Tri-way Industries: Aquafarm 3

Part 2: July 2017 Status of AF3

This is the second part of presentation used in China to support SIAF’s carve-out of its aquaculture business (into Tri-way Industries, Ltd.). Please view Part 1, with commentary covering the first 43 slides before viewing this page. Note: Not all slides from the original presentation are used on this web update. To view the original slides, as they were shown in China, you may download the original presentation.

To Learn More

Tri-way Industries (TW):
http://www.sinoagrofood.com/content/TRW

Aquafarm 3 (AF3):
http://www.sinoagrofood.com/content/ZSAPP

SIAF’s Carve-out Spin-off (“COSO”) strategy:
http://sinoagrofood.investorroom.com/COSO-strategy.

Aquafarm 3 Operational Update, Part 2

Slides 44-47

Pacific white shrimp are traded as a commodity worldwide. The most common form is IQF (Individually quick frozen). Many processing plants operate in China employing cadres of workers who size separate, de-vein (remove digestive tract), de-head, and/or de-shell shrimp.

Many plants also cook shrimp for export as a value-added product. A shrimp is normally brown in color when harvested from the pond alive. It turns pinkish upon cooking. Shrimp bodies contain a color pigment which is bound to a protein that masks its expression. When the shrimp is cooked, the protein is denatured (broken apart) and the color pigment is released, resulting in the pink/reddish appearance.

 

 

Slide 48-57

The giant freshwater prawn is easily distinguished by the large blue claws of the male. Females are generally smaller. Broodstock (maturing males and females) are shipped live from our sources in Thailand and elsewhere under very strict import and quarantine requirements. Once the shipment is approved, broodstock are placed into maturation ponds. The females are then periodically checked by technicians (by looking at underside where eggs are attached) to determine when to move them indoors for final maturation.

Local farmers are often encouraged to observe the arrival of broodstock to determine their condition. Farmers believe that if the parents look healthy, with few abrasions, and few missing claws, they will produce the best postlarvae. This is an important ritual in obtaining pre-orders of post-larvae.

 

 

 

Slides 58–63

In addition to serving the MegaFarm and other in-house needs, Aquafarm 3 is positioned to profit from an estimated market for about 5 billion postlarval M. rosenbergii in the immediate Zhongshan area. Currently, prices exceed about 650 yuan (close to USD $100) per 10,000 PL6-8.

Market prices for L. vannamei and P. monodon are closer to 150-200 yuan (USD $20-$30)/10,000.

For each unit of PL for sale, about 3,000 postlarvae are transferred into water inside large, clear plastic bags. The bags are then filled with pure oxygen and sealed. Farmers nearby generally come to the site to observe the packing and pick up their shrimp.  Shipments farther away are placed in bags with cooled water, placed inside Styrofoam containers, boxed, then shipped. Properly packed shrimp can easily survive up to 24 hours in these boxes.

 

 

Slides 64-67

Broodstock prawns are also received in a similar manner, albeit at much lower shipping densities.

Purchase price for a single pair (1 male; 1 female) of broodstock prawn or shrimp can range from USD $60-$150 depending upon source and species.

 

 

Slides 68-71

The SIAF Longze shrimp hatchery is part of an uncommon fraternity of long-standing hatcheries in China; the manager/owner has more than 25 years’ experience and success in shrimp hatchery culture.  Through experience, the hatchery has developed a small container that approximates 3,000 postlarvae in one scoop for packing. The packing protocol is very quick and efficient.

 

 

Slides 72-75

There are several morphological differences between caridean and penaeid shrimp, but for the purposes of the hatchery, the primary difference is in fecundity and reproductive strategy. The Penaeid shrimp are prolific, with batches of about 500,000 eggs that are broadcast into the water after fertilization where they undergo extensive metamorphosis (change from one form to another) into a postlarvae.

In contrast, fertilized Caridean shrimp eggs remain with the female during embryogenesis. Female giant prawns produce about only 50,000 eggs per batch, and the larvae remain with the female during embryogenesis until hatched as zoea.

As eggs of the freshwater prawn ripen (females are called “berried” at this time) in the outdoor maturation ponds, they change from a bright orange to a brown, and finally a greyish brown a few days before hatching. Generally, females containing brown eggs are moved to the hatchery indoors and spawn within about two or three days into hatching tanks. They are then placed back into larger tanks indoors to regenerate eggs, and spawn again. Each female can spawn several times over a period of weeks.

Sometimes non-berried females are moved to indoor tanks and allow to mate with chosen males.

Slides 76-81

The Longze hatchery (AF3) has been widely recognized and acclaimed for its success, and hosts many important visitors.

The hatchery also has established long-standing relationships with several key partners worldwide who provide guidance and advice on hatchery protocols.

 

Slides 82-91

The Longze hatchery has also been involved in the hatching and rearing of tiger shrimp (Penaeus monodon).  Before 2004, tiger shrimp were the preferred species on aquaculture farms, with over 80% of world shrimp production at that time as tiger shrimp.

However, because of widening disease problems, and high costs of raising this species, the industry sought an alternative in the domesticated Pacific white shrimp, which currently dominates the market.

Tiger shrimp are reputed to grow twice as fast as white shrimp, although that margin is getting smaller with continued improved breeding of the white shrimp. There are few successful domestication programs for tiger shrimp.

AF3 now raises tiger shrimp postlarvae as an alternative. Growth is very rapid and large shrimp can be obtained 150 days after stocking as postlarvae.

 

Slides 92–97

In addition to raising shrimp in its ODRAS, AF3 also raises Tilapia and other species for the local market.  The fish grow rapidly and can obtain several kilograms market size in 18 months.

 

 

 

 

 

Slides 99–104

The hatchery at AF3 has initiated a rudimentary breeding program for its shrimp and prawn stocks by breeding different stocks from varied parts of the world. This is a controlled effort to increase the genetic pool and provide animals with better growth, survival, disease resistance, etc.

Although prawns and shrimp from AF3 are among the best currently in the Zhongshan area, there are genetic limitations to breeding without knowing the complete genetic history of the animals (i.e., a non-pedigreed breeding program). After only a few generations, new stocks need to be obtained from outside sources to prevent inbreeding depression.

SIAF plans a long-term, pedigreed breeding program for its prawns and shrimp, as part of its quality and sustainability strategy. This allows the hatchery to become self-sufficient, and to develop lines specifically bred for its indoor and outdoor systems, while we control genetic contribution and inbreeding depression at the same time.

Slides 105–106

In conclusion, AF3 as part of the Tri-way group of aquafarms, is a key cog in the Tri-way strategic business model. 

With applications of both indoor (APRAS) and outdoor (ODRAS) farms, Tri-way Industries, Ltd. intends to operate as a model of efficient, safe, and sustainable aquafarming for China and the rest of the world.

 

Click here to view the first half of this AF3 status report.

 

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To view the original slides, as they were shown in China,
you may download the original presentation.

  

 

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