SPOTLIGHT
01/2011
THE VALUE
OF GROWTH >> This edition of Spotlight looks at the use of EWOS feed as a tool to manage productivity in response to a range of external drivers. It takes into account the different production and market situations in Norway, Chile, Canada and Scotland, where EWOS has salmon feed operations.
content
Summary The Changing Business landscape Changes to production drivers Maximising market opportunities through optimised production Working within regulatory frameworks Supply /demand dynamics EWOS feed as a tool to manage growth/productivity Strategies for optimal nutrition Grower feeds Functional feeds EWOS prebiosal Geographical differences Cost /benefit scenarios EWOS support services EWOS Growth index EWOS Optimizer Open/Close site Feed management advice Future developments Acknowledgements 2
SPOTLIGHT 01/2011
summary
Recent changes in the regulatory framework in Norway and Chile, together with a volatile market, have led to challenging conditions, resulting in salmon farmers reviewing their production strategies and feeding regimes. A further challenge is a predicted increase in the production of Atlantic salmon in Chile and Norway in the latter half of 2011 and into 2012, which may significantly affect price in the short to medium term. EWOS’ response is to offer locally adapted product portfolios using a diverse range of raw materials, to optimise production whatever the regulatory regime or growing conditions. In addition, functional and health promoting diets have been developed to help salmon farmers to maximise fish growth and performance. For example, EWOS prebiosal, a blend of prebiotics and synergistic ingredients, has been found to be particularly beneficial to salmon gut health and can improve growth by up to 10%. To complement our comprehensive feed range, EWOS offers a range of support services, feed management advice and strategies, to ensure that targeted growth rates and production costs can be met. Our growth model, EWOS growth index, has been developed using years of real production data from around the world. It helps farmers to plan an effective production strategy, compare it with other fish groups, and obtain the best results from the feeding regime. EWOS optimizer is a further planning tool that uses advanced optimisation technology to solve planning problems and allow farmers to maximise production and income by reacting to changing economic drivers. Feed is an expensive commodity, but the aim is to convert it into high value fish, with the minimum of wastage and maximum profitability. Our experience in developing tried and tested modelling tools, means that EWOS is able to provide the most beneficial feed design for any given circumstance. Our Knowledge makes the Difference!
www.ewos.com
3
“SCIENTISTS AT EWOS INNOVATION ARE ACUTELY AWARE OF THE NEED TO OPTIMISE PRODUCTION WHATEVER THE REGULATORY REGIME AND GROWING CONDITIONS”
BUSINESS LANDSCAPE Changes to production drivers During the past twelve months, the business landscape, and in some countries the regulatory framework has changed, thus altering the way in which salmon farmers produce their fish. In Norway for example, the regulations on growth have changed from a maximum total pen volume via feed quotas, to the current maximum allowable biomass (MAB), driving farmers to focus on productivity. In order to maximise the return from a generation of salmon, producers must balance harvesting schedules against growth more carefully, to ensure that the MAB is not exceeded in any one month. On the Canadian west coast, the salmon farming industry cannot expand because new production sites are not available. Farmers are therefore looking to optimise production within the constraints of their current leases. Many are also experiencing issues with extended periods of reduced or non-feeding days due to dissolved oxygen (DO) in the water. Plankton blooms, which occur in the summer and early autumn, can also reduce the level of dissolved oxygen (DO) in the water for up to two months. “Farmers would normally expect their 4
SPOTLIGHT 01/2011
fish to experience faster growth during these months, but to feed them during plankton blooms and/or periods of low DO is to risk high mortalities,” explained Ross Grierson, MD of EWOS Canada. “Our farmers therefore require a high performing feed that helps fish to make up for lost time once they are able to start feeding again.” In Chile, new regulations put limits on growing time and on production biomass, which has necessarily driven farmers to seek a feed that will shorten the growth cycle, in order to maximise production from a given area. Scotland’s salmon farmers operate within a strict MAB and fallowing system and are also restricted by a lack of space to expand their industry inshore. Several companies are investigating offshore sites, but these bring challenges in terms of access and feeding. One option for farmers is therefore to optimise production through faster growth. Maximizing market opportunities through optimised production For most of 2010 and the first quarter of 2011, salmon farmers enjoyed strong farm gate prices for salmon, making it advantageous to maximise productivity and take advantage of good market conditions. However, the global dynamics of salmon farming have now changed,
with salmon prices falling sharply from highs of more than NOK 40/kg. Latest estimates suggest forward prices for 2012 and 2013 may be in the region of NOK 24/kg. This may further complicate the choice of production strategy. The ability to maximize market opportunities depends on a number of internal and external conditions, along with the need to comply with national and local regulatory regimes. For example, what are the implications of growing small versus large fish by balancing the cost of the growth/feed time, against a predicted price per kilo on the market? What FCR can be achieved and where can improvements be made? Can I recoup the extra cost of feed that promotes better health or faster growth? Scientists at EWOS Innovation are acutely aware of the need to optimise production whatever the regulatory regime and growing conditions. To match market needs, recent product developments have been in the fields of functional feeds and health promoting diets for fish. These deliver benefits both for farmers and for fish, and their formulations have been carefully designed to help salmon farmers achieve the highest possible biological performance from their fish stocks.
