Coopam Presentation

INDEX

Introduction 1.0

The Group 2.0

Species information 3.0

Husbandry Practice & Feed Regime 4.0

Environmental Impact 5.0

Harvest Protocol & stunning method 6.0

Processing Facility 7.0

Distribution Network and Timings 8.0

Species Development Opportunities 9.0

!

Introduction

Dear Madam Susanne Prangen,

First of all we would like to thank for the opportunity of introducing COO.P.A.M. to Frische Paradies.

All our fish farming facilities are located in Orbetello, in the Tuscany region, considered to be the birthplace of European aquacul-

ture. In fact since the 70’s, under the impulse of a local entrepreneur that had a passion for the sea and for fishing traditions, a

new breeding system was developed for the first time in order to farm salt-water fish.

It should also be said that we follow on the footsteps of ancient Romans that over 2000 years ago, in exactly the same area where

we operate, had already experimented some form of farming, although mainly storage, of sea bass and sea bream.

This is highlighted in the attached map of the harbour area of the ancient city of Cosa.

As a matter of fact, ancient Romans chose the area for the peculiarity of its [euryhaline] salty water that due to geologic factors

gushed out at a constant temperature of over 20°C

Moreover, the proximity of the Orbetello lagoon (with an area of 2700 ha) continuously contributed fish product that needed to

be stocked before being sent fresh to Rome. Since then and throughout the centuries, the fish of Orbetello has always had a key

role in supplying first quality fish to the canteens of the aristocracy up to the pope. Numerous historic documentations support

the fact that the Orbetello fish has always been recognised as superior quality.

Introduction

As of today, our farming facilities continue in this footsteps using the same naturally warm and salty waters that gush-out from

underground and in some case still use the same canals to clear the water back to the sea after its farming cycle.

Since the 70’s production facilities have slightly increased but priority has always been given to the quality of our products. In fact,

our constant pursuit of a premium product that bears the taste and features of a wild sea fish, through our quality control and gua-

rantees, allowed the Orbetello fish farmed product to be the Italian leader with a widely recognised reputation and appreciation.

Although it has been a strong commitment both in terms of human resources and investments in order for us to maintain such

quality products with constant [organoleptic] characteristics throughout our production, also guaranteeing the absence of any

external elements, this has been the policy that our Group has always pursued and will keep pursuing in the future, using all

necessary means.

As a reference, you can see from the attached file, a matrix of analysis we perform on a regular basis on raw materials, water and

finished product. For every lot (over 100 every year), over 40 parameters need to be cleared before the product is offered on the

market. Moreover, proprietary software allows us to trace every single step of the chain up to the final purchaser.

Introduction

Likewise, the constant research for an eco-sustainable feed is a priority for our group. We use for the most reliable fish oil and

flour on the market coming form south America while vegetable proteins are entirely GMO free. We currently use MRF feed pro-

duced by Skretting, world leader in this field (see file attached).

Our facilities are set in a natural environment and surrounded by WWF and national parks.

Water is drawn through artesian T wells at a constant temperature throughout the year, of between 20° and 25°C. These tempera-

tures are considered ideal for farming Mediterranean fish. Waters from our wells are consistently pure and clear; a recent study

from the University of Siena has shown that our waters are considered of “fossils” origin, i.e. have been underground for over 50

years and are free of pollutants, in particular from those used in agriculture.

Output waters are constantly monitored and respect all legal parameters , but we go a step further through our control system to

minimise the eco impact of our water.

With a yearly output of c.2000 tons, our Group can be considered a small-medium player in the sector, although in Italy we are a

player of reference. Our Group consist of different entities that operate within the same rules, objectives and production environ-

ment (including feed and water) and regulation.

Introduction

Given all the above, we believe that we can be an ideal partner for Frische Paradies in the same way we are partner today with lea-

ding Italian groups.

Our prices are not influenced by market trends but by production costs that are influenced by the fact that we use first quality raw

materials, superior to our competitors.

Our strategy is not one of price and we know that our products are not the cheapest, but our objective is one of a unique and gua-

ranteed product with outstanding characteristics, constant in time.

We are able to guarantee and provide to our partner the product on a regular basis that covers the yearly needs at a stable price,

independently from market variances.

Please do come and visit us at your earliest convenience.

The group

COO.P.A.M. (Cooperativa Produttori Acquacoltori Maremmani) soc. Coop. a r.l. is a fish farmers’ cooperative incorporated in 1998

with the aim to qualify, promote and trade fish farmed by associates and partner companies.

