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transcript
2013 ANNUAL CONFERENCE SUMMARY
This year’s Annual Conference, held in Hong Kong, was once again the thriving centre of the industry for three days, with 385 delegates attending from 36 countries. The theme ‘Meeting the Demand’ inspired a wide array of presentations and the summary below gives a brief overview of the discussions. The full presentations are available for members and delegates on both www.iffo.net and www.iffoevents.com.
www.iffo.net
2013 IFFO ANNUAL CONFERENCE SUMMARY
MONDAY 28TH OCTOBER
Morning Session
Opening the conference and welcoming delegates IFFO President Nils Christian Jensen thanked the sponsors and said that the key question to be addressed by the speakers and workshops over the next three days was: "How can we secure the supply and improve the performance of fishmeal and oil?"
Andrew Mallison, Director General summarised the key challenges that the industry faces with the diagram below.
Mallison emphasised how important it was that the industry projected its contribution to global food security through the four pillars of responsible production - human health, animal health, environmental contribution and social contribution.
Global food and feed. Mallison introduced Merritt Cluff, who until recently was Senior Economist with FAO and set up the global food and feed scene with his paper on Prospects for food commodities in the next decade. His opening of "The future ain't what it used to be", whetted appetites for his presentation.
Looking at volatile food prices in recent years, especially for grain and oilseeds, Cluff said some prices have fallen back but he expected them to remain on a higher plateau and real food prices to remain relatively high, underpinned by rising real energy prices, compared with the 1970 to 2000 general downward trend. Cluff said there are indications that the real value of protein is rising. Movements in exchange rates have affected food prices but these are difficult to predict. Population is the prime determinant of demand, and indications are that net additions to population are probably going to "dive", although whether China's one child policy is maintained is crucial.
On growth Cluff said: "Sustained economic growth in emerging countries has been, and will be, a key driver". He went on to focus on protein: China's consumption of protein used to be just 55% of OECD levels and calories 65%. Now both were over 90% - illustrating the rise and rise of demand for protein.
Cluff's summary of his key messages was:
Growth is now more market‐driven. Policies less distortive, particularly in developed countries.
Prices to remain firm over the next decade. Underpinned by economic growth/higher input costs.
Demand pressure remains high. But response to income growth is low in many countries.
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IFFO: A YEAR OF PROGRESS Nils Christian Jensen told the conference: "Membership in all categories - producer, total associate and premium members - is at an all time high. The IFFO‐RS certification programme is well established and recognised with 103 Certified factories and 12 Chain of custody Certified traders in 10 countries."
Andrew Mallison described how in the last year IFFO had achieved the following:
Introduced new branding as the 'The Marine Ingredients Organisation' and so both krill and derivatives are encompassed;
launched new website with a wealth of information for members and other stakeholders;
grown a stronger presence in its Beijing office to meet the needs of member companies operating in and trading with China and South East Asia; and
built important working alliances with a range of other organisations including FAO, Codex and OECD.
IFFO, said Mallison, was looking after the industry's reputation by working with FAO in the Coral Triangle, promoting the good news about progress with the Chimbote pipeline in Peru and working with the International Sustainability Unit (ISU) to tackle the environmental concerns facing the whole industry. But he contrasted IFFO's resources with those of the US soybean association which was putting $50 million into promoting their product.
Mallison then introduced a recorded broadcast to the conference by the Prince of Wales, who established the ISU to facilitate consensus on how to resolve some of the key environmental challenges. His Royal Highness welcomed IFFO’s commitment to progress including its RS certification programme and its work in reversing the decline of natural marine capital in South East Asia with ISU, REBYC II CTI and Sustainable Fisheries Partnership. The video is available on our IFFO Video's page
Production growth is slowing. High prices but limited by higher costs, constraints. Slow growth by developed countries offers more opportunity for growth by developing countries.
Emerging issues. Enabling higher response by developing countries, and especially small holder producers.
Next, a superb overview on China's economy and market consumption trends was given by Hanver Li, Chairman, Shanghai JC Intelligence Co., Ltd. Li included an interesting section on how a new generation of Chinese leaders planned to address the economic challenges.
Mr Li also offered the fishmeal industry a lengthy list of challenges and opportunities that they faced in China:
Challenges
the upgrading of food standards - including fishmeal;
animal disease inhibiting demand for fishmeal; and
the competiveness of concentrated plant protein (soybean).
Opportunities
current feed formulae still include a high demand for fishmeal;
intensification of new methods of shrimp farming continues;
global climate is entering a cold phase favourable to anchovy catches in South America;
meat demand has much scope for further growth in rural areas of China; and
talks about large adjustment in China’s supportive procurement policy for major agri-products have triggered marked fall in world markets.
