Canadian Aquaculture Trade Mission Chile / Peru October 2 to 9, 2004 Aquaculture, not the Internet, represents the most promising investment opportunity of the 21 st century. Peter Drucker, World Renowned Economist and Management Theorist 1
Canadian Aquaculture Mission 2004 It is the demand in services and their related products that will be key to sustaining the future growth for the aquaculture industry. - WTO European Union presentation, 2003 on Defining Objectives for the Industry of Aquaculture 1/6 of the world s population derives 1/3 of its total protein from marine fisheries. - Nature and Implications of Environmental Change, UK The U.S. market alone will require an additional 1.1 billion pounds of seafood by 2020 and this alone will have to be filled by aquaculture. - Howard Johnson, U.S. seafood market analyst, speaking at the International Boston Seafood Show, 2004 2
Aquaculture Mission Objectives To plan, coordinate and lead a strategic trade mission of Canadian aquaculture supply and service companies to Chile and Peru, scheduled from October 2 to 9, 2004. The targeted mission participants will include representatives from Canadian companies who are interested in enhancing their entrance into or maintaining their presence and increasing sales in the rapidly growing Chilean and Peruvian aquaculture markets. Strategic objectives To facilitate meetings between Canadian and Chilean / Peruvian companies for the purpose of developing new market opportunities and/or collaborative business arrangements. To facilitate meetings between Canadian government departments/agencies and counterparts in Chile and Peru for the purpose of sharing information and expertise on development of aquaculture policy and regulations. 3
Chile a country overview Area total: 756,950 km 2 Climate varies from desert in the North; Mediterranean in the Central regions; cool and damp in the South Demographics Population: 15,665,216 (Chileans) Life expectancy: 76.35 years Language: Spanish, objective to be bilingual (w/english) by 2010 Literacy: 96.2% Politics Government type: Republic Administrative divisions: 13 regions Current President: Ricardo LAGOS Economy GDP (real growth rate): 2.1% Most stable and most successful of South America, market-oriented economy characterized by a high level of foreign trade. Socio-economic outlook With a dynamic private sector, growing industry and open investment policies, Chile is itself an excellent market and a base from which to access the rest of South America's markets. 4
Peru a country overview Area total: 1,285,220 km 2. Climate varies from tropical in East, to dry desert in the West; temperate to frigid in the Andes Demographics Population: 28,409,897 (Peruvians) Life expectancy: 70.88 years Language: Spanish Literacy: 90.9% Politics Government type: Republic Administrative divisions: 24 regions + 1 constitutional province Current President: Alejandro TOLEDO Economy GDP (real growth rate): 5.3% Large efforts have been made by the current government to reinvigorate the economy and reduce unemployment. Socio-economic outlook Fishing is the second largest economic activity for income and jobs for the population of Peru. Aquaculture is expected to lead all sectors of growth in Peru for the next 5-10 years. In 2002 it increased by 15% alone. 5
Where does aquaculture take place? Canada s aquaculture industry takes place between 45 degrees North and 55 degrees North, whereas Chile s aquaculture industry takes place between 40 degrees South and 50 degrees South. In Peru, aquaculture takes place between 20 degrees South and 5 degrees South. 6
Chile Aquaculture sector overview Production and exports Leading Chilean fish and seafood exports to the world Millions of U.S. dollars (US$) Salmon/trout (frozen) Fishmeal Salmon/trout (fresh) Molluscs/crustaceans Canned fish Other TOTAL 1996 315 652 184 189 72 404 1,816 1997 401 593 214 206 99 399 1,912 1998 419 351 260 204 88 411 1,733 The world s second largest salmon producer, soon to overtake Norway; 1999 538 295 241 213 95 446 1,828 Supplies roughly 60% of the salmon and trout to Japan, the world s most demanding market; 2000 601 236 326 213 401 1,874 Main farmed species are: salmon, trout, calico scallop, oysters, turbot, abalone and algae; 97 Main export markets are: United States, Japan, Brazil, France, Germany, Canada, Thailand, Mexico, Holland and China (top 10). 2001 598 258 324 198 91 392 1,861 2002 578 319 341 159 111 451 1,959 TOTAL EXPORTS 2002 US$1.959 billion dollars AQUACULTURE DIRECT EMPLOYMENT Over 100,000 in coastal and rural regions 7
