MARIBE: Assessment of business lifecycles for marine ... · 12/27/2015 This project has received...

12/27/2015This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 652629

MARIBE: Assessment of business lifecycles for marine aquaculture sub-sectors

Mantas G. D. , Hunter S., Aguilar-Manjarrez, J., Cai, J., Jansen H., Keay A.J., Barrento S.I., Dalton G., Johnson K.R

Tamás Bardócz, AquaBioTech Group


MARIBE Overview

MARIBE is a Horizon2020 project that aims to unlock the potential of multi-use of space in the offshore economy.

This forms part of a long-term Blue Growth strategy to support sustainable growth in the marine and maritime sectors as a whole.

Led by a consortium of 11 partners. Coordinated by University College Cork with partners from the UK, Netherlands, Italy, Belgium, Spain and Malta.


Maribe Geographic scope


MARIBE approach


MARIBE Objectives

Select the most promising business models for combinations of Blue Growth or Blue Growth plus Blue Economy sectors via multi-use of space or in multi-use platforms.

Identify key technical and non-technical challenges facing these Blue Growth or Blue Growth plus Blue Economy combinations based in part on lifecycle learning.

Raise awareness and ensure increased investor participation in Blue Growth by engaging stakeholders and hosting brokerage events.

Develop business plans for the best Blue Growth or Blue Growth plus Blue Economy combinations for each of the maritime basins to be rolled out into pilot proposals. Develop implementation plans based on short term and long term project horizons and secure interest in principle from investors.


Aquaculture in MARIBE

Parameters Coastal mariculture Off the coast mariculture Offshore mariculture

Location/ hydrography

<500 m from the coast<10 m depth at low tidewithin sightusually sheltered

500 m to 3 km from the coast10–50 m depth at low tideoften within sightsomewhat sheltered

>2 km generally within continental shelf zones, possibly open ocean>50 m depth

Environment

Hs1 usually <1 mshort-period windslocalized coastal currentspossibly strong tidal streams

Hs <3–4 mlocalized coastal currentssome tidal streams

Hs 5 m or more, regularly 2–3 moceanic swellsvariable wind periodspossibly less localized current effect

Access 100 % accessiblelanding possible at all times

>90 % accessible on at least once daily basislanding usually possible

usually >80 % accessiblelanding may be possible, periodic,e.g. every 3–10 days

Operation manual involvement, feeding, monitoring and more

some automated operations, e.g. feeding, monitoring and more

remote operations, automated feeding, distance monitoring, system function

Exposure · sheltered · partly exposed (e.g. >90o exposed) · exposed (e.g. >180o)

Source: FAO, modified from Muir (2004)


Aquaculture in MARIBE

Coastal and off the coast marine fish culture: In Europe Atlantic salmon, Sea bream and Sea bass are the fish species produced in the largest quantity in marine cage aquaculture systems.

Coastal and off the coast farming of molluscs and crustaceans: Mussels and oysters are produced in large volume using various techniques and molluscs cultures are considered as the most promising candidates for aquaculture on offshore energy platforms.

Coastal and off the coast production of aquatic plants (macro and micro): While off coast micro algae production is still in experimental stage, the production of seaweed is a well known off the coast technology having a potential to be moved farther offshore and combined with other offshore activities.

Coastal and off the coast Integrated Multi-trophic Aquaculture systems (IMTA): The basic concept of IMTA is the farming of several species at different trophic levels, that is species that occupy different positions in a food chain.

Offshore mariculture: The economic interest of offshore mariculture is today primarily related to finfish, but from a technological point of view, seaweed and molluscs production also have good opportunities for offshore farming.


Aquaculture combined with Blue Growth/Economy industries

Priorities in aquaculture*

reducing administrative burdens

improving access to space and water

increasing competitiveness

exploiting competitive advantages due to high quality, health and environmental standards.

*COM(2013) 229 final

MARIBE combinations

Blue Energy (wind, wave, lagoon)

Tourism

Fixed terminals/Shipping

Fishery

Marine biotechnology

Oil and gas platforms

Concepts of combinations

Multiple use of space

Common use of infrastructures

Improved production (symbiotic technologies)


The role of socio-economicanalysis in MARIBE

MARIBE


Business lifecycle analysis of aquaculture

(S1) Embryonic

Stage

(S2) Growth Stage

(S3) Mature Stage

(S4d) Decline Stage

Time

Profit

Loss

(S0) Product

Development

(S4r) Recovery

Stage

“Valley of death”

Units/€

Modified Business Lifecycle



LIFECYCLE STAGEDevelopment Embryonic Growth Mature Decline Recovery

Demand Market is ill-defined. Limited to early adopters; market research.

Rapidly increasing; new markets emerging

Stabilizing; mass market; customer knowledge high

Saturated; obsolescence; out of date; better substitutes exist

Re-emergence of markets or new niche emerges.

Technology Innovative technologyProof of concept

Competing technologies, rapid innovation

Standardisation of technology, process innovation

Well diffused technical knowhow: quest for cost reduction

Little innovation New technology cuts cost. Or tradition becomes valued.

Products Early design through to prototype development

Variable quality; many designs; rapid change

Dominant tech emerges; drive for quality

Commoditization; differentiation by branding Standard (even single) product Value placed on quality or

heritage

Manufacturing None, scale models, prototypes; individual one off units

Skilled labour. Short production runs specialized distribution channels

Capacity shortages, mass production & distribution.

Emerging overcapacity; deskilling the production process.

