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Recirculating Aquaculture Technology Recirculating Aquaculture Technology Project Presentation December 2009 Prepared for: MIRABEL, CANADA, J7N 2H4 v1B

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Page 1: Recirculating Aquaculture Technology Project Presentation ... › pdf › Hydronov-ecoGROW Aquaculture Version 1B.pdf · Intensive Recirculating Aquaculture System (RAS), offers a

Recirculating Aquaculture Technology

Recirculating Aquaculture Technology

Project Presentation

December 2009Prepared for:

MIRABEL, CANADA, J7N 2H4

v1B

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Recirculating Aquaculture Technology

Recirculating Aquaculture Technology

EXECUTIVE SUMMARY

PART I•1.INTRODUCTION

•2.POTENTIALFISHPRODUCTIONPLANTPROJECT

•3.POTENTIALALLOCATIONOFPRODUCTIONCAPACITYPER FISHSPECIES

•4.PROPOSEDCONSTRUCTIONPHASES

PART II•1.SUMMARYOFPROJECTEDSALES&GROSSMARGIN

PART III•1.GENERALCOMMENTSONTHEECONOMICVALUEAND

MARKET

POTENTIALOFDIFFERENTFISHSPECIES•2.MARKETINGOFFISHPRODUCTION

PART IV•1.WORLDFISHPRODUCTION

•2.ISSUESFACINGWORLDFISHPRODUCTION

•3.ISSUESFACINGAQUACULTURE&FISHERYPRODUCTS

•4.FAOREPORT-CIRCULARNO.1017/2

•5.WORLDAQUACULTUREPRODUCTIONTOP15PRODUCING NATIONS

APPENDICES•APPENDIXIFAONATIONALAQUACULTURESECTOR

OVERVIEW

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Recirculating Aquaculture Technology

EXECUTIVE SUMMARYAquacultureisdeveloping,expandingandintensifyinginalmostallregionsoftheworld.Globalpopulation demand for aquatic food products is increasing, the production from capturefisheries has leveled off, andmost of themain fishing areas have reached theirmaximumpotential.Sustainingfishsuppliesfromcapturefisherieswill,therefore,notbeabletomeetthegrowingglobaldemandforaquaticfood.

( The State of World Fisheries And Aquaculture 2006 , FAO of the United Nations, Rome, March 2007 )UAEandSaudiArabiaarenetimporteroffishforanamountestimatedto100Millions$and200Millions$respectivelyin2006,anincreaseof21%overthepreviousyear.Besidemoreexoticspecies like troutandarcticsalmon,Tilapia isamarketwinner,aswellasnew introductionBarramundiwhichhavebeengainingverylargeacceptanceonNorthAmericanandEuropeanmarketsoverthelast10yearsThecurrentfoodfishconsumptionpercapitaisaverage,at18,6kilogramsperpersonperyearinUAE,andonly8,5KginSaudiArabia,Vs60KgperpersoninJapanand24KgperpersoninChinaandUSA.

( IFPRI / WorldFish Centre : FISH TO 2020 Supply and Demand in Changing Global Markets, & FAO National aquaculture sector overview )

Fishproductionisbigbusinessontheinternationaltrade.In1984thenetexportsearningsintermofforeignexchangewasUS$5billion;in2004thevaluewasmorethanUS$20billion,afourfoldincrease.Nootheragriculturalproductscomeevenclose.

( The State of World Fisheries And Aquaculture 2006 , FAO of the United Nations, Rome, March 2007 )Fishproductionusingconventionalaquaculturesystems,outdoorponds,cages, tanks,etc.have important limitations; in most instances, inability to control quality of water, weatherchanges,predators,fishdiseasesandhighmortality,resultinginlowproductivity,inconsistencyin fishproduction&qualityandsevere treat to theenvironment.TheFoodandAgricultureOrganizationofUnitedNationshavehighlightedinsomeof itsstudies,theintensificationofaquaculturefarmingsystemsincludingtheadoptionofRecirculatingsystemsasawayforwardtoalleviateproblemscausedbyconventionalaquaculture..

