We report live from Trondheim where the big names of aquaculture are coming together for one of the industry's most important events of the year.
Wednesday, Aug. 19, 2.15 pm CET
Chilean, Norwegian officials discuss sustainability challenges in Trondheim
Norwegian Fisheries Minister Elisabeth Aspaker, met with Raul Sunico, Chilean undersecretary of fisheries and aquaculture, and Jose Miguel Burgos, national director at Sernapesca, at this year's Aqua Nor event to discuss common sustainability challenges.
During the meeting, Sunico mentioned the need of progress in matters such as new technologies development and the search of new harvesting areas far from the coast.
“Offshore aquaculture comes as a realistic alternative that will also allow aquaculture activities to be performed without conflicts with other coast users” he said.
--IntraFish Media
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Wednesday, Aug. 19, 1.15 pm CET
Being a good neighbor
IntraFish's Cherry talked about the controversy over salmon farming in the media and asked Aarskog about Marine Harvest’s experiences working with native communities in British Colombia.
“We are working in small communities all over the world… In BC we have 11 different agreements with 11 different tribes and we are doing everything we can do to be a good neighbor,” he replied. “You need good people on the ground and you have to be a good neighbor."
Hindar added that GSI has made a stance on total transparency. Absence of facts is the biggest thing harming our industry, he said.
“The industry seems to think attack is the best defense, but we probably need to be more open and say we don’t have all the answers.”
-- Rachel Mutter
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Wednesday, Aug. 19, 1.10 pm CET
Which disease to tackle first?
Cherry asked about disease in the industry and which should be the biggest focus.
“When it comes to diseases we have all the letters in the alphabet," said Aarskog. “From a cost point of view, sea lice – not actually a disease -- is most challenging. In terms of biomass and loss of reputation it is SRS in Chile and PD in Norway.”
It needs to be solved through more vaccines and better husbandry, he said, adding there are also prospects in genetics.
On a related topic, Cherry referred to this year’s statements from the likes of Costco and Walmart about demanding antibiotic free salmon production going forward and asks what is being done in Chile to deal with it.
“About 95 percent of antibiotic use in Chile is due to SRS. If we can find vaccines to tackle that, then we can reduce antibiotic use,” said Hindar. “That’s where we need to put the effort. Antibiotic use in Chile is nearly as high as it was in Norway in 1992. We managed to reduce it in Norway -- it can be done in Chile too.”
Fish from Chile is discounted and it affects perception and hampers ability to grow, Hindar said. “I think Chile is a fantastic place to farm,” he said. But what is lacking is the investment in research, which Norwegian salmon farmers automatically contribute to.
“This is a problem for Chile,” he said.
-- Rachel Mutter
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Wednesday, Aug. 19, 12.53 pm CET
Moving offshore?
Shifting gear, Cherry asked about SalMar’s offshore farming project.
Nordhammer said the challenge to offshore farming isn’t the equipment, as such, but the fish, saying they need a system which doesn’t move much, but to make the final decision to invest they need licenses.
The cage has room for 106 million fish, according to Nordhammer, which means several licenses are needed.
“We are waiting for authorities on these ocean farming licenses -- hopefully we will have them within six months,” he said.
Aarskog said he’s really impressed with what SalMar is doing.
“They are going out there and changing things. We can still make huge changes going forward. We are looking forward to new regulations coming into place later this year and we will participate,” he said.
-- Rachel Mutter
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Wednesday, Aug. 19, 12.47 pm CET
Securing raw material
On the same subject Cherry asked how feed raw material shortages can be addressed going forward.
Hindar began by referring back to this morning’s GSI announcement on a global tender for novel oils.
“If you look beyond current issues of industry, the major showstopper for significant growth is EPA/DHA fatty acids. It’s important to stimulate all the interesting technologies out there and for them to scale…This has been impossible for companies to do individually,” he said.
-- Rachel Mutter
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Wednesday, Aug. 19, 12.35 pm CET
Looking forward to cheaper feed!
Here, we will round up the highlights of IntraFish’s Salmon Summit where a top panel of Marine Harvest CEO Alf-Helge Aarskog, Leif Inge Nordhammer, president and CEO of SalMar and Cermaq CEO Jon Hindar.
IntraFish's Drew Cherry kicked off the Q&A by asking, naturally, for the panel's thoughts on the recent Cargill-Ewos deal.
All the panel said they are pleased. Hindar said it is “a major recognition of everyone in this room and everyone in the industry.”
Nordhammer said -- jokingly -- he is looking forward to cheaper feed. He added, more seriously, that Cargill can bring the raw material experience and knowledge the salmon industry needs to grow.
-- Rachel Mutter
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Wednesday, Aug. 19, 12.30 pm CET
Beating the beef industry
The aquaculture industry has achieved in 50 years what the beef industry has achieved in about 8,000, said DNB's Dag Sletmo in a presentation at the IntraFish salmon luncheon.