Chile Aquaculture sector overview Main aquaculture foreign suppliers to Chile Products and services (not including fish) 1. Norway 2. Australia 3. United States 4. United Kingdom Consultancy 1. Norway 2. United States 3. Canada 4. Australia Investment 1. Norway 2. Canada 3. Spain 4. Japan Canada currently is not a major supplier of Products and services, but 3 rd in Consultancy and 2 nd in Investment. 8
Peru Aquaculture sector overview Production and exports Leading Peruvian fish and seafood exports to the world Millions of U.S. dollars (US$) Fishmeal Fish (frozen) Fish oil Canned fish Fish (fresh) Other TOTAL 2001 835 122 91 42 9 25 1,124 One of the largest harvesters of wild marine seafood in the world; developing aquaculture to augment the well established trawling industry and increase seafood production; Government of Peru invested over US$80 million dollars in aquaculture projects in 2002; Main farmed species are: scallops, trout, tilapia, lobster, giant Pacu and other species; Main export markets are: China, Japan, Germany, Spain, Taiwan, Canada, Portugal, United States, Indonesia and Iran (top 10). 2002 821 131 69 21 6 6 1,054 TOTAL EXPORTS 2002 US$1.054 billion dollars AQUACULTURE DIRECT EMPLOYMENT Over 45,000 in coastal and rural regions 9
Peru Aquaculture sector overview Main aquaculture foreign suppliers to Peru Products and services (not including fish) 1. Domestic (Peru) 2. Chile 3. United States 4. Germany Consultancy 1. Chile 2. Germany 3. Italy Investment 1. Germany 2. Italy 3. Chile 4. United States Canada currently is not a major supplier in any of these 3 categories. 10
Chile Aquaculture sector overview Aquaculture development programs 2003 Aquaculture Diversification Cold Water Marine Fish Restocking Chilean Flounder Aquaculture Productivity Genetic improvement and biotechnological manipulation Sanitation Production of feed inputs Engineering applied to the improved production and transport of live fish Vaccines against SRS (Salmonid Rickettsial Septicaemia) Health Management of Abalone Shellfish Genetics and Biotechnology Recirculation systems for Aquaculture Improved technology for smolt transport Pigment Production Genetic improvements of salmon (broodstock development) ISA (Infectious Salmon Anemia) cell lines Inputs for aquaculture feeds 11
Peru Aquaculture sector overview Aquaculture development programs 2003 Infrastructure development of rural costal areas for fishing, industrial areas for research and development, as well as commercial development Training programs for workers and management Technology development Diversification development in scallops, oysters, tilapia, prawns, trout and others Attraction of foreign investors and partners National development plan financed by the FAO Development of institutions such as a National Aquaculture Institute Disease control in farmed shrimp Methods and means to deal with the El Nino effect on aquaculture 12
Chile and Peru Overview summary Chile Environmental standards Technology Diversification Sustainability Biotechnology advancement and partnerships Regulatory standards and issues Consultancy Peru National policy development Increased production Diversification / development for sustainability Job development and training Technology transfer Partnerships for industry development 13
Canada Opportunities Canadian opportunities in Chile Canadian opportunities in Peru Environmental technologies and products National policy / regulatory development E-learning Management software Education, training and technical support Food safety & traceability Vaccines and antibacterial treatments Advanced systems for waste treatment New and alternate sources for raw materials for aquafeeds New techniques to control fish and shellfish growth and maturation New equipment and management systems Fish waste utilization Nutraceuticals and functional foods Partnerships for new and existing projects Acquisitions National policy / regulatory development Culture species development Infrastructure development Education, training and technical support Environmental technologies and products E-learning Management software Advanced systems for waste treatment New and alternate sources for raw materials for aquafeeds New techniques to control fish and shellfish growth and maturation New equipment and management systems Fish waste utilization Nutraceuticals and functional foods Food safety & traceability Vaccines and antibacterial treatments Partnerships for new and existing projects Acquisitions 14
Common issues and challenges Canada and Chile Canada and Peru Regulatory Issues Sustainability Environmental standards development of green technologies Biotechnology Investment in R&D partnership projects Disease control Industry Codes of Practice On-Farm HACCP Sustainability Environmental standards National policies Economic opportunities for rural coastal residents Education and management Disease control Partnership projects and investment Industry Codes of Practice On-Farm HACCP 15