( FAO Fisheries Circular No. 1017/2, REGIONAL REVIEW ON AQUACULTURE DEVELOPMENT)

Intensive Recirculating Aquaculture System (RAS), offers a safe and healthy alternative,controllingallfactorstoproduceupto20timesmorethanponds,cageorflowingtroughfishfarmingsystems,andatthesametimebringingconsistencyandqualityfishproduction.Italsobringthepossibilitytoinstallproductionunitsclosertomarket,thusreducingdeliverycostswhilebringingafresherecologicalproducttotheconsumer.

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Recirculating Aquaculture Technology

The Hydronov Intensive Recirculation Aquaculture Systemisaclosedsystem,spreadover24independentandindividuallycontrolledpoolsperhectare.Wateriscirculatedcontinuouslyto guarantee optimum growing conditions, and passed through mechanical filtration, UVsterilizationandbiologicalenhancement.Oxygenisprovidedandfreshwateraddedataratevaryingfrom5to10%perday.

Atypicalproductionunitcanstartfromaminimal1Hectaresizeandexpandasneededupto20Hectaresandmoreifmarketandwaterresourcesallowit.TheinitialproductiontargetshouldfocusonwellestablishedfreshwaterspeciesasArcticChar,Barramundi,Trout,Yellow&SilverPerch,Tilapiaandintroduceprogressivelymoreexoticand/orlocalspecies.

The typicalproductivitywillbeoscillating from1,000metric tonsper1Hectaremodule forcoldwaterfishlikeArcticCharto2,000tonsper1HamoduleforwarmwaterfishlikeTilapia.

Thiscomparesverypositivelywithatypicalproductionof30to50tonsperHectareforthepondsystemunderthebestconditions.

The investment cost for the 1 Hectare module isestimatedat4,5M$fortheRecirculatingAquacultureSystemandrelatedequipment,while1,5M$willbeneeded for the buildings and infrastructure. Savingscanbemadeonbuildingsandinfrastructureaccordingtoexistentsonprojectedsite.

Sufficientlandforfutureexpansionneedtobesecure,with access to sufficient fresh water of acceptablequality.

Theaverageprojectedcashflowprofitpermodule is1,5to2M$,carryingapotentialreturnoninvestment(ROI)of25to35%.

Although this technology, installedclose toconsumermarkets,will favoureasydistributionoffreshfish,thereisalsoanimportantpotentialfordownstreamactivities,fromfilletingandfreezingtoextractionofOmega3fishoilanduseofTilapiaskinforfineleatherprocessing.

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Recirculating Aquaculture Technology

PART I

1. INTRODUCTION

HydroNov’s RecirculatingAquaculture System ( RAS ) is a closed system spread over 24independentand individuallycontrolledpoolsparhectare.Water iscirculatedcontinuouslyto guarantee optimum growing conditions, and passed through mechanical filtration, UVsterilizationandbiologicalenhancement.Oxygenisprovidedandfreshwateraddedataratevaryingfrom5to10%perday.

The features of HydroNov’s RAS are as follows : -

> Each 1 Hectare module consists of:

• 24independentproductionpoolsmeasuring27mX9mX1,2m

• 6purificationpoolstopreparefishformarket

• 1stabulationsectiontoraisesmallfishfromfingerlings

• 1hatcherysectiontoraisefingerlingsfromeggs

• Controlroom&laboratory

• Dry&coldstoragearea

• Electrical&heatingequipmentroom

• Administrativeoffice&workersarea

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Recirculating Aquaculture Technology

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Recirculating Aquaculture Technology

Different types of pools according to space and building configuration

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Recirculating Aquaculture Technology

Different pool configurations

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Recirculating Aquaculture Technology

Different building types

Hard Roof Building

Insulated Roof Greenhouse

Insulated Roof Mega Dome

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Advantages of HydroNov’s RAS

• Reducedwaterrequirementsby95%vsflowtroughsystems

• Waterqualitycontrolbringingcompletefoodsafety,freefrom contaminationbyheavymetal,growthhormone,antibiotics, pesticides……..

