Building resilience in a changing world

What do climate events, global trade dynamics and ingredient availability mean for aquaculture? (Mr.) Guido Crolla, head of procurement, sustainability and IT at Alltech Coppens, discusses the trends shaping the industry and how Alltech Coppens translates scientific knowledge into sustainable, highperforming feed solutions. 

1. What's happening in the global raw material markets right now? 

Global raw material markets are unpredictable. Although the situation has improved compared to the severe shortages we experienced a few years ago, several factors continue to affect supply and prices. Fishmeal and fish oil are historically scarce and are being priced accordingly. 

Additionally, the natural climate phenomenon known as El Niño has impacted fish stocks in important fishing regions such as Peru, reducing catches and creating uncertainty in the market. El Niño is caused by unusually warm surface waters in the Pacific Ocean. It can disrupt weather patterns worldwide, leading to droughts, floods and changes in oceanic ecosystems, which can significantly affect agricultural production and fishery yields.

Along with the impact of El Niño, geopolitical tensions in regions such as the Middle East continue to affect global trade and energy markets. Higher crude oil prices are increasing costs related to transportation, logistics, packaging and production throughout the supply chain.

Also drawing attention right now are the new grain and oilseed harvests, which are either on the verge of starting or are already underway in many parts of the world. The quality and volume of these harvests will play an important role in determining the availability and pricing of ingredients such as wheat, sunflower products and vegetable oils during the coming season. 

2. What are the biggest factors currently influencing the availability and cost of key aquaculture ingredients? 

The price of aquaculture ingredients is influenced by much more than marine ingredients alone.  

Because fish feeds are made from many different ingredients, feed prices are determined by the overall raw material market, not by a single ingredient. For example, when fishmeal and fish oil become expensive or difficult to obtain, feed producers across the industry look for alternative protein and oil sources. This increases demand for ingredients such as vegetable proteins, animal byproducts and other alternatives, including algae oil. As demand shifts, prices for these ingredients will also rise.  

Politics also plays an important role. Trade restrictions, changing regulations, geopolitical tensions, climate conditions, sustainability, currency movements and speculation can all affect availability and pricing.

3. What impact do global events and climate patterns, such as El Niño, have on aquaculture supply chains? 

El Niño has a devastating effect on fisheries, especially along the Western coast of South America. This weather phenomenon can also lead to: 

• Disruptions in upwelling: Normally, trade winds push warm surface water westward, allowing the cold, nutrient-rich water from the depths of the ocean to rise. During El Niño, these winds weaken, stopping the upwelling of nutrient-rich, deep ocean water and creating a thick layer of warm, nutrient-poor water instead. As a result, fish lose their main source of food, leading to lower catches and major economic damage. 

• Food shortages and mortality: The nutrient-poor water fostered by disrupted upwelling lacks essential nutrients, such as nitrates and phosphates. The absence of these nutrients halts the growth of phytoplankton. Small fish (including anchovies and sardines) that depend on phytoplankton to survive either migrate to colder waters, move to deeper oceanic layers or, in the worst case, die. 

• The collapse of fisheries: The anchovy and sardine fisheries in Peru — which are among the largest in the world — often come to a complete standstill during El Niño years. This leads to enormous economic losses for local fishing communities. • Changes in fish species: Cold-water species are replaced by species that thrive in warmer water, such as tuna, mackerel, and even tropical sharks and jellyfish. 

When fish catches decrease, the supply becomes tighter and market prices can increase. The impact is often felt throughout the entire aquaculture industry. To deal with these challenges, our feed formulation philosophy has evolved considerably over the years. Rather than focussing primarily on protein levels or individual ingredients, we formulate with nutritional targets and overall performance in mind.  

Thanks to decades of research at the Alltech Coppens Aqua Centre (ACAC), we understand what fish need to achieve optimal performance. Our experts work with a range of carefully selected raw materials while maintaining consistent nutritional values, feed quality and farm performance. Today, we focus on the best combination of ingredients in terms of nutritional performance, sustainability and economic value, enabling us to secure the supply of the highest-quality fish feeds in a dynamic raw-materials market.  

4. How does Alltech Coppens manage supply security in a rapidly changing market? 

The security of high-quality fish feed supplies is a top priority at Alltech Coppens. We work with a large network of trusted suppliers and closely monitor developments in global (raw material) markets. This allows us to react quickly when market conditions change.   

Additionally, since our formulations are based on nutritional performance rather than depending on specific ingredients, we are able to use a wider range of raw materials while maintaining consistent feed quality and fish performance. This, combined with our ongoing research and development efforts at the ACAC, helps us maintain a reliable supply of high-quality feed that provides consistent fish performance at competitive prices for our customers. 

5. How are sustainability and long-term sourcing strategies becoming more important in today's ingredient markets? 

Increasingly, sustainability and supply security often go hand in hand. More than 92% of our raw materials are sourced within Europe, with the majority coming from Germany and neighbouring countries. This helps improve reliability, traceability and supply chain stability. We have also built a large network of valued suppliers and partners, many of whom we have had strong relationships with for years. These factors all allow us to focus not only on short-term availability, but on medium- and long-term supply security as well. 

At the same time, we continue to invest in alternative and more sustainable raw materials. A large share of our marine ingredients already comes from fish-processing trimmings, and our research teams continuously evaluate new ingredient options in an effort to reduce our dependency on limited marine resources.  

By combining strong supplier partnerships, long-term planning efforts and continuous innovation, we are building a more resilient and sustainable supply chain for the future. While market conditions will always change, our focus remains the same: securing reliable raw-material supplies, investing in innovation and maintaining strong partnerships throughout the supply chain so we can continue delivering high-quality feed solutions to our customers.