Download - A new competitive climate for fish feed
Knut Nesse – CEO Nordea Salmon Summit
Oslo| 28 November 2013
Doubling food production
Halving the pressure on the planet
Feeding 9 billion people in 2050
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The essential link
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Struggling supplies Surging Demand
Raw material markets
Animal nutrition & fish feed producers
Farmers
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Nutreco’s two divisions
• Revenue in 2012 of €5.2 billion • Over 100 production and processing plants in 30 countries • Multinational workforce of approximately 10,000 employees
Fish Feed Animal Nutrition
Revenue
EBITA*
€3.3 billion
€149 million
€1.9 billion
€142 million
* Before exceptional items from continuing operations and excluding corporate costs
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Unique knowledge – Skretting’s passion for fish
Nutrition Process technology
Our competence in research and application in daily feed production gives us a competitive advantage
Raw materials
Goals
Fish health Fish performance Feed quality Food safety Sustainability
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3,400 employees | Production: 1.7 million tonnes (2012) | Sales in >40 countries | Production in 16 countries | No. 1 in salmon feed
3,400 employees
Production in 16 countries
1.7 million MT of feed
Sales in more than 40 countries
Feeds for more than 60 species of fish & shrimp
5 global R&D units
Skretting – a global aquafeed company
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Note: * Defined in addressable market turnover, (€ billions) and volumes (million metric tonnes) ex. carp. Fresh water trout are included in white fish ** Annual long-term growth rate *** Australia has been included in Asia
Salmonid
Sum geography
Annual growth volume**
Europe
Estimated volume (million tonnes)
America Asia*** Africa Sum species
Turnover
Shrimp
White fish
5%
5%
>5%
>5%
1.9 MT
2.7 MT
0.8 MT
1.5 MT
0.7 MT
2.8 MT
0.6 MT
0.1 MT
3.2 MT
12.5 MT
9.2 MT
2.0 MT
2.0 MT
3.5 MT
3.9 MT
20.0 MT
12.6 MT
€3.9 B
€3.9 B
€14.0 B
€6.2 B
Source: Skretting
World fish and shrimp feed market 2012*
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Fish
Feed
R&D
Breeding
Processing
Sale
Transportation
Hatchery
Raw materials
Value chain – fish feed industry
Steady growth of global salmon farming industry
0
500
1,000
1,500
2,000
2,500 kTonnes
Other Faroes Canada UK Chile Norway
1992 2015e 2000 2005 2010
CAGR 9%
10 Sources: Kontali, ABG Sundal Collier, companies
The potential of Norwegian aquaculture
1999 2010 2030 2050 Economic value
€1.5 billion Economic value
€4.3 billion Economic value
€15 billion Economic value
€30 billion
Volume 0.5 mill. tonnes
Volume 1 mill. tonnes
Volume 3 mill. tonnes
Volume 5 mill. tonnes
Salmonid value chain
10% CAGR
Source: Value created from productive oceans in 2050, SINTEF, 2012
6.5% CAGR
3.5% CAGR
6.5% CAGR
5.6% CAGR
2.6% CAGR
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Growth of salmonid feed supply in Norway
0
500
1000
1500
2000
2500
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
kTonnes
CAGR 1996-2013 = 7.8%
CAGR 2014-2020 = 5% est. ~100kTonnes/year
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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
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A new competitive climate for fish feed?
?
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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
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
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THANK YOU