eco-efficiency and innovation

Transcription

1 The feed revolution: driving eco-efficiency and innovation in salmon aquaculture

2 Pre-competitive Collaboration The role of pre-competitive collaboration in driving eco-efficiencies and innovation

3 Why is pre-competitive collaboration important? Improves environmental performance Provides higher scale for innovations Accelerate Change Larger Long-term impacts We are to meet growing demand for healthy protein & ensure a sustainable supply, friendly with the environment

4 The Global Salmon Initiative is a breakthrough in creating change at higher speed and scale With three core principals: Sustainability Real, measurable change Cooperation Members work together for environmental improvements Transparency Through reporting to show continuous progress

5 Innovative thinking collaboration not competition when it comes to the environment Accelerating progress through: Access to greater skills and expertise across companies, across regions Value chain approach bringing insights and improvements to all areas of production Shared ambition and shared risk removed competitive from factors related to the environment Ability to work on shared issues where working collaborative will have greater impact The story about farmed salmon: A good story, with improvement opportunities

6 What successes are we seeing? GSI members are committed to being ASC certified across 100% of farms by 2020 Prompted involvement of key suppliers feed and pharma - to support improved sustainability across the value chain All members complete an annual Sustainability Report across all key sustainability indicators

7 Collaboration: finding solutions to biggest challenge: Sustainable Feed Recognition that current use of marine ingredients is not sustainable for a rapidly growing industry By working with the feed industry we hope to find new solutions to support improved sustainability performance Areas we are working on: Driving demand for certified feed ingredients Encouraging accelerated innovation in omega-3 rich novel oils Further improving forage fish dependency ratios Optimizing utilization of by-products

8 What learnings can we share Clear ambitions & objectives Leaders involvement Commitment to action and active participation Ability to globally leverage progress Transparency Commitment to sharing Complement, not substitute company or national associations By agreeing to work pre-competitively to mitigate environmental impacts, GSI will help push the entire industry toward sustainability at a much quicker rate than would otherwise be possible

9 Looking to the future Working to improve industry sustainability and environmental performance, will never be complete. We will continue to identify projects where collaborative work will allow us to make progress faster than working individually.

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12 Progress in FCR and FFDR The feed revolution: driving eco-efficiency and innovation in salmon aquaculture Global Salmon Initiative Seafood Expo North America Boston

13 On the Menu Connecting value chain insights Farmed Salmon as an efficient Protein source Knowhow in formulation and influence in FCR Salmon Feed Development in Norway & Feed Conversion Ratio (FCR) The development of the Forage Fish Dependency Ratio (FFDR-FIFO) Future feed trends 13

14 Connecting Value Chain Insights FEED PRODUCTION FISH PRODUCTION PRODUCT CLAIMS HOT TOPICS Raw materials Compounding Converting Brands Retail CONSUMER VALUE & SATISFACTION A Fish meal Fish oil Microalgae Krill SPC Palm oil PAPs Pigments Insects Technology push Certified RMs Trimmings & biproduct RMs Cleaning fish oil Palatability Performance & Retention Technology Fish welfare Flesh quality Farming & processing excellence Location High omega-3 FIFO < 1 Lower on contaminants High quality & nutritional value Non-GMO Certifications Market pull Overfishing concerns Food safety/quality issues Deforestation issues Climate change concerns Artificial vs. natural Lack of fresh water GMO concerns Chemotherapeutics concerns Traceability and transparency B Documentation: Analytics & Reporting tools > Traceability & Transparency Rewards & Recognition

15 Farmed Salmon as an efficient Protein source One of the reasons why FAO recommends aquaculture as a mean to increase world food production is that it is the most efficient way to use animal protein for human consumption. Fish are more energy efficient as they do not spend energy fighting gravity to keep their balance they do not spend energy on warming up their body Fish has a high yield in terms of edible meat There is a low feed conversion ratio in aquaculture Greenhouse gas emission per kilo of produced Salmon Pig Chicken Cattle 2.9 kg CO2 11 kg CO2 3.6 kg CO2 29 kg CO2 % Energy retention % Protein retention % Edible yield (%) FCR FCR Growth/ kg feed

16 Obtaining a low FCR is no easy task - Improvements in all aspects not only feed Genetics Performance Increments = Adjustments Husbandry Environment Oxygen Temperature Light Feed How Automatic / Manual Times per day & Speed Waste Control How much Satiation Control Set ration Growth Stock Nutritional Quality Nutrient density Stability of its nutritional value Physical Quality Feeding Systems Specie 16

17 Salmon feed Evolution over time, now focusing on digestible energy and protein 100 % of Diet Carbon hydrates Protein Fat Dig. Energy (MJ/kg) Dig. Protein (%)

18 Change in Formulation methods - Fixed crude protein vs. fixed digestible protein (DP) Protein Level Protein Level Crude Protein Crude Protein changes DP DP Traditional Open Formulation Production Number Production Number - To achieve an stable performance the digestible nutrients have to be stable. - Crude protein and energy are not good indicators of the potential of the feed. - All raw materials nutrients and energy digestibility must be known and controlled 18

