Australis signs supply deal with Vietnam Fisheries University

Perth-based seafood company Australis Aquaculture Ltd has signed a supply agreement and management contract with Vietnam's Nha Trang University of Fisheries, the company has announced.

The full text of a company announcement is pasted below

Australis Aquaculture Limited (ASX:AAQ) is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with Nha Trang University of Fisheries, located in Nha Trang, Vietnam. Australis Managing Director, Mr Josh Goldman said, "This agreement is an important step forward for Australis and will further strengthen our leadership position in the world barramundi market. By securing an exclusive supply of fingerlings as well as operational support from the university, we will be able to fast track our growth plans."

Under the terms of the MOU, the University will establish a new Centre for Marine Fish Seedstock Breeding (the "Centre"), that will provide Australis with technical and management services and large-scale barramundi fingerling supplies on an exclusive basis for an initial 5-year term. Working in the University's existing hatchery and in a new hatchery to be constructed by Australis, the Centre is expected to supply up to 12.6 million fingerlings per year for use by Australis.

The key aspects of the agreement are:

• Management - The Centre will be managed by internationally recognized aquaculture expert, Dr. Nguyen Huu Dung. A full complement of experts will oversee daily operations at the two hatcheries.
• Immediate supplies of Fingerlings at Low Cost - The Centre's output is expected to be sufficient to meet Australis' near term needs for fingerlings in Vietnam, and to provide the company with an additional source of fingerling supply for its other operations at very attractive costs.
• Proprietary Methods to Yield Faster Growing Fish - Australis will benefit from the University's intensive research into barramundi hatchery technology in Vietnam, which has generated an impressive track record in producing fingerlings that attain market weight faster then conventionally produced stocks.
• Local Staffing - The Centre will provide Australis with access to their well-trained university graduates and will assist in the recruitment and supervision of key employees for Australis, as necessary.
• Diagnostics and Other Services - In addition to fingerling supply, the Centre will also provide world-class laboratory and fish health diagnostic services to Australis.

In commenting on the agreement, Managing Director, Mr Josh Goldman said, "Together, the combination of immediate, high-volume, supply of fingerlings and local management services provided by the Centre are expected to facilitate a rapid filling of Australis' Vietnamese production pipeline, with the aim of producing 10,000 tonnes of barramundi annually by 2012."