Fishmeal and fish oil production and its role in

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					Fishmeal and fish oil production and its role in sustainable
Dr Andrew Jackson, Technical Director
International Fishmeal & Fish Oil Organisation
Andrew Jackson gave two presentations at the Seafood Summit – the first refuting five myths
or mistaken assertions about fishmeal and fish oil and the second focused mainly on IFFO’s
Responsible Supply Code.

Refuting the myths:
No 1: Fishmeal is NOT getting scarce
                              World Fishmeal Production by country
                                     1998-2007 ,000 tonnes


 6,000                                                                           OTHERS
                                                                                 SOUTH AFRICA

 5,000                                                                           ICELAND

         1998   1999   2000     2001   2002   2003   2004   2005   2006   2007

Trends in production

Long-term trend is relatively constant production, with periodic El Niños

Tightening supplies in recent years are due to a combination of:

         •   Precautionary quota setting
         •   Increased use for human consumption e.g. over 50% Chilean Jack mackerel go for
         •   Climate changes and fishery changes
         •   Poor fisheries management in some countries
Hopefully the precautionary quota setting will allow increased quotas in the future with a
return to Maximum Sustainable Yields, for example in the EU.
Refuting the myths:
No 2: The production of fishmeal is NOT at the cost of human food
Fishmeal v Human Food

   •   Nearly 25% of fishmeal comes from fisheries by-products – and this is growing every
   •   In most cases wherever possible the fish will be sold for human food – as it pays more
       money (for example - jack mackerel, herring, blue whiting etc)
   •   There are major efforts being made with Peruvian Anchovy to use it for human food
       both within Peru and for exports
   •   Fish oil, the best source of healthy EPA & DHA, is increasingly being used for direct
       human consumption

Refuting the myths:
No 3: Aquaculture CAN grow even if fishmeal supplies are limited

Growth in fishmeal usage is limited by:
   • Price elasticity of demand for the different segments – carp most elastic, eels least
          •     Market forces, technology and nutritional knowledge have driven substitution
          •     But the growth of aquaculture has not been limited by the availability of fishmeal
China the world’s largest fishmeal user consumed less fishmeal in ‘07 than it had for a decade

                  Changing fishmeal usage in China

                                                             FAO & IFFO Data

Growth in Chinese Aquaculture is not dependent on fishmeal

                                 China: Fed Aquaculture Production, Feed & Fishmeal use
          18,000,000                                                                  1,000,000

          16,000,000                                                                  900,000




                                                                                                  AQUACULTURE PRODUCTION
                                                                                                  FISHMEAL TONS



          2,000,000                                                                   100,000

                  0                                                                   0
                       2000   2001   2002   2003   2004   2005   2006   2007   2008
Refuting the myths:
No 4: Fishmeal is NOT getting so expensive it is limiting
aquaculture growth
Dr Jackson first showed the relative prices of fishmeal and soy meal from 1998 to 2008.
Then he showed that the average ratio of fishmeal: soymeal prices over the last 10 years was
3:1. Recently fishmeal has been less than three times the price of soy. In short, fishmeal is not

               - Average over 11 years

Summary: Fishmeal & the growth of aquaculture
  • The availability & price of fishmeal has not been a limiting factor in aquaculture
    growth to date
   •   Fishmeal supplies are likely to remain tight but stable into the future except in el Niño
   •   Improved processing technology will make better vegetable proteins available
   •   This combined with improving nutritional knowledge will allow lower dietary
       inclusion levels as feed volumes grow
   •   Fishmeal will increasingly become a strategic ingredient in specialist diets such as
       starter, brood stock and finisher diets
Refuting the myths:
No 5: Fishmeal’s conversion efficiency has been drastically UNDER

Eco-conversion in aquaculture
   • Many different numbers are used on how many kilos of wild fish it takes to produce a
      kilo of farmed fish
   • Salmon in particular have come under scrutiny with quoted ratios as high as 10:1
   • Tacon and Metian (2008), See reference 1, most recently gave a figure of 4.9:1

Dr Jackson explained that he had studied Tacon and Metian’s calculation, looking first at:

Table of Eco-efficiency
& Fish-In-Fish-Out (FIFO) Ratios
Focusing on 2006, the most recent year for which Tacon and Metian have actual values,
Jackson noted that the FIFO for all major fed species at the bottom of the column was not a
weighted average of the FIFOs for the species listed in the column above. There had to be an
anomaly in the calculation.
Using Tacon and Metian’s method and his assumptions for 2006, Jackson calculated the FIFO
for salmon in 2006 (below). His FIFO of 5.0:1 was virtually the same as that calculated by
Tacon and Metian, at 4.9.

    Wt of pelagic fish at start kg                                 1000

    Wt of Fishmeal kg                                                225
    Wt of fish oil kg                                                 50

    How much salmon do I produce?

    Fish oil in the diet %                                             20
    Fishmeal in the diet %                                             30

    Requirement of oil kg                                              50
    Requirement of fishmeal kg                                         75

    Amount of feed that can be produced kg                           250

    FCR                                                              1.25
    Salmon Produced kg                                               200
    FIFO                                                              5.0

    Fishmeal left over kg                                            150

    Assumptions from Tacon & Metian highlighted

But Jackson also noted that there would be 150kg of fishmeal ‘left over’ from the calculation.
This cannot be ignored. In commercial production – no fishmeal is thrown away. Similarly,
the Tacon calculation for shrimp and carp feed, which have more fishmeal and less oil, would
show ‘left over’ oil.