Regulatory framework Norway: Norwegian farmers must gain both licences and sites from the Ministry of Fisheries before they can grow salmon. Each licence now specifies the MAB and this in turn dictates how much fish can be grown on each site. Each licence generally has a MAB of 780 tonnes and more than one licence can be used for a site. The maximum production capacity of a site is generally said to be one and a half times the MAB, although this will depend on the actual growth rate achieved.
Canada: Canada has a similar MAB regime which imposes limitations on the amount of stock allowed on each site, as well as regulating the discharge level. Different licences must be obtained from the Provincial and Federal Ministries together with a lease, which has historically been awarded by the Provincial Government. Jurisdiction of aquaculture recently changed to Federal control, but industry watchdogs do not expect this to change current operational requirements.
MAB is a major change from the previous system, which worked on a total amount of feed per license, and thus focussed farmers and feed companies on obtaining the lowest possible feed conversion rate to maximise production volumes
Chile: Significant challenges in the sanitary conditions for salmon farming in Chile in recent times, have led to regulatory changes which encourage shorter growing cycles. This puts the emphasis firmly on the importance of fast growth for optimal productivity. The regulations allow a maximum total production per calendar year, and all sites within an area must be stocked, harvested and fallowed within a specified time. Salmon farmers must ob-
The new focus on productivity has provided EWOS and salmon farmers with a different challenge, but it is one to which they are adapting well.
tain two separate licences, which restrict sites to a specific location and dictate the maximum stocking density. Under the new regulations, no new licenses will be awarded during the next 12 moths, and regions XII, XI and X are to be opened up gradually over the next five years. Scotland: The Scottish salmon farming industry claims to be the most strictly regulated in the world. They are possibly not alone in making this claim, however ten official bodies are involved in regulation and the issuing of leases, licences and permissions. The Crown Estate (soon to be local council) issues leases subject to a favourable environmental impact assessment. The MAB per site is governed by the Scottish Environmental Protection Agency, which issues an environmental discharge licence. This in turn depends on individual site characteristics and can be anything from 100 to 2,500 tonnes.