Surmising why the salmon farming industry gets such a bad rap compared to other protein industries, he suggested it's rapid and relatively recent growth has put it in the spotlight.
But he also put the spotlight on slowing growth, when demand is going up.
"The main potential restriction on demand will be a lack of supply; markets are not developed in a vacuum," he said.
For growth to continue, he said new tech needed to be employed, new regions needed to be farmed in and sustainability needed to be improved regarding lice and disease: "One company, one fjord?" he suggested.
"Capacity isn’t a number given to us by God -- it is a matter of how we operate," he said.
-- Rachel Mutter
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Wednesday, Aug. 19, 12.14 pm CET
A good secret, well kept
"We obviously did a very good job of hiding ourselves," said Cargill's Sarena Lin in response to a comment from IntraFish Publisher Paal Korneliussen at today's IntraFish Salmon Summit about the secrecy surrounding the Cargill-Ewos deal announced Monday.
She went on to say it was "absolutely a privilege to join the salmon family," and that Cargill has been humbled by how passionate the salmon industry is.
"Why salmon?" she said... "because we believe that using Ewos as a footprint, we will be able to transfer expertise to other species and other markets."
She also said that Cargill's understanding of risk management and global trade will bring a lot to salmon.
-- Rachel Mutter
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Wednesday, Aug. 19, 11.10 am CET
Cargill: Time to catch our breath
IntraFish chatted to Joe Stone, corporate VP at Cargill, this morning about the possibility of more acquisitions in the aquaculture feed industry.
"There is, but we just spent $1.5 billion so we need to take a breather," he said.
"It's been a great few days," he added.
-- Rachel Mutter
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Wednesday, Aug. 19, 11.00 am CET
GSI sets out to solve the industry's biggest problem
IntraFish is at the launch of the GSI 'novel oil' tender where Marine Harvest CEO Alf-Helge Aarskog just introduced Ewos CEO Einar Wathne as "leader of the world's biggest aquaculture feed company" and went on to say the Cargill-Ewos deal was "excellent news for all of us."
With many Cargill execs in attendance, Aarskog went on to iterate the importance of the tender, which puts a commitment out there to producers of new Omega-3 oil sources -- with at least 11 percent EPA/DHA content -- that it will purchase a minimum of 25,000 metric tons annually.
"This is probably much more important in the long run than any other issue," he said.
Wathne referred to the pre-process leading up the the tender as a "beauty contest" and said that it has been very inspiring to see who is out there. "It pushed us to go this extra step," he said.
And there is room for more than one supplier. "We don't need to go to bed with only one -- there may be applications which fit better with one country than another... It's a firm tender, but also a dialog," said Wathne.
And it seems like there are several possibilities on the cards already, although Aarskog refused to divulge who they might be when IntraFish asked him. "I'll let you find that out," he said. "There are small players, but also some big ones," he said.
-- Rachel Mutter
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Tuesday, Aug. 18, 10.00 pm CET
The first of its kind...
Norway-based SalmoBreed signed an agreement with Salten Stamfisk late last week to build the first land-based production facility to hold the complete production cycle, from broodstock to commercial ova.
“We are very pleased with the agreement, and proud to be the first company in Norway to offer ova produced in a 100 percent biosafe environment," said Jan-Emil Johannessen, managing director at SalmoBreed.
--IntraFish Media
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Tuesday, Aug. 18, 5.15 pm CET
The bigger picture
Ever wondered how much potential fishmeal and oil is wasted in the processing factory and in the home?
Around 35 million tons according to Ewos Supply Director Petter Johannessen.
In a presentation on the limiting ingredients for future fish feed production, Johannessen quickly homed in on the obvious two: fishmeal and fish oil and took a look at their usage in different industries and how more supply might be captured.
“There is still plenty of potential from residual trimmings, but challenging to accomplish. There is a lot of fish that never comes to the dinner table; a lot of fish that never comes to the fishmeal plant.
While admitting that these were ‘macro ideas’, he emphasized the importance of the industry working together.
“How will the industry live with scarcity of fish oil? We need a collective approach to this by the salmon industry.”
-- Rachel Mutter
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Tuesday, Aug. 18, 5.10 pm CET
Maintaining control
Vertical integration is key in new fish farming ventures, according to industry veteran Bjorn Myrseth, who shared lessons learned from 40 years in the industry with an audience of industry newbies today.
“I think this is important if you want to be successful in this business -- to have control over your supply chain -- broodfish, hatchery, nursery, ongrowing, packing and sale,” said Myrseth.
He also advised new farmers to sell close to local markets first, and to sell live fish over dead. “You can’t compete with dead fish from China, but you can if your fish are live,” he said.