Since early 80’ the associated companies have been representing an important reality in the Italian aquaculture panorama. The

particular characteristics of waters used to farm and the technologies applied determined (1) the birth of a unique production pole

featured by a coordinated process planning and by the common management of supplies and trade (2) the quality recognition

of our farmed fish by the market that lead to the identification of ‘Orbetello’ as a ‘Quality product’.

The incorporation of COO.P.A.M. by the key companies in the Orbetello area allowed, through the definition of the “MEMORAN-

DUM OF UNDERSTANDING”, the consolidation of a leading position already held on the market and the entrance to the main

distribution channels.

COO.P.A.M. can count on a production capacity of 2000 tons. of farmed fish, produced by four different production sites where,

globally, 70 people operate.

The Group

It operates over a 900 mq structure, recently restored, with three transformation rooms at controlled temperature, cold stores,

offices and services. In its laboratories, few minutes after harvesting, sea bass, sea bream, meagre, farmed in the associated and

partner sites, are daily selected, packed, marked, iced and prepared for distribution. From birth to packing, each fish is identified,

followed and controlled by technical staff and qualified structures. Each production site is submitted to specific procedures and

controls supervised by the Quality Department.

This modus operandi enabled the qualification and exploitation of our products on the market. As a result turnover passed from

3.200.000 euro in 2000 to 10.500.000 euro in 2009 with 1350 tons. of traded product, equal to 70% of the total product farmed

in the Orbetello area.

The key companies of the group:

Cosa soc. agricola a .r.l., incorporated in 1976, owns a fish farm representing the core business of the company. The farm con-

sists of 53 basins of about 600 m3 each for intensive farming of precious species and 15 ponds destined to growing of fingerlin-

gs on an area of about 13 Ha. Thanks to 11 artesian wells, drilled at a distance of about 300 m. from coast line the farm has about

600 l/s water with 28-370/00 salinity at its disposal.

The Group

Ittima Società Agricola Ittica Maremmana a .r.l., owns a site created in 1985 according to a project and start up by Soc. Cosa

a.r.l. The site, extending on 11 Ha. surface, consists of 47 ponds of about 500 m3 each for intensive farming and 25 ponds desti-

ned to growing of fingerlings. Thanks to artesian wells, drilled in the sandy soil deep down to reach the limestone stratum, the farm

has a resource of 500 l/s with 370/00 salinity at its disposal.

Il Vigneto soc. agricola a .r.l., incorporated in 1975, owns a fish farm in Ansedonia and from 1988 a concession of 36 Ha. in

the shoreline in front of Porto Ercole - Monte Argentario (GR). The land based farm consists of 42 ponds of about 500 m3 each

for intensive farming of precious species and 8 ponds destined to growing of fingerlings on an area of 18 Ha. The total water

requirement, equal to about 520 l/s is covered by 14 artesian wells drilled in the site area at about 2000 m. from the coastline,

which provide water with 18-270/00 salinity. In the sea area under concession there are 2 offshore submerged cages of 2000

m3 each and a submergible cage of 1200 m3.

The fish production of the group of companies is mainly focused on two main species: Sea Bass (Dicentrarchus labrax) and Sea

Bream (Sparus aurata); however, substantial resources have always been dedicated to the search of alternative species able to

satisfy the various production and market requirements. In the past few years such a search resulted in a significative production

of Meagre (Argyrosomus regius). Product sales follow two main channels: (i) the conveyance to COO.P.A.M. and (ii) direct sales to

traditional wholesalers operating all around Italy.

COO.P.A.M. soc.coop. a rl Cooperativa Produttori Acquacoltori Maremmani

Year of incorporation :

Type of activity :

Employees :

Warehouse :

Possibility of development :

1998

Plant for transformation of fish products ( I 1896 CE).

10

900 m2

Enlargement to an area of 1600 m2 owned by the associates

COSA soc.agricola a rl

Year of incorporation :

Type of activity :

Employees :

Surface :

No. of ponds :

No. of ponds for growing :

Water resource :

Production forecast for 2010

1976

Fish farming

18

35 Ha

53

12

600 l/sec. well water with 28-370/00 salinity and temperature 22 °C

900 tons

Bass: 550 tons - Bream: 300 tons - Meagre: 50 tons

Il Vigneto soc.agricola a rl

Year of incorporation :

Type of activity :

Employees :

Surface :

No. of ponds :

No. of ponds for growing :

Water resource :

Production forecast for 2010

1975

Fish farming

20

18 Ha. land based - 36 Ha. sea based

42

8

2 of 2000 m3 each + 1 of 1200 m3

550 tons.