Supply /demand dynamics In 2010, the total global harvest of farmed salmonids amounted to 2.19m tonnes, which was up slightly on the previous year. Atlantic salmon was the most important species, accounting for 66% of the total harvest at 1.45m tonnes. Large trout production at 298 750 tonnes was in second place, making up 14%. Despite its top position, the total volume of Atlantic salmon was down by 2% on the 2009 harvest, but this was balanced by an increase of 11% in the production of both Coho and Chinook. www.ewos.com
5
“IN THE THIRD QUARTER OF 2011 HARVEST VOLUMES, ESPECIALLY FROM CHILE AND NORWAY, ROSE DRAMATICALLY. THE IMMEDIATE FUTURE WILL PRESENT A CHALLENGING PICTURE ON PRICE AND PROFITABILITY” Ragnar Nystøyl, Kontali
FIG1
World salmon production
Norway UK Chile Canada USA Faroese Ireland Other Total Atlantic Salmon 944 600 141 800 129 600 118 000 18 000 42 100 17 000 34 400 1 445 500 Large Trout 55 700 2 000 180 200 2 300 800 57 750 298 750 Coho 119 100 2 500 10 000 131 600 Small trout 16,000 10 000 27 000 242 800 295 800 Chinook 100 2 000 14 200 16 300 Total 1 000 300 159 800 429 000 132 500 45 000 44 400 17 800 359 150 2 187 950 >> Source: Kontali Salmon World 2011
Figure 1 illustrates the level of production in the most important salmonid farming countries. It shows that Norway remains by far the largest producer of Atlantic salmon in the world, harvesting almost 1 million tonnes in 2010. Chile, usually number 2 in the league, was out-produced in 2010 by the UK, where all salmon ongrowing takes place in Scotland. This situation is expected to change in 2011 as production in Chile recovers. In terms of demand, there is an interesting dynamic with Japan, Russia, Asia, the EU and the USA being net importers of salmon, whilst New Zealand, Latin America, Canada, Norway, Faeroe Islands and Iceland are all net exporters. The largest market by far is the EU at 800,000 tonnes, supplied by producers in the UK, Norway, Faeroe Islands and 6
SPOTLIGHT 01/2011
Iceland, which had a combined production of 1 249 000 tonnes in 2010. European producers took full advantage of the drop in supply from Chile, and increased their exports to the USA by 26% during the year. Once Chile is fully back on stream, European producers may struggle to compete on price in the American market. Increases in production, especially in Chile and Norway, are expected to add more than 7.5% to the global harvest of farmed salmon and large trout this year. The salmon farming industry is already feeling the effects of a shifting supply situation, and significant volumes will flow onto the market in the final quarter of 2011 and into 2012. This new scenario may lead many salmon farmers to review their feed management tactics. According to Ragnar Nystøyl of Kontali,
for the past few decades salmon markets have been in continuous growth, with salmon products reaching an increasing number of customers in a widening variety of formats. “In 2010 and the beginning of 2011, there was not sufficient volume to support continued market growth, and prices peaked to historic levels as a result. The effect of this at retail and consumer level was a drop in demand in certain segments. However, in the third quarter of 2011 harvest volumes, especially from Chile and Norway, rose dramatically. The immediate future will present a challenging picture on price and profitability, and leave the industry with a need to re-build demand and generate new markets based on competitive prices and good availability,” he said.
EWOS FEED AS A TOOL TO MANAGE GROWTH AND PRODUCTIVITY EWOS grower feeds are designed to meet the nutritional requirements of salmon, whilst providing farmers with the flexibility to achieve business goals. Locally adapted product portfolios in each of the four main salmon farming regions ensure that farmers can tailor feed strategies to achieve targeted growth rates, maximum sustainability, or minimum costs of production. Feed management is a classic art of balancing least cost and differentiation! Some common features of EWOS grower feeds include: >> EWOS ‘OilMix’ - a carefully blended selection of oils that give active control over fat saturation and digestibility, whilst ensuring availability of healthy long-chain omega 3 fatty acids. >> EWOS ‘ProteinMix’ – delivers correct quantities of amino acids at the right time, in a form that ensures optimum uptake and absorption by the salmon. This is achieved by using a carefully selected blend of ingredients so that high feed intake is maintained. >>The ability to provide correct nutrition at each stage of a fish’s life cycle, thereby optimising growth and minimising the effect on the environment.
Strategies for optimal nutrition During periods of salmon price volatility it is understandable that producers may put increased focus on reducing the cost of production. A ‘down-cycle’ for salmon will test even the most efficient company’s ability to sustain profitable operations, and since feed is a key component, its cost will come under scrutiny. However, careful consideration should be given to alternative strategies for optimal nutrition before acting.
that changing market conditions and falling salmon prices should not substantially alter this strategy. Farmers will naturally wish to reduce the cost of production to protect themselves against volatile returns, but the most cost effective strategy is to continue optimising the productivity of fish stocks and to seek the highest overall return per site. This concept is illustrated later in this edition, when we look at cost/benefit scenarios for different feed types.