The Monday morning session was completed with a paper on The role of capture fisheries and aquaculture, and their sustainable development in Hong Kong from Mickey Lai, Acting Assistant Director (Fisheries) of Agriculture, Fisheries and Conservation Department for Hong Kong SAR. This was following by Doing business in Asia with insights from Pornsil Patchrintanakul, Senior Advisor, Charoen Pokphand Group, Thailand. Summary continues on page 3
HRH The Prince of Wales video message
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Quality: Omega-3 content may be low in some species but amino acid (AA) profile can provide good nutrition to pigs, poultry and other sectors which compete with aquaculture for fishmeal.
Pangasius is a net producer of fishmeal which provides nutritious feed for pigs in Vietnam.
Aquaculture can provide fresh, uniform, often concentrated source of by-product.
Specialist, hydrolysed proteins from aquaculture can significantly reduce the overall fish inclusion.
At this stage Little believes that aquaculture could supply over 18 million tonnes of by product raw material, discounting carps, by 2031 and perhaps another 30Mt from carps.
Producing fish meal and fish oil at sea. In his presentation and video film Jostein Rørtveit, Managing Director Asia - Sales and Market Development, American Seafoods Co., U.S.A. described the on board processing of Bering Sea pollock on boats as big as a football field.
Holding – Catches held here prior to release for processing as needed.
Weighing and sorting – All catch is weighed by “flow scales” ensuring accurate catch accounting. Two Independent observers on board assure catch weight accuracy and quantify and report by catch real time. Machines sort fish by size for precise filleting and maximum recovery.
Filleting – State of the art filleting machines remove heads and organs, extract roe (when in season) and fillets are skinned.
Roe grading and packing –Roe is sorted into grades and carefully packed for immediate freezing.
Block packing – Surimi and fillets packed into special liners for freezing
Surimi production – Fillets enter machines that convert
MONDAY 28TH OCTOBER
Afternoon Session
By-product potential - up to 8.5 Mt more fishmeal? Few dispute that supplies of fishmeal and oil are falling short of demand and that greater use of by-products is part of the solution. So the question addressed by David Little, Professor of Aquatic Resources and Development, Institute of Aquaculture, University of Stirling was how much by-product is there available and where is it?
Little was presenting the early results from his ongoing study commissioned by IFFO - the objective being to discover how to maximise use of by-product raw material.
"Consolidation in the fisheries and aquaculture sectors should concentrate location of the by‐ product," he said. "Increasing value of seafood products and feed ingredients is making by‐product utilisation more attractive."
Little described how by-product recovery and utilisation varied from fishery to fishery and country to country - from 100% utilisation of pangasius in Vietnam to zero elsewhere. The UK
produced all its fishmeal (FM) from by-product whereas there appeared to be potential to utilise more by-product in Spain. His study will address the urgent need to quantify by-product potential by constructing a database of by-product resources - expressed as a flow chart from total fish catch to potential total fishmeal production. There are
still many values and figures to be filled in, but Little gave a indication of his potential findings:
If there was 100% utilisation of all by-products, another 8.5Mt of FM could be realised.
6.5Mt of the FM potential is in Asia, China, CIS.
"Edible yields" may be much higher in Asia because of attitudes to consumption.
Chinese aquaculture is dominated by carps which are unlikely to be processed in the short to medium term.
Full utilisation of by‐products from processed seafood should be the first goal.
He said aquaculture was creating more demand for fishmeal but was also creating huge opportunities:
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them to surimi, a primary ingredient in many food items such as ‘kamaboko” imitation crab products.
Freezing – Hydraulic plate freezers freeze fillet and blocks to – 22oF core temperature. Hydraulic pressure assures precise dimensions for fillet and minced blocks.
Boxing – Blocks of fillets (3) and surimi (2) are packed into master cases.
Frozen cold storage – Hold stores all frozen production until off-loading.
Fish oil and White Fish Meal production – By products are used to make aqua-grade fish oil for use in animal feeds and human nutrition supplements. Solid by-products are also used to produce our specialized “White Fish Meal” products used in animal feeds.
Sourcing by-products for added value marine ingredients: George Marco, Director, Aquativ Company, France, explained how his company set about achieving the highest quality Diana brand added-value products for its customers, specifically:
Extracts
Purified biochemical compounds: pharmaceutical (treatments).
Functional & special ingredients: health promoters- functional food-feed.
Growth media: fermentation industry.
Speciality Products
Functional hydrolysate: food, feed and pet food.
Specific meals: feed & pet food.
The company's approach could be summed up as: 10% of turnover spent on research; total control of source and freshness; and highly standardised processes under the tightest of surveillance.
