Friend of the Sea Day Brussels April 2009

1. The fishmeal and fish oil industry - engagement towards sustainable production Andrew Jackson International Fishmeal & Fish Oil Organisation Friend of the Sea Day Brussels April 2009

2. IFFO International Fishmeal and Fish Oil Organisation, the global trade association representing fishmeal and fish oil producers and related trades. Represents 66 % of world production of fishmeal and fish oil worldwide with producers in Europe, South America, Africa, USA, China, Australia and India

5. ......but more fish are going for direct human consumption

6. Trends in production contributing to increased sustainability • Precautionary quota setting • Rights-based fisheries management in Iceland, Chile & now Peru • Around 24% of fishmeal today comes from fishery by-products: guts, fins heads etc • Much of the remainder comes from short-lived pelagic species • Increased use for human consumption e.g. over 50% Chilean Jack mackerel go for freezing/canning • Increasing focus on quality e.g. indirect drying, fish oil for human consumption • Increasing care taken with effluents and emissions

7. Changing fishmeal usage by % FAO & IFFO Data

9. - Average over 11 years

10. +28%

11. Growth in Chinese Aquaculture not dependent on fishmeal

12. Summary: Fishmeal & the growth of aquaculture • Fishmeal supplies are likely to remain tight into the future • The availability & price of fishmeal has not been a limiting factor in aquaculture growth to date – there is not an unsustainable demand • Improved processing technology will make better vegetable proteins available • This combined with improving nutritional knowledge will allow lower dietary inclusion levels as feed volumes grow • Fishmeal will increasingly become a strategic ingredient in specialist diets such as starter, broodstock and finisher diets

13. Fishmeal’s conversion efficiency has been drastically UNDER calculated

14. Eco-conversion in aquaculture • Many different numbers are used on how many kilos of wild fish it takes to produce a kilo of farmed fish • Salmon in particular have come under scrutiny with ratios as high as 10:1 • Tacon & Metian (2008) most recently gave a figure of 4.9:1

15. Tacon 2008: Table of Eco-efficiency & Fish –In-Fish-Out Ratios

16. Tacon 2008: Table of Eco-efficiency & Fish –In-Fish-Out Ratios The figure at the bottom is not the weighted average of the column

17. FIFO Ratio for Salmon using the method by Tacon 2008 : Using 2006 assumptions

19. A new formula for calculating FIFO ratios: So using this formula we can calculate for salmon the following: So if we go back to our worked example.......

20. FIFOs in the worked example: This has been using Tacon’s assumptions but the efficiency of fishmeal production has increased from a yield of 22.5% to 24%

21. If we now look at the global fishmeal picture we get the following: So it takes 90kg of fish to produce 1000kg of product

22. However 22% of fishmeal comes from fisheries by-products therefore:

23. Conclusions on eco-conversion • The Ratio for farmed salmon is not 10:1, not 5:1 but 1.7:1 and falling • The ratio for all fed aquaculture is 0.5:1 and falling • The ratio for all animal production using fishmeal is 0.07 and falling For every 1 tonne of whole fish caught 14 tonnes of livestock is produced

24. How is the industry proving it is sustainable?

25. Responsible sourcing of raw materials • The Sustainability Movement is here to stay • The fishmeal & fish oil industry needs to show that it is “sustainable” over the long-term • The majority of the fishmeal industry is continuing in conjunction with governments to do a lot to ensure that it is behaving responsibly • It needs to be able to demonstrate the different measures taken regarding responsible sourcing using third-party verification

26. Issues in the fishmeal world • The two most critical factors that the value chain are concerned about are: • Responsible sourcing of the Raw Material • There are concerns – particularly in Europe & North America – that some feed fisheries are not being responsibly managed and IUU fish are being used • Product contamination and feed safety • There have been accusations that fishmeal is being contaminated with other animal proteins and “protein boosters”, particularly in Asia

27. IFFO Responsible Supply Code • IFFO decided that it would develop a Code of Conduct to help producers demonstrate the efforts they have made to be responsible in these two critical areas • It is a Business-to Business scheme (not an eco-label) to help the value chain demonstrate due diligence in raw material sourcing • We have formed a stakeholder Technical Advisory Committee to assist us to get it right • To be credible it will have to involve third party verification • We are looking to make it ISO 65 compliant

28. IFFO Responsible Supply Code • To be Code compliant the product must: • Be able to demonstrate that it derives from fisheries that are managed under the key elements of the FAO Code of Conduct for Responsible Fishing (evidence could be MSC, FOS, RAPFISH, ICES. IMARPE etc) • Come from a factory that can demonstrate that it has audited management procedures that avoid the use of IUU fish • Come from a factory that can demonstrate that it has audited management procedures that prevent contamination during production and storage (HACCP,FEMAS,GMP+,PDV,IFIS) Copies of the draft requirements can be made available

29. IFFO Responsible Supply Code • There are some key areas that the first phase of the Code will not cover: • The Social & Ethical elements of the FAO Code of Conduct for Responsible Fishing • Environmental issues such as effluents and emissions • Traceability from production plant to feed plant • It is recognised that these are important issues and we will consider including them in Phase 2

30. IFFO Responsible Supply Code - Timetable • Currently we are undertaking some trial pre-assessments followed by trial audits to ensure the criteria are delivered • Results will be presented to our multi-stakeholder Technical Advisory Committee who will make recommendations to the IFFO Board • The hope is to open the scheme and have product becoming available in the second half of this year .