Aquaculture in Emerging Markets
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1 Aquaculture in Emerging Markets Dr. Arjen Roem Frankfurt - November 11th 2014 Trouw Nutrition Hifeed
2 Outline Skretting global leader Aquaculture trends Emerging markets - Vietnam - Egypt - Nigeria Seafood image Key success factors 2
3 Skretting a global aquafeed company 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 3
4 Skretting Aquaculture Research Centre 24 Nationalities 100 employees of which 75% have higher degrees Specialists in fish nutrition, health & feed technology Collaborations with over 40 research institutions worldwide 4
5 Feed for more than 60 species Atlantic Salmon Turbot 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 5
6 Trends in favour of Aquaculture Population growth and urbanization From fisheries to aquaculture Fish consumption up Shift to warm-water aquaculture Intensification 6
7 Can we feed the world? Food Demand = Population*Diet Beef: 61kg/kg* Pork: 34kg/kg Fish: 13kg/kg* Asian Western Mediterranean *HLPE Report 7, FAO (2014)
8 Farmed fish exceeded beef production in 2012 (Mton) 120 Pork Poultry Beef Farmed Fish Sheep & goats Source: Earth Policy Institute UN / FAO ProdSTAT & FAO FISHSTAT 2011
9 Global fish production million ton/year Total World As human food Part aquaculture Part fisheries Per capita consumption 158 MT 136 MT 66.5 MT 69.5 MT 19 kg Fisheries & Aquaculture Dept. 2014; WRI 2014
10 Intensification In most parts of world carp is farmed in extensive pond systems, but not in Iraq! High value carp (5 USD/kg) Stocking fish/ha Formulated feed Demand feeders Water pumping Aeration 50 grams to 2 kg in 5-6 months Harvest 6000 kg/ha
11 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 Newly industrialised countries Developing countries 11
12 Vietnam facts Marine potential 84 million people 330,000 km 2 Pangasius catfish in the Mekong Delta (freshwater) Shrimp mainly concentrated in South (brackish water) Export driven Other species under development Cobia Pangasius Shrimp 12
13 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. Original focus: lowest cost-producer 13
14 Pangasius Area and production of Pangasius in Vietnam , Area (ha) Production (000 tons) 1.200, ,00 Ha , T , , , Year From: Department of Fisheries/National Statistics Office
15 Pangasius extruded floating feeds Protein Fat Fiber Moisture Salt Ca P 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%). 15
16 Shrimp collapse in 2013 due to EMS Production and area of Shrimp in Vietnam Area (000 ha) Production (000 ton) T ha Year From: Department of Fisheries/National Statistics Office
17 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 < PL/ha Semi-intensive PL/ha Intensive > PL/ha From: FAO 17
18 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) Egypt Top species North Africa Tilapia Grey Mullet Sea Bream Sea bass Nigeria Top species West - Africa Catfish Tilapia Uganda Top species East - Africa Tilapia Catfish Carp > MT MT < 1000 MT Source: AQUASAT, Nutreco internal analysis Top species Southern-Africa Tilapia Shrimp Trout Dusky Kob Seabream + Red Drum
19 Tilapia Mullet
20 Concentrated in Nile delta
21 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 21
22 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
23
24 Seafood is healthy Lean protein Omega-3/Omega-6 fatty acids Vitamin A, D & B 12 Iodine, selenium Healthy image requires branding approach 24
25 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) 25
26 Thank you 26
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