epa+dha rich algal oil: closing the gapsdha rich... · 2017-10-25 · epa+dha rich algal oil:...

EPA+DHA Rich Algal Oil:

Closing the Gaps October 25, 2017

D. Christian Martin │ Global Category Manager, Aquaculture │ DSM Nutritional Products 1

2016 Sales*

€7.9 billion

2016 Global* presence

~21,000 employees worldwide

Sustainability leader

Top rankingDow Jones

Sustainability Index

• Excluding 2016 pro-forma and pro-rata (annualized) sales (€1,445m) & number

of employees (ultimo 2016) of non-consolidated Associates & Joint Ventures

(for sales this is mainly Patheon, DSM Sinochem Pharmaceuticals and

ChemicaInvest)

2016 Sales

€13.5 billion

2016 Global presence

~33,000 employees worldwide

Sustainability is a core element

of

“Power to create”

DSM at a Glance Evonik at a Glance

DSM and Evonik | EPA+DHA Rich Algal Oil - Closing the Gaps2

Three Key Mega Trends:Shaping the business environment for the aquaculture industry

Consumer preferences

are changing

2World population

is growing

1Resources are

become scarcer

3

• Consumers want full

traceability; digitization

amplifies this trend

• Consumers demand for

animal health and well-being

• Consumers demand healthy

food

• Increasing focus on

sustainability

• Impact of limiting aquaculture

industry growth

• EPA+DHA required for fish

growth and health

• Keep up with the

increasing demand.

• Trend to more piscivorous

diet

Implications for aquaculture

3DSM and Evonik | EPA+DHA Rich Algal Oil - Closing the Gaps

Development of global meat and fish supply

Source: FAO 2017Source: FAO 2015

Aquaculture Growth Continues: Fish is the most important animal protein source in human diets


Looming EPA+DHA Supply Gap: The traditional supply of omega-3 from fish oil will limit the growth of the aquaculture industry

5

Market supply demand for omega-3

Past Future

Vo

lum

e

Meeting the demand for omega-3 fatty acids

by utilizing new and sustainable sources of

EPA + DHA in the future.

1. Supply: Approximately 900k

tons per year

• Limited supply of fish oil as

source of omega-3 fatty acids

3. Supply-demand gap

• EPA+DHA supply gap will

emerge in the near future

2. Demand: Increasing

demand for EPA+DHA

• Aquaculture industry growth and

EPA+DHA biological requirement

• Consumer demand for omega-3’s

and healthy nutrition

DSM and Evonik | EPA+DHA Rich Algal Oil - Closing the Gaps

Emerging Value Gap:The omega-3 levels in farmed salmon halved during the last decade

6

If nothing was done the level

of the beneficial omega-3 can

only really go down.

Prof. Douglas Tocher

Stirling University

„


Omega-3 Content is Important to Consumers:Salmon consumers care about the Omega-3 level in their salmon

7

• Omega-3 content is very

important to salmon

consumers, with 55 % of

responders saying it is

extremely or very important

• Omega-3 content is

confirmed as an important

attribute of salmon –

consumers care

21

3432

10

3

0

5

10

15

20

25

30

35

% of UK salmon consumers answering question

“How important is Omega-3 content in the final salmon product?”

Unimportant Extremely

important

Very

important

Somewhat

important

Not at all

important

Source: DSM-Evonik Salmon Consumer Studies. 2016


Even More, EPA+DHA Benefits Human Health at All Life Stages


* Includes ongoing research; Disclaimer: Not for purposes of claims or EPA:DHA ratios

Closing the Gap: DSM and Evonik join forces

9

• Specialist for the cultivation of

marine organisms including algae

• Biotechnology capabilities in

development and operations

• Specialist in developing industrial

biotechnology processes

• Know-how in operating

competitively large scale

manufacturing sites for fermentative

amino acids.

planned

Joint Venture

Veramaris®


Both Partners Plan to Establish a Joint Venture:Offer a future-proof source of omega-3 EPA + DHA

10

• DSM and Evonik to found a 50:50 joint venture to be named

Veramaris®, headquartered in The Netherlands

• The new production facility to be built at an existing site of Evonik in

Blair, Nebraska, USA and is expected to come on stream in 2019

• Joint venture’s capital expenditure in the facility will amount to around

US$ 200 million over the next 2 - 3 years

• Initial annual production capacity will meet roughly

15% of the total current annual demand for EPA and DHA

by the salmon aquaculture industry

• Our EPA+DHA rich algal oil is specifically developed for use in animal

nutrition - from aquaculture to pet food

• Broad IP protection in place for our strain, product and process

• Finalization of the joint venture is subject to regulatory approvals

and other customary closing conditions


Closing the Gap: The ideal alternative EPA+DHA product for the future

11

Omega-3 innovation from

natural marine algae

Rich in both

EPA and DHA

for complete

nutrition

EPA and DHA content

greater than

50%

Free from contaminants

Non-GMO

Broad use in animal nutrition

from aquaculture to pet food

High purity

Liquid product


Our EPA+DHA Rich Algal Oil Has an Unparalleled Value Proposition

12

Our algal oil Benefits from our algal oil

EPA + DHA ✓ Contains both EPA and DHA

Concentration (%) ≥ 50%Highest concentration

available on the market

Handling properties ✓ No feed process modification

Oxidation stability ✓ Stabilized by tocopherols

Absence of dioxins and PCBs ✓ Naturally pure

GMO status ✓ Non-GMO product

Supply security ✓ Reliable supply

Price volatility ✓ Low volatility

Flexibility in feed formulation ✓ High flexibility


Waste-Free Production is Part of Our Holistic Sustainability Approach


Closing the Gap: Supporting the sustainability agenda of the aquaculture industry

14

3. WE DELIVER SUSAINABILITY

Our production of algal EPA + DHA utilizes

nature’s process for production of both EPA and

DHA – algae; and therefore does not contribute

to overfishing.

2. WE PROVIDE SUPPLY SECURITY.

The initial production capacity will meet roughly 15%

of the total annual demand for EPA and DHA by the

salmon aquaculture industry.

1. WE DELIVER HIGHEST QUALITY.

Our algal oil is a rich source of omega-3 with more

than 50 percent of EPA and DHA – the

two key fatty acids. It is produced from natural

marine algae and stabilized by tocopherols.

The production is transparent, raw materials

traceable.

4. WE PRODUCE WASTE-FREE.

Our algal oil is produced through fermentation

process using locally sourced sugar. The excess

biomass is used for beef cattle feed, or biogas for

electricity production, making the production

entirely waste-free.


15

Natural food chain

Natural marine

algaeSalmonFishZooplankton

Animation

Fishing vessel

Current practice in aquaculture

Fish oil

72 – 86 %

14 – 28 %

DSM and Evonik breakthrough – shortening the natural food chain

DSM and Evonik

algal oil

The composition

of fish oil


Our Natural Marine Algal Oil is a Sustainable Alternative Solution for EPA and DHA Supply

16

Thank you for your attention!


epa+dha rich algal oil: closing the gapsdha rich... · 2017-10-25 · epa+dha rich algal oil:...

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