Viggo Halseth – COO Aquaculture
London Seafood Investor Forum
London| 19 November 2013
Agenda
1
Setting the stage
2
Strategy
3
Growth prospects
4
Innovation
2
Doubling food
production
Halving the pressure on
the planet
Feeding 9 billion people
in 2050
3
The essential link
Raw material
markets
Struggling supplies
Animal nutrition
& fish feed
producers
Farmers
Surging Demand
4
Ambition 2016 – driving sustainable growth
Higher value-added
portfolio of
nutritional solutions
Segments Premix &
Feed Specialties and
Fish Feed
Growth geographies
Latin America, Russia,
Asia and Africa
Sustainability
5
Ambition 2016: Fish Feed
Existing
markets
Volume from 1.3
to 1.8 million MT
(2010-2016)
New
markets
Volume from 50,000
to 900,000 MT
(2010-2016)
R&D
Roll-out
MicroBalance to
other species
Nonsalmonid
Maintain
leadership
salmonid feed
Volume share from Grow
volume
in line with
28% to 45% (2010the market
2016)
(5% CAGR)
EBITA
margin
EBITA operating
margin 7%
Double volume from
1.3 million MT to 2.7 million MT
(2010-2016)
6
The blue revolution towards 2020
Global production of seafood 1950 – 2020
Tonnes (x million)
Billion
9
250
8
200
7
6
150
5
Aquaculture 4
100
3
50
0
Wild catch
1950
1960
1970
Aquaculture:
Annual growth of
8.7 % per year for the
past 30 years
1980
1990
2000
2
1
0
2010 2020e
One of the fastest
growing food sectors
7
Steady growth of global salmon farming industry
kTonnes
2,500
2,000
Other
Faroes
Canada
CAGR 9%
1,500
1,000
UK
Chile
Norway
500
0
1992
2000
2005
2010
2015e
Sources: Kontali, ABG Sundal Collier, companies
8
The potential of Norwegian aquaculture
Salmonid value chain
2010
1999
2050
2030
Economic value
€1.5 billion
10%
CAGR
Economic value
€4.3 billion
6.5%
CAGR
Economic value
€15 billion
3.5%
CAGR
Economic value
€30 billion
Volume
0.5 mill. tonnes
6.5%
CAGR
Volume
1 mill. tonnes
5.6%
CAGR
Volume
3 mill. tonnes
2.6%
CAGR
Volume
5 mill. tonnes
Source: Value created from productive oceans in 2050, SINTEF, 2012
9
Skretting – the global brand for fish feed
Focus on sustainability
Feed-to-food safety
Innovation and R&D
10
World’s largest and most modern fish feed factory - Averøy
Upgrade fully completed in 2013
Nutreco’s largest ever capex
project
Total investment of approx.
€ 80 million
Additional capacity of 150,000
MT
Total capacity now 450,000 MT
11
Innovation in fish feed is key to meet future demand
• To meet growing demand for aquaculture (by 2030), supply should grow by 5.6%
per year. However, expected growth based on recent trends is only 3.5%...
• Meeting this gap between future demand/supply for aquaculture will depend on
the availability of quality and affordable feeds, additional production locations
and sufficient water supply
• We need to invest in innovation in fish feed to support growth in aquaculture:
• Continued emphasis on alternatives to fishmeal and fish oil
• Sustainable supply of plant feed ingredients
• Improving feed formulation and production
Sources: 2007-2030, Arni Mattheson, FAO, AquaVision 2012 presentation;
The State of World Fisheries and Aquaculture 2012 - FAO
12
Skretting ARC – world class fish feed R&D
Nationalities
• >100 staff; 33 researchers
• 20 nationalities
• >40 with university degree
Specialists
• Specialists in fish and
shrimp nutrition, health
and feed technology
Collaborations
• Collaborations with over 40
research institutions
worldwide
Important innovations
Optiline
Premium
13
Unique knowledge – Skretting’s passion for fish
Process technology
Nutrition
Raw materials
Our competence in research and application in daily feed production gives us a
competitive advantage
Goals
Fish health
Fish
performance
Feed quality
Food safety
Sustainability
14
Global supply and use of fish oil
1,600
1,400
Omega 3 industry
X 1,000 tonnes
1,200
1,000
800
600
Edible, hardening, technical use
400
Aquaculture
200
0
1963
1970
1980
1990
2000
2004
2010
15
The MicroBalance concept
Thanks to MicroBalance Norwegian salmon producers became net fish protein
producers in 2010
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1990
1995
2000
2005
2008
2009
2010
2011
2012 Potential
Kg fish protein used in feed versus Kg fish protein produced
The MicroBalance concept will also be applied to other species such as sea bass.
Competence and technology is now being extended to marine species and shrimp
Source: Skretting ARC 16
Protec - The fine art of protection
Skin
Gills
Gut
The immune system
Cell regeneration
Anti-oxidative
Virus
Parasites
Bacteria
17
Optiline Premium
Introduction of Optiline Premium across more countries and additional species
Added metabolic activators which increase digestible energy and digestible protein
levels
Benefits of Optiline Premium:
•
•
•
•
Higher fillet yields
More omega 3
Increased growth
Improved FCRs
18
MicroBalance™
Setting the scene for world-class
shrimp R&D
• Additional researchers
• Chinese shrimp research station
• Collaborations with world-class research
organisations
• Applied technology to operating companies
R&D strategy for
fishmeal replacement
Based on the technology platform developed
for salmon:
• Initial R&D focus on key limiting nutrients
• Alternative protein raw materials being tested
• We expect to start implementing our shrimp
MicroBalance concept within 12 months
19
Conclusion
• Strong forecasts for global aquaculture growth
• Future demand for food from aquaculture will largely depend on the availability
of quality feeds
• Innovation in fish feed is key to meet future demand
• Nutreco’s key driver is to support our customers through innovative sustainable
feed solutions that contribute to their productivity and profitability
20
THANK YOU