¿Why invest in Seriola Dumerili?

ÍNDICE DE CONTENIDO 1. Aquaculture industry ...... 2 2. Species characteristics ...... 4 2.1. Taxonomy and common names ...... 4 2.2. Biology of the species ...... 4 2.3. Geographical distribution ...... 4 3. Market ...... 5 3.1. Production ...... 5 3.1.1. Fishing production ...... 5 3.1.2. Aquaculture production ...... 6 3.2. Price ...... 6 4. Bibliography ...... 8

1. Aquaculture industry Aquaculture should be considered the natural substitute for fishing, just as livestock replaced hunting and agriculture replaced gathering in the Neolithic era. Aquaculture is essential when facing the challenge of feeding the prospective world population of 9 billion people in 2050 and providing high- quality animal protein to areas with development deficits. Currently, Asia stands out as the geographical area with the highest aquaculture production in the world. Europe does not lag far behind, growing exponentially in recent years.

Since the middle of the last century, aquaculture has become an important socio-economic activity, and the production and consumption of aquaculture species—such as salmon, sea bream, sea bass, carp and trout—has been consolidated. Proof of this is that overall, in 2016 aquaculture produced more tons of fish than fishing.

Figure 1: Comparison of aquaculture and fishing production worldwide

The potential growth of aquaculture is spreading throughout Europe. The sector has grown so much that Spain has benefited from this fast growth. It has become the main producer in the European Union, followed by the United Kingdom and the rest of the Mediterranean countries such as France, Italy and Greece.

Figure 2: EU aquaculture production by country 2008-2015 (tonnes) However, can still be greatly developed, especially in Spain, where fishing continues to be a significantly more important activity, both in terms of production volume and value created.

Figure 3: Comparison of aquaculture and fishing production in Spain

There are more than 130 aquaculture species in Europe, of which the three most popular account for more than half of total aquaculture production. According to data collected, mussels, Atlantic salmon and rainbow trout account for 53% of the European total. The ten most popular species account for 90% of production.

Faced with this situation, the need arises to move towards the development of aquaculture in Spain and Europe aimed at greater technological enhancement of the activity to promote the diversification of species produced. The EU has launched a "DIVERSIFY" project where it identifies a number of species as emerging or strategic for the coming years.

Species Scientific name Greater amberjack Seriola Dumerili Meagre Argyrosomus regius Wreckfish Polyprion americanus Atlantic halibut Hippoglossus hippoglossus Grey mullet Mugil cephalus Pikeperch Sander lucioperca

Seriola Dumerili stands out as an interesting species to achieve this diversification because it offers high added value. It is highly appreciated in international markets (especially Japan), but is little known in Spain. If this high-quality product is released into the market at affordable prices for average consumer, seriola can be expected to rank high in Spanish aquaculture production.

2. Species characteristics

2.1. Taxonomy and common names Seriola dumerili, also known as lemon fish, is included in a group of fish called "the big three yellowtails", including Seriola quinqueradiata (yellowtail), Seriola lalandi (yellowtail amberjack) and Seriola dumerili itself (greater amberjack). All of them can be considered luxury fish, known as "sashimi" quality fish. 2.2. Biology of the species The body of S. dumerili is elongated, of moderate height and slightly compressed. It has small eyes and a long, rounded muzzle. Its colouration varies according to age. Juveniles are yellow-green and adults are blue or olive on the back and silvery white in the ventral area, although some may feature a faint yellow line along the flanks.

Figure 4: Seriola Dumerili Adult

S. dumerili grows very fast growth, reaching a maximum size of 180 - 190 cm and a weight of 80 kg. However, its usual measurements are 110 cm long and a weight between 25-40 kg. It's a good swimmer, reaching high speeds, which is why it lives in the open sea.

As far as its feeding is concerned, it is an opportunistic species whose diet varies throughout its life. It feeds on fish that swim between waters, such as Leporinus obtusidens (boga), sardine, round sardinella and cephalopod molluscs. 2.3. Geographical distribution The species is widespread in tropical and subtropical waters of the Atlantic and Indian-Pacific Oceans, although it is also a very common sight in the Mediterranean Sea. The most suitable temperature for its growth is between 20º and 24ºC.