• Highstockingdensity&efficientfeedconversion ratiobringingupproductionoutput20timesmore thanconventionalpondfarmingsystem

• Siteflexibility&yearroundstableproductionof healthyfish

• Wastemanagementcontrolandtreatment, withnoadverseimpactonenvironment

• LowproductioncostsVspotentialsalesprices

• Ahighlevelofintegratedbio-security,makingitpossibletoimplement allcertificationprocesslikeGREENFOOD,HACCP,HALAL,….

TilapiaFingerlings EggsfromTilapia

MaleTilapiaColours

TilapiaFingerlings

TilapiaEggsHatching

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BarramundiFry

MurrayCod

Baby“Barra”

BarramundiEggs

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InjectingGoldenPerch

SmallJadePerch

PerchLarvae

JadePerch

VerysmallJadePerchLarvae

JadePerch

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RegulationsFollowed

PerchFingerlings

CharFingerlings

DollyVarden

Juveniles

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CutthroatTrout

BrookTrout

Larvae to frytofingerlings

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CatfishFryatvariousdevelopmentstages

HarvestedsmallCatfish

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3monthsoldGobyFingerlings

WeighinganadultGoby

Market-readyGoby

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Recirculating Aquaculture Technology

2. POTENTIAL FISH PRODUCTION PLANT PROJECT

To illustrate thepotential of the technology,wewill usea typical 30HaproductionprojectproducingseveralfishspeciesadaptedtoSouth-EastAsiamarket,asthiseconomicmodelhasbeendevelopedforthispartoftheworld;theseproductionchoicesandnumbersshouldbefurtheradaptedtoMexicomarket.Theproposedfishproductionplantcomprises30X1HaModuleswithaprojected720productionpools,ona40Haland.

Wedonotrecommendtostartwithsuchadiversifiedproductionandsolargeascale,butweuse thisexample todemonstrate thedifferencesbetweendifferent typesof fish.TheactualstrategytowardstheCanadamarketneedstobefurtherdiscussed,butitappearscertainlywisetostartrelativelysmallandexpandasmarketpenetrationisestablished.

Whenselectingsites,itwillbeimportanttokeepinmindfutureexpansionneedsintermsofland,waterandelectricitycapacity.

HydroNov’s RecirculatingAquaculture System ( RAS ) offers the flexibility to schedule theproductionoffishspeciesaccordingtomarketdemands.

Adetailedpermutationofthenumberofmodulesandpoolsforthevariousspeciestomaximizeproductionandprofitabilitycanbecarriedoutmathematically.

ThefollowingallocationofnumberofmodulesandpoolsperspecieonthenextpagearejustexamplesoffishspeciesthatcanbegrowninHydroNov’sRAS.Theyarebynomeansfixed.Newspeciesarebeingadaptedtoaquacultureeveryyear

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Recirculating Aquaculture Technology

Modules PoolsMonths

per CycleCycles per Year (gr)

SizeProduction

(metric tonnes)

1 Rainbow Trout 1 24 9.0 1.25 600 1,101

2 Arctic Char 1 24 9.0 1.25 600 1,101

3 Murray Cod 1 24 9.0 1.25 800 756

4 Jade Perch 1 24 9.0 1.25 800 756

5 a: Tilapia 2 48 4.8 2.50 600 5,842for fresh market

5 b: Tilapia 8 192 6.0 2.00 900 16,862for filleting

6 Barramundi 3 72 8.0 1.50 700 3,334

7 Silver Catfish 2 48 6.0 2.00 600 2,016

8 Catfish 3 72 1.5 8.00 250 12,700

9 Ikan Sepat 2 48 5.0 2.25 150 3,572

10 Nile Perch 3 72 9.0 1.25 600 3,302

11 Marble Goby 1 24 12.0 1.00 1200 339

12 Snakehead 2 48 10.0 1.20 1500 1,654

30 720 53,335

Fish Species

4. PROPOSED CONSTRUCTION PHASESIt isproposed to implement a firstphaseof 4Hawith4growingmodules todemonstratethepotentialofthetechnology.ThisfistphaseshouldfocusonwellestablishedfreshwaterspeciesasArcticChar,Barramundi,Trout,Yellow&SilverPerch,Tilapia,Catfish,andintroduceprogressively localandotherhighvaluespecieswhichmayneed tobe furtheradapted toaquaculture.

