The aquaculture industry faces a critical challenge in ensuring a stable supply of essential omega-3 fatty acids, EPA, and DHA, amidst increasing demand and environmental constraints.
Feed companies are exploring algae-based oils, GM crops, and other novel ingredients to revolutionize aquafeed sustainability.
With advancements in technology and strategic collaboration across the value chain, these alternatives may reshape global aquaculture, reducing reliance on finite marine resources while maintaining high nutritional standards.
Industry leaders like Skretting, Cargill, and Veramaris are spearheading innovation in this space.
Bastiaan van Tilburg, CEO of aqua feed major, Skretting, emphasizes that the company has long identified the securing of adequate supplies of EPA and DHA as a critical challenge for industry growth and sustainable global nutrition.
Skretting is working to ensure a stable and reliable supply of these essential fatty acids, he says.
“We are witnessing a significant shift in the aquaculture value chain, with it transitioning from a sector with a short-term operational focus to one with a long-term vision and strategic contracts.
“This change paves the way for sustainable growth and collaboration, positioning Skretting as a key facilitator in scaling up novel ingredients, driving innovation, and fostering partnerships that deliver value across the entire industry.
“Skretting is committed to leading the way in securing a sustainable and stable supply of EPA and DHA for aquaculture.
“As a leading global player, we take a proactive approach, exploring market opportunities and maintaining close dialogue with all stakeholders in the value chain to identify scalable and innovative solutions.”
Algal oil
Ted Andreas Mollan, ingredient solutions director, Cargill, also stresses the clear need to find alternative sources of EPA and DHA to mitigate the impact of cyclic weather events and address the emerging supply-demand gap.
One such alternative to fish oil in respect of delivering essential omega-3 fatty acids is algal oil.
“In our salmon feed business, we began commercial use of algal oil more than five years ago, and in 2022, it became a standard ingredient in all salmon feed in Norway. Since then, we have continued to increase algal oil inclusion in our raw material basket.
“Our goal is to further expand the use of alternative EPA and DHA sources in the coming years by collaborating closely with our suppliers and customers,” explains Mollan.
Increased scalability
The algae oil market is set to grow as technologies mature and economies of scale are achieved, according to van Tilburg.
“Over the next decade, we anticipate increased scalability, improved cost competitiveness, and broader adoption of algae oils in aquafeeds. Algae oil is already a staple of our Skretting’s novel ingredient portfolio, and we expect its role to expand further as we lead innovation in sustainable aquaculture.”
Looking to how algae-based sources of EPA and DHA compare to fish oil in terms of bioavailability and nutritional outcomes for fish and shrimp, the Skretting lead comments:
“Algae-based oils offer comparable bioavailability and nutritional efficacy to fish oil, delivering high-quality EPA and DHA to fish and shrimp. They have the added advantage of being a consistent and sustainable source. Skretting’s R&D teams have conducted extensive trials to ensure the performance of algae oils meets the exacting standards required for optimal growth and health outcomes in aquaculture.”
Mollan tells us that, based on internal and external trials, Cargill finds that EPA and DHA from heterotrophic algae are highly digestible and effectively utilized by both fish and shrimp.
“Animals perform well when algal oil serves as the primary source of omega 3, even when the oil contains only DHA. This has been thoroughly documented, spanning feed formulation, fish growth, processing, and final consumer testing in Cargill’s Millennial Salmon project,” he adds.
Affordability
Asked about the cost point at which algae-based oils will become a viable mainstream alternative to fish oil, the Skretting CEO says:
“Novel ingredients, and in this case algae oil, can become a viable mainstream alternative to fish oil when the cost aligns with the added value they bring. They offer greater flexibility by expanding sourcing options and reducing reliance on traditional ingredients leading to reduced volatility and lowering risk by diversifying the supply base, stabilizing supply chains, and minimizing market fluctuations.
“The response of the market will guide us in this transition, determining the cost point at which these benefits outweigh the price premium and drive broader adoption.”
