The lessons of intensive animal husbandry to aquaculture

egyptian farmingThe domestication of animals for food production started thousands of years ago, and has gone through a slow evolution since then. In the last 50 years, we have intensified productions systems to a very high degree. Aquaculture, although not unusual in ancient times, has really experienced an economic boom only rather recently, and future growth predictions are quite optimistic.

The development of intensive animal husbandry has helped provide people with high nutritional value  products, and it also offered the possibilities to farmers to have a reasonable source of income. On the other side, it has brought a number of problems, many of which have not been solved and this has resulted in pressure to reduce the level of intensification.

chicken farmWith high densities of animal in some regions, animal husbandry has had to deal with a number of health issues, such as not long ago avian flu and swine fever. The presence of large number of animals in limited areas has increased the “disease pressure” on farms and regions, making epizooties quite devastating, considering the amount of culling that health prevention measures require. This always takes a heavy economic toll, and not only on farmers. This has forced many countries to review their policies about intensive animal husbandry and downsized the sector.

To prevent diseases and mortality, intensive animal husbandry has made a widespread use of antibiotics, which also appeared to promote animal growth. Unfortunately, over time it has appeared that these antibiotics found their way into our bodies and ultimately into our drinking water reserves. The main threat that has arisen from the massive use of antibiotics is the emergence of bacteria resistance to these antibiotics, with the potential risk of making them ineffective, should bacteria become resistant to all of them. The result of this would be to bring us back to the pre-penicillin era with all the consequences that we know. Many countries have now addressed the problems surrounding the use of antibiotics and restricted their use to curative purposes.

Another strong impact on the environment has been the manure surpluses in intensive regions. Next to the odor problem, the excessive manure production has resulted in heavy pollution of the soil and of water reserves. Phosphates and heavy metals coming from the animal feed endangered the fertility of the soil. More mobile minerals, such as nitrates, have entered our drinking water, making it in many areas unsuitable for pregnant women and infants. Sadly, the intensive regions get in trouble because of a surplus of minerals that originate from raw materials produced in other parts of the world, while on the farms producing the feedstuffs, the minerals are not brought back. They have to be replaced by chemical fertilizers instead of the manure that would originate from the animals, such as in a closed system mixed farm.

Husbandry systems have evolved, too. After years of high degree of confinement, regulations have changed and are still changing to take animal welfare more into account. As examples, I could give the stop on tethering of sows and hen cage ban. I have no doubt that animal welfare will become a growing issue in aquaculture, too.

The use of feed and its constant quest to reduce production costs has brought the industry to use some raw materials that can be questionable. An example of this was meat and bone meal use, after the mad cow disease hit Britain in the mid 1990’s. Next to the possible transmission risks to humans, it has also raised some questions about whether herbivores should consume meat derivates.

Intensive animal husbandry has made meat, dairy and poultry very affordable to most consumers, at least in the Western countries. This has led to a shift in the diet from mainly starch to a much higher proportion of protein and fat. Unfortunately, this shift has had some negative effect on health. Animal products are high value sources of protein and fat, but excessive consumption has negative effects. While an annual consumption of 30 kg of meat per capita would do just fine, most Western countries have passed the level of 100kg. Of course, there are many discussions between the different parties involved about where the truth lies, but there are good indication that a good diet should include more fiber, more produce and less animal protein and fat.

Fish farmTherefore, above, I have tried to sum up the most noticeable results of intensification of land animal production. Clearly, there are lessons to be learned for the “new” aquaculture industry, and by this, I mean the intensive, high investment aquaculture. Most companies involved in this business have been inspired mainly by the evolution-and the success- in the chicken industry. They try to copy and adapt a similar model. Therefore, it is rather predicable that they will have to deal eventually with similar consequences.

Fish farms have very high densities of animals. Even if the area at the sea level is rather limited, each farm goes quite deep, and the biomass they contain would make many chicken farms look like “small” operations. If you add to this that they are very exposed to the natural environment, as the pens are open nets, there is no wonder that they are very exposed to disease and disease spreading. The current situation in the Chilean salmon farming sector facing ISA just shows how sensitive these farms can be to diseases. My expectations is that aquaculture will be confronted to situations as bad as swine fever and avian flu, and they will have to revise their level of intensification, their location (including possible rotation of site with fallowing as a standard procedure). Further, navigation rules will be strengthened to reduce the possibility of cross-contamination from a marine zone to another.

Very likely, the sector will also further sharpen its veterinary procedures and increase their control on prevention and on medication.  About this part, it may seem that feces simply get flushed into the ocean, but that is not that certain. Feces always contain residues of medicines. The volume of feces produced is quite significant on such intensive fish farms and you can be sure that at some point, simply letting them go into the sea will not be allowed anymore. I foresee that fish pens will have feces collection systems in the future and the “manure” will have to find some use.

The feed industry is now diversifying it sources of raw materials to cope with the rising price of fish oil and fish meal, which is the result of higher demand from the fast growing aquaculture. They carry out lots of research to find the right profiles of oil to meet the fish flesh quality requirements (especially omega3) by using vegetal oil, but one can wonder whether this will be a sustainable approach in the long run. Maybe there will be a completely new industry to produce “farmed” fish oil and fish meal to meet the feed industry needs.