Once technology iswelldemonstratedandmarketpenetrationstrategyestablished,phase2canthentakeplacefollowingmarketneedsand investmentcapitalavailable Firstphaseconstructioncanstart2monthsafterfundsconfirmationandbecompletedwithin12months.Productionoffastgrowingspeciescanreachmarketwithin4months,makingitatotalof1yearaftercontractsignature.

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Recirculating Aquaculture Technology

CONCRETE FOR POOL STURCTURE HYDRONOV 1 96POOL LINER HYDRONOV 1 96WATER CIRCULATION PUMPS HYDRONOV 8 768UV FILTER HYDRONOV 2 192DRUM FILTER HYDRONOV 2 192VORTEX & FECAL TRAP HYDRONOV 2 192BIOFILTER MEDIA HYDRONOV 2 192OXYGEN EQUIPMENTS HYDRONOV 2 192DEGASSING SYSTEM HYDRONOV 2 192SEPARATION GRILL HYDRONOV 12 1152RECIRCULATION HEATING / COOLING ecoPHASER 0NEW WATER DISTRIBUTION HYDRONOV 2 192RECIRCULATION PIPING & FITTINGS HYDRONOV 2 192WALKWAY GRATING HYDRONOV 1 96

TOTAL THIS SECTION 13,749,120

GENERAL PURPOSE EQUIPMENT

ELECTRICAL DISTRIBUTION FOR EQUIPMENT HYDRONOV 1 systemPRIMARY WATER TREATMENT HYDRONOV 1 systemBACTAPUR, EGGS, FEED, (3 MONTHS) HYDRONOVWATER DISTRIBUTION HYDRONOV 1 systemO2 TANK RENTALPOOL DRAINAGE HYDRONOV 1 systemEQUIPMENT INSTALLATION & START-UP HYDRONOVCASUAL LABOUR FOR SYSTEM INSTALLATION HYDRONOVSPECIALIZED INSTALLATION HYDRONOVCOMPUTER CONTROL & MANAGEMENT HYDRONOV 1PURIFICATION POOLS HYDRONOV 6HATCHERY & LABORATORY HYDRONOV 1 systemPRE-PRODUCTION POOLS HYDRONOV 6TRANSPORT & MISCELLANIOUS HYDRONOVAUTOMATIC FEEDING SYSTEMS HYDRONOV 4 systems

TOTAL THIS SECTION 5,586,000

TECHNOLOGY & TECHNICAL SUPPORT

DESIGN & CONSTRUCTION DRAWINGS HYDRONOV IncludedEQUIPMENT SELECTION & BUYING HYDRONOVPROJECT MANAGEMENT & TECHNICAL SUPERVISION HYDRONOVPRODUCTION START-UP & 1 YEAR SUPPORT PERIOD HYDRONOV

TOTAL THIS SECTION

TOTAL GROWING SYSTEM & PRODUCTION SUPPORT 19,335,120

BUILDING & INFRASTRUCTURE

MAIN WATER SUPPLY & STORAGE LOCAL BudgetELECTRICAL TRANSFORMER ecoPHASER BudgetELECTRICAL MAIN PANEL & BACK UP GENERATOR ecoPHASER BudgetSITE PREPARATION & DRAINAGE BEP Engineering BudgetFISH PRODUCTION BUILDING BEP Engineering BudgetSERVICE BUILDING BEP Engineering BudgetCONCRETE & INSTALLATION BEP Engineering BudgetOPTIONAL WATER HEATING/COOLING ecoPHASER BudgetOPTIONAL O2 GENERATOR ecoPHASER BudgetPROCESSING & PACKAGING EQUIPMENT ecoPHASER BudgetCOOLING, FREEZING, SMOKING EQUIPMENT ecoPHASER BudgetSLUDGE WATER PROCESSING ecoTECH Budget

TOTAL THIS SECTION 4,680,000

4 HA Fish Project 24,015,120$

GROWING SYSTEM: FISH Production RESPONSIBLE # / Project# / Pool

Investment Costs

5. PHASE 1

4 HectareProject

Left: A typicali n v e s t m e n tbudget fora4hectareproject.

