Next-generation feed and high-performance feed to reduce dependence on fishmeal

「As part of developing feed that does not depend on fishmeal, the research department developed reduced-fishmeal feed for red sea bream. By adjusting the raw materials using feather meal, it established a method that delivers growth equivalent to that achieved with fishmeal and is applying it to product manufacturing.」

「The main research activities of the research department included outdoor demonstration tests of feed containing fishmeal made from unused yellowtail processing residue generated at an affiliated company that commercialized the business last year. We confirmed that its quality was equivalent to purchased fishmeal and began incorporating it mainly into feed for red sea bream on a sequential basis. As part of developing feed that does not depend on fish oil, we conducted formulation tests using chicken oil during the current fiscal year. After confirming its effectiveness, we began using chicken oil.」

「In formulated feed, revenue increased due to price revisions to address higher raw material and energy costs and higher overseas sales volume of aquafeed. In marine products, revenue decreased as market prices remained weak. As a result, revenue was ¥13,637 million, up 7.7% year on year. In terms of earnings, segment profit (operating profit) was ¥762 million, down 8.6% year on year, due to lower margins resulting from weak marine product market prices.」

「As an achievement in developing measures against hard-to-treat fish diseases, we established measures against Edwardsiellosis in red sea bream. Although this disease is considered extremely difficult to control, trials at an aquaculture facility using a novel drug to determine the optimal dosage method resulted in a significant improvement in performance. A patent application is currently pending.」

「In formulated feed, revenue increased due to price revisions to address higher raw material prices and higher aquafeed sales volume. In marine products, revenue increased as the volume handled rose. As a result, revenue was ¥20,028 million, up 28.1% year on year. In terms of earnings, segment profit (operating profit) was ¥1,183 million, up 34.4% year on year, due to improved aquafeed margins following price revisions and other factors.」

「As an achievement, the drug for beko disease developed by the Company was approved and launched for sale as a fishery drug (Spotil) in April 2022. In connection with this, we obtained a new license to sell veterinary drugs, entered into a distributorship agreement with the manufacturer 共立製薬㈱, and began sales through clinical services.」

「In the feed business, revenue increased due to price revisions for livestock feed and an increase in the volume of marine products handled, despite a decline in aquafeed sales volume. As a result, revenue was ¥4,059 million, up 9.0% year on year. In terms of earnings, despite margin deterioration caused by higher raw material prices, segment profit (operating profit) was ¥297 million, up 13.8% year on year, due to the increase in the volume of marine products handled and firm market prices.」

「As an achievement, the drug for beko disease developed by the Company was approved as a fishery drug in April 2022. In addition, examinations confirmed the preventive effect of clinical treatment against wasting disease in farmed pufferfish. For new product development, we developed new feed for acclimating large wild-caught fish, including yellowtail, greater amberjack, kingfish and young tuna, which had been considered difficult to acclimate to feed.」

「The unit selling price of livestock feed rose following price revisions, while aquafeed sales volume decreased due to a decline in the inventory of farmed fish.」

「Aquafeed sales in Japan remained sluggish due to a decline in farmed fish, while exports remained strong. The volume of marine products handled decreased. The unit selling price of livestock feed rose following price revisions.」

「In the feed business, sales volume increased as exports of aquafeed remained strong, although the volume of marine products handled decreased. As a result, revenue was ¥3,724 million, compared with ¥3,938 million in the same period of the previous year, below the previous year’s level.」

「Meanwhile, exports are expanding on the strength of our technological capabilities, and we aim to expand sales by increasing the number of destination countries. In addition to sales-enhancement measures such as supporting sales through the wider adoption of our method for preventing beko disease, a parasite affecting farmed yellowtail, we will continue to focus on expanding the scope of raw material procurement and improving the growth of marine products, with the aim of strengthening earnings capacity.」

「The main achievements in aquafeed during the consolidated fiscal year included a major review of the production line and manufacturing process for Tuna Food, the formulated feed for tuna, resulting in further performance improvements. In addition, regarding the drug for beko disease reported in the previous consolidated fiscal year, efforts have begun to commercialize a fishery drug that can be used by all aquaculture operators, both to contribute to the fisheries industry and to eradicate beko disease. Ongoing projects include the development of next-generation feed that does not depend on fishmeal for all fish species sold by the Company, and the development of functional feed that improves aquaculture productivity through antiparasitic and disease-resistance effects, among others.」

「During the consolidated fiscal year, we jointly began efforts to commercialize a fishery drug to eradicate beko disease. Ongoing projects include the development of next-generation feed that does not depend on fishmeal for all fish species sold by the Company, and the development of functional feed that improves aquaculture productivity through antiparasitic and disease-resistance effects, among others.」

「The main achievements in aquafeed during the consolidated fiscal year were the improvement of the formulated feed “Tuna Food” for tuna and the successful launch of dedicated feed for grouper as a tool for expanding sales in overseas markets. In patents, we jointly filed 1 application with the Fisheries Research and Education Agency for the development of feed for juvenile bluefin tuna. Ongoing projects include the development of next-generation feed that does not depend on fishmeal for all fish species sold by the Company, and the development of functional feed that improves aquaculture productivity through antiparasitic and disease-resistance effects, among others.」

「Our basic policy for research and development of aquafeed is to develop “feed that is gentle on nature, fish and people.” We are conducting research and development as an integrated effort by our research department, the Fisheries Research and Education Center and the Livestock and Fish Clinical Center, with the following 5 themes: ① development and adoption of high-performance extruded pellet feed that places less burden on the environment while improving productivity; ② development and adoption of functional feed to enhance fish’s inherent ability to maintain homeostasis and health; ③ development of feed to improve flesh quality and contribute to the production of high-quality farmed fish that satisfy consumers in appearance and taste; ④ development of next-generation aquafeed that does not depend on fishmeal, whose supply and price are unstable; and ⑤ establishment of measures against hard-to-treat fish diseases and fish health management.」