Canadian Situation Current domestic market for aquaculture supplies and services is limited due to little growth in the production sector. Reason: Access to new aquaculture sites is problematic (CCFAM Aquaculture Task Group). Canadian supply & services sector is fighting for survival. Chile and Peru offer new market growth opportunities for the Canadian supply and service sector; can enhance cash flow and facilitate growth of Canadian firms. 16
Canadian firms in Chile Heritage Aquaculture Salmon Syndel International Drugs & chemicals Cards Aquaculture Products Ltd. Production equipment PRAqua Group Recirculation systems, tanks, engineering services Aquametrix Research Environmental consulting, education support, R&D support Aqua Health Vaccines, therapeutants Hatfield Consultants Business planning 17
Multinationals in Canada and Chile Stolt Sea Farms (Norway) Fish farming & processing Marine Harvest (Holland) Fish farming & processing (Nutreco) Mainstream (Norway) Fish farming & processing (Cermaq) Skretting (Holland) Feeds (Nutreco) EWOS (Norway) Feeds (Cermaq) AKVAsmart (Norway) Feeding systems, software, consulting Novartis (Switzerland) Therapeutants, vaccines Schering-Plough (USA) Therapeutants 18
Cooperative opportunities Infrastructure Development (Facilities, transportation, communications, etc.) Science & Technology Transfer Education, Training & Technical Support MOU s for R&D (ex. AquaNet and Fiskeriforskning, 2003, Canada Norway) Policy & Regulation Development (Government-to-Government Interchange) 19
Opportunities Government of Canada Department of Fisheries and Oceans (DFO) Aquaculture Policy & Regulation Development (ex. DFO Aquaculture Action Plan, DFO Aquaculture Policy Framework) Aquaculture Science R&D Collaboration Environmental Impact Assessment & Performance Monitoring Fish Health Program (ex. National Aquatic Animal Health Program) Hydrography, Remote Sensing Geographic Information Systems (GIS) Government Interchange Program 20
Opportunities Government of Canada Agriculture and Agri-Food Canada (AAFC) Canadian Agriculture and Food International (CAFI) Program Collaboration on Generic Seafood Marketing (ex. Salmon Marketers International, 1994) Government Interchange Program 21
Opportunities Government of Canada Canadian Food Inspection Agency (CFIA) Seafood Inspection & Food Safety Traceability On-Farm HACCP Program Government Interchange Program 22
Opportunities Government of Canada Environment Canada (EC) Environmental Impact Assessment, EIA (ex. Canadian Environmental Assessment Agency) EIA Training & Capacity Building Policy and Regulation Development Government Interchange Program 23
Opportunities Government of Canada National Research Council Canada (NRC) Aquaculture Production Aquaculture Nutrition Natural Toxins and Shellfish Aquatic Animal Health Mass Spectrometry/Proteomics Technologies Aquaculture/Science Training & capacity building Technology Development & Infrastructure Government Interchange Program 24
Aquaculture Mission Objectives To plan, coordinate and lead a strategic trade mission of Canadian aquaculture supply and service companies to Chile and Peru, scheduled from October 2 to 9, 2004. The targeted mission participants will include representatives from Canadian companies who are interested in enhancing their entrance into or maintaining their presence and increasing sales in the rapidly growing Chilean and Peruvian aquaculture markets. Strategic objectives To facilitate meetings between Canadian and Chilean / Peruvian companies for the purpose of developing new market opportunities and/or collaborative business arrangements. To facilitate meetings between Canadian government ministries / agencies and counterparts in Chile and Peru for the purpose of sharing information and expertise on development of aquaculture policy and regulations. 25
October 2 to 9, 2004 26
GREAT GLOBAL MINDS Esprits stratégiques. Strategic thinking. Relaciones estratégicas. 7555, avenue Henri-Julien Avenue Montréal (Québec) H2R 2B4 Canada T +1 (514) 277-2279 F +1 (514) 271-8199 www.greatglobalminds.com 2004 Great Global Minds All rights reserved. Tous droits réservés. Any reproduction or digitalization, total or in part, of text or illustrations in this document is strictly prohibited without the written consent of Great Global Minds. Toute reproduction ou digitalisation, totale ou partielle, du texte ou des illustration de ce document est strictement prohibée sans le consentement écrit de Great Global Minds. This document was presented to: The Senate of Canada Standing Committee on Fisheries and Oceans Tuesday, March 23, 2004 Ottawa (Ontario) 27