Impact of rising feed ingredient prices on aquafeeds and aquaculture production - part 1 by Perendale


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									                                       January | February 2010
Feature title: Impact of rising feed ingredient prices on aquafeeds and
                   aquaculture production - part 1
              International Aquafeed is published five times a year by Perendale Publishers Ltd of the United Kingdom.
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  The International magazine for the aquaculture feed industry
  Feed Management

                                                                          Impact of rising feed
                                                                              ingredient prices
                                                                              on aquafeeds and
                                                                          aquaculture production

                                                                     by Krishen J Rana, Sunil Siriwardena and Mohammad R Hasan

  The first article in a series, taken from a new aquaculture book

             uring 2007-2008, there               not be economically supplemented with             may further contribute to their poverty and
             was a soaring increase in            other sources. Fishmeal is the single most        vulnerability. This global phenomenon could
             food (particularly cereal            important source of protein in fish feed.The      eventually induce small-scale producer to
             grain) prices all over the           increased cost of energy (due primarily to        change businesses and/or may result in loss
 world. This was especially severe in             soaring petroleum prices), El Ni–o effects,       of livelihood.
 world’s poorest countries and was                and increasing demand have resulted in                The impact of an increase feed prices is
 predicted to contribute to about a 56            a global increase in fishmeal price. The          bound to vary not only between countries
 percent rise in cereal import bills of           world price for fishmeal ranged between           and regions but also within different farm-
 those countries in 2007-2008.                    US$500 and US$700 per tonne during the            ing systems and for different fish species.
                                                  period 2000–2005. In May 2008, the price of       For example, while an increase in fishmeal
    This sharp increase in food prices was        fishmeal was US$1 210/tonne.                      and fish oil may have a profound impact
 due to a number of factors, including                The average price of other feed ingre-        on the farming of salmonids in Europe, a
 the reduced production of cereal crops           dients commonly used in aquafeed rose by          price increase will not have a profound
 worldwide and continued increases in oil         20–92 percent during the period between           effect on tilapia, catfish and carp farming
 prices resulting in higher freight cost. There   June 2007 and June 2008. The increas-             in most of the Asian and sub-Saharan
                                                                ing price of feed ingredients       African countries as the proportion of

                                                                                                                                                                                                  Amino Acids
                                                                (fishmeal, fish oil and cereal)     fishmeal and fish oil in diets is relatively
                                                                and increasing manufacturing        low, typically, three to seven percent for
"In aquaculture, feed accounts                                  and transportation costs were,      fishmeal and one percent for fish oil, while
                                                                therefore likely to have had        soaring prices of other ingredients (e.g.
                                                                                                                                                                                                  Choosing the right nutrients for your Aquafeed
     for over 50 percent of the                                 a compound effect on global         cereal and cereal by-products) may likely
                                                                production and the price of         have a major impact. A study (Rola and
               production cost.                                 aquafeeds. It was reported          Hasan, 2007) carried out in Viet Nam and
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                                                                                                                                                   Health & Nutrition
                                                                                                                                                                                                  Our amino acids help to
                                                                                                                                                                                                  •  replace  costly  and  scarce  raw  materials 
    Fishmeal is the single most                                 that during late 2008, feed
                                                                prices had increased by over
                                                                                                    Thailand in 2006 showed that proportion
                                                                                                    of the break-even price with the actual
                                                                                                                                                   feed additives
                                                                                                                                                   Rodenbacher Chaussee 4                         •  improve  protein  balance  and  production  efficiency 
                                                                                                                                                   63457 Hanau-Wolfgang, Germany
important source of protein in                                  30 percent on average in many       price on catfish farms are 85 percent          phone +49 6181 59-2256                         •  reduce  environmental  pollution
                                                                of the countries in Asia, while     and 69 percent, respectively, while the        fax +49 6181 59-6734
                      fish feed"                                farmgate prices of aquacul-         respective feed costs are about 86 and
                                                                                                                                                   Europe & Middle East Africa +49 6181 59-6766 |
                                                                ture products had remained          81 percent of total production costs. The      Latin America +49 6181 59-6761
                                                                static, literally impinging on      higher the break-even price, in comparison     North America +1 678 797-4300
                                                                the economic viability of sev-      to the market price, the more vulnerable is    Asia North +86 10 85 27-6400
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 was also the added concern that the use of       eral thousands of small-scale producers           the producer implying that farmers in Viet
 certain grains in biofuel production would       that form the backbone of the aquaculture         Nam and Thailand cannot afford to absorb
 further aggravate this problem.                  sector, particularly in Asia, the epicentre of    a decrease of the proportion exceeding 15
    In aquaculture, feed accounts for over        aquaculture production. The aquaculture           and 31 percents respectively. This indicates
 50 percent of the production cost. Although      industry will not be immune to this global        that that most of the catfish and tilapia
 considerable variation exists, cereal grains     phenomenon, and specifically smallholders         farmers in these countries will not be able
 are the usual sources of carbohydrates           and rural farmers may be particularly sus-        to absorb any further feed price increase.
 in most of the aquafeeds and these can-          ceptible to this global change and the fallout    Under these circumstances, the immediate

