2009 Jan 14 Investing In Sustainable Aquaculture


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A presentation on global seafood supplies and the role of sustainable aquaculture.

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2009 Jan 14 Investing In Sustainable Aquaculture

  2. 2. Challenges of Global Dimension <ul><li>World population will grow from 6.5 bn today to 9.0 bn by 2050 </li></ul><ul><li>All populations and societies will seek to raise their standards of living </li></ul><ul><li>The combination of population growth and improvement of standards of living will result in an unprecedented hunger for energy, water, resources, and food </li></ul><ul><li>The combined effects of population growth and income growth are expected to double global food consumption in the next 30 years </li></ul>
  3. 3. The Quest for Food and Protein <ul><li>The FAO estimates that still 842 million people worldwide are undernourished </li></ul><ul><li>Population growth and improved living standards are driving greater demand for protein </li></ul><ul><li>Meat and fish are two major sources of protein; consumption of fish stands at 24.2 kg per person per year </li></ul>
  4. 4. <ul><li>An additional 2.5 billion people will be added to the global village by 2050 </li></ul><ul><li>At current per capita seafood consumption rates, an additional 60.5 million metric tons of seafood will be required each year </li></ul><ul><li>Average per capita consumption of all proteins are on the rise, reflecting increases in living standards; seafood per capita consumption is increasing at around 2.1% per year </li></ul><ul><li>Even if the annual growth rate slows to 0.5% per year, an additional 54.8 million metric tons of seafood will be required </li></ul><ul><li>In total, seafood production would have to increase by 115.3 million metric tons or by 73% just to meet the new demand </li></ul><ul><li>There is no alternative source to meet this demand </li></ul>The Demand for Protein is Growing
  5. 5. Where Will Our Future Supplies of Seafood Come From?
  6. 6. The World’s Oceans are in Peril from Years of Overfishing <ul><li>The world’s oceans have lost 90% of their large predatory fish </li></ul><ul><li>75% of the world’s capture fisheries are being fished at maximum or unsustainable levels </li></ul><ul><li>7.3 million tons of marine resources are discarded every year as bycatch </li></ul>
  7. 7. Global Capture of Marine Fish (1985-2005) The situation may appear stable…but the severity of the problem is being masked by improved gear technology, globalization of the fishing effort and species substitution
  8. 8. Total European Catches (1985-2005) 38% decline over the past twenty years
  9. 9. European Cod Catches (1985-2005) Following the overall catch decline, there has been a 38% decline in total Cod catches in European waters during the last twenty years
  10. 10. North American Cod Catches (1985-2005) there has been an 85% decline in total Cod catches in Atlantic waters over the course of the last twenty years The situation in North America is even worse…
  11. 11. Global Capture of Orange Roughy (1985-2005) A dramatic example of what happens when reproductive populations of a slow growing fish are harvested at unsustainable levels… total fishery collapse
  12. 12. Global Capture of Chilean Sea Bass (1985-2005) A textbook example of how the popularity of a fish with consumers can quickly lead to its demise Phase IV: Impending fishery collapse Phase I: Rise in popularity Phase II: Increased fishing effort Phase III: Unsustainable fishing pressure
  13. 13. Aquaculture: The Solution to the Global Seafood Crisis “ We must plant the sea and herd its animals using the sea as farmers instead of hunters. That is what civilization is all about - farming replacing hunting.” Jacques Yves Cousteau On land, the “green revolution” brought dramatic increases in crop production. Dramatic advances in aquaculture have led us into the era of the “blue revolution”
  14. 14. Aquaculture’s contribution to global seafood production has grown from 13% in 1985 to 40% in 2005; equivalent to a 23% annualized rate of growth Securing the World’s Future Supplies of Seafood: Aquaculture’s Growing Share of Global Seafood Production in ‘000 metric tonnes Culture Culture Capture Capture 11,353 62,959 79,350 94,572