S. Dumerili travels to coastal waters only when it's time for breeding. This period varies throughout the year depending on the region where the fish is found. In the Mediterranean, this occurs between May and July, in the western Atlantic from March to May, in the eastern Atlantic from April to September and in the Pacific from February to June.

3. Market

In general, the products obtained from the various seriola species are widely accepted, especially in Asian countries, where they have been marketed and consumed for many years. Specifically, S. dumerili is more widely accepted for the quality and texture of the meat compared to other species. 3.1. Production Globally, Seriola production is estimated at 12% from aquaculture and 78% from fishing. Of the total Seriola produced, Asia accounts for the largest percentage of the market (95% approx.), specifically 74% in Japan, 11% in China and 7% in Korea.

Figure 5: World production of Seriola Dumerili (FAO 2016)

Of each greater amberjack production, 96% of seriola caught is consumed in the country of origin, while the same is true for 100% of aquaculture fish. 3.1.1. Fishing production In commercial and sport fishing, S. Dumerili generates significant demand. Fishing occurs in Florida, Mexico and parts of Asia, although most is in the Mediterranean. Within this area, the most frequent areas are the Ionian Sea, the Balearic Islands, the Aegean Sea, Sardinia, the Levant and the Adriatic Sea. In recent years, fishing catches averaged 3,191 tonnes, of which 70% came from the Mediterranean.

Figure 6: World fishing for Seriola dumerili (tonnes) 3.1.2. Aquaculture production The aquaculture production of S. dumerili is maily due to the specie's rapid growth. Compared to other species such as sea bass or sea bream, the growth rate is 10 times higher, and can reach 2.75 kg in one year. Other factors such as its good adaptation to captivity and its high commercial value also make this species relevant in intensive cultivation.

As an incipient species, with low aquaculture farming as of yet, another similar species has been analysed as a reference (S. quinqueradiata), already established in the Japanese market. The production of this species is around 150,000 tonnes per year and currently accounts for almost the entire global aquaculture production of all seriola species.

Figure 7: World production by aquaculture of seriola species (tonnes) 3.2. Price S. Dumerili can be sold in different sizes (whole or in pieces) depending on the country of consumption. Likewise, the preference for one size or another affects market prices, which in turn are conditioned by the segmentation of the market into three large consumer groups:

 Demand for luxury restaurants buying fish daily.  Wholesalers and supermarkets that sell fresh and frozen fish.  Direct delivery of processed fillets to common restaurants or homes.

All these factors are taken into account to estimate an average selling price. In Mediterranean countries such as Malta, Italy and Spain, where lemon fish is still not as widespread and accepted due to low production levels, small fish can sell between 15 and 20 $/kg while larger pieces sell for 10-15 $/kg.

In the Asian market, where demand for seriolas is higher, prices are substantially higher. In Japan, where most consumption takes place, the average prices of lemon fish reach 20 -30 $/kg, higher than other seriola species due to the firm texture and less fat of the S. Dumerili. Occasionally, the price has reached values of up to $50/kg for a very specific seriola product.

Figure8: Prices obtained at the Tokyo International Seafood Exhibition in 2016 Our first sale price would thus be around 16 $/kg according to Asian market prices and based on market analysis carried out by a company focused on breeding and farming Seriola Dumerili.

In closing, below is a comparison of the average price of various fish species sold today. The retail price of all of them are lower than the first sale price estimated for Seriola Dumerili.

Figure 9: Average retail price of fish in Spain in 2017 by type in (€/kg)

4. Bibliography

Aquaculture in Spain 2017, Asociación Empresarial de Acuicultura en España APROMAR (July 2017).

Market research Seriola Dumerili: Demando para Alevines de S. Dumerili en el Mercado Europeo para la Industria de Acuicultura, Jeffrey L. Gold (junio 2017).

Business Plan: Vertically integrated mariculture of high value species, OCEAN PRIME (June 2017).

A Study of the Markets for Seriola Juveniles and Commercial-Size Fish, Fisheries and Aquaculture Consultants (septiembre 2013).

Food and nutrition, web: Statista.com