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Feed
Asian expansion and sustainability initatiatives were key themes for feed producers this year
IN January, we reported that
a court ruling in Oslo led to a war of words between feed giant BioMar and nutrient specialist STIM over a smolt feed patent.
The argument concerned BioMar’s smoltifi cation feed Intro Tuning, which STIM maintained infringed the patent of its own SuperSmolt FeedOnly. Both are specialist products to control smoltifi cation, reducing the number of immature fi sh transferred to sites in the sea too early and also preventing smolts from maturing too early.
STIM AS submitted a request to the Norwegian courts in July 2020 stating that BioMar should be prohibited from the sale of Intro Tuning. According to STIM, the feed violated a new European patent that STIM had recently been granted.
The Oslo County Court held hearings in the case in the fi rst week in November 2020. A decision was handed down by the court on 8 December concluding that BioMar’s feed Intro Tuning should not be the subject of an injunction.
BioMar hailed the decision as vindication of its position. Håvard Jørgensen, Managing Director of BioMar Norway, said: “We are very
This page from the top: Håvard Jørgensen; Jim-Roger Nordly Opposite from the top: Antarctic penguins; Deforestation happy with the outcome of this case. The decision from the court is in accordance with the European Patent Offi ce’s (EPO) understanding of STIM’s patent, and thus as expected. This decision means that fi sh farmers can continue to choose feed from our product portfolio that promotes growth and health during smoltifi cation and transfer to seawater.”
STIM, however, expressed a very diff erent interpretation of the ruling. Its CEO, Jim-Roger Nordly, said: “Jørgensen has no basis for making such a claim. In reality, BioMar succeeded with nothing more than legal fi libuster and a reasoning that fl ies directly in the face of the work that EPO does to protect important innovations against unlawful exploitation.”
STIM maintains that BioMar’s substitution of alternative amino acids for SuperSmolt’s key ingredient, L-Tryptophane, does not absolve the larger company from the charge of patent infringement. The dispute has rolled on through the year, with BioMar appealing against a court decision in March that landed the feed group with a fi ne of NOK 23m (£1.92m). STIM hailed a further victory in July, with the European Patent Offi ce agreeing to widen the scope of STIM’s patent protection.
Also in January, the fi shing industry and a coalition of non-governmental organisations (NGOs) agreed to stop krill harvesting in an area of the Antarctic Ocean to protect the penguin population. Krill, which is used as a component in fi shmeal for feed as well as pet food and nutritional supplements for humans, is a key part of the birds’ diet. The closure is year-round and permanent, aff ecting a 4 500km2 area of ocean around Hope Bay in the northern Antarctic Peninsula. The move is supported by the Association of Responsible Krill harvesting companies (ARK) and an NGO coalition of Greenpeace, Pew, WWF and Oceanites. The move expands voluntary restricted zones that came into eff ect in 2018. It is intended to secure the year-round protection of the largest Adélie penguin colony in the region, and sends a strong statement of intent in support of a marine protected area in the Antarctic Peninsula from industry to the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) and the entire Antarctic community. The companies making the commitment represent 85% of the krill fi shing industry in the Antarctic and are all members of ARK. The companies are: Aker BioMarine, CNFC, Jeong IL Co., Dongwon Ind. Co., PescaChile, Rimfrost, Fujian Zhengguan Fisheries Development Corporation and Liaoning Pelagic Fisheries corporation. In February, sustainability in aquafeed remained high up the agenda, with news that three of Brazil’s leading soybean producers had agreed to put in place a 100% deforestation-free soy value chain. The move means that virtually all the soy supplied to the salmon farming industry as feed will be from sustainable sources. The three producers – CJ Selecta, Caramuru and Imcopa/Cerverjaria Petropoli – have worked with the sustainability certifi cation organisation ProTerra and WWF Brazil to develop a robust monitoring, reporting and verifi cation system. The aquafeed industry welcomed the move, which means that the whole of the European salmon farming sector and the vast majority of the global salmon industry will ul-
KRILL IS A KEY PART OF THE BIRDS’ DIET
companies are: Aker BioMarine, CNFC, Jeong IL Co., Dongwon Ind. Co., PescaChile, Rimfrost, Fujian Zhengguan Fisheries Development Corporation and Liaoning Pelagic
In February
aquafeed remained high up the agenda, with news that three of deforestation-free soy value chain. The move means that virtually all the
timately be sourcing its soy feed from suppliers that have banned soy from deforested areas.
