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Swede, thanks for the info! I will not sell any shares in SIAF before the COSO. I plan my earliest part-sell to 2020. SIAF also have the Capital Award that will inpact bigtime on the SP of SIAF!
I know this forum is about Tri-way, but at the moment they are so close linked toghether with SIAF.....
Tri-way Operations Update
http://www.sinoagrofood.com/sites/default/files/Tri-way_Status_Nov-2017.pdf
Thanks for starting this board, Swede!
All of us who own shares of SAIF will soon be owners of this company, with stock, and also indirectly through SIAF's ownership of 36%
Chinese article about AF4
http://www.oeofo.com/news/201710/25/list232132.html
New pictures of the Mega Farm
https://www.undercurrentnews.com/galleries/inside-sino-agros-megafarm-in-zhongshan-china/
Owners of Triway Industries
Total Outstanding Shares 99,000,000
Sino Agro Food (OTCBB:SIAF) 36,590,000 36,95%
Ample Rise Limited 2,750,000 2,8%
Fortune Legend Investments Limited 2,750,000 2,8%
Sino Agro Food (HK) Limited (Nominee) 31,998,572 32,3%
Good Sea Limited 4,250,000 4,3%
Green & Natural Limited 3,250,000 3,3%
Lucky Shine Development Limited 2,750,000 2,8%
Yongfeng Agricultural Investment Co 4,180,068 4,2%
The Business Advocate, Inc 4,521,360 4,6%
Fine Happy Limited 2,750,000 2,8%
Flying Cristal Limited 4,200,000 4,2%
Don't expect to see any quarterly numbers from Triway until the company is listed. Hopefully we will see a balance sheet and a prospectus soon.
Swede will they make quarterly numbers public soon or will we have to wait until the pre-ipo?
Agricultural Bank of China Co. Ltd. Signs Bank-Enterprise Comprehensive Agreement with Jiangman Yili Fisheries
Revolving Credit Facility and Premier Banking Privileges Highlight Strategic Partnership
Agricultural Bank of China (“ABC”) and Jiangman Yili Fisheries Co. Ltd. China (“JFD”), a fully owned subsidiary of Tri-way Industries Ltd. (“TW”) have signed a Bank-Enterprise Comprehensive Strategic Cooperation Agreement (“BECSCA”) this past week in Guangzhou. JFD is one of the select companies afforded this level of partnership with ABC in the Guangdong region.
ABC is providing a revolving credit facility to TW/JFD, which is eligible to be drawn incrementally up to its maximum line of RMB 100 million, with the maximum line intermittently increased as experience and corollaries between ABC and TW/JFD materialize. The monetary amount designated for each draw and its use will be determined in consultation between both parties. A rolling audit of TW/JFD by ABC is one of the conditions that must be met satisfactorily to permit continued use and increase of the revolving credit facility.
In addition to the revolving credit facility, the other major provisions of the agreement include:
•Personal banking VIP channel, which provides one-on-one consultation and expedited services to its clients;
•Bond and debt advisory, including bond underwriting, debt financing, and/or direct (equity) investment in the Company;
•Foreign lending and/or foreign investment facilitation, utilizing ABC’s international network of investors and lenders to obtain outside funding sources in addition to those provided by ABC.
According to the BECSCA, these and other provisions afforded TW/JFD culminate in what best can be described as a “win-win” joint venture.
Agricultural Bank of China Co., Ltd., the world’s third largest bank based on reported assets, is oriented to create partnerships with well-vetted corporations with an international focus.
