The Story Behind the Numbers:Issues Impacting Production

Dr. George ChamberlainGlobal Aquaculture Alliance

Dr. George Chamberlain has been president of the Global Aquaculture Alliance since its inception in 1997. He is a co-founder of the organization.

With broad experience in aquaculture, Chamberlain helped establish Integrated Aquaculture International in 2004. Now called iAqua, the company owns and manages breeding, nutrition and production facilities in Asia and the Americas.

Chamberlain is a former president of the World Aquaculture Society.

Chamberlain has developed shrimp feeds and production systems for Ralston Purina Co. and Monsanto.

Dr. George ChamberlainGlobal Aquaculture Alliance

If you want to go fast, go alone. If you want to go far, go together. African proverb

Mr. Alex Ko, Grobest Group

• Grobestis oneofAsia'sbiggestandoldestaquaculturegroups.Foundedin1974,GrobestGroupoperates30companiesinnineAsiancountries,includingsalesandlogisticssupportintheUSA.Grobest’sexpertiseincludeshatchery,feedmanufacturing,farming,andprocessing.

Tilapia in China: Alex Ko

• 2017hasbeenachangefortilapia.U.S.demandstoppedgrowing. (Butgooddemandisstillthere.)• Chinesetilapiacomprisesalittleover90%ofthefrozentilapiaimportstotheU.S.InChina,themarketpriceatthepondlevelisatthecostofproduction,sothetilapiafarmersaren’thappy.Supplyisplentiful.Demandisn’tsufficienttoliftprices,sopricesfor2017havebeenflat.• CompetitionamongtheChinesetilapiaprocessorshasbeenfiercebothforbuyingtherawmaterialfromfarmersandforgettingthesales.Tilapiaprocessingplantsnowarerunningat85%to90%ofcapacity.

Mr. Liu Rongjie, ChairmanHainan Xiangtai Fishery Co., Ltd.• HainanXiangtaiFisheryislocatedinthesouthofChina,inHainanIsland.Ithassevensubsidiariesincludingbroodstock,farming,feedandprocessing.• From2012,Xiangtaiexportedmorethan1,200containersto30countries.Itiscommittedtosupplythehighestqualityfarmedseafoodproductstotheworld.

Tilapia in China: Mr. Liu

• From2015untilnow,themarketfortilapiaisinadownturn:• Negativeconsumerperception:Consumersthinktilapiaarefarmedinpoorconditions,buttheyareactuallymanagedverywell.

• Pricing:Tilapiacompetewithpangasius,whichhasalowercostofproduction.• Exports;Chineseproductionoftilapiadroppedby20%thisyear.TotalexportandU.S.exportvolumeincreased,butexportvalueandprofitremainedthesameaslastyear.

• Futuretrends:• Buildingconsumerconfidenceintilapiathroughcertification,activeengagementinimprovementprogramsandaddingtraceabilitycodestoproducts.

• Offeringtechnicalservicetohelpfarmersmanagemoreeffectivelyfromthebeginning.

• ExpandingmarketingwithinChinatoincreasedomesticconsumption.

Pangasius in Vietnam: Ms. Binh

• Duetolowpriceslastyear,pangasiusproductiondeclinedatendof2016andthefirstquarterof2017,butitrecentlystartedincreasing.• Productionofpangasiusismainlylimitedby redspotdisease and bacillarynecrosisofpangasius(BNP) disease, butfarmersarelearningtomanagethesewithacombinationof prebioticand continuousremovalofsludgefromthepond.

Mr. Ma Jia Hao, Chairman Guangzhou Liyang Bio Tech Company Ltd.

GuangzhouLiyangBioTechCompanyLtd.operateslargeshrimphatcheriesandprovidesecologicalproductsandservicesthrough300chainstoresand1,600technicians.

Liyangoutdoorlarvalrearingsystem

Shrimp in China: Mr. Ma

• ShrimpfarminginChinaisinaverydifficultperiod.Theeraofeasyshrimpfarmingisgoneforever.• Environmentaldeterioration•Waterqualityremediationsystemsandproductsareneeded.

