4/2010Internal newsletter for Skretting worldwide

New species on the menu for Skretting ARCWith salmon as its locomotive, Skretting ARC has its sights on the future, which includes new countries and new species.

Skretting ARC has an exciting future, as the Skretting Group continues to establish itself in new countries and markets. Alex Obach, Managing Director of Skretting ARC, envisages a future where salmonids will continue to be the locomotive at the same time as there is increasing focus on other species.

“Even though we made a quantum leap forward in the salmon world with Micro­BalanceTM, there is still much to learn. We need a species we know “everything” about, especially because much of the knowledge we acquire can be transferred to other species. At the same time, Skretting is in the process of establishing itself in countries that offer new opportunities with species that up to now we have not worked with,” he says.

Great potential for shrimp feedOne of the most exciting species is not even a fish. It is shrimp. Through acquisitions in Vietnam and Brazil, Skretting has secured production facilities and important know­how in shrimp feed. Those who think the shrimp market is as small and delicate as the species itself should think again.

”The global shrimp feed market in 2008 was around 4 million tonnes. In comparison, the equivalent market for salmon and trout feed was 2.8 million tonnes,” Obach says.

“A lot to learn and a lot to contribute”Shrimps are completely new and exciting to the international research environment at Skretting ARC. Obach believes they can learn a lot from the new countries where Skretting is now present, but also believes that ARC has a lot to contribute.

“Today’s shrimp feeds are based on relatively stable recipes. Those who work with these species have a lot of experience and a good practical understanding of their nutrition. At the same time, I believe that with our competence for example on raw materials

This issue of LINK is the last one to be published on paper. From now on you will find all internal information on Avenu and your local Skretting web site.

One of the most exciting species for future feed development at Skretting ARC is shrimp. The global shrimp feed market in 2008 was around 4.0 million tonnes compared to 2.8 million tonnes for salmonides. Here a local shrimp farmer in Vietnam, where Skretting now has a feed plant.

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SMALL TALK

SuSTAINAbILITy AcTIoN pLAN SooN Approved Skretting’s sustainability action plan is now in the process of being approved by the management team. The process of making the plan was coor-dinated by the sustainability team, but all Skretting companies have contributed both to the common part of the plan and with separate local plans on the topics of reduction of CO2 emissions in their own operations, sustainable HR-management & internal engagement on sustainability and invest-ment in community. The Product Development team, Purchasing team and central HR function also provided input to the plan.

SKreTTINg creATeS TuNA dIeT TeAM Skretting has created an international team with the purpose of developing the markets for AquaSoft tuna feed. The mission is to position Skretting as the leading feed supplier in the emerging worldwide activity of hatchery-pro-duced tuna.

The team is led by Rhys Hauler from Skretting Australia, and also comprises Yuta Hamasaki (Japan), Umberto Luzzana (Italy), Ronald Barlow (Chile), Fernando Sanz Asenjo (Spain), Gavin Shaw (Australia) and Karl Sveinsvoll (Skretting ARC). The purpose of the team is to commercialize AquaSoft in relevant tuna growout markets, and identify fur-ther opportunities in the emerging tuna hatcheries worldwide. Atlantic, Pacific and southern bluefin tuna are species targeted by the team. The mission is to make Skretting the leading feed supplier for these much sought after species.

The tuna diet team is one of three international feed technical teams in Skretting. There is also a speciality feed team and a standard feed team. The teams comprise representatives from most of the Skretting countries.

4-2010 Internal newsletter for Skretting worldwide

and our more structured approach to feed formulation, we can contribute to further developing shrimp feeds,” Obach says.

Sea bass & sea breamShrimps are not the only new species on the horizon; Skretting ARC will also have greater interest in species such as tilapia, pangasius, grouper and sole in the future. We must also not forget sea bass and sea bream; Skretting ARC has carried out research on these for several years now. Senior Researcher Ramon Fontanillas specializes in these species and is currently working on implementing Micro­BalanceTM.

“We had already reduced the fishmeal content before the breakthrough with Micro­

Rhys Hauler is the leader of Skretting’s new tuna diet team.

