COMMERCIALISATION OF

OMEGA-3 ENRICHED ANIMAL FEED ( PRAWN FEED )

Chronology

Year 1998
2

Computer Integrated Farming ( Year 2002 )

Animal and Aquaculture Feed

The feedmilling industry in Malaysia is highly dependent on imported raw materials thus necessitating the search for alternative feed sources from new materials and agricultural byproducts.
IMPORT OF ANIMAL FEEDING STUFF, MALAYSIA
1,200.0 1,400.0

Import Volume ( '000 mT )

1,200.0 1,000.0 800.0 600.0

871.9 916.1

938.0 866.6

1,029.3 1,000.0 885.6 800.0 600.0 400.0

400.0 200.0 0.0 1999 2000 2001 200.0 0.0

Year Import Volume ('000 mT)

C.I.F. Value (RM Million )

Value ( RM Million )

Source: Department of Statistics, Malaysia

Aquaculture Production
- in tons 50,000,000

Developing countries or areas

Developed countries or areas

40,000,000

30,000,000

20,000,000

10,000,000

0 1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002

Source: FAO

FAO Fisheries Industry Division, 2004

Fishmeal Major World Importers Year 2003 ( million tons )

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

EU

China

Japan

Taiwan

* Source: Oil World 2003

The Research
Technology Park Malaysia has produced a high quality alternative protein source for fishmeal at competitive cost through our high density aquaculture research. The species, Clarias Gariepinus (keli), was chosen due to its: high growth rate tolerance to low dissolved oxygen and high ammonia concentration.

The Research ( Summary )

HIGH DENSITY KELI-FARMING

PRODUCTS Poultry, Prawn, Fish, Ruminant Feed

KELIMEAL

Amino Acids, Vitamin, Minerals, Protein analyses

Process

50.00 45.00 40.00

LENGTH (cm)

1200.00 1000.00
WEIGHT (g)

35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50

800.00 600.00 400.00

Omega-3, Biofuel
KELI OIL

Length (cm)

Weight (g)
52

200.00 0.00

WEEK(S)

Growth Rate measurement

Fatty Acids analysis

Fish Growth Comparison ( Weight )

200 175

150

WEIGHT (g)

125

100

75

50

25

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

TIME (WEEK)

Keli Weight (g) Linear (Keli Weight (g))

Patin Weight (g) Linear (Patin Weight (g))

Tilapia Weight (g) Linear (Tilapia Weight (g))

Fish Growth Comparison ( Length )

45 40 35 30

LENGTH (cm )

25 20

15 10

5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

TIME (WEEK)
Keli length (cm)
Linear (Keli length (cm))

Patin Length (cm)

Linear (Patin Length (cm))

Tilapia Length (cm)

Linear (Tilapia Length (cm))

10

Growth of Keli In TPMs Experiment

50.00 45.00 1200.00

LENGTH (cm) or WEIGHT/LENGTH RATIO (g/cm)

40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

At 52 weeks, average weight = 1021.6g and length = 48.5cm

1000.00 800.00 600.00 y = 0.4087x + 2.3932 Length (cm) W/L Ratio Weight (g) Linear (W/L Ratio) 400.00 200.00 0.00

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

50

WEEK(S)

Initial average weight = 1.51g and length = 5.53cm 11

52

WEIGHT (g)

Comparison of Proximate Analysis

Feed Ingredient % Moisture % Protein % Total Fat % Ash, C.Fiber, Others Kelimeal 4.3 66.0 22.8 6.9 Fishmeal 9.3 63.8 6.4 20.5 Soyabean meal 11.8 51.7 2.0 34.5

12

Comparison of Essential Amino Acids Composition ( for Prawn )

Feed Ingredients % % % % % % % % % Arginine Histidine Isoleucine Leucine Lysine Methionine Phenylalanine Threonine Valine Kelimeal 3.5 1.1 2.7 3.3 6.3 2.1 2.1 2.1 3.0 Fishmeal 3.8 1.3 2.2 3.3 4.3 1.9 2.4 2.4 2.7 Soyabean meal 3.5 1.3 2.0 3.5 2.9 0.7 2.0 1.8 2.2

13

Gas Chromatogram of Fatty Acids Composition in Clarias gariepinus (Keli)

% Fatty Acids Omega-6 C18:2n6 Keli 11.12

C18:3n3 0.07

Omega-3 C20:5n3 0.08

C22:6n3 0.38

14

Production of Omega-3 Enriched Prawn Feed by TPM

Our prawn feed replaces fishmeal with omega-3 enriched kelimeal in the formulation.

