1. Starch &
Fermentation
Analysis
Inside
The competitiveness of wheat gluten and corn gluten meal vs. other aquafeed
March 2016
Aquafeed – A growing outlet for wheat gluten and corn gluten
meal?
Global consumption of fish and crustaceans has
grown dramatically over the last 30 years driven
by expanding population and rising incomes
(Diagram A). The overwhelming majority of this
growth has come from farmed fish (aquaculture)
as volumes of wild-capture fish have remained
flat since 1985 (Diagram B).
Over the same period, aquaculture output has
grown at around 7.5% per year, to the point
where it is now a bigger food source than beef
production. Looking forward, this trend is set to
continue, further encouraged by declining fish
stocks and ever-stricter fishing quotas for wild
capture.
The recently released LMC study entitled
‘Aquafeed to 2025: Securing the feed for rising
seafood production’ discusses the evolution of
Diagram B: Wild capture and aquaculture
output
1950 1960 1970 1980 1990 2000 2010
Production(milliontonnes)
Capture Aquaculture
the sector so far and provides a detailed outlook
of the prospects for the industry over the next
ten years. The study projects the growth in
farmed fish, by species (globally and by region),
and in demand for fishmeal and a range of
substitute aquafeed products. The result is a
clear and unique view of the outlook for the
sector, how it will develop, and where the
challenges and the opportunities will lie. The
study consists of a written report and an
accompanying Excel data set and model. These
allow the user to examine the forecasts in
greater detail.
In this issue of the Starch and Fermentation
Analysis, we draw upon the findings of the study
to discuss the role of wheat gluten and corn
gluten meal (CGM) in this increasingly important
outlet for vegetable proteins.
Diagram A: Global production of meat from
selected sources
1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011
Production(milliontonnes)
Aquaculture Beef Pork Poultry
2. Page 2 © LMC International Ltd, 2016 Starch & Fermentation Analysis: March 2016
Diagram C: World fishmeal production vs. price
0
300
600
900
1200
1500
1800
4
5
6
7
8
9
10
1984 1994 2004 2014
Fishmealprice(US$/tonne)
Fishmealproduction(milliontonnes)
Production Price
Declining fishmeal availability
Fish consumption is unique among meat
sources in the extent to which it is still reliant on
capture production. Since 1985, however, wild
capture of fish has remained approximately
static as shown in Diagram B. This has been due
to the decline in the capture of industrial fish,
such as herring and anchovy, which are
processed into fishmeal. Most other fish
categories have increased production to
compensate for the stable wild capture. While
it is not expected that the capture of industrial
fish will recover, improved fisheries
management through quotas should allow it to
remain level.
To meet demand for fish for human
consumption, the world has become
increasingly dependent on aquaculture
production. Demand for aquaculture has been
driven by both increased consumption of luxury
seafood (such as salmonids and crustaceans)
and by demand for cheap bulk white fish (such
as carp, catfish and tilapia). While capture
production has plateaued, aquaculture has
grown exponentially. Our projections indicate
that, within three years, aquaculture will exceed
capture production of fish.
Fish species rely, to varying degrees, on fishmeal
in their feed as a source of essential amino acids.
The collapse in the capture of industrial
fish coincided with a period of rapid growth
in demand for fishmeal. This has placed
the aquaculture industry in a bind, with
stationary fish capture both decreasing the
availability of fishmeal, a crucial feed ingredient,
while simultaneously increasing demand for
fish from aquaculture. The result has been a
rapid increase in fishmeal prices (Diagram C),
which has rationed use of this product in all
other end-uses (Diagram D).
What are the alternatives to fishmeal?
As a result of the higher fishmeal price, many of
the advances in aquaculture over the past 30
years have focused on reducing the cost of
aquafeed by better targeting this to the fish.
Because of their physiology, fish have a much
higher proportionate requirement for protein
compared to energy than land animals. Protein,
however, is an expensive ingredient so
improvements in aquafeed have focused on
trying to replace proteins with carbohydrate or
lipids, and cheaper sources of protein. Indeed,
vegetable proteins such as wheat gluten and
CGM (as well as products of the soy complex
such as soy protein concentrate and isolate) are
all used extensively in aquafeed rations because
they are cost-competitive compared to fishmeal
(Diagram E). The problem, however, is that the
aminoacid and fatty acid profiles of alternatives
to fishmeal does not necessary meet the
requirements of fish for these nutrients and this
needs to be taken into account when
formulating aquafeed.
Indeed, fishmeal is the aquafeed par excellence
as it is not deficient in any of the key nutrients;
in addition, it is easily digestible and palatable.
Because of its superior nutritional profile, it
commands a high price, even when its protein
content is taken into account (Diagram E). The
challenge for the aquafeed sector has been to
develop alternatives which can approximate the
nutritional profile of fishmeal.
The role of starch co-products in aquafeed
Processed plant proteins such as wheat gluten
and CGM have a good nutritional profile.
Diagram D: Fishmeal consumption by sector
2000 2005 2010
Aquaculture Pig Poultry Other
3. Starch & Fermentation Analysis: March 2016 © LMC International Ltd, 2016 Page 3
Wheat gluten is the vegetable protein
that most closely approximates the amino
acid profile of fishmeal. The one
exception is lysine, in which, like all cereal
proteins, it is deficient. It has no
antinutritional factors and there is no
physiological limit on the inclusion rate.
However, wheat gluten is highly priced.
Even taking into account its high protein
content it is still among the highest priced
protein sources, limiting its inclusion rate.
