THE CRUST - ISSUE #3

Ceo The

Chief Editor Overview

HTello again in this month’s issue of THE CRUST. In this issue, we want to focus on a hot-button issue called sustainability. More often than not, people only associate sustainability with regard to the environment. But we believe it is more than that; sustainability must also encompass social aspects and economic aspects. Without a liveable environment, humanity and businesses will cease to exist. Without social well-being, it will be hard to form a society that achieves sustainability and economic goals. Lastly, without profit in businesses, no resources will be committed to the betterment of people and the earth. We believe that all of these aspects must

go hand in hand to ensure continuous improvements.

This year’s G20 also commemorates the starting of a new side event within it called the Ocean20 (O20). There, top government officials and VIPs discussed the importance of the ocean in our everyday lives. Some of the topics covered in O20 are new ocean-focused initiatives, blue foods, and removing plastics from the environment. A quote from one of the speakers that I liked is how he said that there is only one ocean in the world and that we are all connected.

United Nations (UN) just announced that the world population just hit 8 billion this November. It is now more imperative than ever to ponder the global food supply. One way

to solve this is to produce more food using our ocean resources. But this has to be done while avoiding practices that can accelerate climate change. As the UN predicted that carbon emissions have to peak before 2025 and be reduced significantly by 2030 to avoid a potentially irreversible shift to our environment.

Sustainability can only be achieved by working together. Governments, businesses, and every individual each have a responsibility to take part in it else it is unachievable. We need to collectively take care of the earth to take care of ourselves. This should be done not just for us, but also for the next generations. As the famous saying goes: Leave the world a better place than when you found it.

Rizky Darmawan Chief Editor

Photo source: THE CRUST

Ocean 20, A Significant Conference for Aquaculture

which is a multilateral cooperation forum consisting of 19 countries and one economic region, the European Union. The focus of the G20 generally covers the world economy and important issues associated with it. These issues include World Bank and IMF reformation, climate change, global energy, demographic impacts, and population issues.

For the first time, Indonesia trusted to hold the G20 Presidency. The G20 event which was held in Bali from 15th to 16th November brought the

still under immense pressure due to the COVID­19 pandemic, and it requires a joint and inclusive effort to find a solution for world recovery.

One of the series of G20 activities was The Ocean20 (O20), which is a conference meeting to deliver concrete policy recommendations, with the hope that it will be followed up socio­economically and ecologically to conserve and utilize the sea and marine resources sustainably as the Blue Natural Capital (BNC). The conference topics discussed in this meet­

ing were the blue economy, blue energy, blue carbon, blue food, blue investment, marine tourism, marine pollution, ocean conservation, and expertise in the maritime field.

Blue Food Development Strategy to Support Global Food Security

Among the various topics discussed in Ocean20, Blue food is an important topic that is closely related to aquaculture stakeholders worldwide. The importance of Blue food is that it aims to make the fisheries industry more sustainable

by limiting catch fisheries to preserve the natural stock and promoting more sustainable aquaculture products.

As stated by The Ministry of Marine Affairs and Fisheries in their press release: Director General of Aquaculture TB Haeru Rahayu (TB) as a speaker at the ‘Blue Food for Inclusive Growth ­ Ocean 20 forum on 14th November, acknowledged the importance of the Blue Food Program being discussed

Photo source: THE CRUST,Mida

Aquaculture Industry Stakeholders Worldwide

globally because it is related to accommodating sustainable food and the future. Right now, the world is facing the threat of climate change and an increase in the human population which is expected to reach 9.7 billion people in 2045. “Blue Food has an important role to play in achieving food security, ending malnutrition, and building a healthy food system.” TB Haeru Rahayu said. He also states that Indonesia can make

a great contribution to the provision of aquaculture food products. Indonesia is currently listed as the second largest producer of aquaculture in the world with a production volume of 14.8 million tons. Based on FAO’s predictions, Indonesia’s aquaculture will further grow by 26% by 2030.