TW plans to develop an aggressive export sales side to complement its already strong domestic sales operations. This is one of the primary reasons ABC has requested the Company to become an Enterprise Partner during the build-out phase of its development.
http://sinoagrofood.investorroom.com/TW-ABC_BECSCA
Upgraded Fish Species Developed at Aquafarm 2
http://sinoagrofood.investorroom.com/AF1-2_news
http://www.sinoagrofood.com/content/AF1-2_2017
Progress at Aquafarm 4
http://sinoagrofood.com/content/traceability-progress
Aquafarm 4 Update
Aquafarm 4 was prominently featured in two television broadcasts.
http://sinoagrofood.com/content/AF4_2017
July 2017 Status of “AF3”
A presentation used in China to support SIAF’s carve-out of its aquaculture business (into Tri-way Industries, Ltd.) is published here along with a status update about Aquafarm 3.
http://sinoagrofood.com/content/AF3_2017
From a financing perspective you would expect them to halt construction of the 3rd building. The first 2 buildings are 95% complete as of March 31 and they are also spending money on ODRAS.
I don't think it's concrete. These buildings have a fair amount of sub grade work for the pumps and recirculation between the oxidation ponds. "Ground and infrastructure" could refer to only grading and civil even at 100%. If we turn on the infrared wave bands it looks this way. Doesn't look like concrete to me.
But it also doesn't really matter, IMO. We know they're experiencing a cash crunch until the funding is finalized And we know they can crank these out pretty fast when everything is lined up. Once they have the funding in hand you're going to see the vertical construction go pretty quick. Right now call it whatever you like, the point is that they aren't building, otherwise you'd already see building structure and maybe even a roof.
Thank you, DougS!
You and your vegetation. LOL. Building nr. 3 was 40% completed (ground and infrastructure work) as of March 30 (from 10-Q). It has to be concrete you're looking at. They are probably working on the tanks now so you can't tell the difference.
There's a cloud hanging over the Open Dam Ras. But here's Landsat 8 on April 30. The brownish region to the North West of the 2 buildings could be covered ODRAS. Showing plactic coverings instead of greenish water.
Also, the Land Viewer portal now has (almost) real time posting of Landsat 7 and Sentinel 2. You used to have to download the individual spectrum bands and compile them in an image editing program. But now anyone can look at the satellite flyovers like you would in google maps.
https://lv.eosda.com
SIAF updates “COSO” progress: Tri-way Industries, Ltd. earns a strong credit rating from Dun and Bradstreet. http://sinoagrofood.investorroom.com/Tri-way_5A1
Chinese firm says it may match Vietnam’s total shrimp output, 300,000t, by 2025
Production is ramping up at Sino Agro Foods’s flagship shrimp aquaculture project in southeastern China, which is planning to stock its first commercial harvests by Q4 2016 and then scale up from there, company officials said.
Sino Agro, a US- and Norway-listed public company that focuses on selling meat and seafood to China’s middle classes, first announced the Zhongshan New Prawn Project (ZSNPP) in 2014, billing it as the world’s largest such shrimp farm. The company has claimed that its use of recirculating aquaculture systems (RAS) on such a grand scale in an urban area that amounts to no less than a “paradigm shift” in aquaculture.
Built on 600 acres in the middle of China’s Pearl River Delta, a region home to 120 million people, construction is expected to be fully complete by the end of 2025.
When complete, construction of the first phase of the project is expected to have cost $180m, plus or minus 15%.
Test stocking of the facility’s tanks — which will be filled with 80% freshwater prawns (Macrobrachium rosenbergii) and the rest with finfish species such as Asian cod, eels and jade perch — began in February.
Tony Ostrowski, Sino’s chief scientific officer, told investors during a June earnings call that the initial stockings were meant as "trial and shakedown runs" used to test the new systems.
"We’ll plan to begin commercial stocking as soon as our settling ponds, our new ponds and all of the tanks are complete which should be by the end of this year. We’ll work out the bugs in the system, which aren’t major bugs at all, and training the staff,” he said.
Ostrowski said that the biggest hurdle to achieving full production is the completion of the settling ponds which will be needed to handle large volumes of water from the tanks.
“Even though it’s a recirculating system, we’re going to be draining water out because of harvests and filling up water and taking out water out of the tanks,” he said.
