globalenefeb2011

GOAL 2011 REVIEW

GLOBAL AQUACULTURE ADVOCATE

Volume 15, Issue 1

January/February 2012

New Years Resolution #1...

january/february 201228 From The Shrimp Book Shrimp Pond Soil And Water Quality ManagementClaude E. Boyd, Ph.D.; Christopher A. Boyd, Ph.D.; Suwanit Chainark, Ph.D.

global aquaculture

theThe Global Magazine for Farmed Seafood


DEPARTMENTSFrom The President From The Editor GOAL 2011 Review GAA Activities Fishy Business Industry News Advocate Advertisers 2 3 5 24 26 82 88

32

Shrimp Genetic Improvement In Ecuador Localized Mass Selection, New Family Breeding FormatJoo L. Rocha, Ph.D.; Rafael Verduga; Holger Martinez; Hugo Mario Armijos; Pedro Conforme

On the cover:

36

New Aquaculture Drugs Under FDA Review Products Include Antibiotics, Oxidizing Agents, SedativeJames D. Bowker, Mark P. Gaikowski

New underwater camera technology is assisting salmon farmers in monitoring feeding and overall fish health at a Marine Harvest facility in Chile.

40

Early Mortality Syndrome Affects Shrimp In AsiaDonald V. Lightner, Ph.D.; R.M. Redman; C. R. Pantoja, Ph.D.; B. L. Noble; Loc Tran

42 44

Probiotics, Prebiotics In Aquatic AnimalsDr. Daniel L. Merrifield

Sustainable Aquaculture Practices Groundwater Quality In AquacultureClaude E. Boyd, Ph.D.

Meet ExtraordinaryEXPERIENCE THE PFS DIFFERENCEINDUSTRY EXPERIENCEOver twenty years of cold chain experience working with world renowned seafood and frozen food companies.

46

Blue Catfish Outproduce Channel Catfish Under Low-D.O. ConditionsLes Torrans, Ph.D.

Page 40New Shrimp Syndrome Hits AsiaEarly mortality syndrome appears within 30 days of stocking and causes lethargy, soft shells and high mortaility. The cause for EMS is still under investigation.

48

The Bottom Line PPI: New Metric For Measuring Productivity, Predicting ProfitabilityThomas R. Zeigler, Ph.D.; Scott Snyder, Ph.D.

BUILDING DESIGN

We design state-of-the-art temperature controlled warehouses allowing us to provide flexible customer solutions.

52

ASAIM Addresses Challenges To Growth Of Marine Fish Farming In Southeast AsiaLukas Manomaitis

INNOVATIVE TECHNOLOGY

PFS has established a competitive advantage through the aggressive use of engineering and technology. We employ the most sophisticated hardware and software systems; constantly improving our service offerings to you.

GLOBAL REACH

56

Aquaculture Of Amazon Fish In Latin AmericaJoo Lorena Campos, M.S.; Eduardo Ono, M.S.; Fernando Kubitza, Ph.D.

PFS is recognized as the fourth largest temperature controlled warehouse company in the world with expansion in North America and Asia.

FIERCE AFFECTION FOR OUR CUSTOMERSRelentless passion to deliver service beyond your expectations ensuring long-lasting relationships and customer loyalty.

END TO END LOGISTICS

Our expertise and systems deliver the quickest, most accurate, and cost-effective fulfillment and delivery experience for every customer.

60 64

Price Consciousness Affects Seafood Purchase IntentionsDr. Hvard Hansen

Food Safety And Technology By-Product Utilization For Increased Profitability Part II: GelatinGeorge J. Flick, Jr., Ph.D.

Page 70Aquaponics Integrate Agriculture, AquacultureThe economic and environmental benefits of combining aquaculture with saline agriculture could overcome the higher initial investment costs for land operations.

Providing peace-of-mind through dependable service on time, every time...

66

We Get It Done!For more information about PFS, please contact: Daniel DiDonato - VP Sales One Main Street, 3rd Floor Chatham, New Jersey 07928 [email protected] Phone: 973-820-4070 www.PreferredFreezer.com

TM

U.S. Seafood Markets Shrimp Imports From Thailand Decline Sharply, Market Outlook Mixed For 2012 Whole Salmon Steady, Fillets Flow From Chile Whole Tilapia Imports Flat; Fresh, Frozen Fillets Decline Channel Catfish Imports Jump, Pangasius SoarsPaul Brown, Jr.; Janice Brown; Angel Rubio

74 76

Microalgae Provide Food, Feed, Fuel New Uses AwaitKeith Filer, Ph.D., M.S.

Polychaete-Assisted Sand Filters Show Potential In Treating EffluentsPaul J. Palmer

78 70 Integrated Marine Aquaculture-Agriculture: Sea Farming Out Of The SeaEdoardo Pantanella, M.S.

Study Tests Disinfectant Alternatives To FormalinLars-Flemming Pedersen, Niels Henrik Henriksen

80

Protein Isolates Recovered From Processing Could Yield Nutraceutical Seafood ProductsJacek Jaczynski, Ph.D.

global aquaculture advocate


1

from the presidentGLOBAL AQUACULTURE ALLIANCEThe Global Aquaculture Alliance is an international non-profit, non-governmental association whose mission is to further environmentally responsible aquaculture to meet world food needs. Our members are producers, processors, marketers and retailers of seafood products worldwide. All aquaculturists in all sectors are welcome in the organization.

from the editorEfficiency Key For Sustainability, ProfitabilityAs we start another year, the Global Aquaculture Alliance is determined to continue to improve the Advocates coverage of the dynamic farmed seafood Darryl E. Jory, Ph.D. industry. With the continued support of our advertisEditor, Development Manager ers, subscribers and editorial contributors, we shall Global Aquaculture Advocate meet this challenge and look forward with optimism [email protected] to another challenging year. I would like to also reaffirm a message in my last column: The world needs much more seafood, and we can only produce it through responsible, sustainable aquaculture. We certainly have a clear goal, but do we have clear strategies to achieve this objective? Changing global economic conditions continue to present us with many challenges some old, some new including price volatility, rising production costs, competition and protectionism. Such issues as seafood safety, traceability and certification combine with various environmental and social concerns. We also face the need to improve biosecurity, domestication, animal welfare and production efficiency. Aquaculture is trending toward integration, diversification and consolidation. Are new technology packages attractive enough to bring additional investors to our industry? At GAAs recent GOAL 2011 conference in Santiago, Chile, GAA Executive Director Wally Stevens discussed in his welcoming remarks the five major challenges between us and our objective of responsibly doubling production in a decade: disease management, feed supply, environmental impact, funding and market acceptance. These challenges were resolvedly addressed by the conference speakers, and I believe all participants went away with new insight that can lead to better short- and long-term business strategies. Despite its varied issues, aquaculture remains the fastest-growing food-producing sector globally. Responsibility, sustainability and profitability are fundamental in meeting industry challenges, because sustainable and profitable companies must be environmentally and socially responsible, efficient to maintain their productivity and utility, and commercially competitive. Increased efficiency is key for industry sustainability and profitability, and there are incredible advances occurring in many areas: genetic improvement and seedstock production, nutrition and aquafeeds, health management, production systems, product quality and safety, marketing and various others. Without long-term profitability, our industry cannot be sustained, and if our industry is not sustainable, it cannot be profitable. We hope you continue to find the Global Aquaculture Advocate content informative and interesting. As always, we encourage your suggestions for topics you would like us to cover, as well as your contributions of short (1,000 words) articles that are aligned with our aquaculture-focused content. Please contact me at your convenience for details on article guidelines. Your critical comments have significantly improved our magazine from its inception, and I urge you to continue sending us your comments on how we can best represent and serve our industry. Sincerely,

Milestones Propel GAA Into 15th YearThe history of families, organizations, countries and even the human race is punctuated by milestones critical events which mark important turning points. Think of how dramatically the world changed after Columbus discovery of the Americas, George W. the industrial revolution which harnessed the power Chamberlain, Ph.D. of machines, Edisons invention of the electric light President and the Wright brothers first motorized flight! Global Aquaculture Alliance As we enter the 15th year of the Global [email protected] culture Alliance, we look back on some of the key milestones in its development. After GAAs formation in 1997, Codes of Conduct for Responsible Shrimp Farming was published in 1999. The annual leadership meeting now known as Global Outlook for Aquaculture Leadership or GOAL was introduced in 2001. The Best Aquaculture Practices certification standards for shrimp farms were initiated in 2002, the first farm was certified in 2003, and BAP products were adopted by Wal-Mart and Darden Restaurants in 2005. These events launched a BAP program that grew incrementally over the next six years to include a full range of warmwater aquaculture species: shrimp, tilapia, catfish and Pangasius. In 2008, GAA began to strengthen the BAP program by moving to ISO-certified inspection bodies, benchmarking to the Global Food Safety Initiative and shifting control of the standards development process to the Standards Oversight Committee (SOC), a balanced group whose members represent non-governmental organizations, academics and the aquaculture industry. In 2009, the SOC approved Dr. John Forster as chairman of the Salmon Farm Technical Committee and then approved a diverse group of professionals to serve under him. The technical committee was tasked with developing consensus standards, despite numerous issues that had stymied other well-intended groups. After more than two years of deliberations, meetings and preliminary drafts, Forsters committee presented salmon farm standards for public comment in early 2011. By mid-2011, the draft was revised to reflect public comments, and the final version was approved by the SOC and adopted by the board of GAA. Successful completion of BAP salmon standards was a key milestone that set the stage for GOAL 2011, a November 6-9 meeting in Santiago, Chile, that was co-hosted with SalmonChile and the Chilean Undersecretariat for Fisheries and strongly supported by retail and foodservice buyers. As reported in this issue of the Advocate, GOAL 2011 surpassed expectations in terms of information shared, networks broadened and new initiatives in disease management and investment analysis. GOAL also confirmed the trend of growing seafood demand from Asia. More importantly, it ushered in a warm new relationship with the Chilean aquaculture sector and the salmon-farming industry in general, which is leading to ever-growing collaboration. GOAL 2011 was quickly followed by the exciting news of Mainstream Canada achieving the distinction of being the first salmon farm to be BAP certified. In the coming weeks, other salmon farms and processing plants are expected to join the ranks of BAP facilities. This will help satisfy the growing market demand for BAP-certified seafood at retail and foodservice outlets around the world. GAA is proud to enter its 15th year of service to the aquaculture industry. The milestones that have shaped our development could not have been achieved without your support. Now, as we face the rising challenge of increasing seafood demand, let us work together toward our ultimate milestone of feeding the world through responsible aquaculture. Sincerely, George W. Chamberlain