CGM by contrast is competitively priced
and has a high protein content. However,
its lysine content is too low to meet most
species’ requirements. Its main value is as
a source of methionine in blends with
other protein sources.
Diagram F reveals that different fish species
have different protein requirements with
carnivorous fish needing higher inclusion rates
of proteins than omnivorous fish such as carp. In
addition, carnivorous fish tend to have a
discriminating and demanding palate, which
poses challenges to feed formulators. In the
carnivorous diet, both wheat gluten and
CGM are small but crucial ingredients. Wheat
gluten, in addition, has important functional
properties as it acts as a binder to help increase
the water stability of the feed. This is particularly
important as fishmeal and other marine proteins
are difficult to turn into pellets. Wheat gluten
is also used as a binder in shrimp and prawn
feed.
Outside of aquafeed for carnivorous species,
corn gluten meal is used in carp feed, where it
has good digestibility. China is currently the
largest user of corn gluten meal in its carp
sector.
Wheat gluten use in aquafeed
Wheat gluten is a co-product of wheat wet
milling. In addition, it is also obtained from
wheat processing in some dry milling plants.
Global wheat gluten output is estimated at
around one million tonnes. Europe, namely the
EU, accounts for just below 70% of world output
(Diagram G); it is followed by China at 15-20%.
Other regions accounts for very small portions
of production.
The main outlet for wheat gluten is as a bread
enhancer. Its use is very large in Europe where it
is mainly used to enhance the breadmaking
characteristics of locally grown wheat.
Currently, aquaculture absorbs 20-25% of global
wheat gluten supply; however, this share varies
significantly between regions ranging from a
relatively small portion of total consumption in
Europe (where it is used in the salmonid sector),
to at least 70% in some parts of Asia, where
wheat gluten is used as a binder in the large
shrimp and prawn sector.
Corn gluten meal use in aquafeed
CGM is obtained from corn wet milling. Its
output is much larger than that of wheat gluten
and is estimated at over 4.5 million tonnes per
year. China is the largest producer (Diagram H),
owing to the size of its corn starch processing
sector. It is followed by the US.
Unlike wheat gluten, CGM is not used in food
applications. Its largest market is the livestock
feed sector, where it is valued for its relatively
high protein content. Aquafeed, however, is also
an important outlet for CGM and currently
accounts for 0.85-0.90 million tonnes of its use
globally. China takes the lion’s share of this. As
mentioned above, this ingredient is used in the
Diagram F: Protein requirements of selected fish
species
Carp
Catfish
White leg shrimp
Tilapia
Rainbow trout
Atlantic Salmon
Giant Tiger Prawn
Kuruma prawn
Barramundi
Seabass/Seabream
Recommended dietary protein levelforfish at grow out stage
Diagram E: Price of main protein sources on a
protein basis
US$/tonne
Price, protein basis Price, commercial
4. Page 4 © LMC International Ltd, 2016 Starch & Fermentation Analysis: March 2016
diet of carp, of which China is the largest
producer. This fish (alongside other low value
fish such as tilapia and catfish) is very popular in
low income markets as it is resilient, thrives on a
variety of diets and it is able to survive out of
water for relatively long periods. This allows it to
be distributed live (a useful attribute in places
lacking refrigeration).
The prospects for wheat gluten and CGM in
aquafeed
Production of fish from aquaculture has grown
exponentially over the last 30 years due to a
combination of decline in wild fish stocks and
rising demand for luxury species (such as
salmonids and crustaceans). The latter species,
being carnivorous, have a high requirement for
proteins in their diet. As availability of industrial
fish has declined, the industry has become
increasingly reliant on alternative protein
sources. Among the co-products of the starch
industry, wheat gluten and CGM are important
ingredients in aquafeed rations.
Looking forward, demand for fish for human
consumption will continue to grow rapidly. In
particular, we forecast low value white fish and
crustaceans to witness the fastest growth rates.
These developments will drive expansion of the
aquafeed sector, which we project to grow at a
healthy rate of 4-5% per year over the next
decade (Diagram E).
Other things being equal, this growth will
place an unsustainable burden on fishmeal
supplies and further drive up the price of this
key feed ingredient. However, we expect
aquafeed producers to continue to reduce
inclusion rates of fishmeal in order to contain
costs. Meanwhile, the need to replace
fishmeal will create large demand for substitute
proteins.
Demand for wheat gluten is projected to
expand. However, it will remain an
expensive feed ingredient, which means
that it will predominantly be used as
a binder. Ensuring the stability of the feed
is a particular issue for shrimp feed as it
is consumed slowly and therefore its
water solubility needs to be controlled.
While wheat gluten is used as a binder
in white leg shrimp production, which
will grow rapidly, it also has a large use
in salmonids culture which will expand
in Latin America, the EU and other
Europe.
Corn gluten meal use will expand as it is
included as a cheap protein source and
binder. While its lysine content is too low
to meet most species’ requirements, it is a
good source of methionine. Therefore it is
likely to be used particularly in blends
with soy protein concentrate which is
deficient in methionine. In addition, the
use of corn gluten meal in carp feed
means its consumption will grow rapidly
in China.
Diagram G: Geographical distribution of wheat
gluten output
Australia
China
Eastern
Europe
EU
Latin
America
North
America
Diagram H: Geographical distribution of corn
gluten meal output
China
North
America
EU
East Asia
South East
Asia
Latin
America
South Asia
Rest of the
world
Diagram I: Growth in the aquafeed market to
2025
2014 2020 2025
000tonnes
Others (marine protein, lipids, etc) Carbohydrates
Vegetable protein Processed animal protein
