To FIFO Zero – And Beyond! Dr. Matthew Briggs and Richard Smullen, Ridley Corporation, Australia

Overview of fish in fish out What is FIFO ? How to get FIFO < 1 Progressing Better Diets Nutrient requirements… Raw materials… Replacing fish meal Replacing fish oil Tackling them both together… What all this means…

What’s Driving the Growth of Aquaculture

What is FIFO ? Fish In – Fish Out (FIFO) Ratio % Fishmeal in Diet + % Fish oil in Diet x FCR %Fishmeal in Wildfish + %Fish oil in Wildfish 725kg 1000kg 225kg 50kg Used as “sustainability indicator” by some NGO’s and Retailers

How Do They Compare?

Minimise your Fishmeal How to Get to FIFO < 1 FM Minimise your Fishmeal FO Minimise your Fish oil FCR Minimise your FCR

Fishmeal and Fish oil Production

Fishmeal and Fish oil Production

Commodity Price Variability Price (US$/tonne fob) Data Source: Hammersmith Marketing/Indexmundi

Commodity price variability Jan 1995 May 2015

So how do we minimise fishmeal? Intake Palatability thresholds Digest Digestibility of alternatives Growth Biological value

Fishmeal Replacement thresholds Indoor Tank Trial All diets formulated to 42%Protein,7%Lipid Lupin kernel meal and Poultry Offal Meal used as alternative protein sources Each treatment replicated n=5 Trial run for 42days Survival = 93.3 ± 0.94% R2=0.747 P=0.026 Using CSIRO patented technology we have a process that can use a broad range of agricultural waste streams that are then bioconverted using a microbial process to produce a bioactive protein source. This protein source can then be harvested, dried and included in feed for shrimp, where it has been shown to have a significant bioactive effect in stimulating animal growth.

40 + essential nutrient requirements – not ingredient requirement Essential dietary nutrient requirements Energy - E Protein - CP Water – H20 Arg His Iso Leu Lys Met Phe Thr Try Val 18:2n-6 18:3n-3 20:4n-6 20:5n-3 22:6n-3 Sterols Phospholipids Ca Mg P K Na Cu I Fe Mn Se Zn A D E K B1 B2 B6 Pa Ni Bio B12 Fo Ch In C 40 + essential nutrient requirements – not ingredient requirement www.SeafoodReport.com

Standardising Assessment

Ingredient Quality Data Principal basis by which diets are formulated is from digestible nutrient and energy data Starch Sources Plant Proteins Oil Sources Animal Proteins

Replacement of Capture Fisheries – P. monodon

Variability of Digestibility

Fishmeal Replacement Add amino acids (lysine, methionine) What else is fish meal made up of? Amino acids Add amino acids (lysine, methionine) Balance the other amino acids

What else is fish meal made up of? Fishmeal Replacement What else is fish meal made up of? Hydroxyproline Taurine Anserine/Carnosine Nucleotides Polyamines Peptides Glutamine …….+ others

Fishmeal Replacement When replacing fish meal in diets, those diets have to be balanced for: Palatability Nutrients Amino acids Micronutrients Gut flora Identify impacts of environmental temperature of formulations without fish meal

Fishmeal Replacement

Ingredient Sources GMO Grains Avian Offal Macroalgae Blood Proteins Fish Offal Anchovetta Sandeel Cottonseed Cereal Glutens Lupins Field Peas Faba Beans Soybean Canola Krill Mammalian Offal Peanuts Microbial Protein Insects Microalgae

Fishmeal Replacement Ingredient 2005 2010 2015 % Fish meal 40 18   % Fish meal 40 18 Fish oil 20 5 Poultry Oil 15 Wheat 25 POM 10 Blood Soya Others 17 Total 100%

Ingredient Sources (%) 1990 - 2020 Raw Materials 1 – Protein Resources Modified by Smullen from Ytrestøyl, T., Aas, T. S., & Åsgård, T. (2015). Utilisation of feed resources in production of Atlantic salmon (Salmo salar) in Norway. Aquaculture, 448, 365-374.