• Broodstockgenetics• Futurebreedingprogramsshouldbeorientedtoselectforgreaterresistancetoenvironmentalstress.

Mr. Chen Dan, ChairmanGuangdong Evergreen Conglomerate Co., Ltd.• Foundedin1998 asaprivateenterprisegroup,focusingonhatchery,feedmanufacture,farming,processing,realestatedevelopment,financialsectorandportoperations.• Owningdozensofsubsidiaries,whicharelocatedin Guangdong,Guangxi,Hainan,and Fujian,Evergreenisoneofthetop500Chineseprivatecompanies.

Shrimp in China: Chen Dan• 2017Status

• Larvalqualityhasdropped,andthesuccessrateatgrowouthasdroppedtoabout50%.• Shrimpfeedproductionis1.2milliontons,similarto2016.• Shrimpproductionisdeclining20%to0.9milliontons,duetoenvironmentalproblemsandgermplasm degradation.

• Exportvolumesaredroppingbecausedomesticpricesarehigherthaninternationalmarkets.• Shrimpfarmingareaisincreasing,especiallyinthenorthofChina.• About50%oftheshrimprawmaterialforChineseprocessingplantsisimported.

• Futuretrends• Greaterinvestmentisneededinenvironmentalcontrolssuchasdesignatedfarmingzonesandstandardizedfarmmanagement.

• Chinesebreedingcompaniesareselectinglinesadaptedtothelocalenvironment.• Hatcheriesneedtotightenoperationalstandardstoimprovelarvalquality.

Mr. Maple Hung, VP of Global MarketingSheng Long Bio-Tech International Co. Ltd.• Foundedin2003,ShengLongBio-techInternationalCo.Ltd.specializesinmanufacturingandmarketingofaquaticfeedsandanimalhealthproductaswellasshrimpbreeding.• Itisoneofthetop3shrimpfeedproducersinVietnam.Itsthreefeedmillshaveanannualcapacityof250,000metrictonsofshrimpandfishfeeds.• Itsthreeshrimphatcherieshaveanannualcapacityof3billionpostlarvae.

Shrimp in Vietnam: Mr. Maple Hung• Disease• Whitespotvirus,earlymortalitysyndromeandWhiteFecesdiseasecontinuetocauseeconomicloss,butthebusinessisgrowing.

• Vannamei• FastgrowthofvannameiinVietnam,duetoaccesstoSPFpostlarvae,vannamei’stoleranceofwidesalinityrangeandshortdistancetotheChinamarket.

• Monodon• Somefarmsareshiftingtomonodonduetohigherprices.

• Growouttechnology• Improvedpondresultswithsemibioflocandzerowaterexchangewithprobioticculture.

Dr. Loc Tran, DirectorShrimp Vet Laboratory, Vietnam• Expandedfarmingarea

• Shrimpfarmingisexpandingand“lowsalinity”farmingprotocolhasbeenadoptedinareasof0-5ppt.

• Newtechnology,farmingprotocols• “CP”model:1,000m2plasticlinedpondwithshading,20-40%waterexchange/day,multi-phaseculture,nursery,polyculture,siphoning,probiotics,feedadditives,etc.

• Bettergenetics• Inthelastonetotwoyears,theADGofseverallinesimprovedalot.Nowwithatypicalearthenpond(70pcs/m2),shrimpcanreach15gramsin50to60days.

• Downside• Mixeddiseasesinhatcheriesandshrimpfarms• Farmers’lackoffinanceandtechnology,unpredictableweather,newdiseases(whitefecesdisease)

Loc Tran on Shrimp Diseases in Vietnam

• Whitespotvirus• Nomajorchangefrompreviousyears.Thisyearwithalotofheavyand unpredictable rain,WSSVseemsmorewidespreadintheMekong.

