Marine Ingredients OverviewIntrafish Investment Forum, London 2013

Andrew MallisonIFFO, The Marine Ingredients Organisation

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Raw

Mat

eria

l SO

urce

sIndustrial

Food grade

Prime

Prime food fish reduced to meal & oil

atlantic and pacific herring 10%

jack and horse mackerel 20%

sprat 40%

capelin 50%

pilchard (sardine) 25%

blue whiting 30%

sardinella 15%

Increasing share of fishmeal obtained from fish by-products

From whole fish From fish residues

5,354

6,084 6,018

5,2695,519

5,0914,838

4,560

5,587

4,535 4,672

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

World fishmeal production (000 mt)Peru Chile Thailand U.S.A Japan Scandinavia* Others

886

1,035

906 915

1,029 1,037993

841

1,036

903 885

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

World fish oil production (000 mt)Peru Chile Scandinavia* U.S.A Japan Other

2,0522,115

2,452

*Peru, Chile, USA, IFFO Europe and South Africa

Total annual fishmeal production*(000 mt)

2012 2013 2014

+ 16%

556

529

595

*Peru, Chile, USA, IFFO Europe and South Africa

Total fish oil production* (000 mt)

2012 2013 2014+ 12%

68%7%

23%

2%

Percentage of fishmeal usage by market in 2011 and 2012

Aquaculture Chicken Pig Other*

74%

22%

4%

2012

78%

19%

3%

2011

Aquaculture Direct Human Consumption Other uses

Percentage of fish oil usage per market

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

0

40000

80000

120000

160000

200000

Capture Aquaculture

World fishery production (million mt)

2009 2010 2011 2012 2013 201405

10152025303540

World Norway Chile Trout Eu

Inclusion of fish meal in diet for salmonids ( %)

2009 2010 2011 2012 20130

20406080

100120140160

Trout Sea Bass/bream

Fish meal usage (000 mt)

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

52 2

008

10 2

009

20 2

009

30 2

009

40 2

009

50 2

009

7 20

1017

201

027

201

037

201

047

201

05

2011

15 2

011

25 2

011

35 2

011

45 2

011

3 20

1213

201

223

201

233

201

243

201

21

2013

11 2

013

21 2

013

31 2

013

41 2

013

Weekly fishmeal (65% FOT) and soyameal (44% FOT) ratio in Shanghai

(RMB/mt)

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

2.3

2.51

2010

9 20

1017

201

025

201

033

201

041

201

049

201

05

2011

13 2

011

21 2

011

29 2

011

37 2

011

45 2

011

1 20

129

2012

17 2

012

25 2

012

33 2

012

41 2

012

49 2

012

5 20

1313

201

321

201

329

201

337

201

3

C&F fish oil/rapeseed oil prices ratio in Rotterdam (Netherlands) (US$/mt)

Typical Sustainable Cap

Crude Anchoveta Fish Oil Production and Omega-3 Market Demand(in 000s of metric tons)

Source: International Fishmeal and Fish Oil Organisation, GOED Analysis

Omega-3 demand forecast

Crude fish oil production Omega-3 market demand

Omega-3 Demand Outlets by Crude Anchoveta Fish Oil (in metric tons)

Source: Frost & Sullivan, GOED Analysis

Dietary supplements are still demanding the bulk of anchovy oils

Pharmaceutical41,780

Clinical Nutrition3,090

Pet Food26,490

Functional Food16,420Dietary Supplements

122,980

Responsible Feed Ingredients

Responsible Feed

Responsible Aquaculture

Global Food Security

Feeding a growing population.

IFFO RS STANDARD

Ensure no IUU and no IUCN Red

List or diseased

farmed fish

Ensure no IUU and

complete control of

intake species and volumes

Ensure full traceability of pure and safe

products produced

under QMS

Ensure managed according to the

FAO Code of Conduct for Responsible

Fisheries

SET BY MULTI-STAKEHOLDER GROUP

IFFO RS KEY COMPONENTS

•Responsible Sourcing

•Food Safety

IFFO RS – UPDATE NOV 2013

• Now over 100 certified factories• Over 40% of global fishmeal production• 17 whole fish stocks• 63 species approved as by-products• 12 Chain of Custody certificates• Improver Program

Summary

Market forces drive raw material allocation between direct human consumption and reduction to meal and oil

Aquaculture takes and will continue to take the lion’s share in the usage of marine ingredients.

Reduction in the diet inclusion rates of fishmeal/oil. Market choices in non-marine inclusions.

Overall, fisheries related to reduction are being well managed with stable production for the future, increasing contribution from by-products

Growth of direct human consumption of fish oil