Jackson illustrated his point further by calculating not just how much salmon could be
produced from 1000kg of pelagic fish, but how much salmon, shrimp and carp from the
same 1000kg of pelagic fish (next page).
S ALM O N                                                      PLUS
W t o f p e la g i c f i s h a t s t a rt k g                     1 0 00

W t o f F is h m e a l k g                                             2 25
W t o f fi s h o i l k g                                                 50

H o w m u c h s a lm o n d o I p r o d u c e ?

F is h o il in t h e d ie t %                                            20
F is h m e a l in t h e d ie t %                                         30

R e q u ire m e n t o f o il k g                                         35
R e q u i r e m e n t o f f is h m e a l k g                             53

A m ou n t o f fe ed th at c a n b e p ro d u c e d k g                1 75

FCR                                                                    1.2 5
S a lm o n P r o d u c e d k g                                         1 40
S H R IM P                                                     P LUS

H o w m u c h s h r im p d o I p r o d u c e ?

F is h o il in t h e d ie t %                                             2
F is h m e al in th e d ie t %                                           20

R e q u i re m e n t o f o i l k g                                      15
R e q u i r e m e n t o f f is h m e a l k g                           150

A m o u n t o f f e ed t h a t c a n b e p r o d u c e d k g           750

FCR                                                                     1 .7
S h r im p P r o d u c e d k g                                         441

H ow m u ch c arp d o I p rod u ce ?

Fish oil in t he die t %                                                  0
Fish m eal in th e die t %                                                5

R e q ui re m e nt o f o i l k g                                          0
R e q ui re m e nt o f f is h m e al k g                                 23

A m ou n t of fe ed th at c a n b e pro d uc e d k g                   450

FCR                                                                     1 .8
C arp Pro d uc e d k g                                                 2 50
The answer was 831kg of salmon shrimp and carp with no fishmeal or fish oil left over, which
is a FIFO of 1000/831, or 1.2.

Clearly a new formula was required for calculating FIFOs which did not dismiss left over
meal or oil.

FIFO ratio = Level of fishmeal in diet + Level of fish oil in diet          X FCR
            Yield of fishmeal from wild fish + yield of fish oil from wild fish

Using this formula we can calculate for salmon the following

Salmon FIFO ratio = 30 + 20                X        1.25 = 2.27
                    22.5 + 5.0

Going back to the worked example for salmon, shrimp and carp, the new formula produces
FIFOs of:
                                                                    Salmon Shrimp            Carp
FIFO calculated using form ula                                          2.27   1.36            0.33
Total of farmed production kg                                            140   441              250
Amount of wild fish used kg (Production x FIFO)                          318   600               82
Total amount of wild fish used kg                                       1000
Jackson had been using Tacon and Metian’s assumptions but the efficiency of fishmeal production has been
increased here from a yield of 22.5% to the up-to-date commercial average of 24%.

Applying the new formula globally we get the following:
 Summary of FIFO Ratios as calculated by IFFO
                                                          Yield of FM Yield of FO                    Wild Fish
                            FM in Diet                                                   FIFO
          Species                      FO in Diet %        from wild   from wild                    used ,000
                               %                                                         Ratio
                                                             fish %      fish %                          t
Salmon                          30             20              24             5               2.2     3157
Trout                           30             15              24             5               1.9     1226
Eel                             55              5              24             5               2.9      784
Marine Fish                     32              8              24             5               1.9     2858
Shrimp                          20              2              24             5               1.2     3754
FW Crustaceans                  15             1.5             24             5               0.5      586
Tilapia                         6              0.5             24             5               0.3      718
Catfish                         10             1.7             24             5               0.4      777
Milkfish                        3               1              24             5               0.1      65
Carp                            5               0              24             5               0.1     1460
Misc FW Carn. Fish              40              5              24             5               0.5      386
Total of Fed farmed
fish & shellfish                                                                            0.66           15770
Pigs                            0.25            0              24             5             0.03            4748
Poultry                          0.3            0              24             5             0.02            1577
Total                                                                                       0.09           22096
So it takes 90kg of fish to produce 1000kg of produce
And by-products should be included in the calculation
Dr Jackson then focused on a second error in the Tacon and Metian method of calculating
FIFO ratios. It had not taken into account that 22% of the raw material for fishmeal and fish
oil comes from fisheries by-products. Making this correction produced the following FIFOs.

Table showing the calculated FIFO for Aquaculture, Pigs and Poultry

                           World          Use of   % Coming     Use of whole
                         Production        Fish from fishery by- wild fish                  FIFO
                           ,000 t         ,000 t   products        ,000 t                  /FIPO
Aquaculture                     23851       15770             22                 12301        0.52
Pigs                           141222        4748             22                  3703        0.03
Poultry                         76245        1577             22                  1230        0.02
Total                          241318       22096             22                 17235        0.07

Salmon                             1465        3157          22                     2462        1.68
FIFO = Fish In: Fish Out ratio. FIFO = Fish In: Product Out (product is fish, pork and chicken)

Dr Jackson’s conclusions on eco-conversion as measured by Fish In: Fish Out ratios

•    The ratio for farmed salmon is not 10:1, not 5:1 but 1.7:1 and falling

•    The ratio for all fed aquaculture is 0.5:1 and falling

•    The ratio for all animal production using fishmeal is 0.07 and falling

For every 1 tonne of whole fish caught 14 tonnes of livestock are produced