Meanwhile, the Deputy Chairman of the Marine and Fisheries Sector from the Indonesian Chamber of Commerce and Industry, Joseph Pangalila said that the investment opportunities for the aquaculture industry in Indonesia are still very promising, both for ma­

rine, brackish, and freshwater aquaculture activities. These potentials include the availability of land and also the market for aquaculture products. Furthermore, Joseph Pangalila adds that aquaculture in Indonesia is still dominated by a traditional system, so it is hoped that investors can work with local communities to develop a blue economy. With the concept of the blue economy, he is optimistic that the agriculture farming business can run sustainably and benefit all parties. “So, the concept of the blue economy is not only to improve environmental quality but will also increase people’s well­being,” concluded Joseph Pangalila.

Attended by Aquaculture Stakeholders

Many Indonesian aquaculture stakeholders also attended The O20 event. The attendees ranged from the private sector to aquaculture associations such as MAI, AP5I, APCI, ASTRULI, and SCI. SCI’s Secretary General, Rizky Darmawan, who was attending the event stated that “It’s good to see the ocean getting more attention on the world stage”. He also hopes that The O20 event can increase awareness among all aquaculture stakeholders to not just increase production, but to also pay attention to sustainability for the future.

*derived from various sources

lTHE CRUST - UTE, GEMILANG

School Construction Series 1 Pond Types

Sedimentation Pond

The need to build settling ponds was not required in the past. But farmers nowadays felt the need to build it to improve their water source. The size of the settling pond will depend on the quality of the water source and how clean you want the result to be. If the farm is located in places with high Total Suspended Solids (TSS), then it would be better to have a more extensive settling pond. Settling ponds are usually designed like a labyrinth and equipped with various ways to block sediments. Rocks, nets, or coarse-sands-filled bags are stacked to create a barrier where sediments get stuck but water can flow through. More sophisticated farms might also use a more modern filtration system.

Treatment Pond (Reservoir)

This pond is used to disinfect and store water. To determine how big the reservoir you need, first, you have to determine how much water you need each day. Generally, a good farm will be designed to always have available clean water every day. So, the number of treatment ponds should be adapted to that need. Next is to choose what disinfection method you will use on the farm. Many farms in Indonesia use calcium hypochlorite [Ca(ClO)2], while Vietnam prefers Potassium Permanganate [KMnO4] to disinfect their water. New technologies to disinfect water are also available and gaining traction among farmers such as UV light and Ozone treatment.

Grow-Out Pond Wastewater Treatment Ponds

This is where farmers grow their stock. Some farms are also equipped with a nursery system to cut down cultivation time and get more cycles per year. This practice can be done using multiple stages to further increase yield.

A good grow­out pond should be designed to be able to gather sludge in a designated area to simplify its removal. Also, it is vital to equip enough aeration systems to support the stock population. In most cases, increasing the stocking density and productivity of a pond is achieved by how well you can remove waste from the pond and maintain a minimum amount of diluted oxygen (DO).

This is where water gets treated before it is either discharged back into the environment or recirculated back to the farm system. Wastewater treatment ponds are usually designed using three steps with each pond’s size designed by calculating the needed Hydraulic Retention Time (HRT). The first step is the sedimentation pond, where most of the sludge is deposited; this step takes about two hours HRT. The second step is the aeration pond, where wastewater is oxygenated to neutralize harmful compounds; this step takes around 8­12 hours HRT. The final step here is for additional treatment to ensure the cleanliness or safety of the wastewater. This can be done by more sedimentation ponds, further chemical treatments, or by using aquatic organisms as biofilters and biomarkers.

Photo source: THE CRUST , apofl.com

Shrimp Sustainability: Past Present and Future

It Is hard to say, but the shrimp farming industry has long been deemed unsustainable. This was caused by several complex and interrelated factors, starting from the use of mangroves forest, the lack of responsibility in the treatment of wastewater, and the use of feed with unsustainable ingredients (such as fish meal and fish oil).

In the case of mangrove conversion for pond production, we know that mangroves are an integral part of the ecosystem that provides refuge to various wildlife. For human function, mangroves can help reduce flood risks, especially in coastal areas, as well as prevent erosion by stabilizing the soil with its root systems.

In addition, mangrove ecosystems have also become a hot issue as their huge potential to capture and sequester carbon which is known as blue carbon. So, shrimp ponds from converted mangroves were

likely to cause environmental degradation, natural disasters, and emit the carbon that causes greenhouse gasses. The environmental degradation was exacerbated by the lack of wastewater treatment application by farmers which can decrease the carrying capacity and outbreak of the disease.