                                              30 | InternatIonal AquAFeed | January-February 2011
                                                                                                                                                                                                                                                                                            F: Mycotoxins
     Feed Management                                                                                                                                  R.B., Mair, G.C., Fitzsimmons, K. (Eds.), Proceedings              El-Sayed, Y.S., Khalil, R.H., Saad T.T., 2009. Acute    Rodrigues, I., 2008. Biomin Mycotoxin Survey
                                                                                                                                                      of the Sixth International Symposium on Tilapia in                 toxicity of ochratoxin-A in marine water-reared         Program 2008. In: Biomin Newsletter. Biomin
                                                                                                                                                      Aquaculture, pp. 172–178.                                          sea bass (Dicentrarchus labrax L.) Chemosphere.         Holding GmbH, Vol. 7.
                                                                                                                                                      Centoducati, G., Santacroce, M.P Lestingi, A., Casalino,                                                                   Sepahdari, A., Mosavi, H. A. E., Sharifpour, I., Khosravi,
                                                                                                                                                      E., Crescenzo, G., 2009. Characterization of the                                       .,
                                                                                                                                                                                                                         Fegan, D., Spring, P 2008. Recognizing the reality      A., Motallebi, A. A., Mohseni, M., Kakoolaki, S., Pourali,
                                                                                                                                                      cellular damage induced by Aflatoxin B1 in sea                     of the aquaculture mycotoxin problem: searching         H. R., Hallajian, A., 2010. Effects of different dietary
                                                                                                                                                      bream (Sparus aurata Linnaeus, 1758) hepatocytes.                  for a common and effective solution. Proceedings        levels of AFB1 on survival rate and growth factors
                                                                                                                                                      Ital.J.Anim.Sci. vol. 8 (Suppl. 2), 848-850.                       of Alltech’s 23st Annual Symposium, Lexington,          of Beluga (Huso huso). Iranian Journal of Fisheries
                                                                                                                                                                                                                         Kentucky,USA. 343-354 pp.                               Sciences. Vol. 9 No. 1 pp. 141-150
                                                                                                                                                      Deng S.H, Tian, L.X., Liu, F.G., Jin, S.G., Liang, G.Y.,Yang,
                                                                                                                                                      H.G., Du, Z.Y., Liu, Y., 2010. Toxic effects and residue           Food and Agriculture Organization (FAO) (2004)          Tu, D. C., 2010. Aflatoxin B1 reduces growth
                                                                                                                                                      of aflatoxin B1 in tilapia (Oreochromis niloticus×O.               Worldwide regulations for mycotoxins in food and        performance, physiological response, histological
                                                                                                                                                      aureus) during long-term dietary exposure.                         feed in 2003. Food and Nutrition Paper No. 81.          changes and disease resistance in Tra catfish
                                                                                                                                                      Aquaculture 307: 233–240.                                          FAO, Rome, Italy.                                       (Pangasianodon hypophthalmus). In Submition of MSc
                                                                                                                                                                                                                                                                                 Thesis. Nong Lam University. Ho Chi Min City.Vietnam.
                                                                                                                                                      Doll, S., Baardsen, G., Muller, P Koppe, W., Stubhaug, I.,
                                                                                                                                                                                       .,                                Han, D., Xie, S., Zhu, X., Yang, Y., Guo, Z., 2009.
                                                                                                                                                      Danicke, S., 2010. Effects of increasing concentration             Growth and hepatopancreas performances of gibel         Tuan, N.A., Grizzle, J.M., Lovell, R.T., Manning, B.B.,
                                                                                                                                                      of the mycotoxins deoxynivalenol, zearalenone or                   carp fed diets containing low levels of aflatoxin B1.   Rottinghaus, G.E., 2002. Growth and
                                                                                                                                                      ochratoxin A in diets for Atlantic salmon (Salmo                   Aquaculture Nutrition.
                                                                                                                                                                                                                                                                                 hepatic lesions of Nile tilapia (Oreochromis niloticus) fed