  15. 15. Global aquaculture production has increased 455% over the last twenty years, an average year over year growth rate of 23% Global Aquaculture Production (1985-2005)
  16. 16. The Growing Importance of Aquaculture in the Future metric tonnes Capture Fisheries Aquaculture The aquaculture industry must almost double over the next 45 years just to keep per capita seafood consumptions rates equal to current rates
  17. 17. Global Salmon Production (1985-2005) Global farm-raised salmon production has increased 633% over the last twenty years; an average year over year growth rate of 32%
  18. 18. In 2005, the shrimp farming industry generated USD 10.6 billion in annual turnover
  19. 19. Shrimp farming has experienced 1,150% growth over the last twenty years; an average annual growth rate of 57% Global Shrimp Farming Production (1985-2005)
  20. 20. Rapid Advancement in Production for the Top Three Aquaculture Species Shrimp Salmon Tilapia
  21. 21. Historical Production Trends for Farm-Raised Seabream & Seabass (1985-2005) Seabream Seabass
  22. 22. Barramundi Production Trends in Emerging Aquaculture Species (1985-2005) Cod Cobia
  23. 23. Driver of Change <ul><li>Consistency of supply </li></ul><ul><li>Lower prices </li></ul><ul><li>Reduced pressure on marine fisheries </li></ul><ul><li>Local availability </li></ul><ul><li>Technical progress </li></ul>Aquaculture has Delivered Important Changes to the Seafood Industry
  24. 24. Sustainable Aquaculture
  25. 25. Certification, safe seafood watch lists and labelling schemes will all be used in the process of verifying sustainability of the operations
  26. 26. The Investment Case for Aquaculture <ul><li>Population growth and improving living standards are driving greater demand for protein </li></ul><ul><li>Greater consumer awareness of the health benefits and local availability is driving per capita consumption of seafood </li></ul><ul><li>No further increases from capture fisheries are possible </li></ul><ul><li>Aquaculture is a crucial part of the solution. The industry is experiencing dynamic growth and will continue to do so for at least the next 30 years </li></ul><ul><li>An influx of newly listed aquaculture companies has created a unique investment opportunity for qualified investors </li></ul><ul><li>Impressive financial metrics of publicly traded aquaculture companies are increasing visibility in the investment world </li></ul><ul><li>Vertical integration & industry consolidation are underway, adding yet another layer to the strong investment case </li></ul>
  27. 27. References 2007. The State Of World Fisheries and Aquaculture. FAO Fisheries And Aquaculture Department. Food and Agriculture Organization of the United Nations. Rome, Italy. 2007. FAOSTAT. Food and Agriculture Organization of the United Nations. faostat.fao.org. 2003. Pauly, D., and R. Watson. Counting the Last Fish. Scientific American. Volume 289. Issue 1. 2004. Pauly, D. Empty Nets. Alternatives: Canadian Environmental Ideas and Actions 30(2):8-13. 2005. Kelleher, Kieran. Discards in the World’s Marine Fisheries, An Update. Fishing Technology Service. FAO Fisheries Department. FAO Fisheries Technical Paper 470. Food And Agriculture Organization of the United Nations. Rome, Italy. 2007. Marine Harvest Annual Report. A World of Potential. Marine Harvest ASA. OSLO, Norway. 2007. Bloomberg Financial Services. Industry Financial Data. 2006. Fiala, Nathan. Economic and Environmental Impact of Meat Consumption. University of California. Irvine, California (USA). 2007. U.S. Census Bureau, Population Division. International Data Base. Washington, DC (USA). 2007. Biomar. Q2 2007. Supplementary Information for Investors and Analysts. 2007. Davidsson, Kristjan. The Seafood Industry – An Investors Perspective. Glitnir banki hf., Reykjavík, Iceland. Picture Credits Australis Aquaculture, Snapperfarm, Cell Aqua, National Geographic, High Health Aquaculture, Cyanotech, Grieg Seafood, Saudi Fisheries, VSV, awi-bremerhaven.de, fishoildirect.com, atlas-stord.com, aliciapatterson.org, jjphoto.dk, niwa.co.nz, estatevaults.com,