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ChinaFeedOnline.com

ChinaFeedOnline.com

• Brief feed industry

• Feeds composition

• Fishmeal in animal feeds

• Fishmeal in fish feeds

• Changing/problems/future

• My comments

Agenda

ChinaFeedOnline.com

ChinaFeedOnline.com

• Supply : amount of fishmeal produced globally is not determined by demand. It is limited by governments quota / natural resources.

• Demand: globally feed production  continuing growing especially the aquaculture feed continues to be the fastest growing sector with expansion estimated 8-10% /year.  

• China: We estimated total feed production is 4.5% increased  i.e. 97.2 million tons  in 2005.

Brief – Supply & Demand

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• China, the largest fishmeal Importer;

( approx. 20 % of the world );

• China, the aquaculture Center of the world ( approx. 70% of the world);

• China, the largest swine raising country ( approx. 52% of the world);

Brief – China Feed Industry

ChinaFeedOnline.com

Brief – China Feed IndustryFishmeal arrival Qty 1,394,410.45 mt Jan-Sept 05

Exporter Market Share Avg CIF/ Sept 05

Avg CIF/ Jan 05

Peru 70.72% $696.69 $613.58

Chile 16.91% $746.48 $687.53

Alaska 3.54% $936.29 - -

Russia 1.77% $906.46 $879.69

Argentina 1.49% $763.58 $715.33

Resources: China Customs

ChinaFeedOnline.com

ChinaFeedOnline.com

1.Complete feed

2.Concentrate feed

3.Premix

Feed Composition – 3 Categories

ChinaFeedOnline.com

- Ingredients (fishmeal included) : a feed including all kind of ingredients and the nutrition requirements for raised animals (except water).

- Usage: Farmers use it alone to feed animal/fish without adding any other ingredients except water.

- Dosage: 100% complete feed directly to feed animals/fish.

Feed Composition (1) - Complete Feed:

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water+

Feed Composition (1)Complete Feed

Fishmeal included

100% Complete feed

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- Ingredients (fishmeal included): Mixture of protein ingredients , minerals,vitamins and non-nutritional feed additives according to a certain formula.

- Usage: It cant be used alone, but no requirements to add other extra additives/salt. Farmers must follow the formula instruction to add other like corn.

- Dosage: 30% concentrate + 70% corn

Feed Composition (2) – concentrate

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+

30% Concentrate

Fishmeal included

70%Farmers’ own

corn/wheat

Feed Composition (2) – Concentrate

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- Ingredients (no fishmeal) : Premix of more than 2 kinds of feed additives.

- Usage: Farmers add energy feed (oil/fat) + protein feed (fishmeal/sbm) blended with Premix => self formula complete feed

- Dosage: 1-4% premix + 5% fishmeal + 91-95% corn/plants proteins

Feed Composition (3)- Premix

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Farmersadd

5% fishmeal

1 - 4%Premix

Farmers add91 - 94%

corn, plants protein

+

Feed Composition (3) – Premix

16

ChinaFeedOnline.com

Species Fish meal

chicken 0-3%

Baby pig 5-8%

Remark:- Simple, without adding any other ingredients.- Estimated production 72.25 million tons (up 5.9%) in 2005

Fishmeal in Animal Feeds – Complete feed (typical % of fishmeal)

+ 5.9%

ChinaFeedOnline.com

+12% concentrate fishmeal 7-15%

dairy -

Additives -

+60% Corn

+12% Soybean meal

+16% Compound soy

100%

Remark:- 7-15 % of Fishmeal after diluted is about 2%- Widely used in pig in North, farmers have their own grains.