15

Process Flow in Keli Meal and Keli Oil Production

Input raw fish Cook
liquid

Keli oil
3 Phase Decanter
solid stickwater oil

Downstream Products
Omega-3, Biofuel Poultry, Prawn, Fish, Ruminant Feed

Screw Press
solid s/w conc. vapour

Stickwater Concentration Plant Palletising *optional

Mix

Kelimeal
Bagging
16

Dry

Mill

Prawn Feed Production Flow

Kelimeal Raw materials

Size reduction & blending

Pellet forming

Prawn feed pellet drying

Cooling & Packing

17

Prawn Feed Formulation Comparison

1% 2% 15%

5%
7%

2% 5%
40%

6%

17%
20%

50%

Standard
( Dept. Of Fisheries, Malaysia )

10%

5%

5% 10%

TPM

Fish meal Wheat pollard Shrimp head waste Fish oil Vitamin & mineral premix

Corn gluten meal Soy bean meal Cassava, tapioca PKC Kelimeal
18

Prawn Feed Proximate Analysis

10% 6% 20% 48% 6%
Standard
( Dept. Of Fisheries, Malaysia )

10%

13% 4% 11%

8%

13%
TPM

51%

Moisture

Protein

Total Fat

Ash

Crude Fiber

NFE

Requirement for Prawn at Grower Stage ( Source: Tacon 1987 ) Crude Protein = 53% min., Crude Lipid = 10% min., Carbohydrate = 20% max.
19

Comparison of Essential Amino Acids Content in Prawn Feed

Essential Amino Acid 1 2 3 4 5 6 7 8 9 Arginine Histidine Isoleucine Leucine Lysine Methionine Phenylalanine Tyrosine Threonine Standard formulation (%) 3.49 0.81 2.22 4.23 2.07 0.90 2.59 1.83 2.20 2.65 Formulation with Kelimeal (%) 4.04 1.11 2.55 5.29 3.08 1.48 3.00 2.33 2.63 2.77 Min.Requirement for Prawn (Grower stage)* 2.87 0.82 1.26 2.6 2.73 1.00 1.43 1.45 1.78 1.58
*Source: Tacon 1987

10 Valine

20

World Shrimp Aquaculture Production, Feed Consumption and Value

3000.0 2500.0 Quantity (1,000 mT) 2000.0 1500.0 1000.0 500.0 0.0 1999 2000 2001 Year Shrimp Production Feed Consumption Feed Value 2002 2003 3000 2500 2000 1500 1000 500 0 Value (USD million)

Source: Globefish 20040416

21

World Major Shrimp Aquaculture Production Countries & Feed Consumption - Year 2003
No. 1 2 3 4 5 6 7 8 9 10 11 12 Country China Thailand Vietnam Indonesia India Brazil Ecuador Bangladesh Mexico Philippines Malaysia Others Total *Shrimp Production (1,000 mT) 390.0 260.0 220.0 160.0 155.0 91.0 80.0 70.0 48.0 42.0 32.0 107.8 1655.8 Feed Consumption (1,000 mT) 624.0 416.0 352.0 256.0 248.0 145.6 128.0 112.0 76.8 67.2 51.2 172.5 2649.3

* Source: Globefish 20040416

22

TPMs Integrated Farming

Chicken Offals

Algae BROILERS HIGH DENSITY KELI FARM

Urea in water

FISHMEAL PROCESSING PLANT

KELIMEAL CHICKEN PRAWN FEED FISH FEED POULTRY FEED KELI OIL

23

Mass Flow of TPMs Integrated Farming

( per 2 hectare pond ) Initial release 6 million keli fries
Commercial feed

Chicken offals

Harvest after 1 year

3000mT fresh keli

600mT Kelimeal with oil

Other Ingredients

2175 mT liquid

195 mT oil

1200mT prawn feed

24

Omega 3 Enriched Prawn feed Cash Flow Analysis Forecast for 10 years
(RM mil)

4,000 3,000 2,000 1,000 (1,000)

Total sales

YR0

YR 1
100.4

YR 2
291.9

YR 3
583.8

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

1,167.7 2,335.4 3,265.7 3,448.1 3,448.1 3,448.1 3,448.1

Total exp

118.0

267.1

531.4

1,060.0 2,122.5 2,648.7 2,726.9 2,738.3 2,749.9 2,761.8

Capital exp

(135)

(55.0)

(106.8) (217.4) (481.6) (224.2)

(0.7)

Cash flow

(135)

(64.8)

(75.9)

(157.4) (364.2)

8.0

549.2

633.6

634.1

634.3

634.4

25

Investment Opportunity (10 Year Scenario)

Total Investments Total income Profit after tax IRR Payback Period RM 1.22 bil RM 21.54 bil RM 2.75 bil 13% year 5

26

Income Analysis (10 Year Scenario)

Income contribution (%)
Omega 3 Enriched Prawn feed Broiler Meat 44% 56% (RM mil) 9,393.0 12,143.8

Total income for 10 years

Omega 3 Enriched Prawn feed
(RM3,800/mT)

Broiler Meat
(RM3.60/kg)

TOTAL INCOME

21,537.4
27

Operation Costs Analysis (10 Year Scenario)

(RM mil.)

Keli farming Processing centres

Kelimeal Prawnfeed

1,716.4

237. 2,218.6

Broiler farming

10,215.8

28

Capital Expenditure Analysis (10 Year Scenario)

(RM mil)

Infrastructure
Keli Broiler 316.6 113.9

430.5 762.7
82.1 506.5 39.4 134.7

Equipment
Keli rearing Chicken rearing Fish meal line Prawn feed line

Others TOTAL

27.5 1,220.7
29