• Earlymortalitysyndrome:• Lessenedthisyear,probablyduetolesssunshineandhotweatherandgreatermanagementexperience.

• EHP• Increasingwithmanycasesdetectedinhatcheriesandshrimpponds.Causingslowgrowth.

• Whitefecesdisease:• A bacterialdiseasethatcausesseveredamagetoshrimpGIandHPatDOC20-70,resultinginslowgrowth.WFDisstronglyassociatedwithpollutionandexcessalgaewhichleadtobloomsofbacteriaonthepondbottom.

Shrimp in IndiaPanchu Duraisamy, GAA• Exports

• In2016-17,Indiaexported434,484metrictons.In2017,totalfarmedshrimpproductionislikelytoexceed600,000metrictonsvaluedat$6billion.

• Production• Vannameiconstitute>90%ofculturedshrimp;blacktiger<10%• Expandingproductionarea,especiallyconversionoffreshwaterfishfarmsinAndhraPradesh andconversionofmonodonfarmsinthestatesofOrissaandWestBengal.

• Diseases(WSSV,whitefeces,EHP)remaintheforemostchallenge.EMSnot reported.

• Managementtrendsincludeincreasinguseofnurseriesandshrimptoilets.

• Antibioticresidues• DetentionofexportsintheU.S.&EEChasdriveninitiativesbyMPEDA,EIC,andCAAtoregisterandmonitorinputstofarmsandhatcheries,increasepre-harvesttestingandrequireregistrationofallfarms.Around40unlicensedshrimphatcherieswereclosedrecently.

Shrimp in Ecuador: Rodrigo Laniado

• Ecuadorshouldexport420,000metrictons,anincreaseofabout11%overlastyear.• Ingeneral,our“openecoshrimp”productionmodelisworkingwell.

193% in 9 years

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69%

Shrimp in ThailandRittirong Boonmechote, Thai Union Group

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Year2015 Year2016 Year2017

Productioncontinuestorecover.2017maybeup5%.

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PresidentofGlobalShrimpBusinessUnit

Shrimp in Thailand: Robins McIntosh, Senior VP, CP Group • Thailandhasstalledabit— probablyjustgoingtobeabitover300,000tons,whichisthesameas2016.

• EHPhasnotbeencontrolled,andtoomuchinfectedmaterialisstillgettingoutofthehatcheries.Moreworkneededoncarriersandimproveddiagnostics.• Shrinkageincultureareafrom70,000hectaresofpondsin2010toasfewas10,000hectaresnow.• Efficiencyismuchhigher:70daycycles,15to20tonspercycle,threetofourcycles/year.

Impact of Disruptive Technology: WSV epidemic, introduction of SPF vannamei, and quadrupling of production

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0.5

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1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Million MT

P. vannamei P. monodon M. rosenbergii Other

WSSV epidemic

EMS and EHP

Sources: FAO (2013) for 1991-2011; GOAL (2013) for 2012-2015.

Robins McIntosh: What is the next disruptive technology?• Until2012,thefocuswasbreedingforgrowth,thenfordiseasecontrol.Butnow,Iseeopportunitiestopumpuptheimmunesystemsofshrimptodealwithmorechallengingcultureconditions.• Theotheralternativeisdevelopmentofmorecontrolledintensiveculturesystemswithgreaterdisciplineinsanitation,hygieneandbiosecurity.

Conclusions• Collaborativeapproachhelps.Ifwewanttogofar,wemustgotogether• RepeatedthemesofenvironmentaldeteriorationandincreasingbacterialandparasiticdiseaseslikeEMS,WFDandEHPinmajorproductionareasofChinaandSoutheastAsia.• Overall,thegrowthofshrimpfarmingisslow.EcuadorandIndiacontinuetoexpand,butthisistemperedbycontractioninChina.• Disruptivetechnologiesareneededtoovercomethecurrentbottlenecks.• Breedingshrimptobemoreresilienttochallengingenvironments• Intensifyingproductioninmorecontrolledenvironments