Recirculating Aquaculture Technology. Project Presentation. December 2009

Transcription

1 Recirculating Aquaculture Technology Project Presentation December 2009 Prepared for: MIRABEL, CANADA, J7N 2H4 v1b

2 EXECUTIVE SUMMARY Recirculating Aquaculture Technology PART I 1. INTRODUCTION 2. POTENTIAL FISH PRODUCTION PLANT PROJECT 3. POTENTIAL ALLOCATION OF PRODUCTION CAPACITY PER FISH SPECIES 4. PROPOSED CONSTRUCTION PHASES PART II 1. SUMMARY OF PROJECTED SALES & GROSS MARGIN PART III 1. GENERAL COMMENTS ON THE ECONOMIC VALUE AND MARKET POTENTIAL OF DIFFERENT FISH SPECIES 2. MARKETING OF FISH PRODUCTION PART IV 1. WORLD FISH PRODUCTION 2. ISSUES FACING WORLD FISH PRODUCTION 3. ISSUES FACING AQUACULTURE & FISHERY PRODUCTS 4. FAO REPORT - CIRCULAR NO. 1017/2 5. WORLD AQUACULTURE PRODUCTION TOP 15 PRODUCING NATIONS APPENDICES APPENDIX I FAO NATIONAL AQUACULTURE SECTOR OVERVIEW

3 EXECUTIVE SUMMARY Aquaculture is developing,expanding and intensifying in almost all regions of the world. Global population demand for aquatic food products is increasing, the production from capture fisheries has leveled off, and most of the main fishing areas have reached their maximum potential. Sustaining fish supplies from capture fisheries will, therefore, not be able to meet the growing global demand for aquatic food. ( The State of World Fisheries And Aquaculture 2006, FAO of the United Nations, Rome, March 2007 ) UAE and Saudi Arabia are net importer of fish for an amount estimated to 100 Millions $ and 200 Millions $ respectively in 2006, an increase of 21% over the previous year. Beside more exotic species like trout and arctic salmon, Tilapia is a market winner, as well as new introduction Barramundi which have been gaining very large acceptance on North American and European markets over the last 10 years The current food fish consumption per capita is average, at 18,6 kilograms per person per year in UAE, and only 8,5 Kg in Saudi Arabia, Vs 60 Kg per person in Japan and 24 Kg per person in China and USA. ( IFPRI / WorldFish Centre : FISH TO 2020 Supply and Demand in Changing Global Markets, & FAO National aquaculture sector overview ) Fish production is big business on the international trade. In 1984 the net exports earnings in term of foreign exchange was US $ 5 billion ; in 2004 the value was more than US $ 20 billion, a fourfold increase. No other agricultural products come even close. ( The State of World Fisheries And Aquaculture 2006, FAO of the United Nations, Rome, March 2007 ) Fish production using conventional aquaculture systems, outdoor ponds, cages, tanks, etc. have important limitations; in most instances, inability to control quality of water, weather changes, predators, fish diseases and high mortality, resulting in low productivity, inconsistency in fish production & quality and severe treat to the environment. The Food and Agriculture Organization of United Nations have highlighted in some of its studies, the intensification of aquaculture farming systems including the adoption of Recirculating systems as a way forward to alleviate problems caused by conventional aquaculture.. ( FAO Fisheries Circular No. 1017/2, REGIONAL REVIEW ON AQUACULTURE DEVELOPMENT) Intensive Recirculating Aquaculture System (RAS), offers a safe and healthy alternative, controlling all factors to produce up to 20 times more than ponds, cage or flowing trough fish farming systems, and at the same time bringing consistency and quality fish production. It also bring the possibility to install production units closer to market, thus reducing delivery costs while bringing a fresher ecological product to the consumer.