According to Mollan, one of the biggest obstacles to the sustainable growth of alternative EPA and DHA sources is the volatile availability and pricing of fish oil.
“This volatility makes long-term investments and volume commitments more challenging. While some markets have long-term strategies that encourage growth, others adopt opportunistic approaches, further adding to the uncertainty for companies investing in alternative EPA and DHA production. More innovative ‘on-demand’ production solutions may help overcome these challenges.”
GM crops, yeast, and bacteria sources
Skretting is also supporting the development of other sources of omega 3.
“We are investing in long term partnerships across the value chain with high potential suppliers and customers. We explore and test a wide range of alternative omega 3 production technologies.
“In addition to algae oils, we are investigating genetically modified (GM) crops, single-cell organisms like yeast and bacteria, and other fermentation-based technologies. These efforts are part of our broader strategy to diversify feed ingredients, ensuring resilience and flexibility in our supply chain while minimizing social and environmental impact.
“By 2050, an estimated 9.5 billion people will need to be fed. Our ambition is to help meet this growing food demand sustainably. To achieve this, we must address and overcome regulatory challenges to expand our ingredient portfolio.
“Collaboration across the value chain, coupled with market-driven adaptation, will be key to tackling these challenges effectively,” outlines van Tilburg.
And Cargill has been involved in US trials with camelina, a potential omega-3 source.
“The camelina trials in the US are part of a long-term project aimed at supplying sustainable plant oils. Growing camelina as a winter cover crop provides ecosystem benefits, including reduced greenhouse gas (GHG) emissions and additional income for farmers.
“Camelina oil contains high levels of the omega-3 fatty acid ALA but no EPA or DHA. Since the omega-3/omega-6 ratio is important for fish performance and welfare, camelina oil is a viable alternative plant-based oil, particularly for salmon feed,” explains Mollan.
Case study
We ran a Q&A with Ian Carr, senior director, global business development, at Veramaris, a supplier of an microalgae-based source of EPA and DHA.
He first outlines Veramaris’ strategy for growing its business.
“Since 2019, when Veramaris launched its state-of-the-art facility for producing algal oil, the company has established itself as a reliable supplier of essential omega-3 EPA and DHA fatty acids for aquafeed, pet food, and human supplements. Our algal oil has already been incorporated into over 2 million tons of salmon feed worldwide, and our factory has been operating at full capacity this year. This solid foundation positions us for the next phase of our growth journey: expansion.”
As regards the progress his team has made in strengthening collaborations with key stakeholders in the aquafeed and pet food industries, Carr tells us:
“From the outset, our innovative algal oil product was paired with an equally innovative business model centered on collaboration across the value chain to create new and impactful ways of generating value. Value chain collaboration is a critical driver for developing more sustainable food systems, particularly where additional costs and compromises may be required to facilitate meaningful change.
“Notable examples include the commitment of UK retailers to the WWF Basket initiative, French retailers to the Earthworm aquafeed program, and Walmart, all of which are encouraging their aquaculture supply chains to reduce reliance on wild-caught marine ingredients in feed. These efforts align with the target of achieving a forage fish dependency ratio (FFDR) of less than one, meaning fewer wild fish is used relative to the number of farmed fish produced.
“Veramaris plays a vital role in enabling fish and shrimp farmers to meet these goals by reducing dependency on wild-caught fish ingredients without compromising the nutritional quality of their feed. Our algal oil ensures that EPA and DHA levels remain high, supporting the health and growth of farmed seafood.”
Veramaris is addressing the challenges of scaling the production of its algal oil to meet potential increases in demand…
“We plan to double production at our existing facility in Blair, Nebraska, and are currently making the necessary preparations to achieve this in the coming years. However, ensuring a consistent return for our shareholders is critical, which means our growth will depend on strategic collaborations throughout the value chain.