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Recirculating Aquaculture Technology

product/species MODULE

WATER PER POOL M3 160

PRODUCTIVITY/M3 #KG 450#KG

POOLS 1PER POOL  / YEAR #KG 72,000

#FISH 120,000PER HA / YEAR #KG 1,728,000 Eu. Exchange Rate

1.486

ITEMSUNIT COST

QUANTITY COST USD

FINGERLINGS (Units) $0.18 132,000 $23,538FEED (KG) $1.49 79,200 $117,691ELECTRICITY (kW/Hr) $0.10 300,000 $31,206OXYGEN (kH/Hr) $0.10 30,855 $3,210HEATING (per cubic metre) $0.52 20,000 $10,402

$186,047$2.58

LABOUR & TECHNICAL SUPERVISION $29,411Labour cost per kilogram of sold production $0.41

$215,458All‐in cost of production pr kg.  $2.99

SELLING PRICE per KG $5.20

$374,472

GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR)

$159,014

NUMBER OF POOLS THIS SPECIES & PRODUCT TYPE

24TROUT 600 Grams

GROSS PROFIT ‐ THIS SPECIES & PRODUCT TYPE

TROUT 600 Grams

$3,816,339

20$8,916,000 $445,800

$185,750$185,750

INTEREST & FINANCE COSTS 6% $6,687,000 $401,2206% $2,229,000 $133,740

TOTAL $1,352,260

NET PROFIT FOR 1 product/species MODULE

TROUT 600 Grams

$2,464,079

FISH RECIRCULATION TECHNOLOGYTYPICAL PRODUCTION COSTS / ($US)1 module per year of production

TROUT 600 GramsDIRECT COSTS PER PRODUCTION POOL

TOTAL DIRECT COSTS PER YEAR

INDIRECT & OVERHEAD COSTS

Costs per kilogram of sales this fish product

COST OF OPERATIONS (Total Cost of Cash‐flow)**TROUT 600 Grams

**= Excluding sales & marketing costs

TOTAL SALES PER POOL PER YEAR

INDIRECT & OVERHEAD COSTSAmortization # years (straight line) 

Amortization  

Factory Overhead** Sales & Administration

product/species MODULE

WATER PER POOL M3 160

PRODUCTIVITY/M3 #KG 365#KG

POOLS 1PER POOL / YEAR #KG 58,400

#FISH 58,400PER HA / YEAR #KG 1,401,600 Eu. Exchange Rate

1.486

ITEMSUNIT COST

QUANTITY COST USD

FINGERLINGS (Units) $0.30 64,240 $19,092FEED (KG) $1.49 70,080 $104,139ELECTRICITY (kW/Hr) $0.10 300,000 $31,206OXYGEN (kH/Hr) $0.10 30,855 $3,210HEATING (per cubic metre) $0.52 12,000 $6,241

$163,888$2.81

LABOUR & TECHNICAL SUPERVISION $25,076Labour cost per kilogram of sold production $0.43

$188,964All-in cost of production pr kg. $3.24

SELLING PRICE per KG $5.94

$347,130

GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR)

$158,166

NUMBER OF POOLS THIS SPECIES & PRODUCT TYPE

24ARCTIC

CHAR 1 kg.GROSS PROFIT - THIS SPECIES & PRODUCT TYPE

ARCTIC CHAR 1 kg.

$3,795,975

20$8,916,000 $445,800

$185,750$185,750

INTEREST & FINANCE COSTS 6% $6,687,000 $401,2206% $2,229,000 $133,740

TOTAL $1,352,260

NET PROFIT FOR 1 product/species MODULE

ARCTIC CHAR 1 kg.

$2,443,715

FISH RECIRCULATION TECHNOLOGYTYPICAL PRODUCTION COSTS / ($US)1 module per year of production

ARCTIC CHAR 1 kg.DIRECT COSTS PER PRODUCTION POOL

TOTAL DIRECT COSTS PER YEAR

Factory Overhead** Sales & Administration

INDIRECT & OVERHEAD COSTS

Costs per kilogram of sales this fish product

COST OF OPERATIONS (Total Cost of Cash-flow)**ARCTIC CHAR 1 kg.

