Domstein Seafood combines sustainability and return

Domstein Seafood combines sustainability and return

The targeted breeding of marine organisms on so-called "fish farms" is becoming increasingly important, especially as natural fish stocks in the world's oceans are decreasing.  

Too many fishing fleets are hunting for fewer and fewer fish. Asia has the largest fishing fleet in the world, with 3.3 million ships worldwide, according to FAO, the UN Food and Agriculture Organization. The largest fish producer is China, which since 2002 has also become the largest exporter of fish and fish products. The FAO found that around 33 percent of the fish species used and analyzed are overfished. Worldwide, around 60 percent of fish stocks are currently on the verge of collapsing. However, fish stocks are not only overfishing, but also polluting and climate change. 
As the FAO further states in its recent report on the global situation of fish stocks and fisheries, total fish production - catch and aquaculture - is expected to increase by 18 per cent to 201 million tonnes of fish between 2016 and 2030. The most fish is eaten in Europe, ahead of the USA and Japan. In total, 171 million tonnes of fish were processed worldwide in 2016, 80 million tonnes of which came from aquaculture. 

However, aquaculture also causes ethical and ecological problems. The high stocking densities associated with this form of intensive care require improvements in husbandry conditions. To do this, new technologies must be developed to enable sustainable fish farming. 
For food production, aquaculture offers great advantages over traditional fishing. On the one hand, it can be calculated with cheaper prices and there is a continuous and predictable supply of fish and seafood for the trade. While e.g. As the abundance of wild salmon is subject to strong seasonal fluctuations, aquaculture yields are much smoother and easier to control, greatly simplifying sales. In the future, the EU administration has decided to promote aquaculture throughout Europe to protect the oceans from overfishing and to make the European market less dependent on imports. 

Domstein Seafood combines sustainability and return 

One of the major players in the European fisheries market is Domstein Seafood AG. Headquartered in Zug, Switzerland, the company supplies the fishing industry with innovative technologies, protein-rich fish feed and other fish farming products. In addition, Domstein Seafood also maintains aquaculture farms, shipyards, research and development departments worldwide. The company is convinced that aquaculture is the key to a sustainable future. For her, sustainable aquaculture is based on three main concepts: social and economic sustainability and environmental sustainability. Domstein Seafood AG is very successful with this company philosophy. In the last financial year, a new record was achieved. Assets increased by almost 40% and sales by 14.2%. The shareholders profit from it; because the management attaches importance to a continuous dividend policy. Every year, 30-50% of the consolidated result should be paid to investors as a dividend. The exact value traditionally depends on general business development and growth opportunities. At its Annual General Meeting, Domstein Seafood AG Chairman of the Board of Directors Dr. Feldmann decided a dividend of EUR 0.12 per share for the financial year 2019, that is a payout ratio of 48%, resulting in a return of 4.7% for the shareholders. The dividend yield was set at 6 months. 
At present, Domstein Seafood AG is in negotiations with strategic partners, which could have a positive effect on the operating business. Therefore, it was decided together with the major shareholders to extend the subscription period for the current IPO until the first quarter of 2019. This gives potential investors the opportunity to include the results of these negotiations in their investment decisions and to participate in the booming aquaculture market. 


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