-- Rachel Mutter
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Tuesday, Aug. 18, 5pm CET
Blooming in the desert
Deep in the desert of Iraq, aquaculture supplier Storvik is finding a unique solution to the problems that plague land-based aquaculture.
The tilapia production system the company installed is a typical land-based system set-up, but the system is mixed with biofloc -- a combination of bacteria and seaweed, essentially, according to Peder Anders Rod, general manager of Storvik Biofloc.
The biofloc "eats" the waste and gases, and eliminates the need to recirculate water. Water needs to be added to make up for evaporation, but no water is recirculated.
The covered system over the ponds acts as a greenhouse and cover -- depending on the temperatures.
Most impressive, the company has a track record of zero diseases in the installations Storvik has set up (there is another operation in Mexico).
The Iraqi farm will produce 3,000 metric tons of tilapia within three years, and the company's system is set-up for vannamei production as well.
--Drew Cherry
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Tuesday, Aug. 18, 4pm CET
Two is better than one
Breaking down salmon genetics isn't an easy task, but fortunately Dr. Borghild Hillestad, genetics and genomics manager at SalmoBreed, is a patient woman.
"Heterosis" will be the key to the next generation of eggs produced from the combined strain of SalmoBreed and Stofnfiskur's eggs.
What is heterosis?
"Think of it as the opposite of inbreeding," Hillestad said.
Fair enough. The bottom line is that the new generation will be healthier, will grow faster, and will have better survival rates.
With enough genetics work, the company hopes to produce strains that are resistant to some of the diseases that plague the salmon industry, including PD and sea lice.
--Drew Cherry
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Tuesday, Aug. 18, 3pm CET
Down to the grain of rice
How much specificity do you need in your traceability program?
For Maritech, the more detail, the better.
The company's new DigitalSeafood system integrates traceability throughout the full seafood processing chain, and tracks inventory all the way from landing and harvesting through until the end consumer.
It's not simply traceability, however, according to Geir Nordheim, sales manager at the group.
The system is able to upload metrics into its cloud system that allows for real-time sales data and client analysis, claims management, quality tracking and even recipes that can help companies trace back its ingredients and get cost estimates on any particular formulation.
"One company wanted to know how much each piece of sushi they made cost," Nordheim said. "So we did it."
--Drew Cherry
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Tuesday, Aug. 18, 3 p.m. CET
Demand for automation on the up
A healthy equipment sector indicates a healthy industry.
Marel's strong second-quarter results showed that the seafood industry in particular is on the upswing.
"The order book is coming alive," said Marel Fish Industry Center Managing Director Sigurdur Olason. "For us right now, the challenge is making sure we are delivering on time -- there is a lot in the pipeline."
All seafood sectors the company serves are doing well, Olason said, but in particular the group is seeing strength in Chile, Alaska and Russia.
Russia has been investing heavily in its operations to serve the demands of consumers no longer able to access imported fish.
As a result of the need for technology, Olason said it's unlikely Russia will extend its food product ban on Iceland to the equipment sector.
The latest effort for the company is a launch this week of trials of its tilapia splitter at Costa Rican group Terrapez.
"We're eager to test it in real factory conditions," Olason said.
--Drew Cherry
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Tuesday, Aug. 18, 2.47 p.m. CET
All in the name
There is room in the salmon industry for different farming systems, according to Anders Milde Gjendemsjo, director of consulting at Deloitte.
Questioned on the possibility that a growth in land-based salmon farming might drive down competitiveness of existing cage farming operations, Gjendemsjo said it was really just a matter of marketing.
“Norway and Chile have good competitive advantage because of their coastlines, but I think in the end it will really come down to marketing,” he said.
If it is a land-based salmon farm in the United States, it will market its product as ‘locally-produced’; if from Chile or Norway it will be marketed as ‘sea-grown’, he suggested.
Gjendemsjo was giving a presentation of an independent Deloitte investigation into the feasibility of land-based salmon farming, commissioned by Akva.
Challenged on a potential shortage of land for such operations, Gjendemsjo dismissed this as an issue: “There is plenty of land available for these purposes,” he said.
“Of course land is not free,” but other land-based protein farmers generally don’t have to pay as much for their licences as fish farmers do for sea sites, he said.
-- Rachel Mutter
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Tuesday, Aug. 18, 2.45 p.m. CET
Cargill exec: Value creation following Ewos deal more important than price
Sarena Lin, president of Cargill Feed & Nutrition, told IntraFish at Aqua Nor the price the US giant paid for Ewos -- €1.35 billion -- pales into insignificance compared to the value the deal will create.
Cargill has been involved in fish feed for around 20 years, with species such as shrimp and tilapia.
“We're thrilled to be creating a big global platform to transform the fish farming industry with the acquisition of Ewos,” said Lin.