Selling feed to NigeriaSkretting has a good export business to Nigeria where Durante Fish Industries uses Skretting catfish feeds and sells them to other farmers.

Hans Vink, General Manager of Skretting North West Europe, describes the start. “Durante began fish farming more than ten years ago but real success came after receiving advice from Dutch catfish farmer Willy Fleuren. In 2006 he brought Ade Alekija, the driving force behind Du­rante, to the Netherlands. Alekija was keen to find a new feed supplier and ar­rived in my office for a brief visit. He left three hours later and a strong connection had been formed. Since then we have regularly shipped feeds from Vervins. It

grew from 600 tons in the first year to 3,400 in 2009. Sadly Ade Alekija died that year following his attempts to save stock from a fire that broke out at the warehouse. That stunned the business, which is just begin­ning to grow again, and I felt the loss of a good friend.”

Durante Fish Industries supplies feed, equip­ment, advice and, with its own hatchery, catfish fry. More recently, the company began farming tilapia, with Skretting feed naturally. It has two farms: a recirculation growout facility

Harvesting catfish to sell in the market.

Tiger shrimp (Penaus monodon)

Excellent year for Skretting2010 will be another great year in the history of Skretting. Most Skretting countries have delivered at or above expectations.

2010 has offered a good turnover and profit for Skretting group as a whole. The vast majority of countries have had good years. If I were to high­light someone who has excelled in particular it must be Australia, Chile, Canada, Norway and Turkey.

Skretting Australia is one of the fast­est growing companies in the group and has also this year showed ex­cellent results. This helps to empha­size the need for the investment we are making in Tasmania, which will result in an additional production line and doubled capacity from mid 2011.

Also in the Americas, Skretting had a very good year. Skretting Canada tends to perform well and this is true for 2010. I would also give some extra credit to Chile. Given the situation in 2008 when we were forced to close two factories, the company has made all the right choices and handled a tough situation in an exemplary manner. Now the market is growing again and Chile may be back where they were before the salmon crisis hit, already in 2–3 years.

In the Mediterranean countries, the markets are still characterized by economic turbulence. Even so France, Spain and Italy have all delivered in accordance with expectations. I’m also glad to see that Skretting Turkey went to full capacity, only just over a year after the new factory was finished.

For Norway, 2010 will be another excellent year in terms of r evenue. This year as last year, the capacity was utilized to the utmost in the high season, which tells us that a capacity expansion is necessary in the near future.

2010 was also the year when Skretting bought into the Vietnamese feed market through shrimp and marine feed producer Tomboy. This acquisition opens up new opportunities in Asia which we consider to be the market that offers the greatest potential for growth in the future. Our goal is to be the fish food supplier that builds a bridge between Asia and the rest of the world so it is more than likely that there will be more acquisitions in Asia in the years to come. In particular, China stands out as a market where we want to establish ourselves.

MicroBalanceTM has also left its mark on 2010. The concept was an immediate success in Norway and is now launched or are about to be in most Skretting countries. This includes Japan where the concept has gained acceptance in spite of a very conserva­tive market. It just shows how well documented MicroBalanceTM is.

In short, Skretting is faced with more exciting prospects than ever, while 2010 has offered excellent results. Then it only remains for me to humbly thank you for the great effort this year and to wish you all a happy new year!

Knut NesseExecutive Vice-President

BalanceTM, but it stopped at 15 per cent for Sea Bream and 20 per cent for Sea Bass. With MicroBalanceTM, however, we will probably further reduce the fishmeal content to levels between 5 and 15 per cent,” Fon­tanillas says.

MicroBalance™ continuesThe potential for MicroBalance™ does not stop at Sea Bass and Sea Bream. Yellowtail and trout are the next species in line. Obach sees no fundamental limits to the species that can be fed a diet with MicroBalanceTM.

“There is nothing to stop us using the MicroBalanceTM principles to formulate a feed for shrimps, even though we have no plans for this just yet,” he says.