4 The Hydronov Intensive Recirculation Aquaculture System is a closed system, spread over 24 independent and individually controlled pools per hectare. Water is circulated continuously to guarantee optimum growing conditions, and passed through mechanical filtration, UV sterilization and biological enhancement. Oxygen is provided and fresh water added at a rate varying from 5 to 10 % per day. A typical production unit can start from a minimal 1 Hectare size and expand as needed up to 20 Hectares and more if market and water resources allow it. The initial production target should focus on well established fresh water species as Arctic Char, Barramundi, Trout, Yellow & Silver Perch, Tilapia and introduce progressively more exotic and/or local species. The typical productivity will be oscillating from 1,000 metric tons per 1 Hectare module for cold water fish like Arctic Char to 2,000 tons per 1 Ha module for warm water fish like Tilapia. This compares very positively with a typical production of 30 to 50 tons per Hectare for the pond system under the best conditions. The investment cost for the 1 Hectare module is estimated at 4,5 M $ for the Recirculating Aquaculture System and related equipment, while 1,5 M $ will be needed for the buildings and infrastructure. Savings can be made on buildings and infrastructure according to existents on projected site. Sufficient land for future expansion need to be secure, with access to sufficient fresh water of acceptable quality. The average projected cash flow profit per module is 1,5 to 2 M $, carrying a potential return on investment ( ROI ) of 25 to 35 %. Although this technology, installed close to consumer markets, will favour easy distribution of fresh fish, there is also an important potential for downstream activities, from filleting and freezing to extraction of Omega 3 fish oil and use of Tilapia skin for fine leather processing.

5 PART I 1. INTRODUCTION HydroNov s Recirculating Aquaculture System ( RAS ) is a closed system spread over 24 independent and individually controlled pools par hectare. Water is circulated continuously to guarantee optimum growing conditions, and passed through mechanical filtration, UV sterilization and biological enhancement. Oxygen is provided and fresh water added at a rate varying from 5 to 10 % per day. The features of HydroNov s RAS are as follows : - > Each 1 Hectare module consists of: 24 independent production pools measuring 27 m X 9 m X 1,2 m 6 purification pools to prepare fish for market 1 stabulation section to raise small fish from fingerlings 1 hatchery section to raise fingerlings from eggs Control room & laboratory Dry & cold storage area Electrical & heating equipment room Administrative office & workers area

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7 Different types of pools according to space and building configuration

8 Different pool configurations

9 Different building types Hard Roof Building Insulated Roof Greenhouse Insulated Roof Mega Dome

10 Advantages of HydroNov s RAS Reduced water requirements by 95% vs flow trough systems Water quality control bringing complete food safety, free from contamination by heavy metal, growth hormone, antibiotics, pesticides.. High stocking density & efficient feed conversion ratio bringing up production output 20 times more than conventional pond farming system Site flexibility & year round stable production of healthy fish Waste management control and treatment, with no adverse impact on environment Low production costs Vs potential sales prices A high level of integrated bio-security, making it possible to implement all certification process like GREEN FOOD, HACCP, HALAL,. Male Tilapia Colours Tilapia Fingerlings Tilapia Eggs Hatching Tilapia Fingerlings Eggs from Tilapia

11 Baby Barra Barramundi Eggs Barramundi Fry Murray Cod

12 Jade Perch Very small Jade Perch Larvae Perch Larvae Injecting Golden Perch Small Jade Perch Jade Perch

13 Char Fingerlings Dolly Varden Perch Fingerlings Regulations Followed Juveniles

14 Cutthroat Trout Brook Trout Larvae to fry to fingerlings

15 Harvested small Catfish Catfish Fry at various development stages

16 3 months old Goby Fingerlings Weighing an adult Goby Market-ready Goby

17 2. POTENTIAL FISH PRODUCTION PLANT PROJECT To illustrate the potential of the technology, we will use a typical 30 Ha production project producing several fish species adapted to South-East Asia market, as this economic model has been developed for this part of the world; these production choices and numbers should be further adapted to Mexico market. The proposed fish production plant comprises 30 X 1 Ha Modules with a projected 720 production pools, on a 40 Ha land. We do not recommend to start with such a diversified production and so large a scale, but we use this example to demonstrate the differences between different types of fish. The actual strategy towards the Canada market needs to be further discussed, but it appears certainly wise to start relatively small and expand as market penetration is established. When selecting sites, it will be important to keep in mind future expansion needs in terms of land, water and electricity capacity. HydroNov s Recirculating Aquaculture System ( RAS ) offers the flexibility to schedule the production of fish species according to market demands. A detailed permutation of the number of modules and pools for the various species to maximize production and profitability can be carried out mathematically. The following allocation of number of modules and pools per specie on the next page are just examples of fish species that can be grown in HydroNov s RAS. They are by no means fixed. New species are being adapted to aquaculture every year