Meanwhile, the overuse of fishmeal as a feed ingredient was also not good for sustainability issues. Fish meals mainly come from catch fisheries and are finite resources that depend mainly on the season and regeneration of the natural stock. This has created another problem because the fish meal supply will not be able to support this growing industry.

Current State of the Shrimp Industry

However, the good news is that this is not the case anymore. Farmers already under­

stand how important mangroves are to maintaining the ecosystem and increasing the success and sustainability of the business. There have been a lot of efforts to change the bad practices in this industry such as bans on mangrove deforestation to replanting efforts.

President of Shrimp Club Indonesia (SCI), Haris Muhtadi, confirms that some farmers started to plant mangroves around their ponds, even though previously the area wasn’t a mangrove ecosystem. In addition, farmers have also been applying effluent water treatment (IPAL) on their productive land. These practices were previously thought of as useless as they wasted productive land.

According to him, the success of shrimp farming highly depends on natural conditions. By implementing sustainable farming, one of the advantages

for farmers is being able to run the production in the same lo cation for a long time. “This is much better than always having to move to new locations due to the environmental degradation in the existing one,” he says.

He also adds that sustainability may seem hard for some farmers as it doesn’t give direct impacts. This is intensified by the lack of incentives and an unsupportive ecosystem. And if we look at the character of shrimp ponds in Indonesia which is commonly an open system, Sustainability shouldn’t only be an individual responsibility, but this must be a collective effort of all farmers and stakeholders in the industry.

Haris says that “the concept of sustainable shrimp farm will not be successful if it is not implemented and supported by all stakeholders in the industry. All actors are responsible to do sustainable practices and make

Photo source: Delta Marine Indonesia

Sustainability

and spread a good image of our shrimp for the global consumers.”

Investments for a More Sustainable Aquaculture

In these times, plenty of funds and incentives are available that target sustainability efforts from some startups and even NGOs. Alune is one such startup that manages funds to develop or improve farming practices and sustainability. Alune’s CEO, Alex Farthing, says that their minimum requirement for shrimp cultivation is the prevention of mangrove deforestation.

“Our Climate Smart Shrimp and the Banyuwangi focused Asian Aquaculture Facility funds use different reforestation strategies. In both cases we are working with multiple land owners and converting low­productivity land back into mangrove and focusing on high quality, productive farm assets to drive profit and income,” he concludes.

Alune is concerned with sustainability issues in all aspects, including profit, planet, and even people. Alex says that a profitable business is the first

aspect of sustainability. He reveals that “without this (profitability), sustainability won’t be sustainable. And investors would be unable to invest. In this way, impact investors’ interests are heavily aligned with those farmers.”

Alex believes that good business should be stable, profitable, and impact-aware. This means shrimp farms should focus on being profitable and well-run first. And once this is achieved, there will be more energy, time, and money that can be spent addressing other aspects of sustainability.

“For farm investments, we align business success with impact to unlock flexible finance for farms. We do this via our investment funds or bespoke for larger investments (USD3 million and above),” he says.

“Many of the metrics that define success for farmers are naturally aligned with impact. For example, improved FCR is good for profit margins and the environment, and improving employee work conditions helps team retention while contributing to social impact. In many cases, the difference between an impact activity and

a business activity is the use of a framework and reporting structure.”

What to Expect for the Future of Aquaculture

As climate change has been a hot issue around the world today, people have started to be concerned seriously about sustainability in various aspects of their life, to reduce its dangerousness, including what they consume. Main seafood consumers, particularly the younger generation, like in the US, EU, Japan, and China want the seafood they buy to have been certified or eco-labeled, and produced in an environmentally and socially responsible setting.

According to one of the shrimp buyers from the US, MIDA, the big retail Walmart is targeting that the shrimp products on their shelves should have eco­label by ASC (Aquaculture Stewardship Council) by 2025. This projection is very important to be considered by all shrimp stakeholders in Indonesia as the US is the main market destination. In addition, the Indonesian shrimp industry also should strengthen shrimp

competitiveness due to high competition in the US market.