Local catfish farmer collects his feed.

next to the hatchery and a much larger pond farm. Between them they produce 900 tonnes of fish. The advice, based on genu­ine practical experience, is stimulating catfish farming in the region. “Catfish is seen as an up­market fish so the farmers have a ready market. Some small farmers arrive every day to buy feed, financed from selling fish, and buy bags as small as 500g. Others take deliveries of 20 tons. There are no statis­tics of farm numbers but fish is popular and Nigeria has a population of over 150 million that gradually has more money to spend. The potential is significant.”

Catfish ponds; each pond is operated by a different farmer.

4/2009 Internal newsletter for Skretting worldwide

LINK is published four times a year and distributed to all employees of Skretting.editorial team: Knut Nesse and Skretting communication Team. LINK is published by Skretting, po box 319, N-4002 Stavanger, Norwayenquiries or suggestions for article topics should be sent to Lillian.Hoeivik@skretting.com

4-2010 Internal newsletter for Skretting worldwide

your coLLeAgue IN ITALyName: Francesco Perini.Title: I have a university degree in Environmental Sciences and I work with technical support. Age: 27Location: I live in Genoa, a sea city in the North-West of Italy.

How long have you worked in Skretting? I have been working at Skretting Italy for two and a half years (since January 2008).

describe your job. My job consists of working with customers in calculating the optimum feeding ratio. We do this through an analysis of recent performance. I constantly monitor the growth through biometric sampling (with the Vicass equipment), with a close relationship with the plant technicians and by validating and analysing the data using the Rmax models.

What makes a day at work rewarding and enjoyable? It’s very enjoyable to have a close relationship with the customers and it’s rewarding to see they are asking for my help because they understand the importance of the Rmax project.

The greatest challenges you encounter in your job? I am always challenging myself to expand the project and to help the customers improve their performances.

How do you spend your time of? I usually spend my free time with my girlfriend, my friends and my dog. I also try to play some sports like swimming, skiing, squash and soccer, like I used to do when I was attending university.

Is there something that you want to pass on to your colleagues in Skretting? Looking forward to working with all of you and visiting all the Skretting realities.

High Standards in Osorno PlantThe Osorno plant of Skretting Chile has a solid performance record in various aspects like efficiency, capacity, quality and safety. Although this factory is one of the oldest in Skretting, today some areas look renewed as a result of progressive improvements.

The plant was built in the 70’s to produce animal feed and supply the local cattle industry. At the end of 80’s, BP arrived at this factory through a joint venture called Trouw Suralim. Later, when Nutreco took full own­ership, the company name was changed to Trouw Chile, and several improvements were made to dedicate the plant exclusively to fish feed for the emerging salmon industry. For many years, it was a unique plant in Chile.

The Osorno plant is also the Skretting Chile headquarters. Almost 190 people work in this facility, mainly in the production area. “The plant operates three 8 hour shifts a day with operators working 6 days and 1 day off. The plant team produces more than 150 dif­ferent feeds for species as Atlantic salmon, Coho salmon, Chinook and trout”, explained Jose Gustavo Núñez, Production Manager.  The feed is distributed to the four southern regions in Chile and a minor amount has been exported.

ProductivityThe heavy earthquake (February 27th, 2010) put the Osorno plant on trial. It caused a sharp rise in orders for the plant, which broke its own production record, both monthly and daily. In March, the Osorno plant produced a

record 22,440 tons and set a record of 971 tons in one day.

Ten years ago, the plant had the same four extruders as today and produced 12,568 tons monthly, around 420 tons daily. “The progress is the result of more training and motivation for the production teams and various upgrades that progressively increased productivity, removing technical and operational bottlenecks, and improved product quality”, added Jose Gustavo Núñez.

HSEQSafety is other high concern for our Chilean colleagues. Several plans were developed in recent years to improve the standards. “We are very proud of the results. The Osorno plant qualified in the “excellent” category when it was audited by Nutreco HSEQ. The audit was conducted on October 2010”, said the Production Manager. 

Now the plant is facing new challenges in growing markets with requirements for more flexibility, the high cost of electricity and sustainability. Current and future projects are planned to continue improving the impres­sive Osorno plant performance.