Thank you sponsors and participants for making TARS 2019 such a huge success! Get ready for TARS 2020 (Shrimp Aquaculture) taking place on August 19-20. Mark your calendars!

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Aquafeeds: Fit for Future

 August 14-15, 2019      Bali, Indonesia
Thank you sponsors and participants for making TARS 2019 such a huge success! Get ready for TARS 2020 (Shrimp Aquaculture) taking place on August 19-20. Mark your calendars!

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Aquafeeds in Indonesia: Different strokes for different species

Haris Muhtadi, Aquafeed Division, Indonesian Feedmills Association, Indonesia

In 2018, Indonesia’s aquafeed production grew, albeit insignificantly, to its current carrying capacity. The shrimp feed market increased by only 9.5% to 321,028 tonnes in 2018. Feed demand in the integrated market decreased significantly with the closure of a couple of large farms. While in some areas, shrimp feed demand was flat, mainly due to white faeces disease and IMNV, demand grew with new farms in areas such as in Sumbawa. It is this expansion in shrimp production coupled with intensive farming practices, which may keep the shrimp feed sector going. On the other hand, we see that farm productivity tends to be flat, with no breakthroughs or introduction of new farm technology. Recently, to help shrimp farmers overcome challenges with high costs of production amidst lower international shrimp prices, feed producers introduced a low crude protein (26% CP) feed at a much lower price with very low fishmeal inclusion rates. This feed is welcome by farmers, providing acceptable feed conversion ratios (FCR) and average daily growth rates (ADG).

The fish feed sector also saw a small 8% increase in production from 1.26 million tonnes in 2017 to 1.36 million tonnes in 2018. Indonesia has a large freshwater fish farming industry, mainly small-scale traditional farms, producing tilapia, carp, Clarias and pangasius catfish. Often with very low ex-farm prices in the domestic market, feed producers are frequently pushed to market cheaper feeds, even though in the fish feed business, margins are already very low. Catfish and milkfish farmers tend to use cheaper feeds containing less than 20% CP, below the national industry standard. There is also a large production of farm-made feeds. Recently, the demand for freshwater fish feeds was affected by the government’s push to reduce the number of freshwater fish cages in dams and lakes.

There has been little growth in demand for marine fish feeds. Feed production has stagnated at 14,000 – 16,000 tonnes/year and a few feed companies market feeds for grouper, milkfish and seabass. For feed producers, marine fish feed production is attractive with good margins although feeds usually contain more than 48%CP. Trash fish dominates as high prices have been the deterrent for farmers to use dry pelleted feeds. However, supplies of trash fish are now limited after the government’s policy to restrict fishing.

Future opportunities for the industry will be mainly in the fish feed market as domestic demand continues to rise with its growing population. More recently, the government started a strategy to increase pangasius production, both for local consumption and for export. Another potential segment for the industry to explore will be in the production of hatchery and nursery feeds, now largely dependent on imports.

While the industry struggles with changing demands in feed prices, composition and quality, rising costs of energy and the push to develop sustainable feeds, it has to support the farming sector, upstream and downstream. Some feed producers have developed fast growing genetic strains for the Clarias catfish and tilapia. At the same time, new entrants into the industry, such as multinationals from China and Thailand will increase the competitive landscape.

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