Also on the topic of sustainability, Skretting Italy became the fi rst aquafeed producer to have the carbon footprint of its portfolio independently certifi ed. Skretting’s Carbon Footprint Systematic Approach was certifi ed under ISO 14067:2018, the international standard that covers the quantifi cation and reporting of the carbon footprint – the carbon emitted into the atmosphere from the entire production chain – of a product.
Skretting Italy is now in a position, the company said, to provide certifi ed carbon footprint fi gures on any of the aquaculture feed products in its portfolio. This should help fi sh farmers to calculate their own carbon footprint and understand ways in which it can be reduced. The certifi cation was conducted by Norway-based risk management and assurance group DNV GL.
Meanwhile, Skretting and Polish Proteon Pharmaceutcals announced a strategic partnership to develop aquafeed solutions to help protect fi sh from harmful bacteria. The venture involves fi nding “phages”, viruses that attack bacteria, that can be incorporated into feed. The fi rst target is the Vibrio bacteria, which has been a big problem for aquaculture.
If successful, the use of phages could mean the industry is much less reliant on the use of antibiotics. until the sale to Le Gouessant on until the sale to Le Gouessant on 1 March, it was owned by Maïsadour 1 March, it was owned by Maïsadour and SCAAL (Les Aquaculteurs Lanand SCAAL (Les Aquaculteurs Landais), France’s largest farmed trout dais), France’s largest farmed trout producer. producer. The move took Le Gouessant’s production capacity to 50,000 production capacity to 50,000 tonnes per year and, the company tonnes per year and, the company said, it would also enhance its R&D said, it would also enhance its R&D capability. capability.
Shrimp feed is a massive part of the aquafeed sector and March saw the aquafeed sector and March saw the announcement of a new shrimp feed announcement of a new shrimp feed research centre in Ecuador for Skretresearch centre in Ecuador for Skretting – which is investing US $6.1m (£4.3m) in the Skretting ARC Guayas
In March, we reported that Brittany-based aquafeed business Le Gouessant Co-operative Group has announced the acquisition of competitor Aqualia. The move reinforces Le Gouessant’s position as France’s largest producer for fi sh farming nutrition. Aqualia, founded in 2016, has around 20 employees and a mill for manufacturing fi sh feeds based in Landes, in south-west France. Up Research Station – and also a major acquisition in Vietnam for BioMar, which acquired a controlling share in the feed operations of Viet-Uc. BioMar said its acquisition of Viet-Uc’s feed business “…establishes a partnership together with one of the leading seafood groups in Vietnam active in shrimp hatcheries, fi sh hatcheries and shrimp farming.” Carlos Diaz, CEO, BioMar Group, said: “With this partnership we open an important door into the Vietnamese market, one of the world’s leading shrimp producing countries with a production close to 500,000 tonnes of shrimp. Considering the performance and agility of the Vietnamese shrimp industry during the last decade and not least during this last year of pandemic, I am sure the
Opposite from top: Vibrio cholerae; Viet-Uc production; Carlos Diaz This page from top: Luis Garcia Romero (L) and Francois Loubere; Helene Ziv-Douki; BioMar’s promise to planet and people campaign market holds a great potential for growth.”
BioMar also reported a solid fi nancial performance for 2020, with revenue up 4.2% to DKK 11.65bn (£1.35bn) and earnings up 0.6% to DKK 972m (£112.8m). April brought news of expansion in Asia for the two feed giants. Skretting announced plans to build a new feed factory in Vietnam with a capacity of 100,000 tonnes. The new factory is being constructed next to Skretting Vietnam’s existing facilities in Thuan Dao Industrial Zone, Long An. Meanwhile, BioMar set up an Asia division, headed by Francois Loubere as Vice-President, Asia. He was previously BioMar’s VP, West Mediterranean and Africa, and his former role went to Luis Garcia Romero, Commercial Manager in the division.
In May, we reported that Helene ZivDouki had been appointed as President of Cargill’s aquaculture business. She had been a member of the Cargill animal nutrition and health team since 2017 and came in to replace Pilar Cruz, who had been promoted to the post of Chief Sustainability Offi cer. June brought more news from Skretting, this time of an acquisition in Australia. Skretting bought Ridley’s extrusion facility in Westbury, Tasmania. The company said the move was a continuation of Skretting’s long-term commitment to the Australian and New Zealand aquaculture industries. “We have been producing aquafeed from our Cambridge facility in Tasmania since the 1990s and today proudly employ over 90 staff ,” said Melissa Abbott, General Manager of Skretting Australia. She added: “I am pleased that we are expanding our manufacturing capacity to enable us to continue our long-term commitment to clients and partners across the broader Australian and New Zealand aquaculture industries. I am very proud of what our team has and continues to achieve, and the role that we play in supporting local communities. It’s an exciting day for the Skretting team.”