He told Undercurrent News in an email this week that production at the farm is expected to be 1,000t by the end of 2016, 10,000t by 2017, 70,000t by 2020 and at least 130,000t but as much as 300,000t by the time the project is expected to be fully built out by 2025.
“These are minimal operational targets. I don’t like to say that our target is 300,000 metric tons because when I even say 100,000t people go, ‘like, yeah, really?’” he told Undercurrent in an interview earlier this year.
The system's biofilters — which Ostrowski said are the key factor in determining the facility’s output — are being built with a theoretical production capacity of 300,000t by 2025. But reaching that figure will depend "on further research on biology, selective breeding, nutrition, and system efficiencies," he added.
The figure would match Vietnam's 2015 shrimp production, he said. However, the company has said that when eventually built out, the facility's minimum operating output will be around 130,000t annually.
The project’s ambitious scale is one of the things that attracted Ostrowski, a former president and CEO at Hawaii's Oceanic Institute, to the project, he said.
“This model makes you think differently about how we’re doing aquaculture today. And that’s what’s really exciting about it,” he said.
He added that if the company’s approach works in China, it can be replicated elsewhere.
“What we’re trying to develop is a sustainable system in one of the most urbanized regions of the world,” he said.
Company history
The ZNPP isn’t the first aquaculture venture for Sino Agro in China but it is the largest.
In securities filings, Sino Agro describes as an “engineering and consulting company that specializes in building and operating agriculture and aquaculture farms” in China. What that means in practice is that Sino Agro, a Nevada-registered corporation with shares for sale in the US and Norway, enters into joint ventures with China-based investors to undertake large-scale projects.
The joint-venture model is needed to marry foreign capital with Chinese land and government licenses, which generally have to remain in Chinese hands under the country’s laws.
The Chinese government, Ostrowski said, has been “very supportive” of the project as it comes as part of a national economic plan to raise the living standards of the Chinese people and better food produced domestically is seen as one way to achieve that.
“In China it’s very, very difficult to get as big of a piece of land as we just got” Ostrowski said.
According to its annual report filed March 31, the company’s divisions include a feed and fertilizer manufacturer, a vertically integrated cattle farm, a livestock trading arm and a dragonfruit flower plantation in addition to aquaculture. The common theme running through those projects is the target market: China’s middle class.
By middle class, Sino Agro means Chinese earning $9,000 per year, which is about 25% of the total, Ostrowski said.
“If you project for the next 10 years, a 50% rise in that middle class will occur,” he said, which he estimated will spur a demand for an extra 25mt more of "high-quality" seafood.
Business model
Sino Agro’s business model is to act as the technology licenser, developer and contractor for its projects, and maintains at least a minority ownership stake, at least 25% in each of them.
The company’s CEO Solomon Lee and executives had experience developing similar efforts in Australia and Malaysia before beginning to consult on Chinese projects in 2006.
In addition to the ZSNPP, the company has two other aquaculture facilities near Emping City with a combined capacity of 2,200t per year and shrimp and prawn hatchery in Zhongshan.
Lately though, sales of eels and finfish have been a drag on earnings.
The company's Capital Award and Tri-Way subsidiaries farmed 1,900t of species such as shrimp, sleepy cod and eels during Q1 2016, an increase from 1,380t a year prior. However, a shortage of eel elvers resulted in a switch in product mix to lower cost species, which reduced revenues.
Currently, about 40% of Sino Agro’s total revenues come from its aquaculture interests but the company plans to spin off some of the non-aquaculture ventures and focus on the ZSNPP and aquaculture, Ostrowski said.
“We’ve decided that aquaculture is really the thing that we want to focus on, so what we’re going to do is we’re going to carve out some of these,” he said.
The company said in a press release earlier this month that it has completed all 'stage one' Hong Kong and China legal and commercial documents related to the asset transfers. Now, aquaculture assets can now be moved into the Tri-Way Industries subsidiary in preparation for its carve-out and subsequent IPO, the firm said.
