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Nufarm Ltd’s Plant-based Fish Oil Substitute Could Become a Billion Dollar Industry

Melbourne-based Nufarm Ltd is a pioneer and leader in development of Agricultural technologies and offers a range of crop protection and seed technology solutions. The company’s annual report for the YE 30 September 2022 reports a research and development expenditure of $51M.

In recent years Nufarm Ltd (via its subsidiary entity Nuseed), has invested in the development of Aquaterra® as a partial replacement for marine ingredients. While plant-based protein alternatives to fish meal have been available for years, a market accessible alternative to fish oil had been out of reach. Aquaterra® is the world’s first land-based source of long-chain omega-3 fatty acids, produced by Nuseed to deliver the nutritional benefits of microalgae via its proprietary Omega-3 Canola. The biotechnology for Nuseed’s novel source of omega-3 nutrition was developed in collaboration with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Grains Research and Development Corporation (GRDC).

The project could potentially address opportunities around:

• Concerns of Fish Supply Stocks, ocean health and sustainability;
• Supply chain constraints of conventional fish oil;
• Capitalisation on consumers becoming aware of non-fish sources of omega-3.

A recent article in The Australian newspaper has highlighted that:

• Peru, which supplies about 20 per cent of the world’s fishmeal – could cancel its anchovy season which would further constrain supply;
• The move comes amid a tightening of wild fish catch quotas. which could present an opportunity Nufarm Ltd and its Aquaterra product;
• This new market is estimated by Nufarm Ltd to potentially generate $850m in earnings before interest and tax annually by the end of the decade if total supply came from Nufarm. This compares with the company’s market value of $2.3bn.
• Maquarie analysts are upbeat about Nufarm Ltd and were quoted as noting “We expect rapid growth over FY24-26. Incrementally positive news re omega-3 with the Norwegian positive risk assessment of Aquaterra for use in fish feed and Peru fish quota reduction.”

Other leading companies including Blackmores Ltd have previously expressed concerns around supply of conventional fish oil, and Nufarm Ltd’s plant-based fish oil substitute could become an Australian innovation success on the global stage.

Please get in touch with our office if you would like to speak to someone about a potential  R&D claim, or check out our website for more information.