Fishmeal in Animal Feeds –Concentrate (typical formula for pig)

+2.5%

ChinaFeedOnline.com

Ingredients% typical suggested

premix 4% 4%

Fishmeal 3% * 0%

corn 63% 63%

Soybean meal 27% 20%

Wheat bran 3% 6%

Compound soy - * 8%

100% 100%

Remark:- Compound soy replaced fishmeal- Premix demand increased sharply

Fishmeal in Animal Feeds – Premix (typical formula for pig)

+9.2%

ChinaFeedOnline.com

ChinaFeedOnline.com

1. Carnivorous fish – required fishmeal or

other animal proteins in their diet.

2. Omnivorous fish – flexible for any diet.

3. Crustaceans – Most demanding of

fishmeal

Fishmeal in Fish Feeds – 3 Major species group

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Ingredient shrimp tilapia turtlefishmeal 23-40% * 5 -15% * 38 -60%

Bone meal - - 3%

premix 3.5% 1% -

Soy meal 20% 12.12% 12%

Groundnut meal 7.4% 10%

Canola meal - 19.34% 5%

wheat bran/corn meal 6% 13.4% 30%

others - - -

total 100% 100% 100%

Fishmeal in Fish Feeds – typical formula

ChinaFeedOnline.com

ChinaFeedOnline.com

• Fish meal is always been treated as the best protein sources in China, However, supply of fish meal is limited and value is high. This pushed Chinese start thinking to change.

• Some start to look for other cheaper and good performance sources to reduce the cost.

• Some start to look for proper formula without reducing productivity.

Changing – Why ?

ChinaFeedOnline.com

1. Feed Production 2005

2. Feed composition

3. Substitutes

4. Aquatic Farming

5. Industrialization

6. Farmers’ knowledge

7. Consumers

8. Government policy

Changing…..

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Unit: 2003 2005 2004-2005

000,000 tons production Estimated Changes

Complete feed 64.06 72.25 + 5.9 %

Concentrate 20.46 21.3 + 2.5 %

premix 3.92 3.98 + 9.2 %

Others - - -

Total 87.81 97.20 + 4.5%

- Animal feed = 90-92% , Aqua feed = 8-10 %

- Complete feed growing well in baby pig/cattle/aquaculture- Concentrate feed dropped quickly- Premix increased sharply .

Changing (1) – Production 2003/05

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Changing (2) – Feed Composition

• Premix - Allow small feed makers to purchase a whole group of micro nutrients rather than attempting to determine how much is available from the productivity of the system and the other ingredients.

• Small feed makers blend premix with fishmeal and vegetable protein by their formula.

• Premix increased sharply is a signal that cultivating industry is more industrialized.

ChinaFeedOnline.com

Changing (2) – Feed composition

Complete feed – growing well

• piglet

• High value fish

Concentrated feed – slowing down due to numbers of individual farmers

decreased.

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Research: Many trials of using animal protein to replace part of fishmeal and found If the rate not over 50% in tilapia is very success.

New dosage & Usage: 5-10% MBM in low value fish, pig

Forecast:USA MBM annual production about 2.1 million tons, 20-30%for export. Once China re-open USA MBM, we estimateimporting quantity will return to 200 – 250,000 tons a year.

Changing (3) – SubstituteMeat and Bone Meal

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• Nutritional studies - plants proteins supplemented with specific amino – acids could achieve the same production levels with fishmeal. Partial replacement of fishmeal with plant protein is already widely accepted in S. China.

• ASA in Beijing has done high SBM feed 80:20 in Tilapia and they found the averaged FCR 0.97:1 and the flavor of fish is no difference with those fed by fishmeal.

• Low fishmeal formula - suggested fishmeal/sbm ratio down from 2.1 to 1.3 plus amino-acid. fishmeal content lysine 4.56% (1.9 times SBM), methionine 1.6% (3.05 times SBM).

Changing (3) – Substitute Plants protein + Amino-acid

ChinaFeedOnline.com

• Aquatic farming has become the fastest-growing sector averaged over 10% . (24% FH 2005).

• Traditional faming of low-value fish and omnivorous species’ (like carp) fish meal dosage has been reduced or even removed (S.China)

• High-value , carnivorous species (shrimp, eel) production increased and dosage still remain unchanged. But when fish meal is expensive, SD fishmeal is replaced by FAQ.

