An Investor’s Perspective on Asia’s Shrimp Industry

Mr Tim Noonan, Enterprise Strategy Leader, Cargill Animal Nutrition, USA

This presentation will compare the institutional investors’ rationale for investing in Asia’s shrimp production industry against alternative, competing destinations for capital – other parts of the food/feed industries, other aquaculture species (e.g. salmon and tilapia), and other shrimp-producing geographies (e.g. Latin America). It will highlight “what must be true” if Asia’s shrimp production industry is likely to attract significantly greater amounts of investment, noting challenges that have historically constrained investment and proposing solutions that would improve institutional investors’ level of conviction. For shrimp producers seeking capital, those solutions include a greater focus on – and improved capabilities around – management of disease risk, traceability and other consumer-driven demands, and environmental and social welfare.

Norway’s salmon industry has a demonstrated track record of building and scaling professionalized companies that meet investors’ requirements in these areas, which has led to healthy investor demand for salmon producers’ shares on the Oslo Stock Exchange and elsewhere. If Asia’s shrimp industry can replicate key elements of Norway’s success, it could become the next frontier for food/feed-focused institutional investors, allowing privately-held shrimp producers to pursue more attractive capital raisings in both private markets (venture capital or private equity) and public markets (listed equity or debt).