**= Excluding sales & marketing costs

TOTAL SALES PER POOL PER YEAR

INDIRECT & OVERHEAD COSTSAmortization # years (straight line)

Amortization

PART II

1. SUMMARY OF PROJECTED SALES (OPERATIONAL YIELD) & GROSS MARGIN

Examples: Hereunderarecurrentperformanceforecastsbasedonactualresults,forahypothetical4modulesystemusingHydroNovproprietaryfishrearingtechnology.

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Recirculating Aquaculture Technology

product/species MODULE

WATER PER POOL M3 160

PRODUCTIVITY/M3 #KG 400#KG

POOLS 1PER POOL / YEAR #KG 64,000

#FISH 106,667PER HA / YEAR #KG 1,536,000 Eu. Exchange Rate

1.486

ITEMS UNIT COST QUANTITY COST USD

FINGERLINGS (Units) $0.15 117,333 $17,436FEED (KG) $1.19 76,800 $91,300ELECTRICITY (kW/Hr) $0.10 200,000 $20,804OXYGEN (kH/Hr) $0.10 20,000 $2,080HEATING (per cubic metre) $0.52 20,000 $10,402

$142,022$2.22

LABOUR & TECHNICAL SUPERVISION $26,314Labour cost per kilogram of sold production $0.41

$168,336All-in cost of production pr kg. $2.63

SELLING PRICE per KG $4.83

$309,088

GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR)

$140,752

NUMBER OF POOLS THIS SPECIES & PRODUCT TYPE

24TILAPIA 600

GramsGROSS PROFIT - THIS SPECIES & PRODUCT TYPE

TILAPIA 600 Grams

$3,378,048

20$8,916,000 $445,800

$185,750$185,750

INTEREST & FINANCE COSTS 6% $6,687,000 $401,2206% $2,229,000 $133,740

TOTAL $1,352,260

NET PROFIT FOR 1 product/species MODULE

TILAPIA 600 Grams

$2,025,788

TOTAL DIRECT COSTS PER YEAR

FISH RECIRCULATION TECHNOLOGYTYPICAL PRODUCTION COSTS / ($US)1 module per year of production

TILAPIA 600 GramsDIRECT COSTS PER PRODUCTION POOL

INDIRECT & OVERHEAD COSTS

Costs per kilogram of sales this fish product

COST OF OPERATIONS (Total Cost of Cash-flow)**TILAPIA 600 Grams

**= Excluding sales & marketing costs

TOTAL SALES PER POOL PER YEAR

INDIRECT & OVERHEAD COSTSAmortization # years (straight line)

Amortization

Factory Overhead** Sales & Administration

product/species MODULE

WATER PER POOL M3 160

PRODUCTIVITY/M3 #KG 300#KG

POOLS 1PER POOL / YEAR #KG 48,000

#FISH 80,000PER HA / YEAR #KG 1,152,000 Eu. Exchange Rate

1.486

ITEMS UNIT COST QUANTITY COST USD

FINGERLINGS (Units) $0.22 88,000 $19,615FEED (KG) $1.49 57,600 $85,594ELECTRICITY (kW/Hr) $0.10 200,000 $20,804OXYGEN (kH/Hr) $0.10 20,000 $2,080HEATING (per cubic metre) $0.52 20,000 $10,402

$138,495$2.89

LABOUR & TECHNICAL SUPERVISION $23,219Labour cost per kilogram of sold production $0.48

$161,714All-in cost of production pr kg. $3.37

SELLING PRICE per KG $6.69

$320,976

GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR)

$159,262

NUMBER OF POOLS THIS SPECIES & PRODUCT TYPE

24BARRAMUNDI

600 GramsGROSS PROFIT - THIS SPECIES & PRODUCT TYPE

BARRAMUNDI 600 Grams

$3,822,289

20$8,916,000 $445,800

$185,750$185,750

INTEREST & FINANCE COSTS 6% $6,687,000 $401,2206% $2,229,000 $133,740

TOTAL $1,352,260

NET PROFIT FOR 1 product/species MODULE

BARRAMUNDI 600 Grams

$2,470,029

TOTAL DIRECT COSTS PER YEAR

FISH RECIRCULATION TECHNOLOGYTYPICAL PRODUCTION COSTS / ($US)1 module per year of production

