New Zealand Coastal Seafoods sells $4.3m of frozen fish to exporter

New Zealand Coastal Seafoods (ASX: NZS) has clinched a deal worth NZ$4.4 million (A$4.29 million) for the sale of at least 100 tonnes of frozen ling maw to international wholesaler and exporter, SuperMilkBaba.

The premium seafood producer announced it will be dispatching the first 1t shipment to SuperMilkBaba on Wednesday on advance payment terms.

Ling maw is the dried bladder of ling, a large white-fleshed fish found in deep New Zealand waters. Maw is traditionally considered a delicacy in Chinese cuisine and is often used as an ingredient in soups.

New Zealand Coastal Seafoods interim chief executive officer Andrew Peti described the purchase agreement as a “monumental milestone” for the company.

“It exponentially expands the company’s revenues, but also provides future opportunities for the bulk sale of [its] products into China, including the newly developed ready-to-eat product range,” he said.

Deal terms

SuperMilkBaba is a New Zealand-based wholesaler and exporter of high-quality sustainable food products and has worked with brands such as Melita Honey, Pure NZ spring water, Mr Apple and Ample Meat.

Under the purchase agreement, SuperMilkBaba is required to order a minimum of 8t of ling maw for sea freight orders and 1t for air freight orders over a 12-month period.

The products will be processed through New Zealand Coastal Seafoods’ newly completed, expanded and upgraded production and processing facility in Christchurch.

SuperMilkBaba chief executive officer Fish Lu said New Zealand Coastal Seafoods’ products are a “perfect match for the Chinese market”.

“At SuperMilkBaba we have a strict assessment criteria based on quality and the requirements of our customers in China … Based on the success of this order, we aim to build a long-standing and prosperous relationship with [New Zealand Coastal Seafoods],” he said.

Opportunities in the nutraceuticals market

Along with ling maw, its flagship product, New Zealand Coastal Seafoods sells other eastern delicacies such as sea cucumber, elephant fish and dogfish.

It also produces marine-based nutraceutical ingredients including mussel, oyster and shark cartilage powders.

Earlier this month, the company inked a deal to acquire 100% of Kiwi Dreams International, which develops nutraceutical products and offers services including ingredient supply, quality and validation, and formulation development.

According to New Zealand Coastal Seafoods, the global nutraceutical market was estimated to be worth US$230.9 billion (A$387 billion) in 2018.