Bass: 370 tons - Bream: 130 tons - Meagre: 50 tons

ITTIMA soc. agricola ittica Maremmana a rl

Year of incorporation :

Type of activity :

Employees :

Surface :

No. of ponds :

No. of ponds for growing :

Water resource :

Production forecast for 2010

1985

Fish farming

16

11 Ha

47

25

500 l/sec. well water with 360/00 salinity and temperature 19 °C

550 tons

Bass: 390 tons – Bream: 140 tons – Meagre: 20 tons

Seabream (Gilthead bream)

Species information

Body oval and rather compressed. Head profile regularly curved. Eye small. Mouth low, slightly oblique. Lips thick. Colour silvery

grey; a large black blotch at origin of lateral line extending on upper margin of opercle where it is edged below by a reddish area;

a golden frontal band between eyes edged by two dark areas (not well defined in young individuals); dark longitudinal lines often

present on sides of body; a dark band on dorsal fin; fork and tips of caudal fin edged with black. White meat, lean, firm, juicy,

fine-grained and fine flavoured, is peculiar of Gilthead bream and it is appreciated in the whole Mediterranean area.

Scientific name

Family

English

Spanish

French

German

Sizes

Preparation

Packaging

Sparus auratus

Sparidae FAO 3Alpha Code: SBG

Seabream

Dorada

Dorade

Goldbrasse

from 400 gr up to 1,5 kg

fresh whole, fillets

chilled in variable weight polystyrene boxes

Seabass (european seabass)

Species information

Body rather elongate. Scales small. Caudal fin moderately forked. According to the environmental condition, body colour tends

toward silvery grey/blue or golden green, dark and deep on the back, ligth on the sides. Belly sometimes tinged with yellow.

Seabass were cultured in Mediterranean coastal lagoons and tidal reservoirs since the greek and roman times. Due the wellk-

nown quality of its white and light meat, it was then the first marine non-salmonid species to be commercially cultured in Europe

and at present is the most important fish widely cultured in Mediterranean areas.

Scientific name

Family

English

Spanish

French

German

Sizes

Preparation

Packaging

Dicentrarchus labrax

Moronidae FAO 3Alpha Code: BSS

Seabass

Lubina

Bar

Gemeiner seebarsch

from 400 gr up to 1,5 kg

fresh whole, fillets

chilled in variable weight polystyrene boxes

MeagreSpecies information

Relatively big head with elongated body. Mouth in terminal position without barbils. Eyes quite small. Body colour silver-grey, with

bronze traits dorsally. Fin base reddish brown and mouth cavity yellow-gold.

Light-grey lean meat, fairly firm in texture, with evident reddish brown lateral line typical of pelagic fishes.

Meagre meat quality is considered very good, due to its very high content of polyunsaturated fatty acids.

Scientific name

Family

English

Spanish

French

German

Sizes

Preparation

Packaging

Argyrosomus regius

Sciaenidae FAO 3Alpha Code: MGR

Meagre

Corbina

Maigre

Adlerfish

from 600 gr up to 4 kg

fresh whole, fillets, slices

chilled in variable weight polystyrene boxes

Husbandry Practice & Feed RegimesPreamble: In the 1999 companies in COO.P.A.M. group signed the “MEMORANDUM OF UNDERSTANDING FOR THE PRODUCTION AND MARKETING OF FISH PRODUCT IDENTIFIED AND MARKED AS ‘PESCE ITALIANO DI ORBETELLO’ (ORBETELLO ITALIAN FISH)”.The memorandum regulates each step of production and marketing process.

We buy 100% of our fry from selected hatcheries located in France (Les Poisson du soleil and Ferme Marine de Dohuet) and in Italy (Panitti-ca Pugliese, Valle Ca’ Zuliani e Agroittica Toscana) and we control them step by step. All of ours Hatcheries work without genetic modification. Genetic selection is used to work on growth, size, morphology, disease control etc etc.