Copyright 2009 The Happy Future Group Consulting Ltd.

Value chains are a great way to develop a niche

In the food production world, just like in other business sectors, there are been two major successful strategies.
One is to produce a non-differentiated commodity at the lowest cost possible. The number of units compensates what is lost in margin per unit.
The other is to produce a limited and controlled volume, and to market it to people who will pay a premium for it as they see an added value in the product.
So far, nothing too revolutionary here.
Generally, other strategies seem to have failed, either because the niche started to expand too much and was losing its specificity. The product becomes something of a better commodity, but not a specialty anymore. More players start to enter the niche and very quickly, the margin per unit drops and so does profitability. The deathblow generally comes when people start to try to counter this decreasing margin by cutting costs in the wrong places, quality being the most obvious.
The mass commodity producers, who try to create an artificial differentiation, by creating an illusion of specialty, cause another type of failure. This marketing tactics usually fails because the difference is mostly an illusion and the customers realize that quickly.

Value chains are very useful for smaller producers who want to market a good superior product.
Often, they are local producers with limited resources. They know how to produce well, but they miss the marketing arm or the industrial arm of the value chain that they are in.
On the other hand, also at the local level, there are other businesses that have the other links of the chain, but that have no production of their own.
When these players join forces and truly collaborate to offer to the right type of customers the type of product that is right for them, the value chain can become very successful. In a previous article, there is a presentation of the Angus Beef story, which also started in such a way.
In order to be successful, a value chain needs a number of basic elements.
The product must indeed differentiate itself by recognizable and superior physical characteristics. Over time the mystique will be created, but do not expect to sell hot air for very long.
The partners need to indeed be partners and play together. This is a critical part of such a joint venture. The worst thing that can happen is a lack of commitment, or worse one of the partners trying to force his own agenda before the common interest. The most successful partnerships come from a balance of power between the parties involved, and also by the necessity of interdependence, as they all should miss – and not be able to easily replace – the other parts of the puzzle.
Another key element is the will to pursue, as very often, and mostly in the early stages, the progress will meet many setbacks. This discipline needs to be applied and someone must fill this role, to constantly enforce the quality specifications and all agreements that are need and made to make the value chain succeed.

Copyright 2009 The Happy Future Group Consulting Ltd.

Food production and environmentalists: time to co-operate

Food is loaded with emotional symbolism. Therefore, this is no wonder that agribusiness industry and environmentalists regularly have conflicts.

After my graduation, I remember reading a book on such matters, which had as introduction about half a page of complaining about how low the quality of bread had gone. The funny part was that the complaint had been found on some ancient Egypt papyrus document!
The agribusiness, being a business, is about making money. As such, this is not shocking since this is what business is about. Of course, this is acceptable as long as this is does not imperil us, and this is, in my opinion, where environmentalists play a very important role. They balance the power and challenge what the food industry does. This is very useful, as it stimulates thinking about what we do, and it can help stopping us from making mistakes. The problem is when this debate slides into the dogmatic and doctrinal sphere. Then, this is no more about the general interest, but about partisan interests only. The debate shifts from the moral to the political.

On the one hand, we have aggressive opponents to the industry, unfortunately too often supported by the media, because sensation is good for ratings. On the other hand, we have the industry that tends to react too rigidly and too defensively, as they resist change very often because of short-term production costs increase, while on the long term they actually delay the possibility of securing their business. Moreover, they spend a lot of money for lobbying purposes, which could be invested in the systems of the future.

Clearly, neither approach benefits the general interest. The sad thing is that both sides always claim to possess the absolute science to demonstrate their points of view. The main result is that the public opinion is confused, which is normal, since unless you are a specialist of these matters, there is no way of knowing who tells the truth. Once, I was attending a conference organized by Marks & Spencer on public perception of animal husbandry and animal production practices. The master of conference then said one very relevant thing: the main source of scientific knowledge for the public over there was The Sun (very popular British tabloid), not Scientific American!

I believe that most has been said in the debate between the food industry and the environmentalists. They rarely say anything new, just the same old things being repeated over and over again.

Not everything is perfect in the agribusiness, as it is work in progress; and consumers deserve to be properly informed, so that they can cast their vote when they shop by electing the good products and rejecting the bad ones. Eliminating bad practices is exactly what can benefit us all.

This cannot be done through confrontation only. It is highly frustrating to hear people opposing something while not offering a solid alternative based on solid evidence, facts and thorough analysis.

The way of the future is a co-operation between the industry and environmental groups, by joining not only their knowledge and science, but also their financial and business understanding to develop and support sustainable solutions. By joining forces, they will help us develop a better agriculture and find the most sensible ways to feed nine billion people and preserve our ecosystems. Such an approach has already started, for instance with the WWF (World Wildlife Fund) and Unilever that created the MSC (Marine Stewardship Council), which certifies sustainable fisheries. The WWF is busy with a similar approach with aquaculture. In Brazil, the beef industry has agreed with Greenpeace on a moratorium on deforestation and they will not expand their ranches at the expense of the rainforest anymore. This type of co-operation needs to be developed to a much larger scale!