“Salmon is the most developed species in aquaculture, and we want to use the technology and knowledge of everything from nutrition, processing and farming, and transmit it to other farmed species," she told IntraFish.
-- Joar Grindheim
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Tuesday, Aug. 18, 1.35 p.m. CET
Biomar finalizes JV deal with Chinese group
BioMar Group and the Chinese feed company Tongwei Co signed the final joint venture (JV) agreement for the establishment a fish feed company in China during the AquaNor event in Trondheim on Tuesday.
The new company will supply high performance feed to the growing production of high value fish species in China.
“After the signing of the memorandum of understanding this spring we have elaborated on the agreement, and with the final contract signed, we can now proceed to the next phase and start the actual construction of the first BioMar-Tongwei feed plant in China,” said Carlos Diaz, CEO of BioMar.
The first feed plant will be located in eastern China and will have a capacity of around 100,000 metric tons.
Read the full story here
-- IntraFish Media
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Tuesday, Aug. 18, 1.21 p.m. CET
Salmon's growth story continues
Chilean Director of Fisheries and Aquaculture (Sernapesca) Jose Miguel Burgos opened up the Chilean stand at AquaNor by highlighting the importance of the fish to the country.
In 2014, Chile's salmon exports were the third-most important, accounting for 14 percent of the total, Burgos said.
-- Drew Cherry
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Tuesday, Aug. 18, 1.18 p.m. CET
Sharing the antibiotic burden
Retail and restaurant chains in the United States have famously made declarations that they want their suppliers to back off of antibiotic use.
Costco shifted its purchasing away from Chile and toward Norway in part because of Norway's low usage of antibiotics.
Though Chile is always putting effort into reducing antibiotic use, SalmonChile GM Felipe Sandoval said the rest of the salmon industry should ensure that buyers do not begin to see farmed salmon in terms of antibiotic-free and not.
That, Sandoval said, is risky for the whole industry -- it's uncertain when a bacterial outbreak might require higher use at some point.
"It's important that we have this discussion together, and be united in addressing concerns," Sandoval said. "We would like to invite other companies to bring this into a broader conversation."
All of Chile's salmon abides by all market regulations, and the end product is antibiotic-free, Sandoval noted.
-- Drew Cherry
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Tuesday, Aug. 18, 1.14 p.m. CET
Blue skies ahead?
SalmonChile General Manager Felipe Sandoval is bringing a positive message to Trondheim: Chile is turning the corner.
While low prices, fish health challenges, and tight lenders have taken their toll on the sector, the pieces are in place for the industry to come back roaring.
"It's difficult to predict the future," Sandoval said, "but in the mid- to long-term its clear that supply will grow less than demand, and Chilean companies will benefit."
Cooperation will be the key for the industry's success going forward, and the new sanitary framework is aimed at encouraging those partnerships -- and ultimately, consolidation.
Though the AquaChile-Marine Harvest merger's collapse was a setback for the industry's restructuring, it certainly isn't a sign that it will stop.
Within the next eight to 10 years, Sandoval said, we can expect the number of salmon farming companies in Chile to be in the neighborhood of 20.
"Consolidation will continue," Sandoval said. "Some companies have publicly said they are looking for investors, and some have good levels of cash."
A recovery in prices and exchange rates will help.
-- Drew Cherry
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Tuesday, Aug. 18, 11.42 a.m. CET
400,000 ton seafood deficit gives ammo to Ghana-Norway partnership
Bridging a 400,000 ton fish deficit in Ghana is the initial aim behind a proposal by Norghati -- a Norwegian/Ghanaian partnership currently looking for investment.
While they are in talks with several private equity firms, they are also pitching the Norwegian government to match funds and help create ‘a showroom’ for other African nations and for Norwegian technology suppliers, as MoreFish’s Halvor Kittelsen puts it.
MoreFish has a contract with Lake Volta tilapia farmer Simma and was the original instigator of the Norghati proposal, which ties in elements beyond MoreFish’s remit. This includes feed provision, training and fingerling supply, amongst other things.
The group now has wide-reaching input from the likes of Nofima, BioMar, SalMar and the Norwegian veterinary institute.
“If you want to go fast, go alone; If you want to go far, go with others,” said Kofitsyo Cudjoe, head of section at the Norwegian Veterinary Institute, quoting an African proverb.
And they certainly do have far to go: “Under 30,000 tons of tilapia are currently farmed; Ghanaians eat 25 kilos of fish per capita; and it is a population of 25 million people,” Cudjoe told IntraFish.
-- Rachel Mutter
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Tuesday, Aug. 18, 8.34 a.m. CET
Used to northern Norway feeling more 'fall' than summer? Not this year! Temperatures hit 26 degrees Celsius yesterday and are set to continue for the whole of this year's show.
-- IntraFish Media
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