2017 NRA Annual Convention

Santa Barbara, CA

Oct 24, 2017

Indonesia-the Largest International Market of MBM

Total feed production 18.8 million MT in 2016

Total aquafeed 1.6 million MT in 2016

The most important overseas market for animal protein

Total MBM and PBM volume: 384,686 MT in 2016

Total feather meal volume: 34% decrease in 2016

Indonesia

Maintenance of Indonesian Market for MBM and Non-ruminant MBM

Alabama’s atypical case of BSE did not affect Indo market

DGLHS delegation to US for bilateral meetings with APHIS and plant inspections for more registrations

NRA’s participation and hospitality for DGLHS delegation.

Upgrade of Indonesian Customs Computer system caused change of tariff code and added 5% tax on feather meal, which was fixed by Kent in September

NRA/FAS Seminar for Indonesia in 2017

NRA/FAS Seminar for Indonesia in 2017

NRA/FAS Seminar for Indonesia in 2017

NRA is promoting

Excellent rendering practice of US rendering industry

Poultry feed formulation practice with MBM and feather meal

Aquafeed formulation practice with poultry meal, feather meal and terrestrial animal protein blends

Evidence showing importance of animal proteins and nutritional value of amino acids abundant in animal proteins

How Animal Protein Free Diets Influence Animal Growth and Health? – Evidence from Herbivorous Animals Like Grass Carp

Constituent AnimalProtein

PlantProtein

Nutrient（%）

AnimalProtein

PlantProtein

Fish meal 5.00 -- Crudeprotein

30.4 30.5

Soy pro concentrate

-- 5.12 Crude fat 5.52 5.53

Cottonseed meal 17.20 17.2 n-3 1.04 1.04

Rapeseed meal 18.17 18.17 n-6 0.96 0.96

Rice protein 19.50 19.50 Equal protein level in fishmeal and soy

protein concentrate. α-starch 28 28

Soy oil 3.21 3.42

Mineral Vitamin Premixes

8.92 8.59

Animal Protein-Free Diets Decreased Growth Performance and Resistance of Grass Carp against Enteritis

资料来源：晏良超和周小秋, 2017

Animal Protein Pure Vegetarian

充血红肿

Animal

Protein

Pure

Vegetarian

Relative

Change

Incidence

Enteritis

39.56% 52.44% 33%

PWG 167 145 13%

Feed

intake

734

g/fish

684 g/fish 7%

Feed

Efficiency

58% 54% 7%

Pure Vegetarian Diet Increased Reactive Oxygen Species (ROS) and Stress in Intestine of Grass Carp

Animal Protein Pure Vegetarian

资料来源：晏良超，周小秋等，2016

Pure Vegetarian Diet Reduces Clearance of ROS, Impairs

Physical Barrier and Gastrointestinal Immunity, and Increased

Incidence of Enteritis of Grass Carp

Genes

.......

CuZnSOD

CAT

GSTsImmunity

Phisical

细胞核Nrf2

O2·−Cl

earance

.OH

Clearance

Int

esti

nal

RO

s

Pure Vegetarian Diet

Enzyme

.......

SOD

CAT

GST

Inflammation

Lysozy

Enteritis

Claudins

Occludin

Ox demange

Nrf2Keap1

Animal Protein is Essential for Animal Nutrition and Current Categorization of Essentiality of Amino Acids Misleads Animal Nutrition Industry

Regulatory Roles of Amino Acids

Li et al. (2007) British Journal of Nutrition 98: 237-252.

Li et al. (2009) Amino Acids 37:43-53.

Amino Acid Profile in Aquaculture Feedstuffs

AA Fishmeal MBM PBM SBM-44 SBM-50Cottonseed meal

Peanut meal

Ala 4.81 4.78 4.32 2.04 2.08 1.42 1.76βAla 0.01 0.19 0.15 0.04 0.03 0 0Asp 6.98 5.29 4.74 5.95 6.36 3.51 4.21Cys 0.67 0.49 1.05 0.7 0.69 0.7 0.61Glu 9.48 7.95 7.58 9.42 10.8 8.19 6.64His 1.48 1.19 1.14 1.13 1.15 1.08 0.95Ile 2.7 1.92 2.16 2.03 2.1 1.19 1.36Leu 4.42 3.56 3.95 3.44 3.7 2.26 2.48Lys 4.93 3.13 3.34 2.8 2.87 1.63 1.37Met 2.02 1.1 1.16 0.6 0.64 0.66 0.47Orn 0.06 0.05 0.05 0.03 0.03 0.04 0.05Phe 2.35 1.85 2.19 2.21 2.44 2.02 1.93Ser 2.76 2.36 2.31 2.12 2.35 1.6 1.94Trp 0.7 0.39 0.48 0.62 0.63 0.44 0.38Thr 2.74 2.42 2.63 1.76 2.03 1.15 1.26Tyr 2.36 1.32 1.84 1.66 1.72 1.1 1.39Val 3.05 2.23 2.76 2.09 2.25 1.69 1.64

Li et al. 2011. Composition of amino acids in feed ingredients for animal diets.

