Spotlight on Portugal
The host country for AE2021 is raising its game
COULD Portugal become Europe’s next salmon producer? That was one of the intriguing possibilities raised by Pedro Encarnaçao, Director of Aquaculture with Portuguese retail group Jerónimo Martins Agri-business (JMA) at the second plenary session. Pedro Encarnação is an aquaculture expert with extensive experience around the world. He has a degree in marine biology and a PhD in fish nutrition. In 2005 he moved to Asia as Technical Director for Biomin (biotech in animal nutrition). After 10 years in Asia he returned to Portugal to join JMA as its Aquaculture Director to develop the group expansion in what is a new area for the company.
His main topic at AE2021 was “vertical integration” – in other words, why is a retailer like JMA running fish farms?
Jerónimo Martins was founded as a small store in Lisbon in 1792. It is now one of the country’s biggest retailers, with more than 4,000 stores in three countries – Portugal, Poland and Colombia.
Vertical integration is part of the group’s philosophy, ensuring that the company has control of delivery and quality for as much of its fresh produce as possible. Encarnaçao explained that the mission of JMA’s aquaculture business was threefold: secure a sustainable supply of fish products through aquaculture with high quality and sustainability; stimulated innovation and production development for new species that are adapted to consumer preferences; and promote a close co-operation and integration with existing operators on the identification of consumption and production technology trends.
He summed up: “We supply to one client, which is us!”
Per capita, the Portuguese are Europe’s biggest consumers of seafood – perhaps not surprisingly for a nation with such strong maritime traditions – but aquaculture in Portugal is still very fragmented, with much of the sector made up of small producers.
Encarnaçao said:“Most of the aquaculture in Portugal is semi-intensive and there is little opportunity for expansion.”
The conditions around Portugal’s coast also present challenges, with powerful Atlantic storms and sea temperatures that are too low for some species.
JMA’s aquaculture operations are mostly through two businesses: Seaculture, which operates farms in Sines, on Madeira Island, and in Alicante (Spain) for the production of sea bream and sea bass; and a partnership with Madeira-based Marismar, which farms sea bream.
As Encarnaçao explained, Madeira is ideal for sea bream production, with calm bays and a stable 18–24°C temperature range.
JMA’s customer research has found that there is a consumer preference for fresh, locally produced fish even though fish from, say, Greece or Turkey may be cheaper. JMA’s latest projects, however, include investment in Mediterranean Aquafarm, an aquaculture business in Morocco in which JMA has taken a controlling stake.The company is also investing in a new project in the Algarve, in the south of Portugal, which is planning for an initial capacity of 1,000 tonnes of sea bass and sea bream, Encarnaçao said.
And while Portugal currently imports its salmon from elsewhere, he said the north of Portugal offered possibilities for home-grown salmon production offshore, with the chance to grow a whole new industry for the country’s aquaculture sector.
Proximity to market is a major priority, he added, with the product ideally shipped from harvest to consumer in 24 hours.
JMA is also exploring an integrated multitrophic aquaculture project combing seaweed and bivalve shellfish production.
Sustainability is a key issue for the group. Encarnaçao said that the Farm to Fork philosophy stressed access to healthy, sustainable and safe food; tackling climate change; protecting the environment and preserving biodiversity; fair trade principles; and increasing the use of organic farming.
For the aquaculture business, he added, “sustainability” meant, among other things, monitoring the environmental impact, shorter supply chains, reducing waste, and reducing the use of antibiotics and chemicals in treatments. It had even led to the company investing in submersible pens in order to minimise the visual impact of marine farms.
Minister of the Sea
More insights into Portugal’s approach to aquaculture also came from Portugal’s Minister of the Sea, Ricardo Serrão Santos, who spoke during the third and final plenary session.
Declaring “we have to bet on aquaculture”, he gave a passionate speech about the importance of the sector as an alternative to traditional forms of fish supply.
Portugal recently approved its third National Ocean Strategy 2021-2030, which has an Action Plan with 185 measures.
The plan recognises that aquaculture needs to gain more weight in a context where national fisheries production is insufficient to supply consumption, in a framework of sustainable management and exploitation of living marine resources.The goals, for aquaculture, are:
• implementing national roadmaps for offshore and recirculation aquaculture, and stimulating research, development and innovation activities;
• giving priority to the development of sustainable and circular aquaculture, both in the open sea and in transitional and inland waters, and stimulating multitrophic and closed-loop production; and
• promoting the digitalisation of the fish chain, both via traditional fisheries and aquaculture, in order to increase production efficiency and sustainability.
For the long term, Santos added, marine spatial plans would ensure that “there is enough sea for everyone”.
Portugal’s aquaculture sector produced 14,000 tonnes in 2019 and delivered €18.5m in revenue
The minister explained how aquaculture had made use of technological developments, including offshore engineering technologies, recirculation systems and multitrophic models to develop sustainably.
Santos has been a long-term friend and supporter of EAS and a key figure, not only nationally, but also as an MEP and Member of the Committee on Fisheries of the European Parliament.
“We have to bet on aquaculture”