18 Fish Species Modules Pools Months per Cycle Cycles per Year (gr) Size Production (metric tonnes) 1 Rainbow Trout ,101 2 Arctic Char ,101 3 Murray Cod Jade Perch a: Tilapia ,842 for fresh market 5 b: Tilapia ,862 for filleting 6 Barramundi ,334 7 Silver Catfish ,016 8 Catfish ,700 9 Ikan Sepat , Nile Perch , Marble Goby Snakehead , PROPOSED CONSTRUCTION PHASES ,335 It is proposed to implement a first phase of 4 Ha with 4 growing modules to demonstrate the potential of the technology. This fist phase should focus on well established fresh water species as Arctic Char, Barramundi, Trout, Yellow & Silver Perch, Tilapia, Catfish, and introduce progressively local and other high value species which may need to be further adapted to aquaculture. Once technology is well demonstrated and market penetration strategy established, phase 2 can then take place following market needs and investment capital available First phase construction can start 2 months after funds confirmation and be completed within 12 months. Production of fast growing species can reach market within 4 months, making it a total of 1 year after contract signature.

19 GROWING SYSTEM: FISH Production RESPONSIBLE # / Pool # / Project CONCRETE FOR POOL STURCTURE HYDRONOV 1 96 POOL LINER HYDRONOV 1 96 WATER CIRCULATION PUMPS HYDRONOV UV FILTER HYDRONOV DRUM FILTER HYDRONOV VORTEX & FECAL TRAP HYDRONOV BIOFILTER MEDIA HYDRONOV OXYGEN EQUIPMENTS HYDRONOV DEGASSING SYSTEM HYDRONOV SEPARATION GRILL HYDRONOV RECIRCULATION HEATING / COOLING ecophaser 0 NEW WATER DISTRIBUTION HYDRONOV RECIRCULATION PIPING & FITTINGS HYDRONOV WALKWAY GRATING HYDRONOV 1 96 TOTAL THIS SECTION 13,749,120 GENERAL PURPOSE EQUIPMENT ELECTRICAL DISTRIBUTION FOR EQUIPMENT HYDRONOV 1 system PRIMARY WATER TREATMENT HYDRONOV 1 system BACTAPUR, EGGS, FEED, (3 MONTHS) HYDRONOV WATER DISTRIBUTION HYDRONOV 1 system O 2 TANK RENTAL POOL DRAINAGE HYDRONOV 1 system EQUIPMENT INSTALLATION & START-UP HYDRONOV CASUAL LABOUR FOR SYSTEM INSTALLATION HYDRONOV SPECIALIZED INSTALLATION HYDRONOV COMPUTER CONTROL & MANAGEMENT HYDRONOV 1 PURIFICATION POOLS HYDRONOV 6 HATCHERY & LABORATORY HYDRONOV 1 system PRE-PRODUCTION POOLS HYDRONOV 6 TRANSPORT & MISCELLANIOUS HYDRONOV AUTOMATIC FEEDING SYSTEMS HYDRONOV 4 systems TOTAL THIS SECTION 5,586,000 TECHNOLOGY & TECHNICAL SUPPORT 5. PHASE 1 4 Hectare Project Left: A typical i n v e s t m e n t budget for a 4 hectare project. DESIGN & CONSTRUCTION DRAWINGS HYDRONOV Included EQUIPMENT SELECTION & BUYING HYDRONOV PROJECT MANAGEMENT & TECHNICAL SUPERVISION HYDRONOV PRODUCTION START-UP & 1 YEAR SUPPORT PERIOD HYDRONOV TOTAL THIS SECTION TOTAL GROWING SYSTEM & PRODUCTION SUPPORT 19,335,120 BUILDING & INFRASTRUCTURE MAIN WATER SUPPLY & STORAGE LOCAL Budget ELECTRICAL TRANSFORMER ecophaser Budget ELECTRICAL MAIN PANEL & BACK UP GENERATOR ecophaser Budget SITE PREPARATION & DRAINAGE BEP Engineering Budget FISH PRODUCTION BUILDING BEP Engineering Budget SERVICE BUILDING BEP Engineering Budget CONCRETE & INSTALLATION BEP Engineering Budget OPTIONAL WATER HEATING/COOLING ecophaser Budget OPTIONAL O 2 GENERATOR ecophaser Budget PROCESSING & PACKAGING EQUIPMENT ecophaser Budget COOLING, FREEZING, SMOKING EQUIPMENT ecophaser Budget SLUDGE WATER PROCESSING ecotech Budget TOTAL THIS SECTION 4,680,000 4 HA Fish Project Investment Costs $ 24,015,120