In July, aquafeed giant BioMar committed to reducing the carbon footprint of its feed by one-third by 2030. The pledge was part of the group’s “2030 Ambitions”, set out alongside BioMar’s 2020 Sustainability Report. BioMar is specifi cally promising action on three fronts. First, climate action: BioMar aims to achieve net zero greenhouse gas emissions by 2050. To that end, the
company says it intends to cut the carbon footprint per tonne of feed by one-third – using a baseline of 2020’s fi gures – over the next decade.
Second, shifting to “Circular & Restorative” production: 50% of ingredients in BioMar’s feed will be “circular” (including raw materials sourced from byproduct and waste streams) and/or “restorative” (materials that “signifi cantly shift the balance between ecosystem impacts and human production systems towards net-positive environmental outcomes”). One example given is the development of a single-cell protein produced from fermented forestry byproducts.
Third, a commitment to “Enable People”, focusing on capacity building by committing to enable 100,000 people annually by 2030 through training courses and development programmes for employees, farmers and communities; and engagement in third-party agricultural and fi shery improvement programmes and supplier improvement initiatives. Carlos Diaz, BioMar Group CEO, said: “We believe in transparency and even though some KPIs might seem too ambitious, we strive to aim high and disclose what we have and have not achieved. We believe in the sustainable future of the aquaculture industry and look forward to continuing to drive change.” In September, Norwegian farm business Sterling White Halibut agreed a six-year supply contract with Danish feed producer Aller Aqua. Halibut, a slow-growing fi sh, takes four years to reach harvest size and SWH produces in the region of 1,700 tonnes of halibut yearly.
The halibut are grown in Ryfylke in Norway and SWH handles the entire lifecycle of the fi sh, from broodstock through roe and larvae, to grow-out until the fi sh are ready for harvest. Magne Torgersen, CEO of SWH, commented: “Aller Aqua has shown us that they mean it when they say they want to grow together. Their feed quality, but also their input and availability, has been key in our decision, and we, therefore, have no queries signing a long-term contract. Together we fi nd solutions and our fi sh have never been better.” In October, alternative protein producer Calysta announced two senior appointments. The company appointed Keysha Bailey as Chief Financial Offi cer, while Rabobank veteran
Above: Sterling White Halibut signing contract with Aller Aqua Opposite from top: Jacqueline PietersZetsma; FeedKind scoop
Jacqueline Pieters-Zetsma joined the Board of Directors as an independent non-executive board member.
Calysta is a comparative minnow in the aquafeed world, but its process, which involves using the fermentation of natural gas to create protein, holds great potential. The world’s fi rst commercial-scale production facility for FeedKind, Calysta’s proprietary fi sh and animal feed, is being developed in China by Calysseo, Calysta’s 50/50 joint venture with feed giant Adisseo.
Bailey was previously Chief Financial Offi cer at Rocketship Education. She commented: “I’m delighted to be joining Calysta as the company begins a signifi cant new chapter in its history. I’m looking forward to working as part of the senior team to steer the organisation as it plans to enter the Asian market and works to address the very real challenge of making our global food system more sustainable.”
News of the appointments came days after Calysta announced completion of a US $39m equity fi nancing round, led by bp ventures, to support commercial production of FeedKind protein. Joining bp ventures in the round were Adisseo and AquaSpark, as well as other existing Calysta investors.
In October, Adisseo was also celebrating an award for the digitalisation of its production processes at the Chemistry Initiatives Awards held in Paris on 6 October. The award recognised the company’s digitalisation strategy, carried out through a successful partnership leading to the improvement of industrial performance, product quality and fl exibility. The DISPLAY 4.0 project (Data Intelligence
Simplifi cation Process under controL by AnalYsis) has enabled Adisseo to successfully digitalise its European and Chinese industrial processes.
In November, Aker BioMarine, the biotech innovator and Antarctic krill harvesting company, announced it was planning to restructure its fi nances after reporting a somewhat fl at third-quarter performance. Aker said it had agreed on a new fi nancing structure with its current bank group and one new bank entering the syndicate. Aker BioMarine reported an adjusted EBITDA of US $15m (£11m), against $27m (£19.8m) for Q3 2020.
The company’s net turnover fell by $8m to $62m (£45.4) while net profi t was positive at $13.5m (£9.9m). Net cash fl ow was also positive at $7.3m (£5.3m). Total off shore production was 7,195 metric tonnes for the quarter, 17% below the same period last year.