Copyright 2009 The Happy Future Group Consulting Ltd.

Food production: the balancing act

Since the beginning of times, feeding a population has always been about balance.

When mankind was still in the stage of hunting, fishing and gathering, survival was about keeping resources at a level that would allow the group to keep on feeding from its close environment.
When agriculture started, followed by the domestication of what became farm animals, the idea was clearly to have more control on the resources and insure that they would be available on a more regular basis. Of course, there were times when this did not happen, but the principle has remained.
For many centuries, agriculture was a local activity. Farmers would grow a diversified group of products that insured a sustainable balance at local level. The different products were a reflection of seasons and of land diversity. They also would offer different activities, and some revenue, through the different times of the year.
Their productions were part of a cycle. For instance, farm animals would eat crops coming from the farm to produce meat, milk, eggs which are all related to the reproduction cycle and the continuation of their species. What would not be digested, as well by the farm animals as by the local human population would return to the land as manure (usually mixed with a crop by-product such as straw to provide and insulating litter), fertilizing the next round of crops. So basically, what was extracted from the Earth was returning to it, thus insuring the continuity of the system, for as long as the climate would support it.
With the growth of world population and the increasing mobility and later globalization of markets, this very local and sustainable system has evolved. Products are sold far away from their area of production; many farms have specialized and replace the manure cycle by purchase of fertilizers. Animals are fed with raw materials originating from the over side of the world. Genetics, crop engineering, technical progress have also allowed yields to sharply increase as well as the speed of the production of foodstuffs, vegetal and animal. This has benefited mankind on the shorter term because it provided more food at relatively cheaper prices, so more accessible to a larger group. This has benefited trade and business, but it has brought its toll on the balance that is the cornerstone of any biologically related activity.
For example, intensive animal husbandry was developed in poor regions, allowing farmers to have a decent revenue in areas were they could not have stayed, but as the animals were fed with non-indigenous feedstuffs, they produced massive amounts of manure that were much higher than the local ground could process. This has led to loss of soil fertility, as a result of excess phosphates in the ground, among other things. Water resources have been polluted with high level of minerals, such as nitrates making it risky to use for infants and pregnant women. The exclusive use of chemical fertilizers in crop areas, as a result of the disappearance of a mixed farming also led to lower levels of organic matter (which is crucial to fix minerals and make them fully available for plants) and has caused some severe erosion of very fertile soils. While these problems were growing in the West as we were putting too much back on the land, on the other side of the world the opposite situation was happening with an exhaustion of soils to produce crops aimed for export only, which resulted in taking more out of those soils and not returning it in the right form. Further, these regions developed very often these commercial crops on land that had been won from ecosystems such has tropical forests, which have very sensitive soils to rain, erosion and oxidation of metals such as aluminum and iron.
By bringing the natural cycles out of balance, we have weakened the Earth from providing us optimally with what feeds us. Our future and our sustainability will depend of our ability to manage this balancing act. As usual, what seems a challenge can also offer new opportunities!

Copyright 2009 The Happy Future Group Consulting Ltd.

The challenge of feeding the world and preserving the planet

The world population is increasing at an amazing rate.
From 6 billion people on the planet in 2000, we will be 9 billion by 2050; an increase of 50%; and we were only 3 billion in 1960.

By looking how much damage has been made to the environment and the huge depletion of natural resources that we have created in the last 50 years (or last time the population grew by 3 billion), one can wonder how we will be able to feed, shelter, provide water and energy to the whole population in 40 years from now.
When it comes to feeding the world, the first question that comes to mind is where can we produce 50% more agricultural products on a land area that will decrease as a result of more area needed for urbanism (unless, we grow cities in height) and 50% more demand for drinking water than now. And these percentages are actually very conservative if we think that the emerging countries are seeing their standard of living increasing, which unfortunately also means that more resources are wasted than just the incremental growth of 50%.
We need to feed 3 billion people more who on average will tend to eat more animal protein at the expense of grain and legumes. This demand for animal protein means more competition between humans and farm animals for the grains and legumes. So, we have less land available to grow so much more food of vegetal and animal origin.
We could consider increasing the agricultural area, but this means more deforestation and a strong reduction of natural habitats. More agriculture will mean more use of energy and water, which will have a huge impact on our environment and the price of commodities. And I am not even taken in the picture the fact that we also want to feed our cars with agricultural product, bio-ethanol.
On the other side of things, we hear more and more calls to restore more balance our environment, to use our resources more carefully. And this is the challenge, if not the dilemma of the coming years: we have only one Earth and it is not expandable, while our population is exploding.
How will we be able to meet both targets? Personally, I do not have the answer to this, but I am sure of one thing: a dramatic change must come, either of our own free will or forced by Nature, and we need to anticipate for this as this will require an adaptability as mankind has not known for a long time.

Copyright 2009 The Happy Future Group Consulting Ltd.