Amino Acid 40: 1159-1168.

Taurine (% as-fed basis)

0 0.2 0.4 0.6

Peanut meal

Cottonseed meal

Soybean meal

Feathermeal

Blood meal

Meat bone meal

Poultry meal

Fishmeal

Taurine (%, as-fed basis)

Taurine (%, as-fed basis)

Li et al. 2011. Composition of amino acids in feed ingredients for animal diets.

Amino Acid 40: 1159-1168.

Gly (% as-fed basis)

0 2 4 6 8 10

Peanut meal

Cottonseed meal

Soybean meal

Feathermeal

Blood meal

Meat bone meal

Poultry meal

Fishmeal

Gly (%, as-fed basis)

Gly (%, as-fed basis)

Li et al. 2011. Composition of amino acids in feed ingredients for animal diets.

Amino Acid 40: 1159-1168.

Proline (% as-fed basis)

0 5 10 15

Peanut meal

Cottonseed meal

Soybean meal

Feathermeal

Blood meal

Meat bone meal

Poultry meal

Fishmeal

Proline (%, as-fed basis)

Proline (%, as-fed basis)

Li et al. 2011. Composition of amino acids in feed ingredients for animal diets.

Amino Acid 40: 1159-1168.

Hydroxyproline (% as-fed basis)

0 2 4 6

Peanut meal

Cottonseed meal

Soybean meal

Feathermeal

Blood meal

Meat bone meal

Poultry meal

Fishmeal

Hydroxyproline (%, as-fed basis)

Hydroxyproline (%, as-fed basis)

Li et al. 2011. Composition of amino acids in feed ingredients for animal diets.

Amino Acid 40: 1159-1168.

Importance of Collagen Consisting Amino Acids (Gly, Pro, Hyp) and Feather Meal

Functional Components in Animal Proteins

Potential roles in health, nutrient utilization, partitioning……

China Market Review

The situation of Chinese feed industry in 2016

Increase of GDP: 6.7%- lowest in the past 2 decades

General feed production: 187.2 million (All-Tech Data)

Swine industry: 75.5 million MT of swine feed production

Aquafeed: 16.4 million MT of aquafeed production

Fur bearing industry is hopelessly low

Fish meal import was 1.04 million MT in 2016, similar to 2015

Pet food industry growing to approximately 900,000 MT (China Pet Product Alliance Data)

Chinese Feed Production-By Animal Species

All-Tech 2017 Global Feed Survey

75.5

33.9

29.4

54.9

16.4

Feed Production (MMT)

Swine

Dairy Cattle

Beef Cattle

Layer

Broiler

Aquaculture

The situation of China Soap industry and Demand for Oils and Fats

Soap industry has been stable in past years by producing approximately 1 million MT of soap

China imported 40930 and 28000 of tallow from New Zealand, and Australia.

China imported 3.35 million MT palm oil from Malaysia and Indonesia in the first 10 months of 2016, 1 34.6% decrease compared to the volume of 2015.

Building a Better Communication Channel with Regulatory Agencies

Building a Better Communication Channel with Regulatory Agencies

Renewal of the Expired Agreement on Non-Ruminant Export in 2017

Renewal of the Expired Agreement on Non-Ruminant Export in 2017

All eight facilities were approved for export

One new member company on list

PCR issue in 2013 solved

List was extended to Feb. 2022

Future trade of non-ruminant products will not be affected by AI status in the US, because of a separate protocol.

Chinese Import of Terrestrial Animal Proteins

Year Australia Uruguay USA NZ Total

2007 5471 6478 12363 392 24704

2008 35226 27527 1441 1056 65250

2009 27932 49452 --- --- ---

2010 71888 49353 8751 --- 129992

2011 38392 38733 11117 4375 92617

2012 10877 34641 23421 7958 76896

2013 12723 33916 54300 13940 114879

2014 18499 29742 63155 19782 131178

2015 38020 41087 80610 19032 178749

2016 15975 51344 138043 9611 223983

2017 106851

(Jan-Aug)

Other Market Issues with China

Tallow for Industrial uses

Tallow for feed uses

Edible tallow

Poultry fat

Bovine MBM

Custom Issues (Tariff and VAT)

Progresses in VAT reduction: from 13% to 11%

Further reduction expected in 2019

Much more work with feather meal, poultry fat and choice white grease

Fights against Adulteration

Pirating licenses

Adulteration

CIQ lab for fights against adulteration

Other Southeast Countries as Markets of US Rendered Products

Vietnam: 16.8 million feed/3.3 million aquafeed

Thailand: 18.7 million feed/18.7 million aquafeed

Philippines: 13.7 million feed

Malaysia: 4.4 million feed