                                                                                                                                                      salar) on growth performance and health. Abstract,
                                                                                                                                                                                                                         Hooft, J., 2010. The effects of feed-borne Fusarium     diets containing aflatoxin B1. Aquaculture 212, 311–319.
                                                                                                                                                      14th International Symposium on Fish Nutrition and
                                                                                                                                                                                                                         mycotoxins on the performance and health of
                                                                                                                                                      Feeding. May 31-June 4, Qingdao, China. p. 120.                                                                                              .,               .,
                                                                                                                                                                                                                                                                                 Udomkusonsri, P Tangmunkhong, P Chantakru, S.,
                                                                                                                                                                                                                         rainbow trout (Oncorhynchus mykiss). In submition
                                                                                                                                                                                                                                                                                 Arthitvong, S., Boonyawiwat,V., Kusucharit, N., 2008.
                                                                                                                                                      El-Banna, R., Teleb, H.M., Hadi, M.M., Fakhry, F.M., 1992.         of MSc Thesis. University of Guelph. Guelph, Canada.
                                                                                                                                                                                                                                                                                 Study of aflatoxin B-1 levels in muscle and liver and its
      A study carried out in Viet Nam and Thailand in 2006 showed                                                                                     Performance and tissue residue of tilapia fed dietary              108 p.
                                                                                                                                                                                                                                                                                 effects on immune system of Walking catfish (Clarias
      that proportion of the break-even price with the actual price                                                                                   aflatoxin. Vet. Med. J. Giza 40, 17–23.
                                                                                                                                                                                                                         Ngethe, S., Horsberg, T.E., Mitema, E., Ingebrigtsen,   batrachus) after chronic exposure. Proceedings of
      on catfish farms are 85 percent and 69 percent, respectively,
      while the respective feed costs are about 86 and 81 percent of                                                                                  El-Sayed Y. S., Khalil, R.H., 2009. Toxicity,                      K., 1993. Species differences in hepatic                the 46th Kasetsart University Annual Conference,
      total production costs                                                                                                                          biochemical effects and residue of aflatoxin B1                    concentration of orally administered 3H AFB1            Kasetsart, 29 January - 1 February, 2008. pp. 588-597.
                                                                                                                                                      in marine water-reared sea bass (Dicentrarchus                     between rainbow trout (Oncorhynchus mykiss)
                                                                                                                                                      labrax L.). Food and Chemical Toxicology.                          and tilapia (Oreochromis niloticus). Aquaculture        Whitlow, L.W., Hagler Jr.,W.M., 2002. Mycotoxins in feeds. In:
   need is to assess the extent and magnitude literature and information, as well as data          • comparison of the impacts in Asia and            47:1606–1609.                                                      114, 355–358.                                           Feedstuffs:The Weekly Newspaper for Agribusiness.Vol. 74.
   of the impact of this global phenomenon on collected in selected market studies. The              Europe, and development of man-
   aquaculture to understand the situation, toreview had two major focuses: a) a col-                agement measures for adaptation to
   study the medium- and long-term impact     lection of data on the status in the                   strengthen national capacity for emer-
   on aquaculture production, including food  costs and trends of and availability of                gency preparedness and recovery.
   security and the overall biosecurity of thefeed ingredients and aquafeed and b) an                                                                                   Naturally ahead
   system, and to develop coping strategies toanalysis to examine how this change was
                                                                                                   Coming in the next issue of The
   address the changing situation.            reflected in aquaculture production, the
                                                                                                   International Aquafeed magazine
                                              prices of final aquaculture products and
   Activities                                 their consumption pattern in relation to
                                                                                                   issue) will be