FOUNDING MEMBERSAgribrands International Inc. Agromarina de Panama, S.A. Alicorp S.A. Nicovita Aqualma Unima Group Aquatec/Camanor Asociacin Nacional de Acuicultores de Colombia Asociacin Nacional de Acuicultores de Honduras Associao Brasileira de Criadores de Camaro Bangladesh Chapter Global Aquaculture Alliance Belize Aquaculture, Ltd. Delta Blue Aquaculture Bluepoints Co., Inc. Cmara Nacional de Acuacultura Camaronera de Cocle, S.A. Cargill Animal Nutrition Continental Grain Co. C.P. Aquaculture Business Group Darden Restaurants Deli Group, Ecuador Deli Group, Honduras Diamante del Mar S.A. Eastern Fish Co. El Rosario, S.A. Empacadora Nacional, C.A. Empress International, Ltd. Expack Seafood, Inc. Expalsa Exportadora de Almientos S.A. FCE Agricultural Research and Management, Inc. Fishery Products International India Chapter Global Aquaculture Alliance Indian Ocean Aquaculture Group INVE Aquaculture, N.V. King & Prince Seafood Corp. Long John Silvers, Inc. Lu-Mar Lobster & Shrimp Co. Lyons Seafoods Ltd. Maritech S.A. de C.V. Meridian Aquatic Technology Systems, LLC Monsanto Morrison International, S.A. National Food Institute National Prawn Co. Ocean Garden Products, Inc. Overseas Seafood Operations, SAM Preferred Freezer Services Productora Semillal, S.A. Promarisco, S.A. Red Chamber Co. Rich-SeaPak Corp. Sahlman Seafoods of Nicaragua, S.A. Sanders Brine Shrimp Co., L.C. Sea Farms Group Seprofin Mexico Shrimp News International Sociedad Nacional de Galapagos Standard Seafood de Venezuela C.A. Super Shrimp Group Tampa Maid Foods, Inc. U.S. Foodservice zeigler Brothers, Inc.

OFFICERSGeorge Chamberlain, President Bill Herzig, Vice President Ole Norgaard, Secretary Lee Bloom, Treasurer Jim Heerin, Assistant Treasurer Wally Stevens, Executive Director

BOARD OF DIRECTORSBert Bachmann Lee Bloom Rittirong Boonmechote George Chamberlain Shah Faiez Jeff Fort John Galiher Jim Heerin Bill Herzig Ray Jones Alex Ko Jordan Mazzetta Rafael Bru Sergio Nates Ole Norgaard John Peppel John Schramm Iain Shone Wally StevensEDITOR DARRYL JORY [email protected] PRODUCTION STAFF MAGAzINE MANAGER JANET VOGEL [email protected] ASSISTANT EDITOR DAVID WOLFE [email protected] GRAPHIC DESIGNER LORRAINE JENNEMANN [email protected] HOME OFFICE 5661 Telegraph Road, Suite 3A St. Louis, Missouri 63129 USA Telephone: +1-314-293-5500 FAX: +1-314-293-5525 E-mail: [email protected] Website: http://www.gaalliance.org

All contents copyright 2012 Global Aquaculture Alliance. Global Aquaculture Advocate is printed in the USA. ISSN 1540-8906

Darryl E. Jory

2





3

JOIN THE WORLDS LEADING AQUACULTURE ORGANIzATION

goal 2011 reviewGOAL 2011 Defines Demand, Addresses Challengesbank recognizes aquaculture will dominate future fish supplies. To quantify future seafood demand, Anderson presented preliminary results from the newly completed Fish to 2030 project. This is a simulation model developed in cooperation with the International Food Policy Research Institute, University of Arkansas and Food and Agriculture Organization using IFPRIs global IMPACT model. It considers eight regions: China, Southeast Asia, South Asia, Other East Asia, Latin America, North America, Europe and Sub-Sahara Africa. At the country level, the model maintains a balance among supply, demand and trade. Production systems are classified into 15 levels on the supply side. Demand is defined in terms of eight commodity seafood groups: shrimp, other crustaceans, mollusks, salmon and trout, tuna, freshwater fish, demersals, pelagics and other marine fish. The model also considers fishmeal production and its linkage to feed demand from protein-intensive aquaculture.

global aquaculture

Aquaculture is the future of the worlds seafood supply. Be part of it by joining the Global Aquaculture Alliance, the leading standards-setting organization for farmed seafood. Access science-based information on efficient aquaculture management. Connect with other responsible companies and reach your social responsibility goals.

Improve sales by adopting GAAs Best Aquaculture Practices certification for aquaculture facilities. Annual dues start at U.S. $150 and include a subscription to the Global Aquaculture Advocate magazine, GAA e-newsletters, event discounts and other benefits. Visit www.gaalliance.org or contact the GAA office for details.

Varied presentations at GOAL 2011 addressed the ongoing growth of the aquaculture industry forecasted by a World Bank model.

Feeding the World Through Responsible Aquaculture St. Louis, Missouri, USA www.gaalliance.org +1-314-293-5500

Global Aquaculture Alliance

Preliminary Forecasts

ABC Research Corp. AIS Aqua Foods, Inc. Alfesca H.F. Al Fulk National Co., Ltd. Alicorp S.A. Nicovita Ammon International Aqua Bounty Technologies Blue Archipelago Capitol Risk Concepts, Ltd. Cargill Chang International Inc. Chicken of the Sea/ Empress International Darden Restaurants Delta Blue Aquaculture Eastern Fish Co. Fenway Partners LLC Grobest USA Inc. High Liner Foods/FPI Imaex Trading Co. Integrated Aquaculture International INVE BV King & Prince Seafood Corp. Lyons Seafoods Ltd. Maloney Seafood Corp. Mazzetta Co., LLC Moreys Seafood International National Fish and Seafood, Inc. Novus International Pescanova USA Preferred Freezer Services QVD Red Chamber Co. Rich Product Corp. Sahlman Seafoods of Nicaragua, S.A. Sea Port Products Corp. Seafood Exchange of Florida Seafood Solutions Seajoy Thai Union Group Trace Register Tropical Aquaculture Products, Inc.

GOVERNING MEMBERS

Urner Barry Publications, Inc. zeigler Bros., Inc. Akin Gump Strauss Hauer & Feld LLP Alltech Aqua Star Aquatec Industrial Pecuaria Ltd. Blue Ridge Aquaculture Camanchaca Contessa Food Products, Inc. Cooke Aquaculture Inc. Cumbrian Seafoods Ltd. DevCorp International Diversified Business Communications DSM Nutritional Products Fega Marikultura P.T. Findus Group Fortune Fish Co. H & N Foods International, Inc. Harbor Seafood, Inc. Harvest Select Inland Seafood International Marketing Specialists Ipswich Shellfish Co., Inc. Maritime Products International Mirasco Mt. Cook Alpine Salmon North Coast Seafood North Star Ice Equipment Co. Novozymes Orca Bay Seafoods Pacific Supreme Co. PanaPesca USA Corp. PFS Logistics ProFish International Santa Monica Seafood Sealord Group Ltd. Seattle Fish Co. Seattle Fish Co. of N.M. Slade Gorton & Co., Inc.

