz |
President | 605.692.3474 | dustin@optimalfishfood.com
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