Painful
Reforms
The sector is going through some painful but necessary changes.
Greek fish farms, the world’s second-leading source for farmed sea bream and sea bass,
have long been a source of pride among Greeks for their leading global position, but have
since fallen on tough times. Challenging international market conditions have exposed
weaknesses in Greek fish farms that are now in a consolidation phase.
The price of fish has been dropping, while the plummeting Turkish lira means that peers in the
neighbouring country have become increasingly competitive. In addition to this, Greek fish
farmers have struggled with high debt levels.
The wave of consolidation has seen fish farmers Nireus and Selonda hook up with peer
Andromeda Group, in a transaction including the participation of Mubadala Investment Company and
AMERRA Capital Management LLC. The merger, which suffered from delays, was approved by
the European Commission in October 2019, clearing the way for a strong rebound in the
sector.
“By bringing together the complementary strengths of Nireus, Selonda, and Andromeda, we will be
able to define new performance standards for Mediterranean aquaculture. Combining the great talents
of these three businesses will allow us to seek to create value and drive innovation, for the benefit of
customers, employees, and the seafood market as a whole,” said Thor Talseth, Chairman of the
Andromeda Group.
The merged entity is expected to control approximately 37% of the EU’s output.
Besides its fair climate overall, Greece has another added advantage – the diversity of its
geographical micro-climates, which foster a wide range of products.
These benefits go beyond the food sector and are particularly important when it comes to the
agri-industry. The country’s tobacco market has also helped draw one of the biggest
investments seen in the country.
In 2017, Philip Morris International Inc. entered the Greek market by investing approximately
€300 million to convert the Papastratos cigarette factory into a manufacturing plant for
tobacco sticks used with its smoke-free IQOS product.
The investment created 400 new jobs at Papastratos. In April 2019, the company announced that it
created another 160 jobs in Greece as part of a plan to boost sales and information to adult
smokers over the company's IQOS product.
The IQOS product is expected to be ultimately exported to 30 countries worldwide.
Greece’s food industry and farmers are going global in what looks to be just the start.