The challenge of the market and environment are also confirmed by the President of Shrimp Club Indonesia, Haris Muhtadi. He tells The Crust that the market may no longer welcome shrimp that are produced without practicing the sustainability concept. So that the Indonesian shrimp industry must start thinking ahead and be prepared to face this new market trend.

Furthermore, future aquaculture should be sustainable not only on the farm but throughout the whole supply chain. The use of fishmeal has been starting to reduce in the aquafeed formulation. Researchers and companies have been trying alternative ingredients which are environmentally friendly and at minimum cost. Some of the potential ingredients are plant­based like soybean and corn, insects like black soldier fly (BSF), algae, and even single­cell protein.

WWetM

Market

by Mida

MIDA Trade Ventures Singapore is a seafood trading company focusing on brokerage, quality control, and logistics services. Some of the products in MIDA’s portfolio are shrimp, octopus, cuttlefish, tuna, and many more. While visiting Surabaya to meet with clients and suppliers, MIDA decided to organize a networking event along with Delta Marine Indonesia (DMI) to introduce one of the US buyers with the local shrimp farmers. The event was attended by MIDA, Chicken of the Sea Frozen Food (COSFF), Delta Marine Indonesia (DMI), and several farmers affiliated with Shrimp Club Indonesia (SCI) and Petambak Muda Indonesia (PMI). There we were asked by THE CRUST’s Chief Editor, Rizky Darmawan, to contribute an article every month to share our insights and experience about the global seafood market.

In the networking event, Chicken of the Sea US representative talked to us about the current market condition and what

to expect in the future. They told us to expect a shift in the US market caused by younger consumers who are more sophisticated and environmentally conscious. US Shrimp consumption per capita is at 4,6 pounds. It took 25 years for this demand to increase from 3,5 pounds per capita. Equador estimated total producing at 1,3mill MT as of October, India is probably at 600.000. There’s a surge in production that is not followed by an increase in the market.

Walmart is targeting to have ASC certification for shrimps sold at their shelves by 2025 to meet their sustainability target, by 2030 full traceability until the feeds (protein measure that put inside the feeds).

Quality will also be a deciding factor to win the US market. Some US retailers asked some packers to treat the shrimps with salt only thinking that no way it will create too much water content and they were surprised. For now, Indonesia is preferred to fill the retail market mainly for the EZ­Peel (EZP) products due to their competitive price; they can produce roughly 20cent per pound cheaper than other competitors. India on the other hand is

Marsie Claudia

-Mida Corespondent-

preferred for the food services market due to their quality. The difference in quality is evident when sellers present shrimp samples from the two origins to chefs and restaurants; shrimps of Indian origin is picked 10 out of 10 times. This is mainly due to the amount of soaking done while the shrimp is processed. Oversoaked shrimps will have higher water content, which in turn lowers its quality. Another challenge Asian shrimp producer will have to deal with right now is the rise of Ecuadorian shrimp supply to the US market.

In 2009, world’s shrimp production was seriously hit by the Early Mortality Syndrome (EMS). Production from Thailand, mainland China, and other countries from the region was abruptly halved. Though the event was bad for the economy in the respective countries, this presents some opportunities to other producers. China who was a net

exporter switched to be a net importer of shrimps. This made way for other countries to increase their production and fill the gap in global demand. China’s main demand which is the Head On Shell On (HOSO) product was quickly filled by Ecuador. However, because of China’s zero covid policy, a lot of shipments of shrimp from Ecuador got rejected. In order to secure revenue, Ecuador start sending their shrimps to the US market, further oversupplying the already strained demand. One suggestion Henry made to temporarily respond to this market condition is to halt production, or at least reduce stocking density until market stabilizes.

Here are the data of shrimp exported to US by origin (in MLBS)

Below is Data Indonesia Vannamei produced by 2021 and 2022

l THE CRUST

Photo source: THE CRUST,Mida

Kona Bay Indonesia Provides a Guaranteed

The success of shrimp farming is highly reliant on PL (Post Larvae) quality. To support the success of farmers in the field, broodstock companies continue to make incremental genetic improvements to shrimp broodstock. PT Kona Bay Indonesia (KBI), a joint venture company between PT Suri Tani Pemuka and Hendrix Genetics, inaugurated a brand new broodstock multiplication center in Tejakula, Buleleng, Bali a while ago.