SUSTAINING MEMBERS

Solae, LLC SouthFresh Aquaculture Starfish Foods Stavis Seafoods, Inc. The Fishin Company Trident Seafoods United Seafood Enterprises, L.P. Western Edge Inc. American Feed Industry Association APCC-All China Federation of Industry and Commerce Aquatic Production Chamber of Commerce Associao Brasileira de Criadoresde Camaro Australian Prawn Farmers Association Bangladesh Shrimp and Fish Foundation China Aquatic Products Processing and Marketing Association Fats and Proteins Research Foundation, Inc. Indiana Soybean Alliance International Fishmeal and Fish Oil Organisation Malaysian Shrimp Industry Association National Fisheries Institute National Renderers Association Oceanic Institute Prince Edward Island Seafood Processors Association SalmonChile Salmon of the Americas Seafood Importers and Processors Alliance U.S. Soybean Export Council World Aquaculture Society Universidad Austral de Chile World Renderers Organization

ASSOCIATION MEMBERS

The recent GOAL 2011 conference in Santiago, Chile, confirmed the pressing need for aquaculture to increase seafood production and identified key challenges such expansion will face. How can we, as an industry, work together to responsibly increase aquaculture production, despite rising population and diminishing resources? Global Aquaculture Alliance Executive Director Wally Stevens asked. GOAL 2011 was designed to help us begin establishing strategies that will carry aquaculture forward by embracing the opportunities and proactively answering the challenges that await. The Global Outlook for Aquaculture Leadership (GOAL) event was organized by the Global Aquaculture Alliance with assistance from co-hosts the Undersecretariat for Fisheries of Chile and SalmonChile. Over 350 seafood producers, marketers and service providers attended to discuss key aquaculture production and market trends for a future with much higher seafood demand. For aquaculture to achieve the needed growth, Camanchaca CEO and keynote speaker Ricardo Garcia said, it must address risks related to finances, animal health and the environment, feed ingredients, markets and other factors. Details of Garcias presentation will appear in future articles in this magazine.

Anderson stressed that results from the newly completed Fish to 2030 model are preliminary, but indicated that aquaculture will grow 75 to 85% from 2010 to 2030. By 2030, aquaculture is projected to supply around 60% of the fish for human consumption, as compared to 50% in 2010 (Figure 1). The model forecasts that Southeast Asia, China, South Asia, Latin America and North America will experience more than 20% growth in seafood production. Less than 20% growth is expected in the other regions. Production increases of more than 50% are expected for freshwater and diadromous fish, salmon and shrimp, while increases of less than 20% are expected for all other species groups. According to the model, consumption will rise more than 20% in China, Southeast Asia, South Asia, Latin America and Africa, and less in the other defined areas. After accounting for inflation, price increases are likely for fishmeal and fish oil. Marginal or no real price increases are expected for shrimp or species dominated by wild-caught fish, such as tuna, lobster, crabs, pelagics and demersals. Real price declines are likely for freshwater fish and salmon.220 200 180 160 140 120 100 80 60 40 20 0 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030 Capture Total

An underlying premise of GOAL 2011 was that seafood demand is increasing. James Anderson, leader of the World Banks Global Program on Fisheries and Aquaculture, discussed the basis of this premise. He said the World Bank re-engaged in fisheries in 2005 and in 2011 expanded its commitment to include aquaculture in its mission to create sustainable wealth and reduce poverty. A World Bank analysis indicated that open-access capture fisheries lose an estimated U.S. $50 billion annually due to poor governance. Rights-based systems are a better approach, because they generate higher-quality fish at lower cost. This means more sustainable and profitable fisheries, but not necessarily more fish. The

Production (mmt)

Fish To 2030 Projects Seafood Demand

Figure 1. Projected global seafood production.

4





5

goal 2011 reviewOur GOAL 2011 SponsorsPLATINUM S P O N S O R S

Thank You To

November 6-9, 20ll Santiago, Chile

GOLD SPONSORS

SILVER SPONSORS

R

global aquaculture

Goal Presentations, Videos Available At www.gaalliance.org/ GOAL2011NEW/global aquaculture advocate January/February 2012

6



7

goal 2011 reviewPRODUCTION: Global Shrimp Reviewnations in Asia. The data through 2009 correspond to official United Nations Food and Agriculture Organization (FAO) statistics, while data for 2010 through 2013 are averages of the figures provided by the survey participants. has been the apparent decline in cooked and breaded product forms relative to green and peeled shrimp in Asian countries over the last five years. Cooked and breaded shrimp accounted for 40% of production in the 2007 survey but only 30% in the current survey. These changes seem to reflect the growing importance of the domestic Chinese market, which may have a preference for green and peeled shrimp over the processed forms. In fact, cooked and breaded shrimp accounted for 49% of Chinese production in the 2007 survey, but fell to 33% by 2011. Production in Latin America continues to be oriented towards green (head-on and headless) shrimp. Nevertheless, the 2011 survey revealed relative increases in the production of peeled shrimp and green head-on shrimp at the expense of headless green product, which may reflect increased shipments to European and Asian markets.

Disease Impacts

Production Trends

Although growth in shrimp production slowed in 2010-2011, it should increase signifiicantly into 2012 and2013

Diego Valderrama, Ph.D. Food and Resource Economics Department University of Florida Gainesville, Florida, USA James L. Anderson, Ph.D. World Bank Washington, D.C., USA The Global Aquaculture Alliance conducts every year a survey of production trends in shrimp farming in preparation for its annual GOAL conference. The survey elicits information from shrimp producers and industry observers around the world on present and projected production volumes for major farming nations as well as perceptions on the major issues and challenges facing the industry. The 2011 survey polled 28 respondents from Asia/Australia and 15 respondents from North and Latin America. Figure 1 summarizes the production estimates for the major producing Shrimp Production (mmt)1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0 China 2005 Thailand 2006 2007 Vietnam 2008 Indonesia 2010 India 2011 Bangladesh 2012 2013

Shrimp production increased substantially in these countries during 2005-2009, with average annual growth rates exceeding 7%. However, production was expected to decline in 2010 and 2011 due to the combined effects of diseases and weather-related factors such as floods. These problems seemed to be more acute in China, Vietnam and Indonesia. For example, total production in China was estimated to have declined by 7.5% in 2010 relative to 2009, with a similar percentage decline expected in 2011. Nevertheless, Asian respondents felt confident most of these problems could be overcome, and production should increase significantly by 2012 and 2013. Figure 2 presents estimates for the major producing nations in Latin America. The 2010-2011 industry estimates for Ecuador and Mexico are significantly lower than the FAO statistics, which seems to indicate disagreement about actual production levels in these countries. FAO periodically revises its statistics based on new information provided by national governments. Survey respondents from Latin America also reported significant production increases for 2012 and 2013. According to FAO, global production of farm-raised shrimp reached 3.5 mmt in 2009. The GOAL survey estimated that production decreased by 3.0% in 2010 to 3.39 mmt and was expected to decline another 3.0% in 2011. As explained before, diseases and floods in Asia were the major factors driving these declines in world production. Nevertheless, production is expected to rebound strongly to 3.8 mmt in 2012 and 4.0 mmt in 2013. The bulk of production nearly 85% will continue to come from Asian countries.

The impact of diseases was identified by the survey respondents as the most important challenge faced by the industry. Feed costs and international market prices were ranked as the second and third most important issues, respectively. These perceptions have changed remarkably over the last five years, particularly in Asia. In the 2007 survey, Asian respondents identified feed costs, international market prices and trade barriers as the most important issues. Four years later, disease issues have moved to the forefront. Regarding the impacts of global economic conditions on the shrimp market, respondents from Asia tended to have a more positive outlook than Latin American respondents.

PRODUCTION: Global Fish ReviewRagnar Tveters, Ph.D. University of Stavanger Stavanger, Norway The Global Aquaculture Alliance has monitored global aquaculture production of major internationally traded finfish species since 2006. This period has seen a substantial growth in production for those species. Since 2008, however, the pace of production growth has slowed.

Tilapia

Product Trends

The GOAL survey also collects information on trends in size categories and product forms. One of the most notable results Shrimp Production (1,000 mt)200 180 160 140 120 100 80 60 40 20 0 Ecuador 2005 Mexico 2006 2007 Brazil 2008 Colombia Honduras Nicaragua 2009 2010 2011 2012 2013

Production (1,000 mt)

Tilapia production is important because it represents around 45% of the total production volume for the surveyed species. It is the most geographically diversified species in terms of producer countries, so global production is less susceptible to diseases or other shocks that tend to be geographically concentrated. As shown in Figure 1, tilapia production grew rapidly until 2009, when volumes reached 3.14 mmt. Since then, growth has been much more modest. The period of high growth was accompanied by a substantial decline in real, inflation-adjusted prices. The global market for tilapia, as for most other aquaculture species, is competitive, implying that prices over time tend to follow the development of production costs. Hence, the price decline observed was probably associated with a similar drop in production costs driven by productivity growth. From 2007, real prices inched upwards. This is a symptom of demand growth outpacing the sectors ability to increase supply without increasing production costs. It may also be a symptom of inability to innovate at a sufficient rate on the production side. From 2010 to 2011, global tilapia production is estimated to increase around 4% to 3.23 mmt. In 2012, production is forecasted to increase by 3% to 3.34 mmt.

As with shrimp, the pace of production growth for tilapia and other species has slowed.

from 2000 to 2008. The Vietnamese Pangasius production for 2010 to 2011 shown in Figure 2, which reflects an average of our sources, was expected to decline by 9.0% to 1.05 mmt. In 2012, it is forecasted to grow by 10.5% to 1.16 mmt.

4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 0

8 7 6 5 4 3 2 1 0

Import Price (U.S./kg)

Pangasius

2009

Sources: FAO, 2005-2009; GOAL Survey, 2010-2013. China data include marine and freshwater production of L. vannamei.

Sources: FAO, 2005-2009; GOAL Survey, 2010-2013.

Figure 1. Production of farm-raised shrimp in major farming nations in Asia.

Figure 2. Production of farm-raised shrimp in major farming nations in Latin America.

