R&D in a Global Salmon Farming Company

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1 R&D in a Global Salmon Farming Company Petter Arnesen Technical Director, Marine Harvest ASA Salmon Industry in Chile and Norway How can research and technology development help meet our challenges? Trondheim 15 August 2007

2 World leader in aquaculture based seafood Marine Harvest produces one third of the world s farmed salmon and trout We are present throughout the value chain from farming to delicious convenience foods We are present in 20 countries World production of farmed salmon and trout Marine Harvest Other 2

3 Marine Harvest Chile Business Unit BUSINESS UNIT CHILE (incl USA) Figures in 000 NOK and tons 2006 Total Harvested HOG Total Net Growth - living weight Turnover Total employees Activities: Farming, processing, smoking, distribution and sales Main products: Salmon (filets, cutlets and portions) in addition to a wide range of smoked seafood products 3

4 Marine Harvest Norway Business Unit BUSINESS UNIT NORWAY Figures in 000 NOK and tons 2006 Total Harvested HOG Total Net Growth - living weight Turnover Total employees Activities: Farming, processing, distribution and sales Main products: Salmon (whole fish and filets) 4

5 R&D in Marine Harvest We have a team of highly skilled Technical/R&D people in all our Business Units, and in group HQ in Oslo, but not a research department as such. Internally we focus more on Development than Research Research is usually conducted in collaboration with partners (research institutions, suppliers, etc.) Best Practice transfer between our Business Units is facilitated by Technical Networks and ad hoc task forces. In this way we secure global implementation of good ideas and practices Recent examples of Best Practice transfer between Norway and Chile are related to measures for handling the extremely serious sea lice situation in Chile and the recent ISA outbreaks. We have sought to share knowledge and information also with other companies in Chile, and we have offered to contribute towards the authorities We expect that the advanced know-how gained in our Chilean Business Unit on recirculation technology for smolt production will become very valuable both for Norway and other MH Business Units going forward 5

6 Solving R&D challenges who s responsibility? The industry itself no doubt! Including suppliers of feed, pharmaceutical products, technical equipment, etc. Collaboration and openness between industry players is essential to solve common problems. Important that there is a common knowledge pool to draw from Advances in salmon farming and strengthening the image of salmon as safe and healthy food must be science based and requires investment in R&D. In Norway a number of world class research institutions specialising in aquaculture have been developed alongside with the salmon industry. They have been instrumental in developing a sustainable salmon farming industry In Chile, the salmon industry is currently facing its most demanding biological challenges to date and the need for a heavy research effort, financed jointly by industry and authorities, is needed. We would recommend establishing a Healthy Fish research programme, similar to the successful programme started in Norway in the 90`s when the industry here faced serious health problems. This is also an opportunity to strengthen existing Chilean R&D institutions and build new ones 6

7 Healthy salmon with very low use of antibiotics - development in Norway Volume (tons wfe) Antibiotics (kg active substance) Volume salmon and trout Consumption antibiotics 0 Norwegian Seafood Federation (FHL) 7

8 But Norway is not free of disease! Pancreas disease outbreaks (incidens) per county (June) F T N NT ST MR SF H R Source:

9 History of ISA outbreaks in Norway Number of outbreaks per year ( ) Source: 9

10 We would like to see more research conducted in Chile Solutions for Chile should as a rule be developed in Chile! Although many salmon farming challenges are universal, there are several that are specific for Chile. As a company determined to be part of a successful salmon farming industry in Chile going forward, we would welcome more knowledge and solutions in areas such as: Controlling the most serious infectious diseases such as SRS and IPN (risk factors, impact of management practices on prevalence and intensity, etc.) Pharmacokinetics more knowledge needed on principal drugs used Controlling the serious sea lice situation Interaction between salmon farming and mussel farming (Chiloé) Hydrodynamics we need to learn more about water current patterns, disease spreading etc. in order to plan synchronised/coordinated fallowing, smolt stocking and lice treatments. Such knowledge is essential for effective area management and for operating efficient surveillance systems on fish health and environmental parameters 10

11 Examples of research requirement in Chile (cont.) Developing fresh water production technologies that allow for production of disease free smolts Designing smolts that are adapted to Chilean conditions by using advanced (genetic) selection methods. Sequencing the salmon genome is expected to be a valuable contribution in this respect (common interest and responsibility for the global salmon industry and authorities to contribute to this work) Understanding the effects of salmon farming on the environment, such as carrying capacity of production areas, and securing that the industry going forward is built on sustainable practices Management approaches for multiple use of the Coastal zone (tourism/salmon farming/fisheries/ mussel farming and more) Feed development based on requirements of Chilean salmon and local feed ingredients. We must learn more about consequences of formulation changes (antinutrients, immune response, etc.) 11

12 Gracias Thank you - Takk 12

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