European trends. IFFO conference, Washington
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1 European trends IFFO conference, Washington
2 Fishmeal in Europe supply and demand 2
3 European fish meal consumers have reduced consumption due to high prices. Excess supply when European supply rose net exporter. Focus on sales outside Europe. European residual (consumption-production) Source: IFFO, NSM 3
4 Export statistics from European producers underlines how the market balance in Europe affects sales activity outside Europe Fishmeal exports from Denmark, Iceland and Norway heading out of Europe, E Oversupply Oversupply Undersupply Undersupply Source: SSB, Statistikbanken.dk, Statistics Iceland, NSM 4
5 In periods of excess supply prices on European fish meal fall below Peruvian prices Fishmeal prices from Peru and Iceland, YTD Oversupply Undersupply Undersupply Oversupply Source: SSB, Statistikbanken.dk, Statistics Iceland, NSM 5
6 The significant fall in European fishmeal prices in 2017 has triggered a 25%* increase in fishmeal inclusion rate. Fishmeal inclusion rates in salmon feed and fishmeal prices, E 25% increase in fishmeal inclusion Source: SSB, Statistikbanken.dk, Statistics Iceland, NSM * YTD estimates per july
7 Main customers quest to reduce/eliminate dependency on marine raw material continues. Concept Zero FIFO = 0 OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 7
8 Conclusion on the consumption of fish meal in Europe (and perhaps the world) 2017 The salmon feed industry will increase the usage of fish meal if it becomes price competitive to other protein concentrates. The same industry is however maintaining their focus on reducing the dependency of marine raw material fish meal and fish oil. In their communication when marketing new feed with low inclusion rate of marine raw material the salmon feed industry has a much more balanced approach than before. Fish meal and oil is largely portraited as being sustainable, but limited. OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 8
9 Why are our main customers underestimating the real value of marine raw material?? New trends. 9
10 concept Lowest mortality Best fish welfare Highest yield pr. smolt Highest harvest weight Lowest FCR High growth - high TGC Highest fillet yield, low harvest yield Highest in Omega 3 Highest marked price
11 Some of the benchmarking result with high marine profile
12 The answer - Robust fish Traditionally, nutritional requirements of fish were defined on the basis of growth Nutritional requirements are increasingly defined to ensure that the produced fish are robust to ensure fish health and welfare Large increase in focus and research projects from the leading institutes on salmon Nutrition Major projects initiated to investigate the interaction between nutrition and other stress factors and environment. OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 12
13 Nutritional requirements and robustness Definition of malnutrition is not a set point and can change according to: Stress-level in the fish The amount of handling Temperature Growth speed Life stage There is a significant increase in handling that may affect fish health through increased stress. Ref: Delouzing increasingly through mechanical procedures. Accumulated loss through the entire production cycle generally ranges from 15 to 20 % in the industry (FHF , 2013). OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 13
14 Requirement of Omega-3 in salmon feed Plant Ingredients in salmon feed have increased from 0 to 70 % from 1990 until today Dietary requirement of n-3 fatty acids is reported to be 5-10 g/kg feed depending on experimental conditions. No effect on mortality with 4 g EPA/DHA/ kg feed is found under controlled conditions. Most studies are however on relative small fish in short term trials. Few studies on long-term effects of feeding Atlantic salmon low EPA and DHA levels during their production cycle. Approximately 17 g EPA + DHA /kg is the present level in commercial feeds for salmon. OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 14
15 Low levels of long chain n-3 Pufas and reduced robustness under challenging conditions Trial period: October 2013 November 2014 EPA+DHA EPA+DHA EPA+DHA 2 g/kg 10 g/kg 17 g/kg Start weight (g) BW (g) - Start sea cages 1095b 1183b 1326a Final BW (g) OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 15
16 Low levels of long chain n-3 Pufas and reduced robustness under challenging conditions Trial period: October 2013 November 2014 EPA+DHA EPA+DHA EPA+DHA 2 g/kg 10 g/kg 17 g/kg Start weight (g) BW (g) - Start sea cages 1095b 1183b 1326a Final BW (g) Mortality after delousing (%) OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 16
17 Low levels of long chain n-3 Pufas and reduced robustness under challenging conditions 10 g/kg feed of EPA + DHA in the diet, a level previously regarded as sufficient, was found to be too low to maintain fish health under demanding environmental conditions in sea cages. 16 g/kg feed of EPA and DHA is close to the commercial levels in salmon diets used at present. No signs of any known disease were found, and the fish were concluded to have probably died due to the handling stress after delousing at high water temperatures. NSM-conclusion todays level of EPA+DHA in salmon feed is most likely close to the lowest acceptable level from a fish health ( and sound financial) perspective. OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 17
18 Robustness and value of raw material Latest science indicate that the robustness of salmon is highly influenced by the feed composition Fish oil and fish meal seems to increase robustness If so the value of fish meal and fish oil will again increase This will have to be a central research area for our industry in the years to come. OUR CHAIN OF COMPETENCE SECURES QUALITY FEED INGREDIENTS 18
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