BARRAMUNDI 600 GramsDIRECT COSTS PER PRODUCTION POOL

INDIRECT & OVERHEAD COSTS

Costs per kilogram of sales this fish product

COST OF OPERATIONS (Total Cost of Cash-flow)**BARRAMUNDI 600 Grams

**= Excluding sales & marketing costs

TOTAL SALES PER POOL PER YEAR

INDIRECT & OVERHEAD COSTSAmortization # years (straight line)

Amortization

Factory Overhead** Sales & Administration

PROFITABILITY

The figures shown are inUSDollars ($USD). The net profit per annum in this 96 pool example,(rearing4speciesofprovensaleablefish)is$9,403,610forROIof105.5%perannumwitha25:75equitytodebtratio,or,allowingforfullamortizedcost,ROIof2109%duringthe20yearlifeoftheproject.Afterthattime,anannualreturnofover$18m,or51%ROIwilloccurforthedurationoftheprojectlife.Weexpectarefitat25years,plusexpansiongrowthduringtheprojectnotincludedhere.

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Recirculating Aquaculture Technology

PART III

1. GENERAL COMMENTS ON THE ECONOMIC VALUE AND MARKET POTENTIAL OF DIFFERENT FISH SPECIES

1.Rainbow Trout-Aclassicforaquacultureproduction,alreadyproducedbyseveralsmallandmediumscalegrower;notanoveltyanymore

2.Arctic Char -Thisfishissaidtobeacrossed-bredbetweenSalmonandRainbowTrout,isbettertastingthanboth,andisprogressivelyreplacingSalmonasahealthieralternative.ItisalreadybeingproducedinCanadabutinrelativelysmallvolume.Marketprospectisverygood

3.Murray Cod-ThisfishiswidelyproducedfromaquacultureinAustralia.Highlypopularfish,itcarriesanex-farmpriceof$8–A$10perkilo,dependingontheseason.Ithasanappeallikethemarinecodfish.

4. Jade Perch - This fish is also from Australia. It is considered as themost healthy fishcontainingmoreOmega-3fishfattyacidthananyotherfish,asmuchas2%per100gramsoffishmeat.Itisalsoagoodtastingfish.

5.Tilapia -This is themostpopular fish inthe world. It is grown in several countrieswith different results and outlook. Whilein North America it is considered as ahigh-end fish with similar pricing as TroutandSalmon,insomeAsiancountriesithassufferedadverse reputationashavingan “unsavory earthy smell “ and being growninunhygienicconditions.Thepoorgrowingconditions is the reason for theproblem inthose countries, effectively producing thatbadtaste.Alreadyproducedingoodvolumeby North American aquaculture industry, itdoesrequireswarmwatertodevelopwell.

6. Barramundi - Also known as Sea bass, this fish is a relatively new introduction fromaquacultureproductionandisgainingrapidacceptanceasagoodvaluefish

7.Silver Catfish-AhighpricedfishonsomeAsiamarkets,itcanbeanichemarketfishwithagoodpricingifproperlymarketed

8.Small catfish-AhighlypopularfishinMalaysiathisfishissoldat250gramsonly,makingitaveryfastproducer.Presentedasanexampleofasmallfishtype;localequivalentmaybeidentifiedforchinamarket.

9,10&12aretypicalsouthAsiaspecies

11.Nile PerchItisaverypopularfishinMiddleEastcountriesandEgypt.ThisfishisalsoingooddemandinEUfetchingquitehighprices.

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Recirculating Aquaculture Technology

AlargemaleAquaculturedTilapia

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Recirculating Aquaculture Technology

Seafood consumptionper person in Japan was approximately 60 kg in 2002.

This is nearly three times as much as that of the U.S., the EU or China where consumption per person is around 20 kg.