20 PART II 1. SUMMARY OF PROJECTED SALES (OPERATIONAL YIELD) & GROSS MARGIN Examples: Hereunder are current performance forecasts based on actual results, for a hypothetical 4 module system using HydroNov proprietary fish rearing technology. FISH RECIRCULATION TECHNOLOGY TYPICAL PRODUCTION COSTS / ($US) 1 module per year of production product/species MODULE TROUT 600 Grams DIRECT COSTS PER PRODUCTION POOL WATER PER POOL M PRODUCTIVITY/M 3 #KG 450 #KG POOLS 1 PER POOL / YEAR #KG 72,000 #FISH 120,000 PER HA / YEAR #KG 1,728,000 Eu. Exchange Rate ITEMS UNIT COST QUANTITY COST USD FINGERLINGS (Units) $ ,000 $23,538 FEED (KG) $ ,200 $117,691 ELECTRICITY (kw/hr) $ ,000 $31,206 OXYGEN (kh/hr) $ ,855 $3,210 HEATING (per cubic metre) $ ,000 $10,402 TOTAL DIRECT COSTS PER YEAR Costs per kilogram of sales this fish product $186,047 $2.58 LABOUR & TECHNICAL SUPERVISION $29,411 Labour cost per kilogram of sold production $0.41 COST OF OPERATIONS (Total Cost of Cash flow)** $215,458 All in cost of production pr kg. TROUT 600 Grams $2.99 **= Excluding sales & marketing costs SELLING PRICE per KG $5.20 TOTAL SALES PER POOL PER YEAR GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR) $374,472 $159,014 NUMBER OF POOLS THIS TROUT SPECIES & PRODUCT TYPE Grams GROSS PROFIT THIS SPECIES & TROUT 600 PRODUCT TYPE Grams $3,816,339 INDIRECT & OVERHEAD COSTS Amortization # years (straight line) Amortization 20 $8,916,000 $445,800 Factory Overhead ** Sales & Administration $185,750 $185,750 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 6% $2,229,000 $133,740 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 NET PROFIT FOR 1 product/species MODULE TROUT 600 Grams $2,464,079 FISH RECIRCULATION TECHNOLOGY TYPICAL PRODUCTION COSTS / ($US) 1 module per year of production product/species MODULE ARCTIC CHAR 1 kg. DIRECT COSTS PER PRODUCTION POOL WATER PER POOL M PRODUCTIVITY/M 3 #KG 365 #KG POOLS 1 PER POOL / YEAR #KG 58,400 #FISH 58,400 PER HA / YEAR #KG 1,401,600 Eu. Exchange Rate ITEMS UNIT COST QUANTITY COST USD FINGERLINGS (Units) $ ,240 $19,092 FEED (KG) $ ,080 $104,139 ELECTRICITY (kw/hr) $ ,000 $31,206 OXYGEN (kh/hr) $ ,855 $3,210 HEATING (per cubic metre) $ ,000 $6,241 TOTAL DIRECT COSTS PER YEAR Costs per kilogram of sales this fish product $163,888 $2.81 LABOUR & TECHNICAL SUPERVISION $25,076 Labour cost per kilogram of sold production COST OF OPERATIONS (Total Cost of Cash-flow)** $0.43 $188,964 All-in cost of production pr kg. ARCTIC CHAR 1 kg. $3.24 **= Excluding sales & marketing costs SELLING PRICE per KG $5.94 TOTAL SALES PER POOL PER YEAR GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR) NUMBER OF POOLS THIS SPECIES & PRODUCT TYPE GROSS PROFIT - THIS SPECIES & PRODUCT TYPE 24 INDIRECT & OVERHEAD COSTS Amortization # years (straight line) Amortization ARCTIC CHAR 1 kg. ARCTIC CHAR 1 kg. $347,130 $158,166 $3,795, $8,916,000 $445,800 Factory Overhead ** Sales & Administration $185,750 $185,750 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 6% $2,229,000 $133,740 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 NET PROFIT FOR 1 product/species MODULE ARCTIC CHAR 1 kg. $2,443,715