1. Supply 1.1 Juvenile Fish Purchase: an extract from our Memorandum:“fry shall be provided by specialized companies of proven experience. Suppliers shall provide products of high quality standards as well as infrastructure and production methods with high health & safety levels. Associated companies and partners shall be selected to provide fry among those who offer a guarantee on the use of prevention systems against chemical, biological and nuclear pollution risk.Production technical staff or the relevant staff in charge shall visit the suppliers’ hatcheries on a regular basis to personally check health and production conditions and approve the technology they apply. Each lot delivered to the facility shall be accompanied by a relevant veterinary certificate of health & safety conditions. The supplier shall present all documentation to guarantee the quality of the product and the com-pliance of the lot, as well as all traceability information from the date of birth of the fry to the date of arrival at the hatchery. The hatchery shall issue a certificate showing the features of any fish feed used and of the water in which this is delivered. Should the supplier be the same providing the fry and farming them, the supplier shall comply with the system in use to irrevocably guaran-tee the traceability of the product. All fry shall be subject to endemic diseases vaccination. COO.P.A.M. reserves the right to approve or reject suppliers providing fry to be used in the product COO.P.A.M. itself markets. “

FeedSkretting (world leader feeding company) produces for our group a special feed using exclusively fish meals, fish oil and gmo free

soj and mais called MRF. Fish meals arrives mostly from South America, where quality of meals are superior regarding PCB and

Dioxin. The control on PCB and Dioxin on our fishes shows extremely low values (Hundreds of analysis).

Protein is around 45% and oil between 17% (in winter) and 21% in summer. Conversion rate at the size 300-450 gr. is about 1:1,6

(we need 1,6 kg feed to produce 1 kg. fish). We use about 0,4/0,5 kg fish meal to produce 1 kg fish. See attached file.

Fish Feed Purchase: an extract from our Memorandum:

“Selecting the fish feed shall be deemed as a crucial step in the production process. It has to be carried out entirely by specialized

companies, who shall be required to produce high quality standards' guarantee for both health and nutritional conditions. Fish feed

suppliers shall produce certificates on the nature and origin of the raw materials used for the product and on checks performed on

intermediate and finished products, as per dispositions in Annex 1 to this document.

Each type of feed used in the hatchery for the product marketed by COO.P.A.M. shall be explicitly authorized by the Quality Office

of the latter. Such office shall proceed to issue an authorization as per Annex 2, according to the results of the required analyses

and the adopted quality criteria.

In case of failure to comply with the dispositions as per Annex 1, COO.P.A.M. shall have the right to suspend and therefore perma-

nently terminate, the collection of fish produced with such feed.”

Environmental Impact

an extract from our Memorandum:

On-shore Facilities: fish shall be farmed in tanks made or coated with suitable materials fit to ensure the handling is correct, the envi-

ronment is healthy and fit for use with products intended for human consumption. In each tanks the right amount of water shall be

delivered according to the size and density of the fish. The shape of the tanks shall be such to allow a comfortable use i.e. it shall

allow to perform an accurate assessment of the fish, shall make it easy for it to be treated, shall be easy to clean and disinfect.

Tanks shall be checked several times a day to assess fish health conditions, their food need and all that is required to keep animals

healthy and prevent unnecessary stressful events to affect them. Tanks shall be handled by experienced and fully trained staff, able

to decide whether the fish is healthy or not, identify any behavioral shift and check the environment is suitable for the fish health.

Facilities shall be checked on a 24-hour basis, in order to allow quick repair of the equipment and make sure that the stable levels

of farmed fish quality of life (oxygenators, pumps, feed dispensers, etc…). Off-shore Facilities: the location of sea cages shall be such

to ensure the hatchery is delivered the proper clean water flow. According to the selected location, the facility shall be made of ma-

terials able to minimize stress-related conditions due to marine meteorological phenomena, sudden variations of environmental

conditions or possible pollution risks and emergencies. Fish shall be constantly monitored directly by diving technical staff or via

other monitoring methods.

Harvest Protocol & Stunning Methods

Harvesting is done by hand using circular nets in ponds or cages. Normally fish is removed by hand or with a mechanical catch

system. Fish is immediately put into a mixture of water and ice (at 0°C) and die in less than 10 minutes without suffering.

The difference between 22°/27°and 0 ° is excellent to kill the fish without suffering. The system has not the same efficiency

working on cold temperature waters (as for trout and salmon). We did several studies with Florence University on slaughtering

systems, and this one is considered to be the less traumatic, not just for the fish itself (considering stress analysis) but also to

maintain the meat quality at its best. We are against electrical stunning for several reasons, including risk for workers, lost of rigor

mortis in the fish, and changing in meat quality and colour. Recently the Council of Europe (speaking of fish Welfare) gave to

European Food Safety Authority (EFSA) the task to determine the best way to slaughter bass and bream. A final decision has not

yet being taken as work is in progress.