Changing (4) – Aquatic farming increased

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Changing (5): Industrialization

• Small to Large-scare:

Number of feed mills has decreased over the years. At present, China has about 10,000 feed mills. Annual production over 100k tons’ feed mills increased 20% last year.

• Traditional to Intensive operation:

Semi/intensive operation has gradually superseded the traditional method of cultivation (given feed by hand). More farmers use automated feeding system with a consequent improvement in feed efficiency.

ChinaFeedOnline.com

Changing (6) – Transfer of Knowledge

China feed industry has changed dramatically in the pastdecades. It’s expansion is not only in total volume butknowledge.

• Balance Diet :More Farmers learned it is important to feed a balanced diet that provides a proper mix of protein and other ingredients.

• Formulation:More farmers are changing from the use of essential fishmeal based diet to a current more diversified formulation structure based on protein’s price level. Formula becomes more flexible and eventually fishmeal will be used at only those low possibility to be replaced species such as eel/shrimp/high value fish.

ChinaFeedOnline.com

• Eating habit: switch from traditional pork meat, egg to more poultry(+3%), beef, dairy (+20%), fish (+10%)

• Income: New demand from urban people life improved.

• Urbanization: City population increasing which is the most important & long-term power in the future. China still has over 58% population are in rural area. (meat: 21.74 kg urban v 12.72 kg rural)

Changing (7) – Consumers’ Eating Habit and Urban Population increased

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Ministry of Agriculture New Regulation –

July 15 , 2005 (China License) :

• Histamine: 300/500/1000/1500 mg/kg 40 mg/kg (white fishmeal)

• Chrome (Cr): 8 mg/kg max• Total Bacteria count : 2 x 106

Changing (8)- Government Policy

ChinaFeedOnline.com

• China is short of protein and energy feed materials including fishmeal. This is a long term problem that China cant solve it in the short terms.

• Large % of farmers still feel fishmeal must be in the diet and feed should have a good fish smell in order for them to work.

• Over feeding, over nutrition causing water pollution, wasting feed, damaged environment is still a common problem.

• Aquaculture history is short in China. Improving aquatic technology is the critical issue.

Problems -

ChinaFeedOnline.com

• At present, cost of feed in farmed fish is about 60% high. Improving technology to reduce the cost via improve the feed performance with cheaper protein is future’s target.

• Different diets for various species/growth cycle: - Omnivorous fish : fish meal free formula

- Carnivorous fish : lower fish meal formula - High value fish : remain unchanged

• Select a proper quality of fish meal and formula per species, fish size, age, eating habit …to feed.

Future -

ChinaFeedOnline.com

species fishmeal changing

Baby pig 5-8% Unchanged/SD

Young pig 3-5% Reduced or MBM

Adult pig - Free fishmeal

Young chick 2-6% 0 - 3%

Future – Fishmeal % in Animal Feeds

ChinaFeedOnline.com

Species Fmeal changing

Omnivorous Tilapia 20-25% Plants protein

Carp 19-24% Partly MBM

Grass 5-10% Or no fishmeal

Carnivorous Eel 65% White fmeal % down

Prawn 20-30% --

Low value 5-10% Full/partly MBM

High value 15-20% FAQ to SD fishmeal

Crustaceans Turtle 60% --

Future – Fishmeal % in Aquatic feed

ChinaFeedOnline.com

My Comments -

• Changing use fishmeal in both animal and fish feeds is the important objective for the future. 

• To produce a high performance, quality  feed containing lower levels of fishmeal  will be challenging. 

ChinaFeedOnline.com

My Comments -

• The rate of feed industry growth in China will continue grow at about 5% per year in coming 5 years.

• Fishmeal usage will gradually move toward to mainly in aquaculture and baby pig only.

• China will continue buying fishmeal and more high quality steam dried.

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