Pangasius production is the geographically most concentrated of the major species covered by the GAA survey, as much of it occurs around the Mekong Delta in Vietnam. However, production is growing in other Asian countries not well covered by the survey. Pangasius production in Vietnam seemed to reach a temporary plateau at around 1 mmt after a period of impressive growth

Figure 1. Global production of tilapia and inflation-adjusted U.S. import prices.

8





9

goal 2011 reviewProduction (1,000 mt)1,600 1,400 1,200 1,000 800 600 400 200 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 1,800 1,600 1,400 1,200 1,000 800 600 400 2000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2 1 0 3 5 4

Demand Factors

Figure 2. Vietnamese production of Pangasius and inflationadjusted export prices.

Global Picture

The financial crisis in 2008 triggered stagnation and recession in many important markets. However, important determinants also occurred on the supply side. Aquaculture relies heavily on innovations related to feed and feed ingredients, diseases, environmental externalities, etc. Innovations are necessary to increase productivity and reduce impacts on the environment and other user interests. Many of the innovations aquaculture needs rely on investments in research and development. One may ask if private and public sectors invest enough in R & D to sustain the innovations and thus the growth the global aquaculture sector is expected to deliver.

Figure 1. Production of Atlantic salmon and real European Union import prices.

Global production of the surveyed species increased rapidly from 2005 to 2008 from around 5 mmt to around 7 mmt. But thereafter, production has been largely stagnant. From 2010 to 2011, production of the surveyed species was

PRODUCTION: Global Salmon ReviewRagnar Nysltoyl Kontali Analyse A.S. Kristiansund, Norway Following two years of decline in the global harvest of farmed salmon and trout, growth returned in 2011, with global volumes expected to end some 10% above 2010 levels. 2011 was also expected to be the first year that combined volumes of oceanfarmed salmonid species surpassed 2 million mt round weight. The Chilean comeback with Atlantic salmon was the major contributor to this growth, but Norway also added volume during the second half of the year. The first and second halves of 2011 told different stories, from a salmon perspective. From the first months of the year, when high salmon prices broke new records, sharp declines in prices really turned things around with price levels dropping down to or even below break-even during some weeks of autumn. This reflected the development seen on the supply side, where the first quarter of 2011 ended with a volume reduction of 1% in the fifth consecutive quarter with declining supply of Atlantic salmon. But then, in only a short period, this shifted to a 20% volume increase during the third quarter. In combination with reduced marketing activity, campaigns and program sales, this naturally also reduced consumers demand for salmon. Nevertheless, the volume growth during the third quarter was impressive: 70,000 additional tons in three months, which corresponded to some 2.5 million extra salmon meals every day. The volumes have since been absorbed by an interesting mix of markets. The European Union took a third of the global growth, still representing only 13% more than in the third quarter of 2010. The United States and Russia have seen market volume grow 23 and 31%, respectively, while Brazil and the rest of Latin America topped the rankings with 80 and 60% growth, respectively. The salmon industry is not only Atlantic salmon, especially for the Chilean industry, where the majority of salmonids harvested in 2011 will be trout and Coho. The prices for these species have remained higher and not seen the same decline as for Atlantic salmon a development that is partly the result of strong Japanese demand and the need for increasing imports of seafood following the destruction and disruption caused by the March tsunami. Both the European and American salmon producers saw growth in 2011 production, easily illustrated by increased feed sales. In Europe, the YTD sales by the end of September were up 11%, reflecting an estimated live salmon and trout stock nearly 90,000 tons higher than that of last year. The corresponding growth in the Americas was nearly 30%, driven by strong Chilean growth and more stable North American development. There are definitively more fish in the water, setting the stage for growth in supply to come. From 2009 to 2011, the smolt release of Atlantic salmon increased by more than 50 million, while the corresponding figure in the Americas was more than 60 million. However, this trend will likely change into 2012. The global growth of Atlantic salmon production is projected at 13 to 14% for next year, but with a much more marginal growth of trout and Coho. Again, Chile and Norway will drive this supply growth, with a slight increase from the Faroe Islands and a stable to marginally declining trend for the United Kingdom, North America and other, smaller salmon-producing regions. The additional tonnage next year will without doubt pressure prices down to levels where they may not cover costs for a time. One can question the responsibility of such growth, but cyclical fluctuations have always been a characteristic of the industry.

have always contributed to bringing the industry forward in their own peculiar ways. The changes may be tough, and further industry consolidation may result. Yet periodic oversupply of salmon, with cheap salmon in abundance, has broadened the platform of users and buyers and thus been the basis for future growth and market building. During 2012, it appears there will be a lot of good market building. And although the industrys earnings are heading toward a bumpy road for the next year or so, the long-term prospects for the industry are still bright as ever.

Prices Up, Prices Down

Near-Term Supply

A world-class company has emerged in Chile

Changes Coming

Ph: (56 2) 782 5400 / www.blumar.com

We may be seeing the signs of a market crisis, but such crises!"#$%&'()*+,&-./#011&&&2

Import Price (euros/kg)

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Production (1,000 mt)

expected to increase by 2.3% to 7.1 mmt. For 2012, production is forecasted to increase by 6.0% to 7.6 mmt. In the years before the financial crisis in 2008, typical annual growth rates were well above 10.0%.

2,000

6

Import Price (U.S./kg)

10




January/February 23425422&&&26733 2012 11

goal 2011 reviewCHALLENGE: Health ManagementCollaboration Key For SustainabilityISA spread, SalmonChile quickly took drastic measures. Some had results and others did not. A number of the measures from SalmonChiles proposed health program, the so-called 44 Voluntary Sanitary Measures, were incorporated into regulations. The health policy involved public-private cooperation in modifying farming practices. Measures included the establishment of fallow periods, expanded disinfection measures and the implementation of all in, all out production within sanitary management areas called barrios. The quality of salmon smolts, including their sanitary conditions, improved.Adolfo Alvial moderated the GOAL panel on health management, which presented solutions to disease problems in Chile that could potentially be applied elsewhere.

Collaboration

Ron Bergevoet of Wageningen University and Research Centre discussed carrying capacity in the Chilean salmon industry from the physical, ecological, production and social perspectives. Among the conclusions reached at a recent workshop involving participants from industry and science were that interdisciplinary research adds value and that collaboration among stakeholders is vital for a sustainable salmon industry. Other keys for success include integrated disease control, updated contin-

gency plans and insurance programs. Randall Brummett, a senior aquaculture specialist at the World Bank, discussed the topic of lesson sharing for aquatic animal health. He encouraged further collaborative efforts among stakeholders such as the Global Aquaculture Alliance and other trade associations, producer groups, universities and governments. Brummett also briefly discussed the importance of government engagement to attract investors and manage risk.

CHALLENGE: Aquaculture InvestmentSpeakers Confirm Investor InterestJeff Fort Global Aquaculture Alliance St. Louis, Missouri USA All the presenters in GOAL 2011s new program sessions on global aquaculture investment were clear in their assessment that the aquaculture industry is primed and very attractive to new investment. The conference challenge of doubling aquaculture production in a decade prompted interesting evaluations of how such growth might unfold and the issues that must be solved along the way. culture. These included various forms of debt, including bank debt, bonds and private debt. Most speakers indicated debt was not always the best fit for aquaculture projects due to the high degree of variability in cash flow that can result from uncontrollable factors such as commodity market prices and disease outbreaks. Equity-based capital investment can come from venture capital, and private and public equity markets. Presser and Tarlow spoke at length about their firms private equity experiences. Victor Hugo Puchis talk on AquaChile was especially relevant, as this company has had exposure in almost all forms of financing, ranging from bank debt through public equity.

Research Key

Adolfo Alvial Adolfo Alvial Consultancies Puerto Varas, Chile The health management sessions at GOAL 2011 shared lessons learned from the ways Chiles salmon-farming industry responded to an outbreak of infectious salmon anemia (ISA) that may help prevent similar events in other industries. Speakers agreed that ongoing coordination among producers, scientists, governments and other stakeholders will yield the most effective solutions.

Jose Miguel Burgos, head of the Aquacualture Department of the Undersecretariat for Fisheries of Chile emphasized the need to concentrate on crucial elements during disease crises. During the ISA virus crisis, there was a series of measures, but it was necessary to determine what was most important. Scientific research was key, for in Chile, essential facts such as how long the virus remained viable in water were not initially known. This is why research on epidemiology, diseases and the environment must continue, for it is the base for informed decision making. Burgos said personnel must be adequately prepared to detect new diseases as well as deal with existing ones, since it is better to address problems before they get out of control.

Opportunities, Challenges

Coordinated Response

ISA Crisis

At the GOAL event in Santiago, Chile, an expert panel indicated Chiles industry expansion previous to the 2007 outbreak was not accompanied by suitable studies, monitoring and regulations to avoid biological risks. The concentration of farms in some areas led to the rapid spread of the disease. However, coordination among public and private agencies quickly established contingency and control plans, monitoring and investigation of the pathogen to mitigate the effects of the virus. Long-term efforts by authorities, industry and banks allowed companies to remain viable, and new regulations have formed the basis for a revived industry. Fred Kibenge, chairman of pathology and microbiology at the University of Prince Edwards Atlantic Veterinary College, spoke on the dissemination of the ISA virus in Chilean aquaculture. Previous outbreaks have occurred elsewhere, he said. Regarding the situation in Chile, experts believe the virus was present before the outbreak, and initial mortalities were not recognized as the effect of ISA. Kibenge said local solutions and regulations, as well as more research focused on biological systems, are essential. The seafood industry incorporating the entire value chain including marine environments should be willing to invest in more research that would allow the identification of any pathogenic agents present.

