Sustainable aquaculture in Thailand has received a financial boost thanks to a landmark $150 million blue financing agreement signed between the Asian Development Bank (ADB) and the Thai Union Group Public Company Ltd. This is the first time the ADB has provided a loan to the private sector of Thailand’s agribusiness industry.

Why does this matter? Thailand is the second largest producer of shrimp globally, after China. Thailand produced 266,000 metric tons (mt) of shrimp in 2024, nearly half of which was exported. Globally, shrimp farming has an outsized footprint financially and environmentally. The world shrimp marked was valued at $45.3bn in 2023 and is expected to reach $102.6 billion by 2034 due to its growing popularity.

However, shrimp farming has a carbon footprint that can exceed pork in terms of emissions intensity – an average of 13 kg CO2e/kg. Half of these emissions are down to shrimp feed. Commonly, soy may compose 30% of their diet but intensive monoculture farming of soy is a leading cause of rainforest clearing in South America. The other half of direct shrimp farm emissions come from the energy required to mechanically aerate water.

Further environmental degradation occurs if mangrove forests – high carbon sequestration reserves – are cleared to make way for the aquaculture industry. Meanwhile, antibiotics, shrimp waste and uneaten feed contribute to water pollution that can result in algal blooms and ecosystem disturbances. Thus, the blue financing agreement for sustainable aquaculture in Thailand comes at an opportune moment.

Two companies in Ocean 14 Capital’s investment portfolio are contributing to improved aquaculture sustainability. SyAqua, based in Singapore, is revolutionising shrimp genetics and alternative feeds to preserve wild fish stocks. In China, 60% of hatcheries are SyAqua customers and the company delivers some of the most competitive industry results.

AquaExchange is a technology platform analysing data on shrimp and fish production. Understanding the data helps companies to reduce crop expenses, manage crop finance and automate the procurement and harvesting for aquaculture farmers. AquaExchnage currently automates large areas of shrimp farming operations in India, some12% of the domestic industry. Ultimately, their work improves the productivity and profitability for the aquaculture ecosystem.

Complementing these private sector efforts is a £3 million ($4 million) research initiative led by the University of the West of Scotland and partnered by the University of Strathclyde is aiming to revolutionise shrimp farming in South East Asia. The three-year project is developing low-cost, real-time monitoring tools to help small-scale farmers detect pathogens, monitor water quality and predict environmental threats using biosensors and AI-driven climate modelling.

By working closely with local farmers in Vietnam and Thailand, the team ensures the technologies are practical, affordable and gender-inclusive. The tools are designed to reduce mortality rates and boost productivity – offering a scalable blueprint for sustainable aquaculture across the region and beyond.

As global demand for shrimp continues to rise, the need for more sustainable, transparent and resilient aquaculture systems has never been greater. From major financial backing and cutting-edge genetic and digital innovations to grassroots-level research supporting smallholder farmers, a range of coordinated efforts are converging to transform shrimp farming in South East Asia.

13 June 2022, London. Ocean 14 Capital Fund, a private equity impact investment fund focused on the United Nations’ Sustainable Development Goal 14 (SDG 14): Life Below Water, has signed a deal to purchase a controlling stake in SyAqua from Golden Springs Group (GSG). SyAqua is a leader in genetics and early nutrition to the shrimp hatchery market, with a historical focus in Asia.

Ocean 14 Capital Fund’s debut investment capitalises on the intensification and sustainability trends in the shrimp farming industry. Despite significant progress in the recent past, the industry is still overshadowed by inefficient resource use of unsustainable practices. “SyAqua‘s technologies in genetics and nutrition have a powerful impact on sustainable intensification of the shrimp industry by reducing waste per unit of production and the ensuing externalities, says George Duffield, founding partner and chair of impact, for the Fund’s investment adviser, Ocean 14 Capital Ltd.

“We have ambitious plans for SyAqua and are tremendously happy for the Fund to be partnering up with Golden Springs Group and the SyAqua company’s management team,” said Francisco Saraiva Gomes, founding partner and chief investment officer, Ocean 14 Capital Ltd. “SyAqua is in growth mode, quickly increasing its performance by leveraging its superior market presence and tech platforms. Over time we plan to build SyAqua into a platform for sustainable shrimp technologies and we hope that the Fund will invest significantly more than its initial commitment of $12 million”.

“We are excited to be partnering with Ocean 14 Capital. They have already shown an incredible commitment to our team and business. Their knowledge, access and ability to execute, will help us to capture multiple growth opportunities. It’s a good period for SyAqua now. We are on growth mode we are already expanding our operational footprint and technology portfolio to better serve the needs of our customers” says Ricardo Mello, chief executive officer, SyAqua.

“It is with great enthusiasm and expectations that we witness Ocean 14 Capital’s first investment, as part of one of their key investment verticals to transform the shrimp industry into a more sustainable business. We are delighted to be a cornerstone investor of this vital and innovative fund,” says Claus Gregersen, CEO, Chr Augustinus Fabrikker.

SyAqua

SyAqua provides solutions for shrimp hatcheries and farmers, combining genetics and early-stage nutrition. The Company uses cutting-edge technologies in its breeding program and hatchery feeds manufacturing process to ensure its customers excel in technical and economic performance. SyAqua has operations in USA, Thailand, Indonesia and Malaysia with relevant commercial presence in several shrimp producing countries worldwide.

www.syaqua.com

Golden Springs Group

Golden Springs Group operates as an investment company. The company invests in sustainable aquaculture businesses.

www.goldenspringsgroup.com

Chr. Augustinus Fabrikker

Chr. Augustinus Fabrikker is the investment subsidiary of the Augustinus Foundation one the largest cultural foundations in Denmark. With assets of more than DKK 40 billion and more than 270-year-old history, Chr. Augustinus Fabrikker has extensive interests in the Danish business community and a strategy to be a long-term, committed, and value-adding asset owner.

https://augustinusfabrikker.dk/en/