The worldwide trend shows that the amount of consumption, which used to be less than 10 kg in the 1960’s, is increasing gradually and became 16 Kg in 2002. This increase in consumption can be found around the world.

Consumption in Korea, China, the U.S. and Europe is increasing significantly, while that of Japan is peaking.

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Recirculating Aquaculture Technology

AccordingtoFAO* ,productionwillnotbeabletosatisfydemandandthedeficitin2030wouldbealmost92millionmetrictons.

This forecastdeficitwillhaveamajor impacton trade,as lessproduct will be available fortrade to developed countries,and South-South trade shouldexpand.

Prices are expected to goup, which in turn will hamperdemand.* The Food and Agriculture Organization of the United Nations (FAO) is a specialised agency of the United Nations that leads international efforts to defeat hunger. Serving both developed and developing countries, FAO acts as a neutral forum where all nations meet as equals to negotiate agreements and debate policy.

Deutsche Aquakulturtechnolgie in der EZ – Erfahrungen, Herausforderungen und Märkte Bremen, 20 Januar 2004

OUTLOOK: TRADE(1,000 MT)

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

2005 2010 2015 2020 2025 2030Demand - growing per capita consumptionAquacultureCaptureSurplus/Deficit

Tilapia Merah

Murray Cod

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Recirculating Aquaculture Technology

3. ISSUES FACING TRADITIONAL AQUACULTURE & FISHERY PRODUCTS

a.Lowproductionyieldfromtraditionalaquaculturesystemandconstantchallengetomeetenvironmentalstandards.

b.Increasingtrendinimportationoffoodfish,whileMiddleEastimportsinthissectorreached200Millions$in2006,anincreaseof21%overpreviousyear.

c.Quality&FoodSecurityinimportedFisheriesProducts•LackinQualityControlandFoodSafetyPractices•NonConformingtoExportStandard

d.Naturalcatchreduction•Likeeverywhereelseintheworld,over-fishedareasfailtomeetdemand•CanadahasexperienceditwiththeAtlanticCodsituationinthenineties•Mexicosawthesamewithanchoviesbackintheeighties

4. FAO REPORT - CIRCULAR NO. 1017/2 “ REGIONAL REVIEW ON AQUACULTURE DEVELOPMENT”

InPARTIIoftheaboveCircular,page53,SectionV,PRIORITIES........

Farming systems, technologies and species Paragraph39,says

“Theissueonfarmingsystemsandtechnologieswasseenbytheexpertsasveryimportantforexpansionofthesector.Itwasnotedthat,duetothegeographicaldifferencesoftheregion,eachcountrymayrequiredifferentsystems.

The intensification of aquaculture farming systems including the adoption ofrecirculatingsystemswasseenasawayforward.“

Tilapia Merah

Jade Perch packed for market

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Recirculating Aquaculture Technology

2000 2002 2004 2005 2000 2002 2004 2005

000's tonnes

000's tonnes

000's tonnes

000's tonnes

China 24,790 27,767 30,615 32,414 1 1 1 1

India 1,942 2,187 2,472 2,838 2 2 2 2

Vietnam 499 703 1,199 1,437 7 7 3 3

Indonesia 789 914 1,045 1,197 3 4 4 4

Thailand 738 955 1,173 1,144 5 3 5 5

Bangladesh 657 787 915 882 6 6 6 6

Japan 763 827 776 746 4 5 7 7

Chile 392 546 675 698 11 9 8 8

Norway 491 550 638 657 8 8 9 9

Philippines 394 444 512 557 10 11 10 10

Egypt 340 376 471 540 12 12 11 11

Myanmar 99 190 400 475 15 15 12 12

USA 456 497 607 472 9 10 13 13

Korea Rep 293 297 406 436 13 14 14 14

Taiwan PC 244 330 318 305 14 13 15 15

32,887 37,370 42,222 44,798

Producer (metric tonnes)

Aquaculture Production Ranking in the World5. WORLD AQUACULTURE PRODUCTION: TOP 15 PRODUCING NATIONS

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Recirculating Aquaculture Technology

6. MANAGEMENT BY:

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Recirculating Aquaculture Technology

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Recirculating Aquaculture Technology

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