Local Solutions

Aquaculture consultant John Forster summarized the institutional responses during the ISA crisis. Once the problem was acknowledged, he said, industry group SalmonChile coordinated with the Chilean government, represented by Sernapesca and Subpesca, and banks to take the right steps. SalmonChile organized the salmon operations into common agreements and developed a new health policy for its members, with 44 health measures for compliance. These efforts helped the dialogue between industry and government, and the latter reacted quickly and efficiently, developing and implementing new health regulations. Greater understanding of the situation allowed the banks to change their perspective. They did not panic, but instead consolidated the debt from bankruptcies and lawsuits, and renegotiated it. They took this path because they were well advised and because the industry and government showed capacity and discipline in solving the problem.

The GOAL investment program, which featured global bankers, industry analysts and private equity investors, considered industry opportunities and challenges from the viewpoint of investors. Many of the opportunities focused on expanding markets and consumers growing preference for higher-quality proteins such as seafood. Further, the surging middle class in Asia and its associated income shift will continue to drive consumption of aquaculture products. Other positives mentioned included relatively good profit margins, good investment portfolio diversification potential and a fragmented production base that is ripe for consolidation. Drew Tarlow of Pegasus Capital Advisors was also clear in identifying the fact that the massive size of the industry makes it an attractive area for investment. On the challenges side, speakers identified issues such as disease control and weather risks, increasing feed and fuel costs, and general environmental concerns. Mitchell Presser, a founding partner of Paine and Partners, highlighted the significant amount of capital the industry requires, while keynote speaker Gorjan Nikolik of Rabobank International underscored the asset-heavy nature of the sector. Other challenges emphasized by Tarlow and Nikolik were the relatively young state of the industry and the need for specialized expertise and management.

Foundations For Success

Session coordinator Jeff Fort explained that aquaculture could look to traditional agriculture and terrestrial protein production as a guide, since these industries are more mature and financially sophisticated. Jose Mujicas experience in reworking bank debt in the Chilean salmon industry highlighted the conclusion that investors must have quantitative models and reporting tools to measure operating results against projections. Tarlow and Presser underscored how partnerships and open dialogue among business operators and equity investors would create the foundations for future growth and success. Both also said that emerging technologies would provide attractive synergies and development potential. Tarlow stressed the importance of expanding a strong initial platform with best-in-class operators and infrastructure. Nikolik articulated several models for growth, including mergers and acquisitions among industry peers, vertical integration along the supply chain and cooperative models. He also suggested there were opportunities for wild-catch fishery companies, protein processors and terrestrial protein producers to expand into the aquaculture segment.

On To GOAL 2012

Financing, Debt

Health Policies12

Rolando Ibarra of Intesal de SalmonChile S.A. said that as January/February 2012 global aquaculture advocate

Coordinated changes have led Chiles salmon industry to a recovery from ISA.

As explained at the outset of the session, the massive ripple effect that will result from rapid aquaculture growth will require additional expansion of many related businesses, such as feed production, packaging, logistics and distribution. Rough calculations of the total capital required for doubled aquaculture output are estimated at U.S. $25 billion to $75 billion. The audience was presented with an excellent overview of the types of financing vehicles that can bring new capital into aqua-

As detailed at GOAL 2011, the investor segment has demonstrated significant interest in supplying at least a portion of the capital aquaculture will need. The next step is to continue to encourage dialogue and innovative thinking as we bring the money together with the opportunities, creating healthy, sustainable food sources and generating profits for those who undertake the effort and risk. To that end, the Global Aquaculture Alliance will continue to explore investment themes at the GOAL meeting in 2012. global aquaculture advocate January/February 2012

13

goal 2011 reviewCHALLENGE: Environmental PerspectivesNGO, Industry Outlookson environmental perspectives, they expressed a general consensus about the nature of the challenges ahead and the need for industry to respond proactively with improved management practices and technological advances. Dawn Purchase, aquaculture policy director for the Marine Conservation Society, represented a small but influential non-governmental organization based in the United Kingdom. Alf Helge Aarskog, CEO of Marine Harvest, represented a multinational salmon-farming company. Both panelists urged the conference not to underestimate the magnitude of the environmental challenges that may await, but they still retained a positive outlook for aquaculture. Above all, it was clear that the growing world population, set to reach 9 billion by 2050, needs aquaculture to expand in a sustainable manner so it can be a key part of the solution to creating a healthier planet.

NGO Outlook

Dawn Purchase: Financial sustainability relies upon ecological sustainability.

Daniel Lee Global Aquaculture Alliance St. Louis, Missouri, USA Despite the different perspectives of the presenters in GOAL 2011s session

To illustrate how a growing population places increasing demands on the planet, Purchase compared the status quo with the situation 50 years ago, when Earth supported half as many people. At that time, we were less wealthy and ate less meat, required less water for food production and took just a third of the water from rivers that we do today. The overall environmental pressure was much lower back then. Times change. In todays world, Purchase said, financial sustainability relies upon ecological sustainability, and that terrestrial land constraints actually point to aquaculture as an increasingly important part of the solution to global food production. Purchase addressed environmental challenges under seven headings: shortage of space/sites, constraints related to feed and marine resources, limits to carrying capacity, the need for disease/para-

Changing the way sh, and the industry, view protein.

Empyreal 75 is the rst and only protein concentrate made from corn. This high-energy, naturally pure protein source provides the nutrition sh need in a highly digestible ingredient. With superior functionality, Empyreal 75 provides even, consistent expansion in extruded feeds and extraordinary binding capacity in pelleted diet

applications. And industry experts are drawn to the fact that Empyreal 75 is manufactured in the U.S., bringing with it superior supply assurance beyond any specialized protein ingredient available to the industry. To learn more, visit e75aqua.com. And be prepared for a whole new perspective on protein. January/February 2012

14




15

goal 2011 reviewReach the LeadersAdvertise In The Global Aquaculture Advocate GAA corporate members save 15-30%!Contact Marketing Manager, Janet Vogel+1-314-293-5500 [email protected]: Industry must drive toward responsibility with a proactive focus.

CHALLENGE: Feed RequirementsSustainability Spurs New Ingredient Optionsaquafeed ingredients. These products include meat and bone meal, poultry by-product meal, feather meal, blood meal, tallow and lard. The total global production of processed animal protein meals is estimated at over 13 mmt. The main producers are the United States, representing 31% of the total production, South America and the European Union (30% each) and Australia (6%). The total global production of animal fats is over 10 mmt. The top producers reflect those for animal proteins. Chinas overall use of protein meals (expressed as soy meal equivalent) is rapidly increasing, while usage in the E.U. and U.S. is relatively stable. The main global importers of processed animal protein meals during 2005-2010 were Indonesia (79% change in these five years), Thailand (511%), Vietnam (208% ), China (177%), Bangladesh (155%), Mexico (-21%), Philippines (854%), Russia (105%), U.S. (-18%), Taiwan (27%) and Egypt (99%). These countries were responsible for over 1.8 mmt of exports of processed animal protein meal products a global increase in exports of 75% for the five-year period covered.

site control, protecting biodiversity and limiting habitat impacts, climate change and limits to freshwater availability. Without minimizing the nature of the current and future challenges, she pointed to the essential role that innovative products and practices will have to play. Overall, she concluded that environmental sustainability is not a barrier to industry growth, stating A growing population of increasingly environmentally aware seafood consumers creates the opportunity for the development of innovative, healthy seafood products in an environmentally, and therefore financially, sustainable aquaculture industry.

The GOAL feed panel which included John Peppel (left), Gustavo Cannavina and Jonathan Shepherd provided updates on feed ingredients and innovations.

The GOAL 2011 session on feed evaluated the availability of feed ingredients to meet the projected demands of the rapidly growing aquaculture sector. John Peppel, senior vice president of Cargill Animal Nutrition, moderated.

Grain, Oilseed Trends

Marine Ingredients

Industry Outlook

Aarskog provided a comprehensive account of how Marine Harvest addresses the need for sustainability, and gave a robust defense of aquaculture based on the fact that it is more efficient than its alternatives. He pointed out that, according to Rohana Subasinghe of the FAO, projected population growth will require at least an additional 40 mmt of aquacultured food by 2030. Aarskog identified the need to develop new markets and products, and to seek alternatives for established marine raw materials in feed to enable growth from a finite resource of forage fish and preserve wild stocks. He also focused on fish health and interactions between wild and farmed fish, and the importance of effective management of diseases and sea lice. Overall, Aarskog called for greater transparency and improved dialogue so the salmon industry can, as he eloquently put it, move out of the trenches. He said polarized debate does not foster sustainable development, and that the industry must drive toward responsibility with a proactive focus on the long term, decency and solutions via stakeholder dialogue.

