Conducive framework for investments in aquaculture Presentation Norad Bangkok 17 Jan 2013 By: Bjørn Myrseth Vitamar A.S. E-mail: bjorn.myrseth@vitamar.no Telephone +4790554963 - 1 -

Bjørn Myrseth – education and experience Master degree of fishery biology University of Bergen 1971 Worked with fish farming since 1970 Worked as manager and owner and operator Founding member of European Aquaculture Society in 1976 Sea Farm A.s. from 1971 to 1987. Partner and CEO Worked internationally with establishing fish farms in Scotland, USA and Canada Listed Sea Farm on the Oslo Stock Exchange in 1985 Started Marine Farms A.S in 1987 Worked as owner and CEO Invested in Chile, Scotland, Greece, Spain and Norway All the farms developed into succesfull companies - 2 -

Bjørn Myrseth - education and experience (continued) Many years of experience from marine hatcheries,cage farming, fish processing and sales and marketing Listed Marine Farms on Oslo Stock Exchange in 2006 2010 – Marine Farm ASA purchased by Morpol ASA and delisted. 2011 Receive FEAP award for Excellence in aquaculture 2012 Elected chairman of Morpol ASA Course at AIT on tilapia production December 2012 – Morpol ASA sold to Marine Harvest - 3 -

Bjørn Myrseth - experience Sea farm A.S – stock market 1985 – merged with Marine Harvest ASA CEO Marine Farms A.S – stock market 2006 – sold to Morpol ASA – sold to Marine CEO –owner CEO Chairman Harvest Incorporate Vitamar A.S as a company for investments and consultancy services - 4 -

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Conducive frame work An enabling environment require: Political will want it to happen Functional institutions Markets Research and Innovation Environmental conditions Capital

Conducive farmework What do I look for as an investor? Species Markets Environment Technology Legal framework Infrastructure People Finance - 7 -

Selection of species to farm High price (or low cost of production) Closed life cycle Known technology Known environmental requirements - 8 -

Markets Local demand Local species or accepted exotic species Export markets - 9 -

Environmental conditions in the country I want to invest Temperature and salinity Water quality in general – contaminants Environmental data : Wind data Wave data Currents in general Algal blooms Depth of water Fresh water flow - 10 -

Conducive environment Infrastructure Roads Electricity Harbours Fish processing capacity - 11 -

Conducive environment Technology We can use a known technology Ponds or cages Known hatchery technology Feed requirements are known and feed available - 12 -

Conducive environment People Possible to train people Labour costs not important Labour quality more important Committed High work ethic Trainable - 13 -

Conducive environment Legal framework I 100% foreign ownership preferred Rights to sites Long leases Renewable leases Big leases (related to carrying capacity) Transferable rights No limit to number of sites for one operator - 14 -

Conducive environment Disease prevention The biggest operational challenge FISH DISEASES - 15 -

Conducive environment Legal framework for disease prevention Fallowing Site rotation Year class (lot) separation Distance between farms No aquaculture parks!!!! - 16 -

Conducive framework The leagal process One stop handling of applications Clear EIA content Time limit for handling of the application - 18 -

Conducive environment Finance Importation of equipment and feed tax free Corporate tax reductions on profits not so important Banks do not belive in aquaculture – too high risks –nothing to mortgage Stock insurance - 19 -

Conducive framework Information All information packets to investors relate to investments in industry or agriculture - 20 -

Conducive framework Conclusions Asia has the right natural conditions environment between 10 degree N – 10 degree S no storms experience Need better legislation Better disease prevention (legislation, vaccines and diagnostic services) Infrastructure developments R & D in all areas of aquaculture ASIA CAN FEED ITSELF AND MOST OF THE WORLD WITH FISH - 21 -