                                                                                                                                                                  Biomin® P.E.P.
      The study was carried out with special  the biosecurity and safety of aquaculture
                                                                                                   an excerpt of
   reference to the continents of Asia and    products for human consumption. The
                                                                                                   chapter one
   Europe, considering that Asia contributes  study includes the following specific topics
                                                                                                   from Impact
   over 90 percent of global aquaculture      to measure the overall impact of increased
                                                                                                   of rising feed
   production, while the aquafeed industry    price of feed ingredients:
                                                            • assessment of status and
                                                                                                   ingredient                                                     Naturally ahead in phytogenics!
                                                                                                   prices on
                                                            trends of aquaculture feed:
   "while an increase in fishmeal and volume of production, prices                                 aquafeeds and
                                                                                                   aquaculture                                                    Biomin® P.E.P. is made with a unique
fish oil may have a profound impact of ingredients, andreference
                                                            quality with special
                                                                                                                                                                  blend of essential oils and prebiotics to provide
                                                                                                   The full publication can be found at:
        on the farming of salmonids in to countries of south and                                                   a synergistic formula.
                                                            southeast Asia and western
      Europe, a price increase will not Europe;                                                    i1143e00.htm                                                   It is designed specifically to support digestion
                                                                                                                                                                  and improve feed conversion.
    have a profound effect on tilapia, • assessment of aquacul-
                                                            ture products/production:
                                                                                                   More information:
 catfish and carp farming in most of volume, quality, price, shift/                                Krishen J. Rana & Sunil Siriwardena
                                                            change in production pat-
                                        the Asian" terns (species diversifica-                     Institute of Aquaculture University of Stirling,
                                                                                                   Stirling, United Kingdom
                                                            tion); and consumption in
   is most well-developed in Europe. The           two regions, Asia and Europe;                   Mohammad R. Hasan2
   activities under the study included both     • impact on biosecurity of aquaculture             Aquaculture Management and Conservation
   specific and overall impact analyses which      products resulting from a change in             Service, Fisheries and Aquaculture                             For enquiry, please e-mail
   were carried out through the collection,        feeding patterns and unavailability of
                                                                                                   Management Division, FAO Fisheries and
                                                                                                   Aquaculture Department Rome, Italy                                                                         
   review and analysis of available published      standard nutritional options; and

                                                                                                                                                      Ad_PEP_IntAquafeed_CIL_2_10.indd 1                                                                                                                                 19.02.2010 11:31:09 Uhr
                                           12 | InternatIonal AquAFeed | January-February 2011                                                                                                                        January-February 2011 | InternatIonal AquAFeed | 13
                                             32 | InternatIonal AquAFeed | January-February 2011                                                                                                                         January-February 2011 | InternatIonal AquAFeed | 33
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