In addressing grain and oilseed trends, Gustavo Cannavina, origination and trading manager of Cargill Americas Inc., said the volatility of prices for grain, rice and major oilseeds has increased markedly over the last 25 years due to diminishing inventory levels. World stocks of grains have been relatively stable around 350 mmt, but the ratio of grains in stock to grains in use (an indicator of inventory) has declined from greater than 25% from 1985 to 2002 to about 15% since 2003. With little buffer in supply, prices are reacting dramatically to relatively modest swings in production. Cannavina explained that the increasing demand for grains and oilseeds is driven by the trend for increasing consumption of vegetable oils, meats and sugar seen with rising per-capita income. In addition, biofuel production has dramatically increased since 2000. This is now diverting 8% of world grain production for ethanol and 14% of world vegetable oil production for biodiesel. Cannavina said the increasing production of grains and oilseeds has mainly been accomplished through improved crop yields, not greater farming area (Figure 1). Crop yields are increasing through intensification of farming practices, increased irrigation and fertilization, and improved genetics. Although additional farming area is available for expansion in North and South America, Eastern Europe and Africa, this area is limited, and major investment would be required to develop infrastructure in new farming regions. In summary, there is scope to increase production of grains and oilseeds to meet global demand, but limited inventory implies little margin for error and continuing price volatility.

Jonathan Shepherd, director general of the International Fishmeal and Fish Oil Organisation (IFFO), reviewed the status of fishmeal and fish oil use in aquafeeds. Fishmeal and fish oil contain highly digestible amino acids and fatty acids that are essential for aquaculture organisms, but the global annual supply of fishmeal is limited to 5 or 6 mmt and fish oil to 1 mmt. As the demand for these ingredients grows and their prices increase accordingly, their use is being focused more in aquafeeds for critical life stages such as reproduction and larval development. Their usage in growout feeds is gradually diminishing due to substitution by more-available and less-expensive vegetable proteins and animal by-products. Over the last decade, Shepherd said, the volume of global aquaculture that relies on feeds has grown 97%, while marine ingredient use grew only 23%. Shepherd discussed efforts by IFFO to assure the whole fish used for fishmeal and oil production come from well-managed fisheries and that resulting products are safe and pure. IFFO has introduced the Responsible Supply (R.S.) certification program for fishmeal and oil factories, which includes responsible sourcing of wild fish and by-product raw materials, production and custody. With standards developed by a multistakeholder committee and third-party audits, the business-to-business R.S. program is recognized in the BAP feed mill certification standards. Shepherd reported that 73 factories in six producing countries have achieved R.S. certification, with nine more pending. That amounts to 50% of IFFO member production capacity for fishmeal and fish oil, and over 25% of total world capacity. While the R.S. program is growing strongly in the Americas and Europe, it will be more of a challenge in Asia, where fisheries management data are often lacking.

Animal-Based Ingredients

Soy Alternatives

David Kaluzny, chairman of the World Renderers Organization, discussed the supply of animal protein meals and fats as

During a luncheon extension of the GOAL feeds session, Michael Cremer, aquaculture utilization director for the United States Soybean Export Council (USSEC), discussed innovations global aquaculture advocate January/February 2012

16



17

goal 2011 reviewin the use of soy as an economically viable and sustainable alternative to fishmeal and fish oil in aquafeeds. Soybeans are used to produce soybean meal, soy protein concentrates (SPCs), soy oil and lecithin. Cremer reported that 30 mmt of freshwater fish are now produced using all-plant-protein diets. Much of the expansion of aquaculture growth is forecasted to occur in the marine sector. Cremer reported that many marine fish and crustacean species are unable to tolerate all-plant protein feeds, but perform well on SPCs processed to remove allergens and anti-nutritional factors. USSEC trials showed that cobia performed as well on a diet with 3% fishmeal, 30% soybean meal and 40% SPC as on a diet with 64% fishmeal. Advances in soybean research are yielding promising results that could make soy an even more viable option for sustainable aquafeeds. The complete soybean genome released in 2008 has revealed thousands of genetic markers for potentially important qualities in soybeans. High-protein genetic lines of non-GMO soybeans are now becoming available with low levels of allergens and anti-nutritional factors, which allow greater inclusion levels without the expense of SPC. Cremer also described research on reducing the fish oil requirement in aquafeeds without compromising important health benefits. Part of this research has focused on alternative feeding regimes using vegetable oils for most of the production cycle followed by a finishing diet with fish oil to allow accumulation of long-chain omega-three fatty-acids in the final product. Other research has evaluated soybean oils genetically modified to include stearidonic acid, a precursor to EPA, an essential omega-3 fatty acid with important heart benefits. Promising advances are also being achieved in stacking high-value carotenoid genes such as astaxantin and beta-carotene into soybeans. Increase, Indexed to 1975 (%)200 190 180 170 160 150 140 130 120 110 100 90 1975 1980 1985 1990 1995 2000 2005 2010 Production Yield Area

MARKET: Commitment To Responsibilitysuppliers, producers and farmers in the audience to do their part to ensure they were wholly engaged in the practices of responsible sourcing. Many buyers made it clear they are only purchasing responsibly produced aquaculture products, and that business partners without responsible policies could face a barrier going forward.

Keynotes

The panel discussions were designed to give a full supply chain view of aquaculture seafood and its current market issues.

Figure 1. Genetic improvements and fertilizer intensification have driven the supply expansion of grains and oilseeds not increases in farming area.

The three panels at the core of the marketing sessions at GOAL 2011 addressed subjects that ranged from the challenges of sourcing enough product to feed the growing world population, to feed issues and genetically modified organisms as they provided viewpoints from the perspective of the end users of aquaculture.

Engaging Panels

The format of the panel discussions was designed to give a full marketplace supply chain view of seafood and the issues that surround the sourcing of seafood in todays markets. The retailers, foodservice operators and suppliers on the market panels were very diverse, representing large and smaller retail chains, club stores, traditional retail, buyers and sustainability personnel. The depth of knowledge of the panelists was impressive, and their participation revealed their personal involvement with emerging issues. Those on the panels, for example, were quick to challenge the

On either side of the panel schedule were keynote presentations. Dr. Albert zeufack of the World Bank gave an excellent presentation that challenged the marketplace to look at alternate markets for the development of aquaculture supply in the future. Referencing the growing world population and the need for more and more seafood, zeufack encouraged buyers to seek out non-traditional markets, such as Africa. He noted that the benefits of retailers working with investors and host countries could provide an innovative, yet very workable model for the coming years. Such a model could also be the key to unlocking development in emerging and developing countries. Preferred Freezer Services CEO John Galiher provided a passionate and thoroughly engaging view of the domestic Chinese seafood marketplace. Before discussing China, Galiher emphasized that retailers and seafood distributors should not be concerned about price premiums for sustainable fish, because non-sustainable fish should not be provided as a choice. Galihers Chinese marketplace 101 speech covered many points, including the retail landscape, the growing (and shifting) population base, where to geographically target a business launch and, importantly, the need to have realistic expectations. Galiher repeatedly made the claim that China is a marketplace where, businesswise, you cant put a toe in the water to test the temperature. It takes a totally dedicated, all in approach to be successful.

Shepherd Receives GAA Achievement AwardKontali Analyse: Your source to production & market updates!Kontali has become one of the world's leading providers of business intelligence for the aquaculture and fisheries industry, based on: Market and production forecast models for salmon, trout, cod, sea bass, sea bream etc. Team of experts covering all commercially significant aquaculture segments. One of the worlds most comprehensive databases of aquaculture figures and statistics. We offer: Regular publications Research services and tailor made reports Consulting services Presentations and workshopsLearn more: www.kontali.comJonathan Shepherd, who recently retired as director general of the International Fishmeal and Oil Organisation (IFFO), received the prestigious GAA Lifetime Achievement Award at GOAL 2011 for his achievements in science, business and association leadership. Shepherd received bachelors, masters and doctorate degrees in veterinary science at Liverpool University Veterinary School and Stirling University. His achievements in science included co-founding the Aquaculture Institute, bringing fish health into the veterinary ambit, and writing two books and various papers on aquaculture. Shepherds achievements in business were diverse. In 1976, Shepherd founded and directed Fish Farm Development International. In 1984, he joined Unilever to analyze the new business development strategy for formation of Marine Harvest. From 1984 to 1987, he assisted P.H. Pharmaceuticals in developing products for aquaculture. From 1987 to 1990, Shepherd helped Prodemar set up in Spain the largest turbot farm in the world. Until 2004, he served as Biomars group manager for factories in Norway, the United Kingdom, Denmark, France, Greece and Chile. Shepherds achievements in association leadership reflected his accomplishments as director general of IFFO from 2004 to 2011. He was responsible for modernizing the not-for-profit trade association and shifting its focus toward the overall value chain.

Jonathan Shepherd (right) was recognized for his varied achievements in science and business, as well as his recent work with IFFOs responsible feed supply standards.