TUESDAY 29TH OCTOBER
Workshop Sessions
New IFFO website - a mine of useful information for the
industry. IFFO Technical Director, Andrew Jackson, presented
his regular roundup of key technical issues - but with a
difference. Members can now easily find virtually all this
information on the new IFFO website including:
Current and all previous issues of Update, the monthly
Member magazine.
IFFO summary papers on
key technical issues such as
TACs and quotas.
Market intelligence,
member list, regulatory
advice, the annual
yearbook.
Every aspect of the RS from
its governance, through to
how to get certified and a
list of certified plants. (An
update on approvals and RS
progress is included in the
November issue of Update)
and, while the RS was originally an IFFO initiative, it is
gradually moving towards being a standalone programme,
not part of IFFO.
Progress towards a CODEX fish oil standard, with
introduction expected in 2015. The plan is to differentiate
fish using their fatty acid profile. IFFO is an accredited
observer at CODEX and so can influence its decisions.
IMO and ethoxyquin.
Jackson also highlighted an EU request to IFFO for more
industry feedback on contaminant regulations which are
scheduled for review.
Chinese market standards and requirements were addressed
in depth by IFFO's China Manager, Maggie Xu's, presentation
on IFFO‘s take on the current situation of Market Access and
Lou Junwen's paper on Quarantine and Health Requirements
for fishmeal to China.
Xu's presentation covered MOAs, IFFO's work to establish more
reasonable standards for fishmeal and fish oil, revised feed and
ingredient labels, dioxin, maximum permitted contaminant
levels and AQSIQ's Requirement on Labelling of Imported Bulk
Aquatic Products.
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developed a rapid, inexpensive method for histamine
determination, called homogenous assays. They are both fast (2
minutes) and easy. His company is now working on real-time
continuous histamine measurement.
George Marco then spoke again on Functional properties in
marine ingredients.
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WEDNESDAY 30TH OCTOBER
Market Forum
China. This session began with an exceptionally informative and
detailed paper, China Update from Maggie Xu, IFFO China
Manager. Any member trading with China will use their time
well reading it in full as it addresses reform and restructuring of
the Chinese economy as well as demand for fishmeal and fish
oil and trading issues.
Omega-3s. Xu was followed by
another very instructive paper from
Ellen Schutt, Communications
Director, GOED (The EPA and DHA
trade association) - Omega-3s: New
Markets, New Sources, New
Research. Her main points
included:
Natural oils still dominate but
krill and concentrates are the
categories to watch.
Estimated global consumer
spending on products
containing EPA/DHA Oils is $25.4billion.
It is no secret that omega-3 supply is tied intimately to the
anchovy fisheries.
It is also no secret that there is an impending supply shift as
demands increases beyond anchovy capacity.
Beyond other fish sources, there are additional non-marine
sources in various stages of development, each with its
own unique value proposition - squid, zooplankton, algae,
fungi and GM plants.
Media — and the current scientific journal publicity process
— play a role in misleading the public. We need to educate
and interact with consumer media.
Lou was able to give a very full picture of China's approach to
ensuring the safety of imported fishmeal and fish oil. She works
for AQSIQ, the ministerial administrative organ directly under
the State Council of the People's Republic of China in charge of
national quality, metrology, entry-exit commodity inspection,
entry-exit health quarantine, entry- exit animal and plant
quarantine, import-export food safety, certification,
accreditation and standardisation, as well as administrative law
-enforcement.
Adding value to marine ingredients was the title of the
workshop first addressed by IFFO Technical Director, Andrew
Jackson. He focused on protein.
"If we can't increase the volume, we need to add to the value,"
he said. "IFFO has produced a draft report on protein quality
which is on the IFFO website now awaiting your comments.
"To maximise the protein value we must consider:
increase digestibility (low temperatures);
increase freshness; and
partial hydrolysis to produce functional peptides and free
amino acids."
Jackson concluded by asking if Marine Peptides were the next
omega-3s.
Inexpensive histamine monitoring. Joe Krebs - a Director of
Protein Chemistry Bio Scientific Corp described his company's
process for controlling fishmeal quality with real-time
monitoring of histamine in stickwater. The quality and value of
the final fishmeal product can be improved by decreasing the
amounts of histamine and other amines (TVN and biogenic
amines) in stickwater, but these processes add an estimated
$125 per tonne to manufacturing costs. His company has
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WEDNESDAY 30TH OCTOBER
Closing Session
Thailand. Aphichai Techanitisawad, Board Member, Thai
Fishmeal Association, Thailand addressed Fishmeal in Thailand.
