AQUOLIVE PROJECT: Summary of the action context
WHO WE ARE? Natac Biotech S.L. (hereafter called NATAC) is the R&D division of a group of 8 companies (Natac Group S.L.) with headquarters in Spain and international presence in LATAM and the USA. We are a leading biotechnology company specialized in the extraction of high added value bioactive ingredients from agriculture products to serve the needs of different industrial sectors. Since the company foundations and to date, we can be proud of having 7 international patents, +20 countries importing our extracts, +50% international sales and +1.500 tonnes production capacity in our own factories. The success achieved so far ca be ascribed to our rapid entrance and consolidation in the pharma, cosmetic and human nutrition markets. In our effort to continue innovating and expanding, the AQUOLIVE project was initiated a couple of years ago and it has become the most strategic project for us, as a way to become also a leading player of the animal nutrition market.
WHAT IS THE AQUOLIVE PROJECT ABOUT? The AQUOLIVE project is aimed at offering the aquaculture sector a feeding solution based on our patented formulation of bioactive products obtained from olive oil production biomass (isolation and processing method also patented). This solution will help Fish farmers to increase their productivity and profitability, while reducing the aquaculture environmental impact in line with current industry needs.
WHY IS AQUOLIVE A HUGE BUSSINESS OPPORTUNITY? Wild fish stocks are being removed faster than they can replenish themselves, and populations are dwindling meanwhile world population continues to growth and demand more fish meat. By 2030 it will be necessary to increase by 46.4 M metric tons fish production to supply population needs. Fish farming could be a viable alternative but unfortunately it comes with its own challenges.
The main challenge is triggered by the critical need for improving fish meat availability, which directly affects aquaculture that should double its production by 2050. At the same time, the area available for aquaculture is facing competing uses from agriculture, tourism, recreational and residential development. With land being a major factor limiting aquaculture growth, employing higher stocking densities and thereby intensification of culture practices will become more prevalent. Here is where fish feeding becomes critical.
Fish feed is important for aquaculture production because it usually constitutes over 50% of the production costs and it has a significant impact on the quality, safety and nutritional value of farmed fish. However, certain aspects of feed can cause environmental impacts such as nutrient runoff and overexploitation of resources. Paradoxically, the most extensively used feeding products come from marine resources and consist of fishmeal and fish oil as an additive, as this combination provide the necessary proteins and complements to achieve optimal growth. However, since production from wild fisheries is stagnating and competition for fishmeal and fish oil by other sectors is increasing, fishmeal and fish oil are therefore only available in limited quantities. It is estimated that the amount of fish used in feed to produce one unit of output have to be reduced by at least 50% from current levels for aquaculture to be sustainable in 2050.
HOW DO WE INTEND TO EMBRACE THIS BUSSINESS OPPORTUNITY? The solution proposed in the AQUOLIVE project to increase fish farming productivity is a patented feed additive produced from of olive oil production and processing biomass (alperujo).
In previous studies performed by NATAC in salmon aquaculture, we have demonstrated that AQUOLIVE improve FCR (food conversion ratio) by 10%, besides reducing the amount of feeding products by 9% and increased premium quality meat ratio by 8%. Thanks to these observations, we estimate significant feeding costs savings and increase in meat quality (higher market value of farmed fish), thus resulting in an increase of fish farmers’ profitability by more than 15%, which will make our clients willing to pay for AQUOLIVE due to its proved cost-efficiency.
Moreover, as our product will reduce the use of marine resources in fish farming and it is generated from agriculture by-products, it will not have a negative environmental impact by overexploitation of natural resources, complying with the EC recommendations for a Sustainable Aquaculture. This will make AQUOLIVE also attractive for other key stakeholders. Therefore, we see in the AQUOLIVE project a clear investment opportunity, in which we seek entering the fast-growing aquaculture feeding market (estimated to reach €123 Billion by 2019).
AQUOLIVE: Objectives of the action
The ultimate objective of the Phase 1 project was to assess the feasibility of our business innovation project, with a significant focus on the commercial and technical feasibility, in order to go to the next stages of our innovative AQUOLIVE project under the minimum risk scenario.
Therefore, the specific objectives of the action were as follow:
- To perform an in-depth market study in order to select the most important high value cultivated fish species as those to include in the AQUOLIVE project studies.
- To define the most optimal channels to reach the widest number of clients in the aquaculture sector at international level.
- To search for the right partners, we need to include in the AQUOLIVE project for performing the trials and studies with the selected species.
- To analyse the key aspects we should consider for industrializing the production method withy the minimum costs and the highest quality.
T- o prepare and update 5-year business plan for the commercial exploitation of the AQUOLIVE product.
