Fledgling Arctic char fish farm lands $10.75-M loan from province

Hey there, time traveller!
This article was published 17/09/2024 (404 days ago), so information in it may no longer be current.

Manitoba has cast a financial line of support into Sapphire Springs, the large-scale fish farm under construction in the Rural Municipality of Rockwood.

On Tuesday, it was announced by the departments of economic development, investment, trade and natural resources that the province has provided the company with a $10.75-million repayable loan. Terms and conditions were not disclosed.

The locally owned and managed venture is looking to shake up the North American Arctic char market, if not the world.

When it starts shipping in early 2027, the facility is estimated to become responsible for more than 60 per cent of the current global production of Arctic char — a cold-water fish in the salmon family.

The Rockwood hub some 30 kilometres north of Winnipeg is also designed with sustainability in mind, with 99 per cent of the water — sourced from a local aquifer — cleaned and recycled throughout the facility and returned to its tanks cleaner than it was before, according to officials.

Economic Development Minister Jamie Moses said it’s a great investment for the province.

“It’s a very special project,” he said Tuesday. “Not only will it produce good jobs, it will grow the economy in really, really positive ways.

“We’re talking about high-quality, very sustainable food production that brings incredible innovation to the province and happens in a rural municipality.”

Ken Blair, CEO of the venture that includes a number of Manitoba equity partners, said Sapphire Springs had been in discussion with the province for about nine months regarding financing.

“It’s been a very pleasant experience,” he said. “Everyone from the province who we’ve spoken to have been very enthusiastic.”

Sapphire Springs is being built on the former site of the Department of Fisheries and Oceans’ Rockwood Experimental Fish Hatchery, which was closed in 1996.

“We aim to become a leader in sustainable aquaculture, contributing to the long-term viability of Canada’s seafood industry and enhancing our province’s reputation as a hub for innovation,” said Blair.

“We very grateful for our province’s support and are excited to contribute to the local economy, while addressing the growing demand for healthy and sustainable protein.”

Although in the past the principals have spoken of the project requiring close to $200 million, it’s now cited as a $145-million plan.

Regardless of the total investment required, Blair said virtually all the financing is in place.

“For a project of this size, there will always be some tweaking involved,” he said. “But we are moving forward full bore. We have our schedule and we are working to complete that. This financing helps, of course.”

The facility is anticipated to create about 100 full-time jobs and another 120 indirect jobs in Manitoba.

According to Sapphire Springs management, the marketplace is excited about the influx of significantly more volume of the fleshy fish said to taste like a cross between salmon and trout. Some say its culinary attributes are on par with — and at a similar price point to — salmon, but it only represents one per cent of the global salmon consumption.

While Sapphire Springs is still a couple of years away from commercial shipments, Blair said seafood distributors have been keen to handle the increased volumes. “We have already entered into distributions agreements.”

There have been reports one West Coast distributor made a pitch to take up the entire production. Blair said international export arrangements are being considered, but have not been finalized.

“We are committed to making sure that a certain portion will remain in Manitoba,” he said.

As to any concern about the depth of consumer demand for Arctic char, Blair said: “It’s pretty consistent with most food supply. There is not much in the way of surplus in any vertical of food supply in the world these days. So we think Arctic char will be pretty much consistent with that.”

martin.cash@freepress.mb.ca