Grower feeds It is well known that high energy diets can be used to reduce the feed conversion ratio in salmon farming. This phenomenon is linked to the fact that fish will regulate their own feed intake, based on the energy level in the feed. When they consume higher levels of digestible energy in their diets, there is a corresponding decrease in feed intake. This has led the industry to use higher energy diets for raising farmed salmon.
The part that may change is the means by which this is achieved. This is because fish independently regulate their intake of nutrients based on the composition of their feed, so nutritionists have an opportunity to adjust the feed composition to account for differences in the relative price of raw materials. This means that the relative importance of feed energy level and its role in optimising production is under review.
During recent favourable market conditions, many farmers have focussed on optimising productivity in order to achieve the highest possible return on investment. This strategy has continued the demand for high energy feeds and for micro-ingredients such as prebiotics, which promote the highest biological performance in farmed fish. Modern nutritional wisdom suggests
Fortunately, scientists at EWOS Innovation continue to research opportunities to extend the basket of suitable raw materials. This work has yielded crucial knowledge that enables our nutritionists to produce cost effective feed using a wide range of locally available raw materials. The example of fishmeal replacement was discussed in detail in an earlier edition of EWOS SpotLight.
www.ewos.com
7
Functional Feeds Functional feeds are specialised formulations and/or components which give the feed a positive effect over and above their nutritional value. They are used to enhance fish growth and well-being, and to reduce the effects of disease. In recent years, EWOS prebiosal and EWOS boost functional feeds have become well established in salmon farming regions around the world. EWOS has invested considerable time and knowledge in the field of functional feeds. As a result, 2010 sales in this sector represented 35 percent of total feed sales by volume, increasing from 25 percent in 2009 and 16 percent in 2008. This sustained growth speaks volumes for the effectiveness and value created for salmon farmers by EWOS functional feeds. Since preventative fish health management is beyond the scope of this edition of SpotLight, we will focus only on our market leading prebiotic product, EWOS prebiosal. EWOS prebiosal in salmon grower feeds EWOS is a world leader in the field of prebiotics for use in salmon feed. We undertake extensive laboratory, tank and field trials and continually strive to improve their effectiveness in our range of feeds. Our latest product, EWOS prebiosal, is a proprietary blend of prebiotics and synergistic ingredients that can be included in any EWOS diet. Prebiotics are naturally occurring carbohydrates which encourage the growth of good bacteria in the digestive tract. They are also widely recognised in human nutrition, and in animal production as a sustainable alternative to antibiotics. By promoting good gut health, EWOS prebiosal helps fish to absorb nutrients from the feed more efficiently and results in better overall health for the salmon. This in turn promotes faster growth. Use of EWOS prebiosal has been found to improve growth in salmon by an average of 9-10%, thus helping farmers to maximise production, reduce growing time, or extend harvest periods as necessary. It also provides an opportunity to reach the market before the competition, and potentially to take advantage of resulting higher prices. Some of the benefits of using EWOS prebiosal as documented in EWOS trials and enjoyed by salmon farmers include: 8
SPOTLIGHT 01/2011
>> Enhanced growth >> Lower FCR >> Improved intestinal physiology >> Improved resistance to disease
“Our experience with EWOS functional feeds has been very positive. During 2010 we used functional feeds for trout and Coho salmon and in both species we experienced better growth compared to a standard feed. We used the functional diets from half way through the production cycle with cages presenting low growth rates. As a result we obtained similar or even higher weights at harvest than with other cages exhibiting normal growth at mid-cycle which continued to be given standard feed. These results more than justified our decision to use functional feeds,” said Andrés Córdova. General Manager, Salmones Congelados del Pacífico, Chile (www.congpacifico.cl) Geographical Differences The four main salmon farming areas in which EWOS operates encompass three continents, and consequent differences in terms of weather, temperature, and availability of raw material supply. Local adaptations are therefore necessary to ensure optimum nutritional balance and cost efficiency of our fish feeds. In Norway for example, the large geographical and seasonal variations in water temperature have resulted in differentiated products for the north and west regions in order to sustain high performance, even through the coldest winter months. In Canada, EWOS has created dynamic feeds specifically designed to optimise the nutritional needs of growing salmon in response to changing seasons. Dynamic red is recommended for summer conditions, when a higher protein feed delivers the best growth. Dynamic blue is a higher energy feed for use in winter, which ensures maintenance of fat and muscle and better protein digestibility.
