Our world population is climbing, and agriculture must rise to the challenge of producing a much larger portion of daily food intake for that population. One option that is gaining popularity is aquaculture, which provides much greater yields at lower inputs than harvesting a dwindling wild population of edible fish. But rising feed ingredient prices are beginning to have an impact on the sustainability of aquaculture. Here's a quick look at information recently published in FAO Fisheries and Aquaculture Technical Paper No. 541 and how their findings are impacting aquaculture.
Today's food supply is highly dependent on aquatic products that are increasingly being met by aquaculture. The industry's future will turn on whether it can meet this challenge effectively. Once the purview of hobbyists, aquaculture has steadily increased from 4% of the market in 1970 to a 9-times increase of 36% in 2006, with continued growth expected. China, well known for its fish cuisine, had about 70% of its fisheries production coming from aquaculture. It's projected that by 2020, aquaculture around the world will provide between 120-130 million metric tons of fish to meet demand. But with the increasing world population, aquafeeds must also be sustainable.
Rising costs of aquaculture feed ingredients
The study mentioned in the paper above reflects a look at the rising costs of aquaculture feed ingredients. Based on a number of common inputs including corn, soybeans, fishmeal and oil, wheat and rice, these commodities compete with traditional livestock. They're also traded internationally, making the costs subject to the whims of the market. Add to this the rising demand for vegetable oils and corn for biodiesel and ethanol and the factors that can impact feed become a serious issue for the market, with feedstocks rising between 67 and 250% since 2005. Though these rising commodity prices could be combated through government intervention, it could come at the cost of stifling market participation.
The brunt of these increases are expected to be borne by small holders and rural farmers, though digitization creates the opportunity for feed mills to meet the needs of these smaller customers through better efficiency in the feed production process. As the world's population continues to grow, availability and access to property and water to raise fish will continue to have a strong impact on the profitability of aquaculture operations, specifically by driving up demand for commercial feedstocks over those made on the farm. At the same time, urbanization will drive both the amount of aquaculture used to produce feed and the distribution of income and food around the world.
Push for new sources
Overall, the increasing price and demand for fishmeal and fish oil will drive demand for alternatives to these products, allowing the industry to continue competing and meeting the challenges of securing aquafeed for sustainable production. This push for new sources for protein and nutrients isn't limited to the aquaculture industry either, with other sectors using a range of other approaches such as the use of insect meal in feed to raise protein and calcium levels. A combined approach must be used that will allow farmers, private sector business, research and government policies to work together to create a stronger national capacity to deal with the rising costs of aquafeeds and related aquacultural production costs.
Support in reducing costs and delivering optimal quality
By keeping an eye on your aquaculture feed inputs, you can finely tune the recipe you use to optimize growth and minimize waste and cost of your feed. But you can't do that with outdated software that can't keep up with shifts in quality and costs. At Adifo Software, we can provide you with the tools you need to take your aquaculture feed to the next level while reducing your costs, making it easier for you to shift with changes in the market. Please feel free to contact us today to get started.