Chronic over capacity Under-capacity reinvestment in production facilities

Trade None. Production and consumption in advances countries

Exports from advanced countries to rest of world

Production shifts to less developed countries.

Exports from countries with lowest labour costs New markets

Competition Limited. Competition over IP & funding. Few companies Rapid growth new entries and

mergers

Price competition; customers focus.Shakeout

Price wars exits. Initially low. Later new entrants or re-entry

Key success factorsTechnical talent; communicating message to investors and securing IP.

Product innovation; create credible image & secure market share.

Design for cheap manufacture; process innovation;

Cost efficiency achieved through scale and driving down input costs

Rationalizing capacity and production processes.

Awareness of opportunity, marketing, re-establishing brand

Finance/investment

R&D grants.Self-finance, angels or individual contacts.

Start-up grants, angels, company money.Own contacts. Venture capital later.

Bank finance, share issue. Institutional investors. Corporate partners, merger etc.

Institutional investors. Share issues; bond issue; internal profits

Limited availability.Asset squeezing and asset stripping.

Brand purchase.Angels.Perhaps internal money.



Sub-sector Demand/Products

Technology/Manufacturing

Trade/Competition

Key success factors

Finance/investment

Life cycle stage1. Development2. Embryonic3. Growth4. Mature5. Decline6. Recovery

Coastal and off the coast marine fish culture

Stable mass market for salmon, sea bream and sea bass, customer knowledge is high. Branding phase emerging markets for species and products

Well diffused technical knowhowOvercapacity in the Mediterranean. New EU regulation on organic aquaculture, innovations for new species.

Production shifts to less developed countries. Price competition; customers focus.New entries with new technologies for niche markets.

Cost efficiency achieved mainly through scale and driving down input costs. Technology innovations are still important.

Bank finance and institutional investments are common. R&D grants for new species and technologies

Salmon, sea bass, sea bream in the MATURE stage.Organic aquaculture and new species in the GROWTH stage.

Coastal and off the coast farming of molluscs and crustaceans

Stable market for molluscs (mussels, oysters). Emerging markets for abalone. Crustaceans market is large but highly dependent on global economy (Asia)

Hatchery is still a limiting factor. Diseases and natural events Structures need to be better prepared for storms. Production of new crustaceans species is difficult

The market for both crustaceans and molluscs can suffer major shifts depending on extreme weather events, food safety regulations of individual countries

New communication streams are being used to inform consumers about the advantages of eating extractive species

In Europe the main investments are in marketing, and combination of farming and tourism.

Molluscs and shrimp at a MATURE stage. Lobsters are at a -development/embryonicstage (Europe –Norway).



Sub-sectorDemand/Products

Technology/Manufacturing

Trade/Competition

Key success factors

Finance/investment

Life cycle stage

Coastal and off the coast production of aquatic plants (macro and micro algae/seaweed)

Stable, but growing market for different species of sea weeds. Product specification is oriented to added value products (compounds).

Technology in place is usually relatively low tech., and based on manual labour. Off the coast technology for micro algae production is in the experimental phase.

Seaweed trade and market in Asia is huge, but very little in Europe. Micro algae has emerging market as raw material.

Technology innovations are needed to guarantee high crop quality and cost effective production and processing. Product cost price is the main current bottleneck.

R&D grants and EU or governmental funding in Europe

Seaweed, macro algae production in Asia, worldwide and coastal micro algae production is in a GROWTH stage. Others in Development or Embryonic stage.

Coastal and off the coast Integrated Multi-trophic Aquaculture systems

NO specific demand, as this is a production system and not a particular product

Technology available needs to be combined and adapted to different environments and market trends.

High value markets, niche markets concerned with sustainability. Difficult to compete with low price products.

Communication channels, marketing tools and education are key factors to develop IMTA. Market diversification

Dependent on subsidies (EMFF aqua-environmental measures) and joint ventures between companies producing complementary products (e.g. fish and seaweed).

Development/Embryonic stage

Offshore mariculture

Well known products with high demand are the main target species. Mostly interested in fish production.

Technology is available, but innovations needed to reduce the costs and solve some problems.

Only a few producer countries and companies. Competition with the coastal and off the coast production.

Main driving force is the easier licensing. R&D work to reduce costs.

Bank finance, share issue. Institutional investors. Corporate partners, merger

Embryonic stage/Growth stage


Aquaculture combined with BlueGrowth/Economy industries

Mature: support to move offshore, easier licensing

Growth: increase capacity, reduce production costs

Development or Embryonic: introduce new technologies, access to finance

Identification of challenges and encourage business interests


MARIBE workshops

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

1 2 3 4

WHEN: JANUARY

WHERE: IRELAND

ORGANISER: UCC

T. Atlantic BasinTrial

T

WHEN: FEBRUARY

WHERE: MALTA

ORGANISER: ABT

1. MediterraneanBasin

WHEN: MARCH

WHERE: SPAIN

ORGANISER: UC

2. Atlantic Basin

WHEN: APRIL

WHERE: TBD

ORGANISER: FAO

3. Caribbean Basin

WHEN: MAY 2016

WHERE: FINLAND

ORGANISER: UCC

4. Baltic Basin


Information about MARIBE

Tamás Bardó[email protected]

AquaBioTech GroupCentral ComplexNaggar StreetTarga Gap, MostaMST 1761MALTA G.C.

Tel +356 2258 4100Website: www.aquabt.com

Coordinator

Partners

MARIBE: Assessment of business lifecycles for marine ... · 12/27/2015 This project has received...

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