Processing plan is just 2,5 km from each site (excluding sea farm installation). Starting from harvesting, the fish enters in cold

stores boxed and is iced in less than 40 minutes . The fish coming from sea farm in open sea is processed normally within 2

hours from harvesting. Ready to be shipped.

Timing of chain from harvest to packing ready for shipment: maximum 2 hours

2.5 Harvest (capture of the farmed fish):

Harvest Protocol & Stunning Methods

extract from our Memorandum:

“The harvest shall always be carried out with the suitable equipment, depending on the nature of the farming facilities, and using

methods which are the most suitable for the physical and qualitative characteristics of the farmed fish. Suitable preventive measure

shall be implemented to minimize any stress-related effect that would affect the regular development of post-mortem procedures

against the muscles of the animal and therefore quality, texture, storage life of the flesh and commercial issues. Therefore, the fee-

ding should be totally suspended. The duration of such procedure shall be planned and adjusted to the size of the fish, its age,

the level of feeding over the last period and the environmental temperature. Nevertheless, the duration shall never be less than 24

hours, namely the time required to fully empty the digestive system of the fish.”

Processing Facility

Factory premises have been rebuild in 2004 using top building materials; presently they are maintained in outstanding status. Due

to product turnover, cold storage rooms and processing premises are emptied daily, enabling optimal cleaning and disinfection

procedures. Therefore storage time is very short.

Usually chilled whole fish production chain starts at 8 AM and ends with deliveries at 5 PM. Chilled processed products chain

starts at 11 AM and ends at 4 PM with deliveries.

Personnel always wear PPE complying to CE rules relevant to the time and place in which the work is being carried out.

Hygiene of Personnel, plant and equipment is excellent.

Each batch of fish, i.e. a pond or a cage, is analyzed before the first selling through 40 and more parameters (Nutritional, chemical,

bacteriological). Fish is commercialized only when results are in Coopam hands.

There are written procedure for visitors, and every worker knows perfectly that no visitor can enter in the working area during pro-

cessing operations without Manager permission and PPE clothing. Coopam has 3 closed windows that allow the visitor to obser-

ve various areas of the plant without entering in working areas.

Processing Facility

A new personalized traceability software and hardware system has been developed in order for the product to be traceable, via

data processing, from pond or cage through the final consumer.

A quality system is used based on ISO 9001 scheme.

A full and complete HACCP is adopted.

All products processed in Coopam come exclusively from associated and partner farms, complying to the approved production

protocol.

Management has more than 25 years experience in the sector.

Traceability processes are very evident due to the straightforward process chain - FIFO - (there is no ingredients addition or

mixing of different products).

Coopam obtained grants to improve Factory from EU funds.

Factory is checked by Italian National Sanitary System via USL n° 9 of Tuscany Region (Vets) trough several Audits and analysis

throughout the year.

Audits sustained every year from Esselunga Chain and others grocery chains.

In our factory we can process whole fish, gutted, filleted. We have also a new ATM machine for packaging.

Distribution Network and timing

Delivery:

By plane: few hours, we are only 1,5 hour from Rome airport and we have several planes every day to Berlin. Costs should

increase in this case.

By direct truck: within 24 hours with 2 drivers (depending on quantity)

By carrier: we need to search connections if interested.

All our customers informed us that our fish is the strongest in the market and maintains the highest freshness for several days.

This is due to the very fast process from harvest to cold storage (from 22-27° C to 0 °C in less than 1 hour), to feed quality and

strong muscle fibre.

We harvest our fishes 6 days a week and we are ready to deliver the fish every day

Species Development Opportunities

Coopam Group potential production actually is satisfactory and we are not planning to increase production in land based farm.

We still have a very strong potential on producing in our open sea cage farm and we applied to the local government for a new

licence for a new Farm in open sea.

At the present we produce more bass than bream (70% against 30%). But are able to change this ratio.

We started about 15 years ago to produce another really interesting fish for aquaculture, Corvina (Argyrosomus Regius) and in

the last 8 years we sold around 100 tons/year of this fish, with sizes between 1 kg to 10 kg.

Also, we are working with Tuscany Region on a project concerning the production of the sole fish (Solea Solea and Solea Sene-

galensis).

Thank You