10/14/2019 Aquaculture in Russian regions By Lubov Bychkova Innovation Norway Moscow [email protected] April 2019 www.innovationnorway.no 1 Executive summary • New trend in Russia - Aquaculture sector development! • Local and foreign private investors shows interest to large aquaculture projects • Russian government identified Aquaculture as a top priority sector within the Agriculture industry. • Aquaculture is relatively young sector and has 4% of country’s fish production. However, the sector started to gain the traction and now it's considered to be a rapidly developed one, showing 29% growth during last 5 years. • Market size 2018 : 232 000 t (+7%) Plan 2030 : 700 000 t • Russia has vast water resources that are suitable for aquaculture development but only a small percent of them is in business use so far. The State Federal Agency for Fisheries by May 2019 allocated 3 700 water sites of the total area 500 000 hectare. started to actively prepare more water sites for fish farming to be allocated through the auction system. • 3 Russian Federal Districts have conditions for real development of aquaculture: Far East, South and North-West. • There are about 3,000 farms in total operating in aquaculture industry. 72% of them are pond and pasture farms, 25% are industrial (where 5 % share is mariculture and 1% only is RAS). 62% of all farm enterprises produce less then 10 tons of fish, and only 1% of them has production volume over 1,000 t. • Carp, trout, salmon and sturgeon are 4 main species in aquaculture production in Russia. • Aquaculture in Russia has some problems hampering the strong development of this business: this is the legislative base, which already needs revision and update, lack of enough volumes and high quality of local fish feed and hatcheries, not enough good roads approaching water sites for fish farms, insufficient funding and financing, lacking large and strong industrial associations capable to lobby and protect interests of aquaculture business on the top level, lack of well-educated personnel capable to operate modern industrial fish farm. • However, the ambitious goal of Russian government is to increase fish consumption in the country from 12-14 kg/capita/annum to 23 kg/capita/annum, targeted the aquaculture sector to increase the local production up to 410 000 tons by 2020 and up to 700 000 tons by 2030. • This shows huge market potential for investors, suppliers of fish farming technologies, international expertise to find the niche market in Russia and to increase sales. • Several Norwegian suppliers of marine, fresh-water and land-based technology, equipment, nets, fish feed, software, genetics, services, etc has been already involved in setting up marine and land-based sites for salmonids, having track record of sales in Murmansk, Karelia and other Russian regions. 2 2 1 10/14/2019 Russian seafood market overview Total market fish & seafood volume 1,9 4,6 Mln t Mln t Import 2,7 Export 0,56 Mln t 0,17 2,7 Catch Aquaculture 3,90 Internal market Actual consumption 146,5 18,7 kg/year Mln people 2,7 Per capita Mln t Population of RF Consumption Plans: 22-24 kg/year volume Fish & seafood consumption 3 3 Fish consumption potential in Russia Population: 146,5 mln people Kg/capita/annum Recommended Recent Deficit Russian Market consumption volume 3,3 - 5,3 deficit 22-24 18,7 460-780 MT 4 4 2 10/14/2019 World aquaculture Region/Country Production volume, Aquaculture species thousand tons Asia 93 000 Carp, tilapia, fresh water catfish, crustaceans, shellfish, seaweed North and South America 3 350 Salmonids (Chili), crustaceans Europe 2 930 Salmon (Norway, UK), carp, shellfish (Spain, France) Africa 1 710 Tilapia Russia 232 Carp, white fish, salmonids, sturgeon Pacific countries 189 Shellfish, salmonids, sturgeon 5 5 Aquaculture market size in Russia 700 Real production volumes, thousand tons 205,3 219,7 232 170,2 186 188,6 177,9 131,7 142 143,4 152,9 78,2 86,7 105,2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2030 The Russian Federation is not yet one of the global leaders in aquaculture. However, growth rates of 10 %-15 % demonstrated in recent years inspires optimism. 