KBI’s General Manager Ari Setiadhi informed THE CRUST, the technology developed by KBI uses a combination of selective breeding, genomic selection, and challenge tests to improve broodstock quality and fry production. Challenge tests for commonly found diseases in hatcheries and ponds are also performed. He also added that as a part of Hendrix Genetics, which is a global company specializing in the field of genetics, they utilize experts and extensive resources to collectively produce broodstock with superior genetic quality;

something that is crucial in aqua-agribusinesses.

Supply of Quality PL and Broodstock

It is known that one of the main challenges in the shrimp farming industry is related to the production and maintenance quality of PL. According to Emiliana Anggeraheni - Head of Shrimp Hatchery Operation PT Suri Tani Pemuka, states that currently when the farmers’ fry demands are not met, farmers are forced to take fries with lower quality. Especially when it is associated with certain outbreaks such as AHPND, farmers are constantly looking for hardy PL and it turns out that production from existing players is still lacking. “In summary, good quality PL produced by the hatchery is still severely lacking,” Emil explained.

Meanwhile, regarding the challenges at the hatchery, Emil said that the most important subject matter is diseases both infectious and non-in

fectious, and site selection. Hatchery operators must balance the risk between getting an outbreak and the distance traveled from the hatchery to the customer. “But the two things above can be overcome with technology and our capacity is sufficient,” he claimed.

Regarding the presence of KBI as a center for rearing vannamei shrimp broodstock, he admitted that he was happy and enthusiastic about Kona Bay Indonesia’s direct presence in the country. According to him, as one of the loyal users of Kona Bay broodstock, the certainty of supply of quality broodstock in the future will be more guaranteed now than ever. Likewise with the known constraints on travel time, flight limitations, and restrictions as well as the

Photo source: PT Suri Tani

Guaranteed Supply of Quality Shrimp Broodstock

processing of various permits such as import and quarantine documents it seems that they are no longer an obstacle. “This signifies that Indonesian customers will ultimately benefit, not only the STP hatchery. In addition, the presence of KBI shows that the shrimp industry in Indonesia is prospective and increasingly competitive” he explained.

Emil added, in terms of fry performance, there aren’t notable differences between KBI fry and KBMR (KB Hawaii). He believes that what was developed by KBI is the seed of KB Hawaii. “Even though there are differences in maturation performance at first, we also expect an adaptation period”, He explained.

A similar note was men-

tioned by Ari, according to him, the establishment of KBI was based on several factors, the first is that Kona Bay sees Indonesia as one of the potential markets in the world for Kona Bay breeders after India and China. Apart from that, the logistics costs which are constantly climbing are an important consideration, and sending broodstock directly from Hawaii to Indonesia is becoming less feasible. “And most importantly, with the KBI we can provide fresher broodstock because the shipping distance is much closer and has been locally adapted, so we hope that it will improve performance and productivity both in hatcheries and ponds,” Ari explained optimistically.

Ari adds regarding fry quality until now Kona Bay Indonesia is still in the SOP development stage using feedback from the field. There has not been any significant difference. However, it is hoped that in the future the broodstocks

will adapt to local conditions and will produce PLs that are more suitable for Indonesian water conditions.

This is also expected by farmers as PL users. One of the farmers who attended the inauguration of KBI in Bali said, “We are happy that there is a new broodstock multiplication center in Indonesia. We hope that the facility can produce broodstock that is more suitable for the local climate conditions.”

Increase Market Share by Up To 70%

Occupying a total area of 16,000 square meters, the investment made by Kona Bay reaches 40 billion rupiahs. Ari explained that his facility aims to increase market share to 6070% in the next 3 years and 7080% in the next 5 years to meet the country’s PL requirements. “We do not focus on exports but instead we try to meet the local demand for vannamei in Indonesia, which is around 120,000 broodstocks per year. We project that we can fulfill 70% of this need,” said Ari.

lTHE CRUST - UTE, RIZKY

Time PMI Golf Tournament 2022 Break

This year, Petambak Muda Indonesia (PMI) association organized its first-ever golf tournament for shrimp industry members. The event was held at the Bukit Darmo Golf Course in Surabaya with 18 teams competing for the championship. Some of the participants specifically flew from abroad to attend the tournament. Among the participants were players from various nationalities such as Ma­

laysia, South Korea, the USA, and more. The event was made to bring together industry players from the whole shrimp supply chain to network while having fun and exercise.

