Benchmark Holdings to form salmon-breeding JV with SalMar

AIM-listed Benchmark Holdings has signed a long-term agreement with salmon producer SalMar to provide genetics, health and knowledge services to the company.

Benchmark said the full suite of services it is providing illustrates its "leading position in the market, as well as its ability to offer a wide spread of products and solutions across the salmon's life cycle".

Through its subsidiary SalmoBreed, Benchmark will form a 50/50 joint venture for the production of SalMar's salmon strain, Rauma. This JV will be called SalMar Genetic AS, and will be formed by a demerger of SalMar's salmon production facility in Reistad, Norway.

Benchmark will take full responsibility for managing the breeding programme through its subsidiary Akvaforsk Genetics Center AS.

The agreement also includes sales of eggs from Benchmark's land based sites in Iceland and once commissioned from its Salten site in Norway. The Benchmark group will also provide fish health services, diagnostics, and health products.

Chief executive officer Malcolm Pye said: "We are delighted to sign an agreement with such a blue-chip partner in the salmon market. It is testament to our customers' recognition of the benefits of our growing, integrated package of products and services, as well as our ability to enhance value for producers and contribute towards the overall sustainability of the aquaculture industry."

At 1045 GMT, Benchmark shares were down 1.5% to 96p.