Contact the reporter jason.smith@undercurrentnews.com
https://www.undercurrentnews.com/2016/07/29/chinese-firm-says-it-may-match-vietnams-total-shrimp-output-300000t-by-2025/
A Paradigm Shift in 21st Century Aquaculture
A very informative video about the Zhongshan Mega Farm Project by Anthony C. Ostrowski, Ph. D., Chief Scientific Officer
https://vimeo.com/158286943
Valuation of Tri-Way Industries
What is the current value and the future value of Tri-Way?
According to the appraisal that was performed earlier this year, the enterprise value was assessed at US$340.6M. The enterprise value of Tri-Way does increase day by day, but it does not give us a fair valuation of the company as if it would be valued by the stock market.
Following Financial Assumptions for Tri-Way was presented in October 2016. However, these assumptions was made based on that financing would be in place to rapidly increase growt. The growth rate presented in the assumptions is a bit optimistic in my opinion.
I will revise the financial assumptions based on my personal expectations. I have basically cut the growth speed by 30% compared to the initial assumptions made by the company, and increased the number of outstanding shares, so the safety margin is quite high.
Since Tri-Way is a fast growing company with a very short operational history high initial capital expenditures and not paying dividends, there is only one applicable valuation model – the Benjamin Graham Valuation Formula.
According to the Graham Formulas and my assumptions, the current market value of Tri-Way industries would be $24-$26/share if Tri-Way would be listed on a major exchange today. I expect that Tri-Way will list in Hong Kong by the year 2019, which would give Tri-Way a listing price of $60-$66/share.
There's an updated version of the Aquaculture FAQ available from SIAF:
http://sinoagrofood.investorroom.com/download/Tri-way_Carve-out_FAQ_v2.pdf
Tri-way Industries is well positioned to gain significant market share in Chinese aquaculture.
Since this board's intro contains good information about China's aquatic markets, it may be interesting to discuss what we see as Tri-way's critical success factors, risk factors, etc. in China's markets.
Also, here's a good article about the changing world of seafood:
https://worldpositive.com/your-relationship-with-seafood-is-about-to-change-86383e7ff82d
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Tri-way Industries, Ltd. "TW" is a Hong Kong based cooperation that has the intention to list on the Hong Kong Exchange. TW is currently operating 5 on-shore Aquaculture farms in China using Recirculating aquaculture systems “RAS” technology. CR No.: 1004146 Chinese Company Name: Link to Registered Company Filings: https://www.icris.cr.gov.hk/csci/ Contact Information: Phone (China): +86 20-38880923 Email: info@tri-way.hk Homepage: http://www.tri-way.hk/ Adress: Room 3801, 38th Floor, Block A, China Shine Plaza, No. 9 Lin He Xi Road, Tianhe District, Guangzhou City, Guangdong Province, 510610, People's Republic of China Investor Relations: Company Auditor:
Mr. Lee Yip Kun (Solomon Lee) A Pioneer of Modern Fishery Projects in the South Pacific Region, who has over 35 years experience in the Fishery Industry and Food Industry created various sizable projects in the Asian region. Mr. Lee is the founder of Sino Agro Food, Inc., and has served as Executive Director and President, Chairman and Chief Executive Officer since August 2007. From March 2004 to date he has been Group Managing Director of Capital Award Inc. Since May, 1993, he has been the CEO of Irama Edaran Sdn. Bhd. (Malaysia), a modern fishery developer. Mr. Lee received a B.A. in Accounting and Economics from Monash University, Australia in July 1972. As a member of the board, Mr. Lee contributes his holistic knowledge of the company and a deep understanding of all aspects of our business, products and markets, as well substantial experience developing corporate strategy, assessing emerging industry trends, and business operations. His experience, skills and know-how encompass over twenty years of project management and financial management in agriculture, aquaculture and food industries. Citizen of AustraliaMr. Colanukuduru Ravindran Global Business Leader with 36 years of experience in strategy, finance, fund raising, techno commercial expertise having worked for IPOs across India, Singapore and USA successfully. Have also covered running and operating as Chief Executive in traditional industries, Oil & Gas, Power and IT. Recognized Business Development Specialist having established strategic partnerships and trading network with companies and trading boards in over 20 different countries spanning APAC, Western Europe, Africa and the Americas. Demonstrated global trade expertise managing foreign trade and currency volatility across APAC, Middle East and European markets. Fund raising and expertise in managing listed companies in India, Singapore and USA. Citizen of India