PerformPlus NoCatch™ for Prawn the new name for MR-S New diet range PerformPlus Range PerformPlus NoCatch™ for Prawn the new name for MR-S PerformPlus NoCatchTM Xtreme With Novacq

Introducing Performplus nocatch Identification of key micro-nutrients that were missing in by-product fish meal Trial ponds: 7 ponds on MR (15% capture fishmeal) 4 ponds on PerformPlus NoCatch (0% capture fishmeal) 6 ponds on Enhance (20% capture fishmeal) Stocked at PL15 in October 2013

Commercial data - 2014 22% FIFO = 1.6

Commercial data - 2014 FIFO = 1.3

Commercial data – performplus nocatch FIFO = 0.0

Commercial data 2015 MR vs PerformPlus NoCatch

Performplus nocatch for barramundi

Zero Fishmeal Salmon Diets 2014-2015 : Commercial cages – Commercial diets in Australia FCR SGR

So what next?

So what next?

So what next?

What about bacteria?

Bacterial protein Bacterial Protein Scale Reliability Sustain-able Protein, lipid + others Substrate flexible Non-GM or GM

Scalability

Bacterial Protein Bacterial biomass strain development Strain 2014 Protein Content % Strain 2014 Potential Strain 2018 Strain 2016

NOVACQTM

What is NovacqTM ? NovacqTM is a CSIRO patented metabolic stimulator from a microbial floc which when added to prawn diet increases food intake and permits the animal to utilize the feed more efficiently to give at least: 30% faster growth, 25% lower FCR & improve disease resistance Production utilizes low cost agricultural by-products to produce a sustainable, environmentally-friendly and highly beneficial raw material Use of this bioactive has been shown to enable formulations of diets devoid of scarce fishery resources

Novacq™ Commercialization Since 2009 Ridley has been working with CSIRO to evaluate NovacqTM and in 2011 signed an exclusive agreement to produce and market the raw material Worldwide and we are now starting production in Chanthaburi Except CSIRO also signed exclusive deals with Gentech group for China and Viet Uc co. for Vietnam To date, Ridley have refined the original production process to produce commercial quantities of this new raw material cost-effectively Ridley has also developed continuous production and harvesting systems for a “pure” version of NovacqTM to improve production, product concentration, and overall economics

Dose – Response curve CSIRO NovacqTM All diets formulated to 42% Protein,7% Lipid Fishmeal and wheat gluten used as main protein sources Each treatment replicated n=5 Trial run for 35 days Survival = 84.1 ± 1.04% >90% Gain 50% Gain Basal performance P. monodon

Dose – Response curve Ridley NovacqTM All diets formulated to 47% Protein,7% Lipid Fishmeal and wheat gluten used as main protein sources Each treatment replicated n=5 Trial run for 40 days from 1g av wt. Survival = 98 ± 2% 70% Gain 48% Gain Basal performance

Effect of NovacqTM on growth rate at different dietary protein levels P. monodon

Replacing fish meal and fish oil Indoor Tank Trial 2 All diets formulated to 42% Protein, 7% Lipid Lupin kernel meal and Poultry Offal Meal used as alternative protein sources, Linseed oil as alternative oil Each treatment replicated n=5 Trial run for 42days Survival = 89.8± 1.13% P. monodon 49% 114% 86% 105% 106% Fish meal Fish oil NovacqTM Y Y 10% 10% N N 10% 10% N N Y Y Y Y Y Y N N N N N Y N Y N Y N Y N Y

P. vannamei

Results from AHPND challenge trial (105) with “pure” Novacq at 12g av Results from AHPND challenge trial (105) with “pure” Novacq at 12g av. Wt.

Mean weight fed diets at different protein levels for 40 days from 1g +/- SEM Fed 7.5% NovacqTM P. vannamei 57% gain 49

Cage trial for 50 days at Chanthaburi shrimp farm: compare Ridley diet with and without Novacq vs 3 Thai commercial diets P. vannamei

P. vannamei

Trial results using ridley novacqTM Trials with other crustacean species Conducted number of lab-based trials over past 3 years demonstrating improved growth and FCRs when feeding NovacqTM-containing diets to: Marron crayfish in W. Australia P. indicus and M. rosenbergii in Oman Now testinglarval lobstewrs in Tasmania Trials with other species Had some initial success using NovacqTM in diets for some fish (Salmon, tilapia) and mollusc (abalone) species and continuing to investigate potential

Where next as we continue to commercialise Novacqtm R&D Increase footprint in Australia to be able to supply enough NovacqTM to fully supply expanding Australian prawn culture industry Expand Asian operations including establishment of NovacqTM production facility first in Thailand and later in Indonesia and other Asian territories Continue R&D projects to improve efficiency of NovacqTM production and processing and application into increasingly cost-effective, sustainable and non- polluting diets for the future

Strong Local Strategic Alliance

Any questions?