He said that in the last 30 years there had been a huge increase
in landings of fish and numbers of plants. There are now 90
steam dried fish meal plants with a total capacity of fish meal of
around 500,000 tonnes.
Around 65% of raw materials come from the debris left over
from processing aquatic animals such as the production of
canned tuna, Surimi,
and frozen fish;
while 35% comes
from wild caught
fish. Many species
were fished from the
Java rabbitfish to the
Goldband goatfish.
Total volume of Thai
fishmeal production has been around 500,000 tonnes a year
since 2005. Total usage has been rising slightly over the same
period from about 400,000t to about 500,000t, mostly in
aquatic feeds.
Techanitisawad said Thailand's industry had been forced to
adapt or die as growing cities threatened fishmeal plants. The
industry had improved environment and air pollution controls
and installed effective waste water treatment; 60 of 90 plants
had GMP and HACCP systems put in place since 2008; 30 plants
had been approved by the official Chinese safety organisation,
AQSIQ, in 2011; and Thailand was adapting this year to an IUU
system.
Looking forward, issues include adoption of the IFFO Global
Standard for Responsible Supply for Thai Fishmeal industry;
Human Rights Issues; the sustainability of fishing; and whether
to adopt a quota system.
South East Asia. Melanie Siggs, Senior Adviser to The Prince of
Wales' International Sustainability Unit (UK) addressed:
Fishmeal inputs from South East Asian Fisheries: Ensuring
supplies for tomorrow.
She said the goal of the work of ISU and others must be
sustainable fisheries, because sustainable fisheries equalled
security of supply. "This can be characterised as improving
fisheries to the point where stocks recover and fishermen are
able to fish at Fmsy, re-establishing a permanently renewable
resource," said Siggs. "There is a need for a collective vision on
sourcing of sustainable fishmeal inputs that includes those from
fisheries in South East Asia."
Siggs conclusion were:
Any process to create change must be collaborative
through greater engagement and more inclusive
communication, with new and existing stakeholders.
Immediate action is needed to create enabling frameworks,
provide support, and finance where necessary.
There is a need for greater coordination of existing work –
this could be through a Global Roundtable approach as is
seen in other commodities.
Value destruction and value creation was the title of the paper
of Jonathan Banks, Consultant, Jonathan Banks Associates Ltd,
U.K.
Conclusion given by IFFO Director General Andrew Mallison,
who also thanked all the presenters at the conference and
summarised the content as being:
An overview of macro and regional economics.
Category trends.
Doing business in China and SE Asia.
Changing consumption patterns and their impact on the fish industry.
Calls for more R&D to ensure marine ingredients perform in their applications.
Technical and regulatory developments, including research on raw material availability.
The opportunity for networking and meetings.
Mallison thanked the IFFO team for their efforts and declared
the conference closed.
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2013 ANNUAL CONFERENCE SUMMARY
PHOTO SNAPSHOTS
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2013 ANNUAL CONFERENCE SUMMARY
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2013 ANNUAL CONFERENCE SUMMARY
www.iffo.net
Head office: IFFO, Unit C, Printworks, 22 Amelia Street
London, SE17 3BZ, United Kingdom Tel: +44 (0)2030 539 195 Fax: +44 (0)2030 539 196
e-mail: secretariat@iffo.net
THANK YOU TO OUR SPONSORS
GOLD
Coland Holdings Company Limited (Coland Group) is incorporated in Hong Kong.
With its business covering research and development, manufacturing and distri‐
bution of fishmeal, fish oil, aquaculture feeds and aquatic products, Coland Group
serves the needs of China’s feed, aquaculture, and food processing industry
whole heartedly under the principle of honesty, sincerity and service.
http://www.coland.com.cn/e-coland/index.htm
SILVER
Haarslev Industries is a dedicated process technology company, providing power‐
ful solutions for the benefit of the global environment. We supply complete sys‐
tems and equipment for the processing of animal by-products, domestic waste,
sewage sludge, bio fuels and by-products from food and beverage production.
http://www.haarslev.com/
M.A.Proteins is a subsidiary of Sind Feeds & Allied Products which is one of the
pioneers to develop poultry and fishmeal sector in Pakistan. The fishmeal has
been under the expertise of Sind Feeds and Allied Products since 1970's and it has
taken its fishmeal business to the heights of new standards by establishing three
(3) 100% steam dried fishmeal plants. All the fishmeal plants are supplied by the
world famous fishmeal plant manufacturers called "Atlas Stord". M.A. Proteins is
an environmentally and socially responsible organization.
http://www.maproteins.com/
OTHER
Dupps fishmeal processing systems are complete, turnkey installations including
cooker, solids/liquids separation, evaporation and drying equipment as well as
specifically engineered control systems. www.dupps.com