Aquafarm 1 AF1 represents the typical development model and is built on a block of land measuring 9,900 square meters that contain staff quarters providing accommodation for up to 15 workers, a self-contained office, a laboratory, external live bait holding tanks, all season red worms nurturing tanks, dry and cold storage, workshops, processing facilities, a heating room, 500 MT of water holding tanks, landscape gardens, standby generator rooms, all related underground and above ground infrastructure, and a 4,000 square meter fish grow-out farm supporting 16 RAS tanks, each measuring 10 m x 10 m x 3 m in depth holding up to 240,000 liters (or 240 Metric Tons (MT) of water with the production capacity to grow up to 80 MT of aquatic animals per year depending on its stocking cycles (or frequency of stocking of fish) and the initial size of the fish being stocked in each cycle. Currently, AF1 grows sleepy cod, Flower Pattern eels, prawns (or shrimp), and other fish species. AF1's operations are expected to produce up to 2,000 metric tons of seafood annually. View of APRAS tanks inside Aquafarm 1 (AF1) Offices on the Aquafarm 1 campus Another view inside the "superdome" Aquafarm 2 AF2 is located in the City Enping. The Company believes that Aquafarm 2 represents the first indoor RAS prawn farm in Asia. Going forward, AF2 will carry out its rotational stocking and harvesting program targeting to increase yields of live prawns annually. Google Map coordinates - 22°18'45.58"N 112°22'18.80"E Google Map link: Aquafarm 3 AF3 is located in Zhongshan and is currently the primary shrimp hatchery for the MegaFarm project, producing yearly over 2 billion postlarvae (shrimp larvae that have just metamorphosed into tiny animals that resemble shrimp, from more unrecognizable larvae stages, the nauplii, zoea, and mysis stages). The hatchery at AF3 is targeted for construction to expand production to 5 billion postlarvae (“PL”). AF3 raises postlarvae of the giant freshwater prawn (Macrobrachium rosenbergii), and the marine Pacific white shrimp (Litopenaeus vannmei) and tiger shrimp (Penaeus monodon). Full presentation of the Aquafarm 3 can be found here - http://sinoagrofood.com/content/AF3_2017 Google Map coordinates - 22°39'35.12"N 113°27'41.84"E Google Map link The main property of AF3 is located on 153 mu (or about 25.5 acres, or 10 hectares) of land in San Jiao town of Zhongshan City, PRC. An additional 250 mu of adjacent land operated by AF3 is contracted by other farmers for pond aquaculture. Construction and development of AF3 began in 2012, with operations starting in 2013. Completion of build-out of AF3 is targeted by the end of 2018. In addition to the hatchery, in 2015-2016, AF3 began building its next generation Open Dam Recirculating Aquaculture System (ODRAS).To extend the growing season to near year-round, the next generation of ODRAS, started in 2016-2017, targeted to cover ponds with a more permanent structure. To release heat during summer months, the sides of the structure are left open. During winter, the sides are closed off with plastic Aquafarm 4 and 5 (also know as the Mega Farm ) In Guangdong province, between Guangzhou, China’s third largest city, and China’s Special Administrative Region of Macau, Triway is building the largest integrated and sustainable indoor aquaculture project in the world. Located in the largest urban agglomeration on our planet, the New Zhongshan Prawn Project commands 1,300 acres of valuable land on the Pearl River estuary. Over 600 acres will showcase the Company’s A Power Recirculating Aquaculture System (APRAS). Target production is 300,000 MT of aquaculture products per year by 2035. Known as “the Mega Farm,” the project is unprecedented in size and scope, and promises to be a model of sustainable farming practices. It will continue to advance the use of environmentally, biologically, and socially responsible technologies that support and promote Zhongshan’s progressive urban development plans.