21 PROFITABILITY The figures shown are in US Dollars ($USD). The net profit per annum in this 96 pool example, (rearing 4 species of proven saleable fish) is $9,403,610 for ROI of 105.5% per annum with a 25:75 equity to debt ratio, or, allowing for full amortized cost, ROI of 2109% during the 20 year life of the project. After that time, an annual return of over $18 m, or 51% ROI will occur for the duration of the project life. We expect a refit at 25 years, plus expansion growth during the project not included here. FISH RECIRCULATION TECHNOLOGY TYPICAL PRODUCTION COSTS / ($US) 1 module per year of production product/species MODULE TILAPIA 600 Grams DIRECT COSTS PER PRODUCTION POOL WATER PER POOL M PRODUCTIVITY/M 3 #KG 400 #KG POOLS 1 PER POOL / YEAR #KG 64,000 #FISH 106,667 PER HA / YEAR #KG 1,536,000 Eu. Exchange Rate ITEMS UNIT COST QUANTITY COST USD FINGERLINGS (Units) $ ,333 $17,436 FEED (KG) $ ,800 $91,300 ELECTRICITY (kw/hr) $ ,000 $20,804 OXYGEN (kh/hr) $ ,000 $2,080 HEATING (per cubic metre) $ ,000 $10,402 TOTAL DIRECT COSTS PER YEAR Costs per kilogram of sales this fish product $142,022 $2.22 LABOUR & TECHNICAL SUPERVISION $26,314 Labour cost per kilogram of sold production COST OF OPERATIONS (Total Cost of Cash-flow)** $0.41 $168,336 All-in cost of production pr kg. TILAPIA 600 Grams $2.63 **= Excluding sales & marketing costs SELLING PRICE per KG $4.83 FISH RECIRCULATION TECHNOLOGY TYPICAL PRODUCTION COSTS / ($US) 1 module per year of production product/species MODULE BARRAMUNDI 600 Grams DIRECT COSTS PER PRODUCTION POOL WATER PER POOL M PRODUCTIVITY/M 3 #KG 300 #KG POOLS 1 PER POOL / YEAR #KG 48,000 #FISH 80,000 PER HA / YEAR #KG 1,152,000 Eu. Exchange Rate ITEMS UNIT COST QUANTITY COST USD FINGERLINGS (Units) $ ,000 $19,615 FEED (KG) $ ,600 $85,594 ELECTRICITY (kw/hr) $ ,000 $20,804 OXYGEN (kh/hr) $ ,000 $2,080 HEATING (per cubic metre) $ ,000 $10,402 TOTAL DIRECT COSTS PER YEAR Costs per kilogram of sales this fish product $138,495 $2.89 LABOUR & TECHNICAL SUPERVISION $23,219 Labour cost per kilogram of sold production COST OF OPERATIONS (Total Cost of Cash-flow)** $0.48 $161,714 All-in cost of production pr kg. BARRAMUNDI 600 Grams $3.37 **= Excluding sales & marketing costs SELLING PRICE per KG $6.69 TOTAL SALES PER POOL PER YEAR $309,088 TOTAL SALES PER POOL PER YEAR $320,976 GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR) NUMBER OF POOLS THIS SPECIES & PRODUCT TYPE GROSS PROFIT - THIS SPECIES & PRODUCT TYPE 24 INDIRECT & OVERHEAD COSTS Amortization # years (straight line) Amortization TILAPIA 600 Grams TILAPIA 600 Grams $140,752 $3,378, $8,916,000 $445,800 GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR) NUMBER OF POOLS THIS 24 SPECIES & PRODUCT TYPE GROSS PROFIT - THIS SPECIES & PRODUCT TYPE INDIRECT & OVERHEAD COSTS Amortization # years (straight line) Amortization BARRAMUNDI 600 Grams BARRAMUNDI 600 Grams $159,262 $3,822, $8,916,000 $445,800 Factory Overhead ** Sales & Administration $185,750 $185,750 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 6% $2,229,000 $133,740 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 NET PROFIT FOR 1 product/species MODULE TILAPIA 600 Grams $2,025,788 Factory Overhead ** Sales & Administration $185,750 $185,750 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 6% $2,229,000 $133,740 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 NET PROFIT FOR 1 product/species MODULE BARRAMUNDI 600 Grams $2,470,029

