Feed
Aller Aqua’s local partnerships help promote aquaculture development
African expansion
DANISH feed company Aller Auqa has been at the forefront of aquaculture development in Africa, establishing feed mills in Egypt and Zambia, and supplying markets across the continent. Fish Farmer asked the company’s Niels Lundgaard, sales director Western Europe, Africa and Export Markets, about progress in this burgeoning sector and plans for the future.
How much has the African aquaculture sector grown since Aller Aqua’s first involvement
Africa is a large and diverse continent, and there is great variety in the many different countries. While some African countries are making fast advances, other countries are moving at a slower pace in the development of aquaculture. As a whole, we see aquaculture growing on the continent.
And is it still based around many small businesses?
Again, this differs greatly in the various countries. In some countries there are indeed many small businesses, and in some countries a few large commercial farms account for the majority of the market.
We work with fish farms of all sizes. One of the things we work at is helping the small and midscale farmers to develop a commercial mindset, which in turn helps them to develop viable long-term businesses. We do that through the seminars we host yearly, where we focus on different topics, as well as through the advice our representatives give on the farms.
What proportion of businesses can afford to buy commercial feeds?
This is, again, very different from country to country and largely depends on the commercial mindset of the farmer. Many understand the
need to use extruded feed to achieve better yield, while others focus on the upfront price. Constant availability also plays a big part in the farmers’ purchasing decision.
Is there a growing uptake of extruded feeds among farmers?
Yes, we see a growth in the understanding of the benefits of high quality extruded feed
Your ‘Let’s Grow Together’ approach sees you working alongside local partners – how easy is it to recruit?
In the countries where we are present, we have been fortunate to come across skilled individuals who share our vision. Choosing the right local partner who understands what we are trying to achieve together with the farmers, who has access to the local market and who knows how to approach the local farmers is the absolute key to success.
How have your training seminars helped development of the sector there?
We have focused on helping the farmers develop a commercial mindset, emphasising a sustainable long-term business plan. This will help both the farmer in question, as well as have an impact on society as a whole. Growing aquaculture in Africa using extruded feed will help grow the farmers’ yield sustainably, resulting, among other things, in job creation.
What are the main practical challenges of working in Africa?
The way I see it there are a few challenges; some of them being closely linked to optimisation of the value chain, and some linked to politics and economic stability. As the sector grows in Africa, so does the need for optimisation throughout the value chain. Such development presents a series of challenges for the local aquaculture industry on the African continent.
Constant availability, economic conversion rate, high and constant quality, education and local presence, as well as collaboration, are just a few of the things Aller Aqua addresses in the individual markets, and which are the fundamentals behind our strategy and business structure in Africa.
As a company we optimise on the parameters we have available to us. Africa has great potential, which should be realised in a sustainable way through long-term thinking and planning.
How much local raw material do you use in your formulations?
Fish farmers are dependent on a stable quality, and the quality is in turn dependant on production method and raw materials. Many raw materials of a good quality are available from the regions in which our factories are situated, and we prioritise these for both practical and sustainable reasons, but also to support the communities in which we are present.
In both Zambia and Egypt, we buy local raw materials whenever possible, while considering both quality and availability.
What scope do you see for future growth?
Africa continues to show great potential and a steady growth in aquaculture. It is an exciting market to be a part of, and we are confident about the positive development in the coming years. We have stated that we are in it for the long run, and this has in no way changed
And what part do you plan to play in that?
We will continue to host our seminars and help farmers grow their businesses. Our decision to be founding sponsors of the World Aquaculture
“It is an exciting market to be a part of…and we are in it for the long run”
Society’s African Chapter will also make a positive difference for the sector.
We look forward to the AFRAQ2020 event in Alexandria in Egypt, where we are also gold sponsors. Such events help highlight aquaculture in Africa, and we want to be a part of this.
How are plans for the first WAS African Chapter conference progressing? As Founding Gold Sponsors as well as Gold Sponsors of the AFRAQ2020 event we are very happy that the plans seem to be progressing well. The theme ‘Sustainable Aquaculture – Feeding Africa’ makes great sense to our work with the United Nation’s Sustainable Development Goals (SDG).
SDG 2: Zero Hunger is one of the four SDGs that Aller Aqua have chosen to focus on in order to make an impact. We believe that there is great scope for this in Africa, and it seems that WAS African Chapter does too.
And how do you think the African Chapter can further the goals of growing aquaculture on the continent?
I believe that the WAS African Chapter can put aquaculture higher up on the political agenda, and hopefully push some positive initiatives in the sector all over Africa. The African Chapter recognises the diversity in the African continent and is aware that different initiatives are required in different regions.
Have you increased capacity in your two mills in the past two years?
The feed mill in Zambia was built in 2017 as the most technically advanced in southern Africa and with scope for increasing demand. There has been no need to expand this production facility yet.
The factory in Egypt added a third extruder line in 2017, increasing capacity to more than 100,000 tonnes a year.
Do you see any other main species apart from tilapia and catfish coming into the market? Tilapia and African catfish are the primary species, and I believe that will continue. There are small volumes of other species being produced, but introducing new species is not done overnight. Both farming techniques and market have to be ready for it.
Aller Aqua has diversified by investing in Africa…has this proven to be a wise move? Despite challenges in the markets, we believe in the long-term growth and development in these markets, and we need to be present, just like the many competitors we also have here.
We are not here for short-term gain but believe in the growth of the market and creating value
“We have been fortunate to come across skilled individuals who share vision” our
for the customers through commercial sustainable aquafeed.
Delivering high quality feeds for our customers will help them improve, in turn creating better conditions for themselves and aquaculture as a whole.
Are you aware of increasing interest in the region from other feed companies?
Yes, we see other feed companies entering the market, and we welcome them. A level of competition is needed to ensure the best conditions for the fish farmers and will benefit the entire value chain.
Competition keeps everyone on their toes and ensures continuous positive initiatives in the markets, which will help provide good conditions for aquaculture.
In 2017, you said ‘we would rather have a small market share of a very big industry than a big share of a small industry’ – where would you place Aller Aqua in Africa today?
I maintain that statement. We have small shares of the very big aquafeed markets in Africa, and the industry is growing. As previously mentioned, we welcome competition, as it will help ensure the best possible conditions for fish farmers on this diverse continent.
We have long-term plans for continuous support for our customer on the continent. We have great customers in the sense that they see the benefit of extruded feeds and are willing to learn and wanting to grow.
Is there government support for the industry – In Zambia, Egypt, Nigeria for instance?
The politicians are pro-aquaculture and will partake in events and speak of their support in favour of the sector. However, practically, the support is in some countries less visible, and the political bureaucracy hard to penetrate. This is one of the challenges mentioned before.
Do you still see yourself more as a facilitator than just a feed company?
I think partner is the right word. We partner with fish farmers to create sustainable businesses, through optimal use of feed, developing commercial mindsets and optimising the value chain as well as the feed.
As a partner we promote the aquaculture sector through various initiatives such as cooperation with WorldFish, sponsoring WAS African Chapter and its events and hosting seminars.
We deliver high quality fish feed to help fish farmers achieve the best possible results. We apply our ‘Let’s grow together’ approach to everything we do. We want to grow with our customers and the sector, and we do so by delivering value.
Aquaculture Africa 2020 will be held in Alexandria, Egypt, from November 28-December 1 (www.was.org/meeting/code/AFRAQ20)