Since Tri-way industries is not publically traded yet on any exchange, there is no up to date market valuation of the comapny. However an independent appraisal was conducted in the beginning of 2017 to determine fair value of Tri-way industry when the company was carved out from it's former owners. It was conducted the the enterprise value of Tri-way at the time was $340.6M. As the company grows the valuation will increase. Dun and Bradstreet has issued a 5A 1 rating for Tri-Way Industries in June 2017. The D&B corporate profile for Tri-way also reported a tangible net worth at 3,007,347,794 HKD, or 385M USD. Tri-way is underway to raise capital to accelerate the growth and build out of the Aquaculture farms. This new IPO will indicate the current market value.
Tri-Way Industries is current not listed on any exchange. However, they are currently in a process of an Pre-IPO to let institutions take an interest of the company before the final IPO on a mayor Asian exchange. DBS (Development Bank of Singapore) Hong Kong, has been provided a pre-IPO mandate by Tri-way, having garnered encouraging feedback from some potential initial investors, indicating that they may begin securing initial private placement funding by July 2017. Sino Agro Food (OTCQX: SIAF, Merkur Market: SIAF-ME) is a majow owner of Triway Industries (36,6%) and is in the process to give a major part of it's holdings as a dividend to it's current shareholders. Current owners of Triway Industries Total Outstanding Shares 99,990,000
Tri-way Industries has been granted a China Master License by Capital Award to develop and operate up to 20,000 units of its A Power Recirculating Aquaculture System ("APRAS" technology) over a 50-year period. This will allow Tri-way to develop and operate additional aquaculture facilities using the APRAS technology, opening up long-term expansion opportunities in China. For a frame of reference, AF4 uses 144 APRAS modules and plans for AF5 call for 864 APRAS modules. The proprietary APRAS technology produces seafood using less water, less land, less feed, and is more bio-secure than other methods of aquaculture. Moreover, it produces a higher seafood yield and, due to its climate-controlled environment, ensures more reliable production all year round, compared with other farming methods (such as net-pen or pond culture). APRAS - A Power Recirculating Aquaculture Systems APRAS, is an engineered, self-contained water treatment and re-circulating aquaculture system for the growing of aquatic animals on a commercial scale. It mainly consists of the A Power Grow Out Basin and the A Power Treatment Stack equipment, and operating techniques and procedures, which Capital Award has established as essential or desirable for the establishment, development, and operation of the A Power Recirculating Aquaculture System. In an APRAS designed fish growing system; fish produced are free from diseases commonly associated with outdoor aquaculture methods. The system is fully integrated, automated and climate-controlled, and with strict water quality management, the APRAS fish growing system creates a stress-free environment for the fish. These ideal growing conditions enable improved productivity, offer mortality rates of less than 8% and a feed-to-fish conversion ratio of 1:1 for pellet feed and 2:1 for non-pellet feed. The system is housed on land in an enclosed environment under fully controlled conditions, and by avoiding contact with any outdoor contamination and using treated water; APRAS produces healthy farmed fish guaranteed free of antibiotics and other pollutants. Tri-ways environmentally friendly system recycles all water used in the farm. It enables the consistent year round production and supply of fish in the vicinity of urban areas. Less evolved recirculating aquaculture systems have been commercially applied in Europe and Australia for the past 30 years and earlier versions of the technology have been commercially developed and used in Australia since 1998. However APRAS is relatively new to Asian countries, including China. Competative Advantage
Advantages of RAS
Economical Advantage Comparison Gross Profit Advantage APRAS Strategy -Yield Maximization