22 PART III 1. GENERAL COMMENTS ON THE ECONOMIC VALUE AND MARKET POTENTIAL OF DIFFERENT FISH SPECIES 1. Rainbow Trout - A classic for aquaculture production, already produced by several small and medium scale grower; not a novelty anymore 2. Arctic Char - This fish is said to be a crossed-bred between Salmon and Rainbow Trout, is better tasting than both, and is progressively replacing Salmon as a healthier alternative. It is already being produced in Canada but in relatively small volume. Market prospect is very good 3. Murray Cod - This fish is widely produced from aquaculture in Australia. Highlypopular fish, it carries an ex-farm price of $ 8 A$ 10 per kilo,depending on the season. It has an appeal like the marine cod fish. 4. Jade Perch - This fish is also from Australia. It is considered as the most healthy fish containing more Omega-3 fish fatty acid than any other fish, as much as 2 % per 100 grams of fish meat. It is also a good tasting fish. 5. Tilapia - This is the most popular fish in the world. It is grown in several countries with different results and outlook. While in North America it is considered as a high-end fish with similar pricing as Trout and Salmon, in some Asian countries it has suffered adverse reputation as having an unsavory earthy smell and being grown in unhygienic conditions. The poor growing conditions is the reason for the problem in those countries, effectively producing that bad taste. Already produced in good volume by North American aquaculture industry, it does requires warm water to develop well. 6. Barramundi - Also known as Sea bass, this fish is a relatively new introduction from aquaculture production and is gaining rapid acceptance as a good value fish 7. Silver Catfish - A high priced fish on some Asia markets, it can be a niche market fish with a good pricing if properly marketed 8. Small catfish - A highly popular fish in Malaysia this fish is sold at 250 grams only, making it a very fast producer. Presented as an example of a small fish type; local equivalent may be identified for china market. 9, 10 & 12 are typical south Asia species 11. Nile Perch It is a very popular fish in Middle East countries and Egypt. This fish is also in good demand in EU fetching quite high prices.

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24 A large male Aquacultured Tilapia

25 Seafood consumption per person in Japan was approximately 60 kg in This is nearly three times as much as that of the U.S., the EU or China where consumption per person is around 20 kg. The worldwide trend shows that the amount of consumption, which used to be less than 10 kg in the 1960 s, is increasing gradually and became 16 Kg in This increase in consumption can be found around the world. Consumption in Korea, China, the U.S. and Europe is increasing significantly, while that of Japan is peaking.

26 According to FAO*, production will not be able to satisfy demand and the deficit in 2030 would be almost 92 million metric tons. 250, , , ,000 50, , ,000 OUTLOOK: TRADE (1,000 MT) Demand - growing per capita consumption Aquaculture Capture Surplus/Deficit Deutsche Aquakulturtechnolgie in der EZ Erfahrungen, Herausforderungen und Märkte Bremen, 20 Januar 2004 This forecast deficit will have a major impact on trade, as less product will be available for trade to developed countries, and South-South trade should expand. Prices are expected to go up, which in turn will hamper demand. * The Food and Agriculture Organization of the United Nations (FAO) is a specialised agency of the United Nations that leads international efforts to defeat hunger. Serving both developed and developing countries, FAO acts as a neutral forum where all nations meet as equals to negotiate agreements and debate policy. Murray Cod Tilapia Merah

27 3. ISSUES FACING TRADITIONAL AQUACULTURE & FISHERY PRODUCTS a. Low production yield from traditional aquaculture system and constant challenge to meet environmental standards. b. Increasing trend in importation of food fish, while Middle East imports in this sector reached 200 Millions $ in 2006, an increase of 21% over previous year. c. Quality & Food Security in imported Fisheries Products Lack in Quality Control and Food Safety Practices Non Conforming to Export Standard d. Natural catch reduction Like everywhere else in the world, over-fished areas fail to meet demand Canada has experienced it with the Atlantic Cod situation in the nineties Mexico saw the same with anchovies back in the eighties 4. FAO REPORT - CIRCULAR NO. 1017/2 REGIONAL REVIEW ON AQUACULTURE DEVELOPMENT In PART II of the above Circular, page 53, Section V, PRIORITIES... Farming systems, technologies and species Paragraph 39, says The issue on farming systems and technologies was seen by the experts as very important for expansion of the sector. It was noted that, due to the geographical differences of the region, each country may require different systems. The intensification of aquaculture farming systems including the adoption of recirculating systems was seen as a way forward. Tilapia Merah Jade Perch packed for market

28 5. WORLD AQUACULTURE PRODUCTION: TOP 15 PRODUCING NATIONS Aquaculture Production Ranking in the World Producer (metric tonnes) 's tonnes 000's tonnes 000's tonnes 000's tonnes China 24,790 27,767 30,615 32, India 1,942 2,187 2,472 2, Vietnam ,199 1, Indonesia ,045 1, Thailand ,173 1, Bangladesh Japan Chile Norway Philippines Egypt Myanmar USA Korea Rep Taiwan PC ,887 37,370 42,222 44,798

29 6. MANAGEMENT BY:

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