19 Ingredient inclusion level FCR and FIFO Salmon Feed Development in Norway & Feed Conversion Ratio (FCR) 100% 10 Fermented ingredients 90% 9 Micro ingredients 80% 8 Plant oil 70% 7 Plant dry matter 60% 6 PAPs 50% 5 Fish oil 40% 30% 20% FCR 1980s ~ 1.9 FCR 1990 ~ 1.4 FCR 2016 ~ Krill meal Fish meal FCR 10% 0% Overall Norway BioMar Norway 1 0 By-product raw Poly. (By-product raw materials materials) FIFO (FFDR) Poly. (FIFO)

20 The development of the Forage Fish Dependency Ratio (FFDR) 3,5 3,0 FFDR Fishmeal* 2,5 2,0-7% FFDR FM FFDR FM 30% trimmings 1,5 1,0 Target 1,35 0,5 0, * (efcr x Fishmeal incl. %) / 24% ( fishmeal yield) 20

21 The development of the Forage Fish Dependency Ratio (FFDR) 3,5 3,0 2,5 2,0 FFDR Fishmeal* 8,00 7,00 FFDR FM 6,00 FFDR FM 30% trimmings -7% 5,00 FFDR Fishoil** FFDR FO FFDR FO 30% trimmings -7% 1,5 1,0 Target 1,35 4,00 3,00 2,00 Target 2,95 0,5 1,00 0, , * (efcr x Fishmeal incl. %) / 24% ( fishmeal yield) **(efcr x Fishoil content %) / 5% or 7% ( fishoil yield) 21

22 Fish In Fish Out Ratio (FIFO) Net producer of fish in 2017 IFFO view on calculation 4,0 3,5 3,0 3,85 3,61-6% FIFO 2,5 2,37 2,0 1,82 1,5 1,0 1,25 0,94 0,5 0,

23 23 Today more sophisticated tools :BioMar Omega Technology and Eco Efficiency tool The next step

24 Let s Innovate Aquaculture 24

25 Optimisation of resources by-products and novel oils GSI seminar Boston 19 March 2017

26 The blue revolution Production in million tonnes 200 In 2014 aquaculture exceeded wild catch for human consumption World population in billions Aquaculture will supply >60% of fish for human consumption by FAO Aquaculture Wild catch Sources: FAO FishStat, UN World Population Prospects The 2015 Revision 26

27 Supporting the United Nations sustainable development goals 27

28 Optimisation of resources GSI s commitment to support sustainable growth in aquaculture; Utilisation of by-products Alternative raw materials / Novel oils 28

29 By products utilisation GSI Research engagement Evaluate the use of by products in the production of Marine Ingredients Research conducted by University of Stirling and IFFO Benefit of by-product utilisation 29 Turning waste into resource Reduced pressure on wild stocks Can support cost efficiency which will make aquaculture a more accessible resource

30 By-products utilisation: Research outcome Potential for by products? ~11.7 million tonnes of unused fish by-product that could be used in feed With continued growth in the aquaculture sector the amount of by-products available is set to increase Limitations due to the locations of some resources ( ~50% located in Asia) Fish Oil Fish Meal 26% from BP % from BP Production 100% utilisation Potential Graph figures in 000MT Red color indicates volumes from whole fish and blue from by-products Production 100% utilisation Potential

31 By-product utilisation: challenges Marine Ingredients will remain important for Aquaculture Need for greater awareness on the possible use of such resources improve regulations to make these resources accessible to the industry Logistics and economics of disjointed value chains could be a barrier Marine ingredients may need to be more innovative to compete with growing demands of the aquaculture and competition of raw material 31

32 Marine omega-3 development in Atlantic Salmon 32

33 Global salmon production annual growth % 20% 22.4% Forecast 15% 13.0% 12.3% 10% 5% 7.0% 8.2% 5.4% 3.8% 1.5% 10.1% 6.9% 2.1% 9.0% 2.9% 0% -1.3% -1.4% -0.6% -5% -6.4% -10% E 2016E 2017E 33 Global salmon production CAGR will decline from 30 year historical 6-8% p.a. to flat in the period Growth still expected in longer term once industry controls current disease issues Source: Rabobank Food & Agriculture Research 2016

34 Aqua feed producers are still the biggest users of fish oil and this will continue 34

35 The challenge 35

36 Alternative EPA+DHA sources Phototrophic algae Very good story (CO2 capture) Low nutritional density in macro algae Technology for microalgae still very expensive GM oilseeds (canola, soy, etc.) Consumer acceptance in EU Still >5 years to commercialization Price unknown Heterotrophic microalgae Mature technology Already in the market Cost: 2-3 x current fish oil prices 36

37 Micro algae: a marine source of EPA+DHA EPA+DHA From algae oil Ensuring sustainability Both for aquaculture and our seas EPA+DHA From fish oil Micro algae Piscivore fish 37 Zooplancton Planctivore fish

38 Feeding 9 billion people sustainably I do not ask you to change direction, but I ask you to accelerate progress. We need to work together if we are to overcome world hunger. Kofi Annan Former UN Secretary General AquaVision 2012

39 Seafood is good for you! Thank you!

40 The feed revolution: driving eco-efficiency and innovation in salmon aquaculture

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