Total Aquatic Products Production China has the world’s largest aquatic production and its market share of the world’s fish production has risen from 7 percent in 1961 to 37 percent by 2012. China alone accounted for 62.3 percent of the aquaculture production in the world by volume in 2012. Aquaculture represents more than 70 percent of the total fish production in China. Total 2012 aquatic production in China increased 7.5 percent to reach 58.9 million tons, compared to the 54.8 million tons in 2011, per the FAO. Fish production accounts for 59 percent of the total aquatic production, followed by shellfish and crustaceans at 22.6 percent and 10 percent, respectively. Fish production is, per the USDA, expected to continue its upward growth trend to reach 34.5 million tons in 2012, up from 33 million tons in 2011 and 31.3 million tons in 2010. In 2011, Shandong, Guangdong, Fujian and Zhejiang provinces profited from favorable coastal locations and abundant freshwater resources/facilities to rank as the top four aquatic production areas. In terms of freshwater cultured production, Hubei, Guangdong, and Jiangsu provinces are the largest producers Aquaculture China remains the world largest aquaculture producer with total cultured aquatic production accounting for about 70 percent of the world total in recent years. Total aquaculture production is increasing steadily and world aquaculture reached 90.4 million tons, with 66.6 million tons of food fish and 23.8 million tons of aquatic algae in 2012. Unconfirmed numbers state that world food fish aquaculture production rose 5.8 percent to 70.5 million tons in 2013. China alone accounted for 43.5 million tons of food fish and 13.5 of aquatic algae in 2013. China has had a CAGR of 5.5 percent in aquaculture production from the year 2000 through 2012. Total aquatic products in China amounted to 59.1 million tons, where seawater aquatic products represented 30.3 million tons or 51.34 percent and freshwater aquatic products amounted to 28,743,000 tons or 48.66 percent of the total production. Fish is the most produced product and accounts for almost 61 percent of the total production, followed by shrimp, prawn and crab and shellfish. The majority of the production is in the region Shandong, Guangdong, Fujian, Zhejiang and Jiangsu. These five regions represented more than 55 percent of the total production of aquatic products in China. All regions are located nearby water and fish and other aquatic products is a common source of protein for the inhabitants in these regions. Aquatic consumption As China’s processing and distribution systems become more developed and consumers rising affluence increases, their interest in a more diversified and nutritious diet, seafood consumption is on the increase. According to the National Statistics Bureau, the per capita consumption of aquatic products was 14.62 kg per urban dweller and 5.36 kg per rural inhabitant in 2011. Per capita consumption is expected to increase steadily, with strong growth potential in the rural sector. The per capita consumption of aquatic products is highest in coastal regions, for example in Shanghai and Guangdong, (where aquatic products have been a traditional source of protein) and locations with relatively high disposable income. Per the National Bureau of Statistics of China the overall price level of aquatic products increased 3.9 percent in July 2014 compared to the same month in 2013. Exports and imports China is by far the largest exporter of aquatic products in the world, with total exports amounting to USD 19.6 billion in 2013 compared to Norway that is the second largest exporter in the world with exports amounting to USD 10.4 billion. China has now become the third largest importer of aquatic products, behind only the United States and Japan. Total import of aquatic products in 2013 amounted to USD 8.0 billion. The increase in the import levels in China is mainly a result of outsourcing. China’s processors import raw material from all major regions, including South and North America and Europe, for re-processing and re-export. However, this growth also reflects China’s surging domestic demand of species not available from local sources. Recirculating Aquaculture Systems Recirculating aquaculture systems (“RAS”) is a technology that enables the same water to be reused within the same tank, and operates through filtering this water, at a high frequency, making it an efficient and environmentally friendly method to operate water tanks. The advantages of RAS include improved productivity, lower labor requirements and lower mortality rate of the animals. Historically, the Chinese population are used to fresh aquatic products and prefer locally produced food if they can be assured of food quality and safety. Studies show that consumers overall are willing to pay an average premium of 3.9 percent for Closed Containment Aquaculture (“CCA”) compared to conventional farming methods such as sea water farming. | |||||||||||||||||||||||||||||||||||||||||||||||||
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