6 6 3 10/14/2019 Aquaculture water resources in use and available > 3 600 fish farming sites are in use 23% 76,0 229,2 North-West region Far East Central region 22,4 124,6 8,5 42,1 Southern region 155,6 91,6 Siberia North Caucases Volga region Urals region 31,5 1,3 79,8 17,2 20,5 27,2 258,3 1 104,1 7 7 Aquaculture situation in Russia Production volume 2018 0,2 mln t Growth 5,6% 2018 However, production volumes increased threefold since 2000! Large water Consumers resource bank 145 mln people but Old or simple but + + technology not big choice of Low fish water sites consumption for aquaculture 8 8 4 10/14/2019 Market structure, by fish species Farmed fish species market share 65% 25% 4% 2% 9% Carp Salmonids Invertebrates sturgeon other Production of Carp Production of salmonids 2018 Thousand tons Thousand tons Southern District; 58 North-West District; 58,7 Others; 16 Central North District; 22 Caucases, 16 Siberia, 2,7 Siberia, Urals; 0,33 North-Caucases & South; 1,3 9 Market structure, by farm size Aquaculture farms structure, by production volume 67% 19% 12% 2% <50 t/annum 50-100 t/annum 101-1000 t/annum >1000 t/annum Farms sizes, by production volumes 3,2 thousand farms 8,20% 0,90% 8,80% in total 26,80% 20,10% 35,20% 13,2 thousand employees in the sector < 1 t 1-10 t 11-50 t 51-100 t 101-1000 t 1000+ t The goal: fish farms of industrial types have to occupy 40% of the Russian market by 2030. 10 10 5 10/14/2019 Market structure, by production volume o Over 71 % of farmed fish was produced by pond and pasture aquaculture farms (the farms with low technical resources ) o Industrial aquaculture is represented by fishpond Fishpond farms, 23%, farms, mariculture and RAS. o Industrial aquaculture keeps 29 % of the total production: Mariculture farms, 5% 23 % out of it is produced by fishpond farms RAS, 1% Pond and pasture aquaculture, 5 % by mariculture of invertebrates and 71% macrophytes Only 1 % of farmed fish is produced on basin farms 11 11 Aquaculture production: by regions North-West, Far East, 13,000 t+ 59,500 t +34 % +21 % Central,34,500 t Urals: 10,000 t +1,2 % +15,5 % Siberia: 6,600 t Volga:14,100 t South,78,600 t North-Caucasus, 18,900 t 12 12 6 10/14/2019 North-West Federal District o North-West Federal District includes 11 subjects of Russian Federation: Arkhangelsk, Vologda, Kaliningrad, Karelia, Komi, Leningrad region, Murmansk, Nenets district, Novgorod, Pskov, St. Petersburg o Population: 14,5 mln people o Fresh water fund: 63 000 lakes and 27 000 rivers. This is 5,5 mln hectars of water area. Largest lakes which are also the largest in Europe: Ladoga, Onega, Pskov-Chud and Ilmen. Access to seas of Arctic and Atlantic oceans. Coast line 630 km. Fish species, 2018 o 369 water sites (21 000 hectar) are in use out of 422 sites available (25 000 hectar) in total. o Entire region produce 88% of all industrial salmonids aquaculture in the country and 65% of other fish species. Karelia produces 90% of all trout in Russia. 28% o Production volumes 2018: 59,500 t. (+41% from 2017) Plans 2020: 149,000 t o NWFD aquaculture specialization: salmonids, white fish (Coregonidae). 11% 61% Fish production 2018, 1000 t others; Murman 1,5; 2 % sk Leningra region; Carp others Salmonids d region; 21,4; 36 9,4; 16 % % State support of NWFD 2017: 83,5 mln Rub Karelia Republic ; 27,2; 13 46 % 13 North-West Federal District Leningrad region • Leningrad region is one of the leading in commercial aquaculture. All types of fish farming activities: lake- pond cages, cold water industrial farming (cages), warm water cage farming (waters from heating plants), pasture, RAS. • 42 fish farms in total are operating in Leningrad region, including 7 state owned and private hatcheries. • Production volumes: 9 400 tons (+6% from 2017). Plan 2020 – 11 000 t, 2030 – 20 000 t. • Leningrad region aquaculture makes 16% of the total NW District production • 95% Rainbow trout. 5% - Other species: sturgeon (in warm water), carp, white fish, whiteleg shrimp • Leningrad region investors are interested in RAS aquaculture the most. Main fish species: rainbow trout (97%), the rest re white fish, frdh water catfish, nelma (Stenodus leucichthys), Lake char (Salvelinus lepechini), pike. • New opportunity: first 4 water sites (286 hectar) in Gulf of Finland waters are provided for fish farming. • 11 biggest fish farmed enterprises: «Rybstandard» www.interatlantic.ru (trout, carp, sturgeon, fish fry) Trout farm «Kuzntchnoe» www.kuznechnoe.ru – trout, whitefish, sturgeon «Econ» – 500 t of trout «Forvat» LLC – trout and muksun «Gavan» - 26 cages (551 tons of trout) «SHP Salma» - trout, whitefish «Primorskoe»\ «Laplandia» www.laplandia.spb.ru trout «Fish Federation farms» - warm water fish farming sturgeon www.fish-rf-com «CapshOzero» - Sturgeon Federal fish farming center «Ropscha» - trout «Neva» LLC – trout www.forelushka.ru «Northern Shrimp»LLC – whilteleg shrimp, 20 t/2019. Plan 2021: 200 t/annum 14 • Federal Selection and Genetic Center of Fish Breeding «ROPSHA» 14 7 10/14/2019 North-West Federal District Murmansk region • 17 fish enterprises farm atlantic salmon, trout, sturgeon in the region. Farmed fish volume 2018 in the region: 21,300 t (+56% from year 2017) 3 bln Rubles of State financial support in 2018 to fish farmers have been received by 2 large farms out of 17 existing.