Role of Fishery in Indian Economy & Share in Global Market
The livestock and fisherysectors play an important role in the socio-economic development and national economy of the country.India being an important producer, with a contribution of 6.4% to the global fisheries production in 2014, was ranked second in the world after China (which accounted for more than 38.4% of the global fisheries production). Fishingis the major occupation across the coastal regionsand around inland waters of India.According to the Planning Commission, Government of India, the fishery sector has contributed 5.1% to the GDP of the agriculture sector or 0.9% to the total GDP of the country in 2014.
Production & Consumption Trend
According to the Food and Agriculture Organization (FAO), the global production volume of fisheries (capture & aquaculture) stood at 167.2 million tons in 2014, which was a rise of 2.6% from 2013.The sector witnessed a CAGR of 2.9% during the period from 2009 to 2014. China, Indonesia, and India are the top three nations whichcontributed more than half ofthe global fisheries production.
Global human consumption of fish witnessed a growth of 3.4% in 2014 from 141.5 million tons in 2013. Global per capita fish supply reached a record high of 20 kg in 2014 due to rise in production in the last two years.
India produced around9.6 million tons of fish (capture & aquaculture) in 2014, in which aquaculture production accounted for a share of 50.8%.The annual per capita consumption of fish in India is low (around 2.7-3 kg/capita/year) compared to the world average of 20 kg in 2014.
However, this scenario is expected to change due to factors such as the rising population, along with shifts in dietary patterns of middle & high-income population, and awareness about the nutritive value of fish among consumers. At the same time, emerging production technologies (information technology and low-cost fish aggregation devices), commercialization of fish farming, favorable price realization forproducers, and availability of nutritive feed solutions for the aquaculture sector are projected to support supply-side growth of the Indian fish production sector.
Historical Growth in Aquaculture Industry
Over the period from 2004 to 2014, India’sfisheries (capture & aquaculture) industry grew at an impressive cumulative average growth (CAGR)of 9.5%;it increased1.75 times from 6.09 million tons in 2004 to 9.60 million tons in 2014.
Four states (namely Andhra Pradesh, West Bengal, Gujarat, and Tamil Nadu) in India accounted for more than 50% of the country’s fish production in 2014, as these states havea strong infrastructure for development of fisheries.
India has witnessed strong growth in exports of fishery products in the last decade. Indian exports witnessed an impressive CAGR of 36.2% during the period from 2004 to 2014 (CAGR 30.6% growth in the last five years).
In 2014, nearly USD 107.96 billion worth of fishery products (including fish, crustaceans, mollusks, aquatic invertebrates, and others) were exported by the countries,mentioned in the figure here.
India accounted for USD 5.36 billion of these exports in 2014, which contributed to a share of 5% to the global fisheries exports.The U.S., Vietnam, and Japan were key export destinations for India’s fisheryproducts andcumulatively accounted for a share of around 55% in 2014.
In 2015, India’s exports of fishery products stood at a value of USD 4.69 billion and a volume of 945.89 thousand tons.Fresh shrimp exports accounted for the largest share (66.1%) in this total export, by value, followed by fresh fin fish (11.3%).
Key Components in Aquaculture
Key components such as stock improvement, water, energy, health, and feed management and access processing machineries and export markets are the key component in aquaculture production. Aquaculture feed &health management has become an important component for sustainable growth and development of the industry. Stakeholders in the industry have been working towards reducing excessive nutrient loading into the ecosystem through stringent feed management measures, while optimizing the quality of the environment as well as safeguarding the health of stock usingmodified genetics and nutrition. Advanced genetic breeding programs have strongly supported industry growth in the last five years.
Feed is one of the most essential and highest single-cost components offish farming operations. Farmers use industrially manufactured pelleted feed,farm-made aquafeed, and supplementary diet products such as rice bran, wheat bran, and oil cake infeeding practices. The total amount of feed per hectare per year variesas perdifferent culture strategies.
According to industry sources, aquafeed accounted for a share of 4.2% (by volume) in global animal feed production in 2014. China and the U.S. are the world’slargest producers of aquafeed and they accounted for a cumulative share of around 71% in 2014. The animal feed as well as aquafeed industry in India has been currently evolving from a fragmented sector to an organized industry.
The global aquafeed market was valued at USD 41.45 billion in 2015. It is projected to reach USD 77.39 billion by 2021, at a CAGR of 11.0% from 2016. India’s aquafeed market consumed around 0.95 thousand tons of feed which was valued at USD 1.5 billion in 2014. The market is projected to grow at a CAGR of 10.9% by volume and 11.2% by value during the period from 2016 to 2021. In terms of volume, soybean dominated as an important raw material for India’s aquafeed market, with a consumption of 22.93thousand tons in 2014 and is projected to grow to a size of 41.43 thousand tons by 2021.
In terms of feed type, the fish meal segment is projected to have the highest CAGR of 11.4% from 2016 to 2021. Ingredients such as insects (as fish meal replacers) and feed phytogenics are the key growth areas of the aquafeed market from 2016 to 2021. Feed additives such as cholesterolenhancers (for shrimp), carotenoids, antioxidants, mold inhibitors, pellet binders, monocalcium phosphate, vitamin premix, and inositol are imported to meet the domestic demand of the aquaculture industry.
Companies such as C P Aquaculture (India) Private Ltd., Avanti Feed Ltd. (India), Godrej Agrovet Ltd. (India), Cargill Inc. (U.S.), and The Waterbase Ltd. (India)are some of the key players adding value to the industry with their efforts in R&D on aquafeed nutrition and health, in India.
Stakeholders of the aquaculture industry have been prioritizing their strategies on development of sustainable and economically viable aquafeed.Nutrition andfeeding activities are projected to continue to play a central role in sustainable aquaculture;hencefeed additives and feed raw materials such as soy and fish meal are expected to dominateaquaculture needs.
by Shivanand Balagali, Markets & Markets