Einar Wathne, Deputy COO EWOS
DAY ZERO March 6 - Marine Innovation Seminar/ NASF 2012
You become what you eat. Feeds for
productive and healthy fish and healthy consumers
Knowledge makes the difference
Approach
Introduction to EWOS
Productivity and feed
Healthy fish
Healthy consumers
Outlook
3
EWOS in a Nutshell
A world leader in fish nutrition
Established in Norway, UK, Chile, Canada and Vietnam 897 employees
7 factories
22 feed production lines
36 % share of the world salmon feed market (>2.9m tonnes) 1,081,400 tonnes feed sales in 2011
100% owned by Cermaq ASA
Feed sales volumes since 1980 Compound growth >18% per year
0 200 000 400 000 600 000 800 000 1 000 000 1 200 000
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
Feed Sales (tonnes)
EWOS NorAqua /FK
FCR reduction, the trend of the -80 ies and -90 ies
0 100 200 300 400 500 600 700 800 900
0 0,5 1 1,5 2 2,5 3
1980 1985 1990 1995 2000 2005 2008
1000 ton
Kilo feed per kilo fish produced
FCR Production
Source: Ragnar Tveterås, University of Stavanger
Raw material changes, the trend of the last decade
0 10 20 30 40 50 60 70
2002 2003 2004 2005 2006 2007 2008 2009 2010
Marine ingredients (%)
Fishmeal Fish Oil
Continuous feed price reduction over 25 years
Prices fishfeed 1985 - 2010
4,0 6,0 8,0 10,0 12,0 14,0 16,0
1985 1986
1987 1988
1989 1990
1991 1992
1993 1994
1995 1996
1997 1998
1999 2000
2001 2002
2003 2004
2005 2006
2007 2008
2009 2010
NOK pr. kg feed
Feed price (nominal prices)
Feed price (inflation adjusted prices)
Base year 2009
The rate of price reduction is declining
Innovation and adaptation to new raw materials is a prerequisite for
continued reduction in real terms
The sum is a significant reduction in cost of production for salmon
0 10 20 30 40 50 60 70 80
NOK/kg
Source: Ragnar Tveterås, University of Stavanger
500 grams
4 weeks
1000 2000 3000 4000 5000 6000 7000
Recent years focus has been high
growth performance feeds and
adaptation to regulatory regimes
What is the value of growth?
Our model use following input parameters
Production parameters (feed dependent)
• Growth rate and size distribution
• Production time
• Mortality
• Feed conversion ratio (FCR)
Economical parameters
• Smolt cost
• Feed cost
• Salmon price per size interval
• Cost of transport, slaughting & packing
• Capital interests – capital cost
• Other variable costs
• Fixed costs
10
500 grams
4 weeks
1000 2000 3000 4000 5000 6000 7000
Salmon price pr kg 30,00 kr Add-on EWOS opal 120 4,50 % Increased margins pr kg 11,80 %
Recent years focus has been high growth performance feeds and adaptation to regulatory regimes
Salmon price pr kg 30,00 kr Add-on EWOS opal 120 0,33 kr Difference (120-110) 3 808 638 kr Increased margins pr kg 1,49 kr
At low salmon prices;
will functional grower feeds still be more beneficial than standard feeds?
Currently many salmon farms see productions costs about 25 NOK/kg Benefit of increasing production volume by using functional grower feeds is maintained for prices far below break even costs (25-13 NOK/kg), as higher sales volumes
increases the cash flow to cover fixed costs
12
Functional feeds, the most innovative segment in the feed sector
Functional diets can increase survival
This may be >60% compared to control diets Well recognised in human and animal medicine Dietary control used in pancreatitis
Used increasingly in aquaculture
Survival of fish challenged with virus:
Infectious Salmon Anaemia ISA.
Differences in survival are due to changes in key nutrients.
0 5 10 15 20 25 30 35 40 45
1 2 3 4
% Mortality
Diets
What is availible ?
Nucleotides
Immunostimulant Anti-attachment Prebiosal
Optimize feed ingredients based on life-phase and
healthstatus
EWOS health diets 2012
Functional feeds are availible if necessary during the entire production cycle
Virustiter Medicated
delousing
Time
Transfer Disease
Recovery Preventive
Public health and fish diets
The role of fish diets and CHD, Coronary Heart Disease in Humans
– an overview based on two recent Norwegian public reports and recommendations
1). National recommendations for individual primary prevention of Coronary Heart Disease Norwegian Health Directorate, issued 04/2009, p 1 – 137
2). Fish and seafood consumption in Norway .– Benefits and risks. Norwegian Scientific Committee for Food Safety, issued 03/2006, p 1 – 171.
Health benefits of eating oily fish are well documented
Demand for EPA/DHA is running ahead of available supply from wild fish sources
• Alternatives (krill, algae, calanus) are presently only available in small volumes
Salmon farming is an efficient way to make these valuable resources available for
humans
We have to optimise our use of this limited resource
• Salmon has a high retention of omega 3 and by-products are
‘recycled’
• The practise of refining oil for capsules is, in contrast, very in-efficient
6.6mt Farmed salmon (wfe)
(eFCR 1.3:1)
2.7 mt 40% non-fillet part
of salmon
52kt Of retained EPA+DHA
in non-fillet part 26% retention
4.0mt 60% fillet part
of salmon
56kt Of retained EPA+DHA
in fillet 28% retention
Good for 589m people 8.4% of the world
population (ISSFAL advice:
183g EPA+DHA/year) 92kt EPA+DHA lost
46% loss
Including salmon byproduct if all available fish oil (200kt EPA+DHA) was used for salmon farming
Source: EWOS Innovation 6.6mt
Farmed salmon (wfe) (eFCR 1.3:1)
2.7 mt
40% non-fillet part of salmon
52kt
Of retained EPA+DHA in non-fillet part
26% retention
4.0mt 60% fillet part
of salmon
56kt
Of retained EPA+DHA in fillet
28% retention
Good for 589m people 8.4% of the world
population (ISSFAL advice:
183g EPA+DHA/year) 92kt
EPA+DHA lost 46% loss
And more recently, exciting news….
But not all understand the context…..
Knowledge makes the difference
Thank you for your attention
EWOS© 2011