The organizing committee made some modifications to the rules for this tournament. Firstly, each flight is played between two teams with two players per team. Second, the game is played between two teams each flight using the best ball rule. This rule ena-

bles the players within a team to choose which ball position to hit from for the subsequent

stroke. Finally, the last rule we made which was a big twist for this tournament: the winning team in each hole at their flight have to take a shot of alcohol. All of these rules were made to promote cooperation, communication, balance, and most importantly, fun.

As for the winner, first place was taken by the CJ Feed Semarang team consisting of Mr. Kim Sung Sam and Mr. Henricus Lusida with a score of 71. Second place, with a three-stroke difference, was won by Mr. Guntur Pribadi and Mr. Eko Purnomo from the Jap­

fa Yasaka team. Finally, closely followed in third place by a twostroke difference was the CJ Feed Lampung team consisting of Mr. Shin Seung Jun and Mr. Adiputra S. Thio.

Undisputedly, the event was a resounding success. There was some room for improvement, but all in all, everybody had fun. Both the organizer and the participants eagerly wait for next year.

Photo source: THE CRUST

lTHE CRUST - RIZKY

Amazing! now Indonesia has the

sustainable protein production in Asia

Biocycle is a company that engages in insects industries that was established since 2018. Our main focus is to produce dried Black Soldier Fly larvae, which are believed capable to be the functional sustainable ingredients source in the world. We used modern technology with qualified facilities to produce quality products.

After a long process, now Biocycle becomes the biggest Black Soldier Fly company in Asia. Biocycle mission of providing sustainable pro tein needs globally and of high quality. It aims to bring valuable health to all creatures and have a positive impact on the industry.

Development Goals to achieve a better sustainable future for all. The SDGs we implement are number 2, 8, 9, and 12.

Biocycle produce functional ingredient sources based on a “single feed” system by using palm kernel meal, which comes from natural raw ma terial with sustainable availability in Indonesia

biggest

Biocycle Products :

Biocycle dried larvae are manufactured using the ISO 22000 standard, which is food safety management Processing of dried larvae in BCI is carried out like processing food, so as to ensure the quality and hygiene of the product

Insect meal produced by BCI contains a variety of essential amino acids such as L arginine, L-alanine and others which are very good for livestock needs.

Insect meal produced by BCI contains a variety of essential amino acids such as L arginine, L-alanine and others which are very good for livestock needs.

Insect oil contains lauric acid which is anti-inflammatory and good for increasing the immune system of livestock and pets.

Insect oil contains lauric acid which is anti-inflammatory and good for increasing the immune system of livestock and pets.

Insect oil is also an organic material that is more environmentally friendly

Insect oil is also an organic material that is more environmentally friendly

Frass

Frass is an organic extract made from the fermentation of nutrients in the stomach of black soldier fly larvae which has many functions to get the best yield, streamline nutrient absorption, and improve soil nutrients and nutrients.

Probiotics are organic matter sources of good bacteria vang beneficial to maintain and improve the dang cultivation process through improvement and improvement of the ecosystem

to maintain and improve the dang cultivation process through improvement and improvement of the ecosystem

Biocycle dried larvae are manufactured using the ISO 22000 standard, which is food safety management Processing of dried larvae in BCI is carried out like processing food, so as to ensure the quality and hygiene of the product

Shrimp is love Shrimp is life

In Crust

Darmawan

The more I know, the more I realize how little I understand. So stay humble and keep on learning.

Contact

Rizky

Denny Leonardo

Rosebay Unit A101, Graha Famili, Blok W, Kota Surabaya, Jawa Timur Cover art generated by OpenAI, Rizky

We Trust

I probably be up in the sky, deep in the sea, exploring the unknown, or building a shrimp farm

Gemilang Lim

My secret to joy in life is in finding balance. Balance in family, sweating, and making decisions.

Cynthia Darmawan

W, Pradahkalikendal, Kec. Dukuhpakis Timur 60227, Indonesia admin@pmindo.com