100,000 S1 fish at 75 grams and needs to select between three feed strategies. One of them, an advanced feed, will give 10% additional growth (EGI 120) but the feed cost is more expensive compared with the standard feed (EGI 110). A third feed is cheaper than the standard feed, but gives less growth potential compared to the other two. Figure 3 illustrates the feed types, EGI and EFI potential used in this example. EGI is a growth model for Atlantic salmon that uses fish weight, day length and temperature to predict weekly feeding, and EFI is a feed efficiency measure that makes FCRs of different-sized fish comparable. The calculations use estimated feed prices and fixed costs at an average level for Norway and a 3% interest rate.
FIG2
Simulated feed types, EGI and EFI potential. Feed EGI EFI potential potential Standard 50 110 102 Standard 200 110 102 Standard 500 110 102 Advanced 500 120 100 Standard 1000 110 102 Advanced 1000 120 100 Cheap 1000 90 120 Standard 2500 110 102 Advanced 2500 120 100 Cheap 2500 90 120
Cost /benefit scenarios for different variables EWOS Innovation invests a great deal of time studying fish performance and looking at how different variables can affect profitability for the producer. Below we examine the affect of these on different feeds. The outcome of all scenarios is that by using EWOS prebiosal to shorten growing time, there are economic advantages to be gained. To illustrate this point we use a simple example. A farmer has a site with
>> Andrés Córdova, General Manager, Salmones Congelados del Pacifico
“OUR EXPERIENCE WITH EWOS FUNCTIONAL FEEDS HAS BEEN VERY POSITIVE. DURING 2010 WE USED FUNCTIONAL FEEDS FOR TROUT AND COHO SALMON AND IN BOTH SPECIES WE EXPERIENCED BETTER GROWTH COMPARED TO A STANDARD FEED” Andrés Córdova. General Manager, Salmones Congelados del Pacífico, Chile
www.ewos.com
9
“GIVEN A FIXED HARVEST DATE, ADVANCED FEED WILL CLEARLY PRODUCE MORE FISH, WITH A REDUCED PRODUCTION COST PER KILO, DESPITE ITS MORE EXPENSIVE PRICE TAG” weight in August the year after stocking, whilst those fed with standard feed will be approximately 5.3 kilos and those given low cost feed will only be 4.2 kilos.
The following two scenarios for growing salmon assume the costs of production, harvesting and packing as shown in Figure 4. Market price is calculated using average prices from Autumn 2011.
The way in which these differences in growth will affect overall returns are examined in Figure 6, and show that advanced feed is the best option.
Scenario 1: All fish harvested by a certain date Scenario 1 looks at situations where a site has to be emptied by a certain date to comply with regulations, in order to fallow before restocking, or to ease an economic issue, and examines which feed is most favourable to use.
Figure 6. Given a fixed harvest date, advanced feed will clearly produce more fish, with a reduced production cost per kilo, despite its more expensive price tag. The low cost diet gives unfavourable growth and feed converson rates, resulting in poor margins.
