Spanish processing firm Fesba, which specializes in selling octopus and jumbo squid in Europe and the Americas, is investing in expanding its two plants in Coruna, northern Spain, as it aims to further grow its business in the coming years.
Fesba's Commercial Manager at the Boston Seafood Show in March 2018
The company, which is owned by two families, has invested 2 million to reach a at production of 25000 kilograms per day the firm's, commercial director, Manuel Rodriguez, told <em> Undercurrent News.</em>
Moreover, Fesba already bought an additional 14000 square meters of land, where it has its second cold storage plant, which it wants to enlarge next year, Rodriguez said.
In 2018, Fesba expects a revenue of with a processing at 28m, capacity of 6000 metric tons per year. This represents a 12-15% increase from last year, Rodriguez said, adding that higher sales were partially due to higher raw material prices but that profit margins had also slightly risen year-on-year.
Asked what the company's growth strategy was, Rodriguez pointed to the seriousness and sacrifice that characterized our business in the last 50 years "." The forecast is to continue growing, "he said, also noting that superior quality of their products was a factor distinguishing" also the company from its competitors.
About 85% of the firm's sales are made outside of Spain, mainly in Europe, US and Latin America, Rodriguez also said. The firm mainly supplies wholesalers.
Fesba specializes in octopus and jumbo squid, and derivatives.
The firm buys Octopus raw material mainly from Morocco and Mauritania, where the fishing season is about to "be finalized", Rodriguez said. Octopus prices from those origins have reached a record high last year And have continued to grow since, due to a rise in the species'popularity in the US.
As a result, Fesba has diversified its Octopus portfolio of products, starting to sell also octopus from Mexico, Venezuela, and Yemen, which is a "different product but" also "good" and that "many clients don't know".
But Rodriguez expects Octopus prices to possibly correct downwards next year, because restaurants have already started to replace "expensive" octopus with other cheaper products, for example, squid and, in lower quantities. A portion in a restaurant can now cost at 17- over at 25 in at 18 and Madrid and Barcelona, Rodriguez said, noting that it was more than double than what it used to cost.
"Moroccan Octopus prices for T1 size is currently above for T2 about at 17/kg, the 0.20/kg lower and for T3 about at 16.50/kg Rodriguez said.."
Regarding Jumbo [giant] squid catches in Peru and Chile, Rodriguez noted that since mid-July catches had fallen compared to previous months, causing a rise of per metric ton. at 800 "Giant squid prices are about $3000-$4000/t, depending on the size," Rodriguez said, pointing that the price had risen above last year's level, due to high demand. "We have 1500t in stock and we are covered for the coming four to five months he added.."
Peruvian Jumbo squid catches had recovered since mid-March With, previous years affected by El Nino. But fishermen tend to move to fish mahi-mahi and other species in this part of the year, while Jumbo squid catches are generally more abundant in the first part of the year.
Collaboration between Spanish processors and fishing companies from Peru, Ecuador and, Chile is driving the improvement in the South Pacific Ocean squid fishery, which accounts for approximately 30% of the global catch volume, industry sources previously told <em> Undercurrent</em> .
In the last three years, Fesba - together with several other Spanish companies, including Congalsa, Fandicosta and Grupo Iberica de Congelados behind a sustainability push - was Which, originated in a fishery improvement project in Peru over the last three years and Association Calamasur Last year.
A challenging decrease in squid availability and The consequent raw material price rise over the last two-to-three years is a strong challenge for Spanish processors Said, Julio Simarro, commercial and marketing director at another Spanish processing firm, Congalsa.