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December 8, 2015

India

Nekkanti Sea Foods—Processing and Farming

 

Scheduled to begin operations in April 2016, Nekkanti Sea Foods’ new shrimp processing plant in the state of Andhra Pradesh will add around 40-45 tons per day of capacity to the company’s other two plants, each of which can process around 30 metric tons a day.  The new plant will have modern freezers and weighing/bagging equipment, and the existing plants will also be upgraded with new equipment

 

At the moment Nekkanti, like the vast majority of India’s largest exporters, gets most of its raw material from contract farmers, or from farmers it has worked with for many years.  It already owns some farms and is expanding its farming operations.  It expects to own three farming sites and become part owner of another two.  Venkat Nekkanti, Executive Director of the company, said, “A greater move into farming is inevitable, if you want to absolutely guarantee the quality of your shrimp.  Plus, the more farms you control as an exporter, the greater the raw material supply you can guarantee at times when farmers have stocked less in their own ponds, as has been the case at the end of 2015.”

 

 “Value-added processing is something we want to push aggressively,” said Satyanarayana B., general manage of Nekkanti.  The company is seeing strong demand for value-added, Penaeus vannamei products from the European Union.  “Ideally we can expand our customer base in Europe, as depending 85% on the United States market, as we do now, is a little too high” said Nekkanti.

 

In the EU, Nekkanti counts supermarket chain Belhaize as its main customer, while in the USA it supplies Red Lobster, Sysco, Great American Seafoods and Eastern Fish Company.  The company has held Global GAP certification for the past three years, and is very close to becoming the first company in India to gain Aquaculture Stewardship Council accreditation.  An announcement on this is expected in the next few weeks.

 

With raw material in short supply because of low stocking, disease and flooding, shrimp prices are on the rise.  “Limited landings mean packers are competing to secure raw material, paying farmers more and so losing a little on each shipment through the factory.  But it’s more important to have shrimp in the plants,” said Nekkanti.

 

Information: Venkat Nekkanti, Nekkanti Sea Foods, Flat No. 1, Jayaprada Apartments, Nowroji Road, Maharanipeta, Visakhapatnam, India (phone 91-891-2567767, email info@nekkanti.net, webpage http://nekkantiseafoods.com).

 

Source:Undercurrent News [eight free news reads every month].  Editor, Tom Seaman (undercurrent@undercurrentnews.com).  India’s Nekkanti Nears New Shrimp Plant Opening.  Neil Ramsden (neil.ramsden@undercurrentnews.com).  December 8, 2015.

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