Arichat Fish Farm Catches $20M Export Deal

A steelhead fish farm and processing facility in Arichat, Richmond Co., has landed a $20-million export contract to Japan. Scotia Rainbow is expanding its operation and hiring another 100 workers so it can fill the order.

"This is a major breakthrough for our company," said company president Serge LaFerniere. "The Asian market has a huge appetite for steelhead fish. Our customer, the Hanwa Corp., is a major operator in the region. This could be the start of a long and very profitable relationship."

Scotia Rainbow has been operating since the fall of 1998 and has hired and trained 200 Richmond County employees. This new expansion, already begun, will involve $4 million in new equipment and facilities improvements and $12 million in feed and other operating costs for the Arichat operation. The company is also buying and upgrading the former Eskasoni/Saddle Island Fisheries Group, located in Cape Breton and Blandford, for about $11 million.

"This expansion will give us the capacity to grow and process twice as much fish more efficiently," said Mr. LaFerniere. "We proved last year that we can successfully grow a quality product. Now we'll be even more competitive in global markets."

Scotia Rainbow's expansion is being financed with the help of private investors, commercial lenders and the provincial and federal governments. In a package that's been in the works for several months, Economic Development will provide the company with a $4-million secured loan. The Farm Credit Corp. is lending $3.8 million; the Canadian Commercial Corp. has arranged financing of $4 million.

"This expansion will enable Nova Scotia's biggest aquaculture operation to deliver a $20-million sale to Japan -- a sale that's expected to be repeated in future years," said Ernest Fage, Minister of Fisheries and Aquaculture. "Last year, aquaculture grew 60 percent in Nova Scotia. Supporting this operation takes us even higher."

"We've been working with the company and the Department of Fisheries and Aquaculture to ensure that, together, we do what's best for Richmond County, the industry and Nova Scotia taxpayers," said Economic Development Minister Gordon Balser. "Scotia Rainbow is creating jobs in rural Nova Scotia, boosting our exports and sending quality Nova Scotia product into the lucrative Japanese market. The immediate benefits are good; the potential long-term benefits are even better."

The work to expand Scotia Rainbow's Arichat facilities should be complete by the end of the year.