Contact us at tel (+47) 71 68 33 0018January/February 2012 global aquaculture advocate

Through his leadership, IFFO launched the global industry standard for Responsible Supply, which is incorporated in the Best Aquaculture Practices feed mill certification standards. This has allowed the industry to proactively assume a more responsible and sustainable position with external stakeholders. global aquaculture advocate January/February 2012

19

goal 2011 reviewSOC Considers Revised BAP Standards, GuidelinesThe program is growing and, prior to the recent flooding in Thailand, BAP farms received a price premium for their shrimp. The IOM model is now applied in India and to catfish farms in the United States. Greater definition in the requirement for internal quality management systems may be needed in the future. Strategic questions regarding the potential equivalence of Thai Code of Conduct or GlobalGAP certificates also remain. Dr. John Forster, head of the BAP Salmon Farm Technical Committee, is leading the process of converting the existing shrimp hatchery standards into a generic set of standards that could also be applied to fish and mollusks. It was considered that a proper review process would entail the use of an expert panel covering genetics and biodiversity, as well as species-specific hatchery management. Forster also outlined a pilot review of a case study on Chiles crisis with infectious salmon anemia. It was determined that the close geographic concentration of the industry likely exceeded the areas carrying capacity and led to the ISA crisis. The SalmonChile group introduced sanitary measures to combat the disease, but ISA is now endemic. Increased biosecurity and private/public coordination are essential for the industrys future. fication to the supply chain, but BAP Director William More indicated fees will be affordable. For shrimp, the cost of BAP certification works out to about U.S. $0.25/lb, which compares favorably with comparable certifications. BAP Standards Coordinator Dan Lee insisted the BAP salmon standards will prove to be rigorous, workable and affordable. At the end of the salmon discussions, meeting participants seeking more details were invited to a BAP seminar in Puerto Montt the following week.

Hatchery Standards, ISA Study

Traceability

Jeff Peterson said BAPs integrated operating module program for smaller farms is expanding to new areas. Key points from the BAP Standards Oversight Committee (SOC) meeting held during GOAL 2011 included discussions on the salmon farm standards, integrated operating modules and restructured hatchery standards. New SOC member Dr. Alejandro Buschmann, head of i-mar Research Center, was welcomed to the group at the meeting in Santiago, Chile.

GOAL 2011 provided an opportunity for the BAP program to seek stakeholder input from different sectors of the seafood value chain.

Lisa Goch, newly appointed vice president of BAP, gave an account of the recently modified BAP requirements for traceability. Previously, online or full-chain traceability was required, but more flexibility is now permitted. In-house systems that robustly assure a minimum of 1 up, 1 down traceability are also acceptable, provided they can deliver the required level of rigor.

Mussel Standards

Salmon Standards

Auditor Guidelines

Feedback received on pilot audits utilizing the BAP salmon standards indicated more clarity may be required regarding carbon:nitrogen ratios and methodology, and details of area management agreements. BAPs requirements for inventory precision and reductions in releases of anti-foulants were considered very strict. Pilot audits revealed fish in:fish out ratios of 1.16 to 1.22, which were well below the BAP maximum of 2.00 and five-year target of 1.50. However, better documentation is needed on Wildlife Interaction Plans. The salmon database was also discussed at the meeting in Chile. A study of audit data by New England Aquarium was identified as a possible model for future work on a system that manages data with a required level of anonymity.

It was agreed that auditor guidelines must be generated with input from the BAP technical committees whenever there is a need to clarify the intent of a standard. Pilot audits of salmon farms in Canada and Chile are yielding feedback for such guidelines. It was felt the auditor guidance should be made available online as well as supplied to auditors.

BAP Program Update

IOM Expansion

Jeff Peterson provided an update on BAPs integrated operating module (IOM) option that allows small and medium-sized producers to work cooperatively toward certification. The IOM concept was initially tailored to conditions in Thailand, where only 10 of 178 BAP-certified farms are not part of IOMs.

BAP officers Jim Heerin and William More said the integration of Aquaculture Certification Council as BAP Management, a division of the Global Aquaculture Alliance, is nearly complete. Since BAP Management is entirely divorced from the certification bodies that perform certification audits, it can assist farms in preparing for BAP audits. Its remaining assets will transfer to the non-profit Responsible Aquaculture Foundation, whose mission addresses education, training and research. BAP program fees, most of which come from certified processing plants, are paid to GAA. A new fee structure may be needed for salmon facilities because of the 2- to 3-year cycle involved in salmon production. About 700,000 mt of farmed seafood is now produced by BAP-certified facilities annually.

and BAP representatives in attendance. John Forster, chairman of the BAP Salmon Farm Technical Committee, gave a brief history of the development of the salmon standards and joined in discussions related to the results of a series of pilot audits in Ireland and New Brunswick and British Columbia, Canada. It was announced that another pilot audit will be conducted in Chile for Camanchaca. Issues of particular interest were the fish inventory standard, which at 3% was considered a challenging requirement because the industry norm is 3 to 5%. The requirement for annual reductions of 20% in the release of copper anti-foulants was also considered an objective that would require significant innovation to achieve. It was pointed out that in-situ net cleaning, which is often proposed as an alternative to the use of anti-foulants, is not allowed in certain jurisdictions because it can also have negative environmental impacts due to the accumulation of detritus on the seabed. Another topic that came up for discussion was the importance of withdrawal periods for sea lice treatments. Some participants expressed concerns about the cost of certi-

The BAP mussel farm standards are of interest in Chile because this species is produced there in large quantities. The Mussel Technical Committee, which includes two Chilean representatives, was expected to complete an initial draft of BAP standards for mussel farms before the end of 2011. As filterfeeding bivalves, mussels are relatively benign in environmental terms, but mussel standards need to be particularly robust with regard to food safety risks.

Other Standards

Discussions of other BAP standards focused mainly on shrimp, tilapia and Pangasius. One tilapia producer expressed concerns regarding a lack of momentum for BAP in the retail community and that his support for BAP was not translating into a clear market advantage, as hoped. Jeff Peterson of BAP Management described the ongoing process to realign the existing farm standards into a core set of standards applicable to all species with a series of species-specific appendices. At the same time, the old scored audits will be replaced by the newer conformity audits, which are favored because they are considered more objective and give facilities a more clearly defined set of requirements.

Best Aquaculture Practices Auditor CourseFebruary 6-12, 2012Bangkok, Thailand Anantara Bangkok Sathorn Hotel Registration Deadline: January 16, 2012Open to any qualified potential auditor candidate or anyone wishing to learn more or update their knowledge of the various BAP standards.

BAP Meetings Focus On Salmon StandardsThe GOAL 2011 conference in Santiago, Chile, provided another great opportunity for the Best Aquaculture Practices (BAP) certification program to seek input from stakeholders engaged at different levels of the seafood value chain. Feedback obtained at the series of open BAP meetings will be used to refine the BAP standards. For example, the BAP salmon farm standards were due to be reviewed at the end of 2012 to make sure they function well in practice with regard to auditability and consistency of interpretation.

Salmon Standards

Given the importance of salmon farming in Chile and the recent launch of the BAP salmon standards, plenty of time was devoted to salmon discussions among the experienced auditors

Auditor Candidates: U.S. $1,800 Upgrading Farm Auditors: U.S. $900 Returning Auditors: U.S. $200 Observers: U.S. $500

Visit www.bestaquaculturepractices.org for registration forms and more info.

Course applicants must demonstrate competence and experience in aquaculture and seafood. global aquaculture advocate January/February 2012

20



21

goal 2011 reviewGAA Board Reviews Programs, Plans Future Robin Bessier-Downey (Owner/vice president of Discovery Bay Shellfish, Inc., USA) James Wilson (Private sector grower, United Kingdom) Eugenio Raul Yokota Beuret (General manager of Granja Marina Chauquear Ltda, Chile) John Bonardelli (Shellfish Solutions, Norway) Jos-Miguel Fuentes Gonzlez (Scientist at Centro de Investigacins Marias, Spain) David L. Jarrad (Director of Shellfish Association of Great Britain, United Kingdom) Pappurajam Laxmilatha (Scientist at Central Marine Fisheries Research Institute, India) Fang Jian-guang (Director of Mariculture Department at Yellow Sea Fisheries Research Institute, China)Members of the GAA board discussed BAP and a range of other topics at the meeting in Chile.

George Chamberlain recapped GAAs busy 2011, which included advances in BAP certification and other areas.

BAP Certification Management

On November 6, the Global Aquaculture Alliance board of directors met in Santiago, Chile, prior to the GOAL 2011 meeting. After introductions, GAA President George Chamberlain briefly reviewed the busy agenda of GAA activities that occurred since the March 2011 board meeting in Boston. Minutes from the Boston meeting were approved, as was the 2012 budget, which indicated a solid financial position for the coming year. Best Aquaculture Practices (BAP) Standards Coordinator Dan Lee provided an update on BAP standards development. He indicated Dr. Alejandro Buschmann had joined the BAP Standards Oversight Committee (SOC). Buschmann is head of i-mar Research Center and former director of research and graduate school at the Universidad de Los Lagos in Puerto Montt, Chile. Buschmann replaced Dr. Charles Santerre, professor of foods and nutrition at Purdue University. Board members congratulated Dr. John Forster, chairman of the BAP Salmon Farm Technical Committee, for overseeing the completion of the BAP salmon farm standards. Continuous improvement of the standards is already under way through trial audits of salmon farms in Chile. Ongoing issues for the standards may include inventory accuracy, clarifications on chemical and drug use, and use of marine-based feed ingredients. Early indications are that some Chilean salmon-processing plants may require additional effluent treatment to comply with BAP effluent standards. Lee indicated that the mussel standards committee nominations have been confirmed by the SOC, and draft standards are in preparation. The committee consists of: Andrea C. Alfaro, Chair (Researcher at Auckland University of Technology, New zealand) Cyr Couturier (Research scientist at Memorial University, Canada) Denis Minihane (Managing director at Bantry Bay America, USA) Fiona J. de Koning (Acadia Aqua Farms, USA)

BAP Executive Director Jim Heerin provided an update on the administration of the BAP certification program. Integration of the former Aquaculture Certification Council into the BAP division is essentially complete. Lisa Goch, BAP vice president, said the re-benchmarking process is under way for version 6 guidelines of the Global Food Safety Initiative. She also discussed the new policy for offering either online traceability or chain-of-custody audits as traceability options for BAP facilities.

replace his seat are being accepted by election committee members Bill Herzig, Iain Shone and Sergio Nates. Names will be accepted until January 11. To be considered for the GAA board, candidates must represent a current GAA Governing or Association Member. The election will take place at the March board meeting in Boston, Massachusetts, USA.

