Trouw Nutrition Hifeed

Aquaculture in Emerging Markets

Dr. Arjen Roem Frankfurt - November 11th 2014

Outline

• Skretting global leader • Aquaculture trends • Emerging markets

- Vietnam - Egypt - Nigeria • Seafood image • Key success factors

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3,400 employees 1.8 million tons of feed Production in 16 countries

Sales in more than 40 countries

Feed to more than 60 species

1 global R&D centre and 4 trial units

Skretting – a global aquafeed company

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Skretting Aquaculture Research Centre

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24 Nationalities 100 employees of which 75% have higher degrees

Specialists in fish nutrition, health & feed technology

Collaborations with over 40 research institutions worldwide

Feed for more than 60 species

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Atlantic Salmon Largemouth Bass Mahi Mahi

European Sea Bass Snakehead Trout Tilapia

Giant Tiger Shrimp Yellowtail Kingfish Pangasius Red Sea Bream

Barramundi Japanese Amberjack North Atlantic Tuna Vannamei Shrimp

Turbot

Trends in favour of Aquaculture

• Population growth and urbanization • From fisheries to aquaculture • Fish consumption up • Shift to ‘warm-water’ aquaculture • Intensification

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Can we feed the world?

Western Asian

Mediterranean

Food Demand = Population*Diet

Beef: 61kg/kg* Pork: 34kg/kg

Fish: 13kg/kg*

*HLPE Report 7, FAO (2014)

Farmed ‘fish’ exceeded beef production in 2012 (Mton)

0

40

80

120

1950 1960 1970 1980 1990 2000 2010

Farmed Fish

Poultry

Pork

Beef

Sheep & goats

Source: Earth Policy Institute UN / FAO ProdSTAT & FAO FISHSTAT 2011

Global fish production 2012

Total World 158 MT

As human food 136 MT

Part aquaculture 66.5 MT

Part fisheries 69.5 MT

Per capita consumption 19 kg 160

140

120

100

80

60

40

20

million ton/year

0 1950 1960 1970 1980 1990 2000 2010

www.FAO.org: Fisheries & Aquaculture Dept. 2014; WRI 2014

Intensification

In most parts of world carp is farmed in extensive pond systems, but not in Iraq!

• High value carp (5 USD/kg) • Stocking 3000-4000 fish/ha • Formulated feed • Demand feeders • Water pumping • Aeration • 50 grams to 2 kg in 5-6 months • Harvest 6000 kg/ha

‘Emerging markets’

• Countries that have economic activity stronger than a least developed country but generally weaker than a developed country.

• Emerging aquaculture markets in India, SE Asia, South America, Egypt, Nigeria

• Shrimp, tilapia, catfish

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Newly industrialised countries

Developing countries

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Pangasius

Shrimp

Cobia

Vietnam facts

84 million people

330,000 km2

Pangasius catfish in the Mekong Delta (freshwater)

Shrimp mainly concentrated in South (brackish water)

Export driven

Other species under development

Marine potential

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Pangasius aquaculture

● Originally two species were cultured: - Tra Pangasius hypophthalmus - Basa Pangasius bocourti ● Now more than 97% of production is Tra. Tra is more easy

to breed, requires less oxygen, cheaper feed and reaches market size (1.5 kg) in 6-7 months compared to Basa in 9-10 months. Basa name persists in the market.

www.fishbase.org

Original focus: lowest cost-producer

Pangasius

-

200,00

400,00

600,00

800,00

1.000,00

1.200,00

1.400,00

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1000

T

Ha

Year

Area and production of Pangasius in Vietnam 2001 - 2012

Area (ha) Production(000 tons)

From: Department of Fisheries/National Statistics Office

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Pangasius extruded floating feeds

When fish prices are high, fish farmers focus on growth rate and tend to opt for higher protein levels (26%) until harvest, otherwise (18-22%).

Protein 40 35 30 26 22 18 Fat 8 6 6 5 5 5 Fiber 6 6 6 7 7 7 Moisture 11 11 11 11 11 11 Salt 2 2 2 2 2 2 Ca 2 2 2 2 2 2 P 1 1 1 1 1 1

Shrimp – collapse in 2013 due to EMS

Production and area of Shrimp in Vietnam 2001 - 2012

186.2237.9

281.8327.2

354.5384.5 388.4

419.4449.7

482.0 500.0

0

100

200

300

400

500

600

700

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Year

10

00

T

-

100.0

200.0

300.0

400.0

500.0

600.0

10

00

ha

Area (000 ha) Production (000 ton)

From: Department of Fisheries/National Statistics Office

White Shrimp production cycle

• Brackish/marine water • SPF broodstock • Hatchery for Post Larvae (PL) • On-growing in ponds/tanks • Harvest at 20+ grams • 3 cycles per year possible • ‘Boom or bust’ • Extensive < 25000 PL/ha • Semi-intensive 100-300000 PL/ha • Intensive > 300000 PL/ha

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From: FAO

Aquaculture production in Africa: 1.3 million MT

• Top 3 aquaculture producers are Egypt with about 920k MT (mainly Nile Tilapia (560k MT), Nigeria with 197k

MT (mainly African Catfish 130 k MT) and Uganda with 95k MT (Tilapia (65k MT)

> 90.000 MT 1000 - 15.000 MT < 1000 MT

Source: AQUASAT, Nutreco internal analysis

Top species North Africa • Tilapia • Grey Mullet • Sea Bream • Sea bass

Top species West - Africa • Catfish • Tilapia

Top species East - Africa • Tilapia • Catfish • Carp

Top species Southern-Africa • Tilapia • Shrimp • Trout • Dusky Kob • Seabream + Red Drum

Egypt

Nigeria

Uganda

Mullet

Tilapia

Concentrated in Nile delta

Value chain Egypt

• Pond farming 95%, cage farming 5% • > 100,000 people employed

• Market > 90 million people • Tilapia protein cheapest • Huge domestic market

• Water availability • Challenging climate

• No cold chain

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Competitive Advantages of Nigeria

− Water availability

− Climate

− 170 million people

− Domestic market

− Catfish is part of Nigerian culture

‘Nigeria can take

Global leadership in

African catfish production’

Seafood is healthy

• Lean protein

• Omega-3/Omega-6 fatty acids

• Vitamin A, D & B12

• Iodine, selenium

Healthy image requires branding approach

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Key success factors Aquaculture

• Market-driven production focus both on domestic and export markets • Fish processing for Fresh, Ready-to-eat • Build on healthy image of fish co-existence with poultry • Use innovation for intensification - Extruded feeds - Water re-use - Nutrient re-use (bioflocs technology)

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Thank you

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