Figure 5 shows that fish fed with advanced feed will be almost 5.9 kilos live
FIG3
FIG5
Comparison of harvest weight, production costs and margins for three feed types and a fixed harvest date
FIG4
Harvest Size
Cost distribution for 5.5 kilo live Growth patterns for advanced, weight salmon fed on standard standard and low cost feed feed
8 000
Production Hypothetical Cost Margin
Standard
5,222
19.83
281,448
Advanced
5,894
19.08
1,013,159
Low Cost
4,218
22.18
-946904
–Advanced –Standard –Low cost
Fish Weight (g)
7 000 6 000 5 000 4 000 3 000 2 000 1 000
smolt Feed Other Interest Harvest/Packing 7% 49% 33% 2% 9%
10 SPOTLIGHT 01/2011
0
8. april 2010
8. januar 2011
8. august 2011
1. Harvest size live
2. Production cost gutted and packed
6 000
3. Margins
40
20 000
Harvest Size LWE (g)
5 000
4 500
30
Hypothetical Site Margin
Production Cost per kg LWE
16 000 5 500
20
10
12 000 8 000 4 000 0 -4 000
4 000
0
Standard
Advanced Low cost
Standard
Advanced Low cost
-8 000
Standard
Advanced Low cost
www.ewos.com 11
FIG6
1. Harvest size
Production Hypothetical Cost Margin
Standard
5,405
19.68
433,405
Advanced
5,405
19.66
444,724
Low Cost
5,405
20.66
-40,676
Scenario 2: All fish harvested at a fixed size The second scenario assumes that fish are left to grow on the low cost diet until they reach a live weight of 5.4 kilos. Figure 7 illustrates how this affects the overall return. The graphs show that the advanced feed is the better option for fish produced with no time limit, although the difference in production cost is minimal. A look at the margins for each feed type show that the low cost diet is not economically attractive under any circumstances. Analysis of the full costs of production (available from your EWOS consultant) illustrate that fish given the low cost feed take 70 days more to reach the desired harvest weight than those given an advanced diet. When adding up the risks and costs involved in keeping fish at sea for an additional two months, the conclusion is clearly that faster growing fish are more economical all round. These are simple examples, but offer insight into how different diets affect overall profitability. For more advanced scenarios we use our EWOS optimizer tool, which is described in detail later on. This output of this sophisticated package might suggest that a mix of the two feed strategies would be more profitable, once variables such as forward salmon price, harvest capacity, MAB regulations and available smolts are taken into consideration.
12 SPOTLIGHT 01/2011
4 000
2 000
0
Standard
Advanced Low cost
2. Production cost per kilo 40
Production Cost per kg LWE
Harvest Size
30
20
10
0
Standard
Advanced Low cost
Standard
Advanced Low cost
3. Margins 500 000 Hypothetical Site Margin
Comparison of harvest weight, production costs and margins for three feed types and fish left to grow to a fixed harvest size
Harvest Size LWE (g)
6 000
400 000 300 000 200 000 100 000 0 -100 000
EWOS SUPPORT SERVICES EWOS Growth Index EWOS has developed a growth model, the EWOS Growth Index (EGI) that allows farmers to plan and compare fish groups in a more meaningful way than previous models, and to obtain better results from the feeding regime. “EGI has become much more than a benchmarking tool, it has actually changed the way that EWOS works!” says John Harald Pettersen, EWOS Analyst Manager. “It allows farmers to obtain maximum potential from their fish and feed.” Our scientists have developed this complex new tool using many years of real production data from Canada, Chile, Norway and Scotland. It has a major advantage of taking into account the effects of fish size, day length and water temperature on daily growth rate, making it more relevant for farming operations.
FIG7
Figure 8 shows that an increase in EGI of just 1% (EGI 111 compared with EGI 110) gives a daily increase in weight gain of 1%. Compounded over the growth cycle of fish in the sea, it follows that small changes in EGI will reduce the time to harvest, or increase the harvest weight for a given time at sea.
The positive effect of increasing EGI in salmon
At a finished weight of 5 kilos, a 1% increase in EGI gives an additional 100g of growth. Whilst this is a limited increase and serves to illustrate the benefits of improving EGI by even a small amount, it is clear that an increase of 5 or more EGI points would provide more favourable results. This can be achieved by using a better feed type or adjusting husbandry, and EWOS consultants can assist by advising the best means to achieve improvements on a site by site basis.
Fish Weight (g) 6 000 5 000 4 000 3 000 2 000 1 000
EGI can be used whether the fish are exposed to natural or artificial light or a mixture of both.
0
18 24 30 36 42 48 02 08 14 20 26 32 EGI 110
EGI 111
EGI 115
“EGI HAS BECOME MUCH MORE THAN A BENCHMARKING TOOL, IT HAS ACTUALLY CHANGED THE WAY THAT EWOS WORKS!” John Harald Pettersen, EWOS Analyst Manager.