BAP Marketplace

Difference Study

BAP Standards Advance

Vice President of BAP Development Peter Redmond summarized the growing marketplace adoption of BAP standards. He introduced Emil Avalon, Roy Palmer (not present at meeting) and Molly Metcalf, who have been hired to assist as BAP business development managers for Europe, Australasia and North America, respectively.

GOAL Program

GAA Assistant Director Sally Krueger provided a preview of the upcoming GOAL meeting in terms of registration, sponsors and logistics. Chamberlain recapped the planned highlights of the GOAL conference, whose varied sessions were related to the conference theme of Double in a Decade Responsibly. The program schedule included a new segment on aquaculture investment, a review of the Fish 2030 economic model, updates on Chiles recovery from ISA and ancillary meetings on aquaculture-related business innovations. The GAA board continued to weigh the benefits of different venues for GOAL 2012. Asia will be the general region for the event. Thailand is currently a strong contender, but the final decision will be made later in 2012.

GAA Executive Director Wally Stevens discussed the early results of the making a difference study led by Michael Tlusty of the New England Aquarium, who is a member of the BAP Standards Oversight Committee. Tlusty is surveying BAP-certified facilities to determine the ways that BAP certification affects their operations. For the 60 farms surveyed to date, BAP has made a clear difference in improving practices for at least 30% of the farms.

Nutritionists know plant- based sources of omega-3 and protein can never measure up to the most natural feed sourcemenhaden. Menhaden fish oil and fishmeal provide the essential nutrients to improve feed conversion, optimize growth, and produce healthier fish. More nutritional benefits. More results. Omega Protein has the products, resources and expertise to help you create a better feed.

Answering Fraud

Investor Interface

John Galiher presented a prototype website interface for investors that will allow investors and aquaculture projects to link according to preferred region, species and scale of project. Plans are to launch this website in the spring.

Stevens invited John Connelly, president of the National Fisheries Institute (NFI), to address the question of genetic fraud in seafood. Connelly said NFI has determined that most instances of species misrepresentation are restaurant fraud and not seafood fraud. NFI has offered to work with GAA to reach beyond the U.S. to importing shores to alert foreign governments for assistance in addressing this issue.

www.OmegaNutrient.om 877.866.3423

Election Coming

GAA Director Ole Norgaard has announced he will retire and leave the board in March. Suggestions for candidates to global aquaculture advocate January/February 2012

22



23

gaa activitiesPuerto Montt Seminar Features BAPstandards, developed by the Global Aquaculture Alliance, have had an environmental focus since they began to take shape in 1999. Now expanded to also address social responsibility and food safety, BAP certification has gained a high profile around the world. BAP certification is available for farms, hatcheries, processing plants and feed mills. It covers shrimp, tilapia, catfish and Pangasius, and is beginning to certify its first salmon farms. Peterson said BAP audits are performed in two to three days. They include reviews of the physical plant, collection of effluent and product samples and a review of management procedures and documents. BAPs farm standards place special emphasis on the sustainability of feed ingredients, especially fishmeal and fish oil. Facilities must safeguard the safety of their employees, Peterson said. In addition, facilities must comply with local and national laws, and maintain good relations with local communities. Several salmon-producing companies in Chile have begun the process of BAP certification. Seminar organizer Adolfo Alvial of Adolfo Alvial Consulting is assisting in their preparation. He helped provide copies of the BAP standards for salmon farms, processing plants and feed mills in Spanish.

New Certified Facilities Join BAP ProgramA new round of aquaculture farms, hatcheries and processing plants recently joined the growing list of global facilities certified to the Best Aquaculture Practices (BAP) standards. As reported in a separate article, British Columbia-based Mainstream Canada became the first BAP-certified salmon farm in December 2011. The company produces approximately 25,000 mt of Atlantic salmon annually at its 25 farm sites. The West Coast Frozen Foods Private Ltd. facility in Kodinar, Gujarat, India, became the newest BAP-certified shrimp hatchery in December. West Coast, the only integrated Indian aquaculture venture, offers quality black tiger shrimp to Indian as well as global markets year round. Its quality program encompasses everything from seed to final packaging, with guaranteed traceability. The Phatthana Seafood Co., Ltd. plant in Amphur Muang, Songkhla, Thailand, is the latest facility to be certified under the BAP three-star banner of Rubicon Resources, a leading importer and distributor of sustainable seafood in North America. Founded in 1999, Rubicon Resources is a vertically integrated group that has nine BAP-certified plants, some 30 certified farms and four certified hatcheries in Thailand. In late November 2011, certification of the Jiatan Reservoir Tilapia Cage Farm and Hainan Eternal Spring Fisheries Co. Ltd. in Chengmai, Hainan, China, established BAP two-star status for the companies. Their main products are frozen and breaded tilapia fillets, whole tilapia, and gutted and scaled tilapia. zhanjiang East Sea Kelon Aquatic Products Co., Ltd. in zhanjiang, Guangdong, China, was certified to process shrimp and tilapia. Operating under Aquafreezer Co., Ltd., a Hong Kong-based enterprise, it conforms to European and American sanitation standards and has a projected annual production capacity of 20,000 mt. Several new facilities in Vietnam and Thailand were also certified in November. NTSF Seafoods JSC Tan Loc Farm in Can Tho, Vietnam, became the BAP programs third farm certified to produce Pangasius. It is one of several farm facilities that operate within the NTSF Seafoods integrated group. The Siam Union Frozen Foods Co., Ltd. plant in Muang, Samutsakorn, Thailand, was certified for shrimp production. Established in 1986, the company delivers quality shrimp by monitoring production from peeling and packaging to delivery, with each shipment tested for antibiotics and microorganisms before shipping.

Jeffrey Peterson told his audience that BAP certification has gained a high profile in the seafood community.

A November 2011 seminar on the Best Aquaculture Practices (BAP) program attracted 40 participants to the Universidad de Los Lagos in Puerto Montt, Chile. Director of Quality Jeffrey Peterson explained that the BAP

Imaex Trading Rejoins GAAGAA welcomes the return of Imaex Trading Co. as a Governing Member. Since 1994, Imaex Trading has been producing, importing and distributing frozen seafood products sourced from around the world. Headquartered in Atlanta, Georgia, USA, it delivers a product mix that includes shrimp, tilapia, squid, surimi, mussels, crabs, salmon and tuna. Imaex Trading works closely with seafood-producing companies in Asia, Central and South America.

Best Aquaculture Practices Program Certifies First Salmon FarmBest Aquaculture Practices has further advanced as the leading international certification program for aquaculture by certifying its first salmon farm. Mainstream Canadas Brent Island farm near Campbell River, British Columbia, Canada, was audited in October and received its formal BAP certification notification December 12. The Global Aquaculture Alliance proudly congratulates Mainstream Canada for leading the industry in achieving the first BAP salmon farm certification, Global Aquaculture Alliance President George Chamberlain said. This prestigious accomplishment culminates a three-year development process for the standards that involved dedicated NGOs, academics and industry representatives working together to develop consensus-based salmon standards that benefit the community, the environment and consumers. By meeting the BAP standards, we are proving our commitment to find ways to constantly improve our operations as part of our sustainability principles, Mainstream Canada Managing Director Fernando Villarroel said. Our vision as part of the Cermaq Group is to be a global leader in the aquaculture industry, and we are committed to creating value through sustainable aquaculture. Mainstream Canada is one of the largest salmon-farming operations in British Columbia, Canada. The company currently operates three sites near Campbell River, including the Brent Island site. It also has eight sites near Port McNeill and 14 sites near Tofino in Ahousaht First Nation territory under a comprehensive protocol agreement. The company produces approximately 25,000 metric tons of Atlantic salmon annually. BAP certification is based on the international Best Aquaculture Practices standards developed by the Global Aquaculture Alliance. For salmon and other major farmed species, BAP requires effective management of animal health, feed inputs, water quality and food safety. In a process that includes site inspections and in-depth audits, social responsibility and traceability are additional requirements.

Roy Palmer To Represent BAP In AustralasiaRoy Palmer has joined the Best Aquaculture Practices international marketing team as BAPs new business development manager for Australasia. Palmer will help manage relationships with seafood suppliers, buyers, retailers and foodservice outlets on the Australian continent. Australian and New zealand retail and foodservice operators are realizing the Roy Palmer im

globalenefeb2011

Documents

new aquaculture drugs

responsible aquaculture

aquaculture of amazon

new metric

new jersey

farmed seafood januaryfebruary

seafood markets shrimp

global reach