www.ewos.com 13
“AT NOVA SEA WE ARE VERY PLEASED WITH EWOS GROWTH INDEX AS A PLANNING AND CONTROL TOOL, AND ALSO AS A BENCHMARKING TOOL FOR COMPARING OUR PERFORMANCE WITH OTHER PLAYERS” Odd Strøm, Managing Director, Nova Sea AS, Norway
14 SPOTLIGHT 01/2011
EWOS Optimizer EWOS optimizer uses advanced optimisation technology to solve planning problems. Used as a matter of course by EWOS consultants in some regions, it enables them to advise customers how to organise stocking, harvesting and feed plans for all farm sites, in order to maximize production and income. A comprehensive set of data is input into the EWOS optimizer program including MAB per site, geographical location, harvest size, harvest capacity, smolt availability and price, salmon price, harvesting cost, feed strategy and feed price. Based on this data, the program calculates a complete management and feed plan that will optimise production to meet harvest and processing capacity. If conditions change over time, new data can be input and an updated plan generated. A major benefit of EWOS optimizer is that it gives the salmon farmer the ability to react swiftly to changes in fish growth, market prices and licensing regulations, resulting in improved profitability. Open/Close Site As part of the optimizer package, EWOS can hold regular meetings with site staff to ensure that salmon achieve optimum growth. Our Open/Close site procedure is particularly beneficial for farmers and links into the ongoing monitoring programme. When smolts are put to sea in a new site, EWOS consultants visit to discuss
aspirations for the site, set goals and growth targets for the fish depending on previous site-specific experience, and plan a treatment regime for sealice. The plan enables EWOS to suggest which products should be used at which time to encourage optimum performance, and to recommend feed additives such as prebiosal or boost to prepare fish for periods of stress such as seasonal challenges. Subsequent visits enable both parties to examine actual performance against predicted outcome. At this stage, EWOS consultants can suggest adjustments to the feed regime to correct any minor deviations. The plan is presented in the form of a wall chart to enable site operators to continuously monitor results. When all fish are harvested and the site closed, a final summary meeting is held at which all aspects of site performance are benchmarked against the original plan. Aspects such as overall fish health, growth and mortality, as well as lessons learned, are collated and used to help develop a forward stocking plan for the site. “At Nova Sea we are very pleased with EWOS growth index as a planning and control tool, and also as a benchmarking tool for comparing our performance with other players. Nova Sea actively uses EGI for defining biological targets when opening sites, in follow-up, and on closing sites. In our experience, EGI is a valuable and motivating tool for our production and control processes,â€? said Odd Strøm, Managing Director, Nova Sea AS, Norway (www.novasea.no).
Feed management advice Feed management advice is an intrinsic part of EWOS support services. We spend a long time formulating feed to meet the environmental, economic and market challenges faced by salmon farmers, but selling feed is not the end of the story. To ensure maximum fish performance from our feed range, we can advise on how to transport, store and handle it, recommend when and how to feed, and give advice on how to monitor performance and take corrective action. Optimal feeding is a balance between maximum growth and minimum FCR. Underfeeding can lead to poor growth and higher incidence of stress, disease and parasite infestation, while overfeeding leads to increased FCR and higher environmental loading. Feed is an expensive commodity, but the aim is to convert it into high value fish, with the minimum of wastage and maximum profitability. EWOS knowledge helps salmon farmers to achieve this. EWOS sales representatives regularly visit customers to update advice and to discuss performance and growth. Our feed management document is a mine of useful information on feed strategies, and forms the basis of our training presentation on feed management.
Future developments Following the recent period of stable high salmon prices, where growth performance has been important to the farmer and hence worth paying extra for, salmon prices are now decreasing. To ensure maximum feed performance and maximum profit for the salmon farmer, EWOS will continue to optimise feed recipes, taking into account local production scenarios, the price of raw materials, and the market price of fish.
This means that feed design has to be optimised for both biological and economic factors. At EWOS we have considerable experience in experimental design using tried and tested modelling tools. Our ongoing research means we can provide the most beneficial feed design for any given circumstance. We can certainly be ready to launch new designs in the future if salmon prices stabilise at a lower level. After all, Knowledge Makes the Difference!
www.ewos.com 15
Acknowledgements Editing:
Nicki Holmyard
Content:
Ian Carr; Ross Grierson; Peter Hagen; David Morrice; John Harald Pettersen; Kari Ruohonen; Constantino Siderakis; Sigurd Tonheim, EWOS.
Design:
TIBE Republic
EWOS Š (all rights reserved), October 2011. No part of this publication may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the publishers.