“Having made considerable progress in the adoption of algal oil as a key feed ingredient, we are now calling on fish and shrimp farmers to maintain their commitment to using algal oil in feed formulations, regardless of the volatility in fish oil markets. This is essential to ensuring that adequate levels of omega-3 EPA and DHA continue to be available, supporting the growth of sustainable aquaculture and providing healthy seafood for consumers.”
Carr maintains that algae-based sources of EPA and DHA compare favorably to fish oil in terms of bioavailability and nutritional outcomes for fish and shrimp:
“Veramaris' algal product is supplied as an oil, making it easy to incorporate into feed as part of the oil blend. It is ASC-MSC certified, meaning it is eligible for use in ASC-certified feed. As the richest source of both EPA and DHA essential fatty acids, with a potency of 65%, our algal oil ensures optimal nutrition for farmed animals.
“Even tiny amounts of algal oil have a significant impact on increasing omega-3 levels in the feed, which benefits the performance, health, welfare, and overall quality of farmed seafood.
“Scientific studies show that higher levels of EPA and DHA improve fish health by enhancing their resistance to pathogens and stress, resulting in better welfare outcomes. Our commercial farm and big data studies also demonstrate that higher EPA and DHA levels in salmon feed led to reduced variability in mortality, lower feed conversion ratios (FCR), superior harvest quality, less melanosis, and improved color. We take a science-based approach to quantifying the nutritional benefits of our product. This year alone, we published five peer-reviewed articles in scientific journals to support the application of our algal oil.”
Veramaris is working on decarbonizing its operations…
“At Veramaris, we recognize the critical importance of reducing carbon footprints across the seafood supply chain. As part of our commitment, we have set a Science-Based Target to continually reduce greenhouse gas (GHG) emissions and the carbon footprint of our products. Using 2021 as our baseline year, we aim to achieve a 37.8% reduction in Scope 1 and 2 emissions by 2030, and a 22.5% reduction in Scope 3 emissions by 2030.
“This will result in an overall reduction of 12,000 tons of CO2e by 2030, primarily by controlling key inputs such as dextrose and steam, and by continuously improving our production processes. We report our progress annually in Veramaris’ GHG Emissions report, and we also share our product carbon footprint directly with customers, periodically updating it to reflect ongoing improvements.
“Additionally, this year, we began participating in regenerative agriculture initiatives that generate emissions reductions, which can be inset against our Scope 3 emissions, the largest portion of our total emissions.”
A call to action to industry…
“The demand for EPA and DHA is growing as the global population of both people and animals increases. It is widely recognized that most people and animals do not get enough of these essential nutrients in their diets to fully benefit from their well-documented health advantages.
“Additionally, we do not foresee substantial increases in nutrient extraction from wild-capture fisheries, as many of these are already fully fished or, in some cases, overfished. While there is still potential to improve the recovery of nutrients from seafood processing waste, the world is increasingly reliant on new sources of omega-3 LC-PUFA, both now and in the future. Algal oil is, by far, the leading solution in this space.
“Veramaris has already played a critical role in supporting the feed industry during a recent crisis in omega-3 supply from traditional fish oil sources. When the Peruvian anchoveta fishery collapsed, the price of EPA and DHA surged significantly. Without algal oil stepping in to fill the gap, the crisis could have been far worse.
“To avoid such disruptions in the future, the industry must work together to build a reliable market for algal oil, allowing companies like Veramaris and others to expand. For this reason, we are confident that the future is bright for algal oil, and we look forward to leading the growth of this exciting and vital market.
Echoing Mollan’s comments, the CEO says algal oils are already a competitive alternative to fish oil, as illustrated during the recent fish oil supply crisis:
“Even at today’s fish oil prices, algal oil remains a viable ingredient for raising EPA and DHA levels in aquafeed, while increasing the proportion of these nutrients sourced from certified sustainable sources.
“The challenge is not so much the cost of algal oil, but rather the extreme volatility in fish oil availability, which creates significant price uncertainty for feed formulators. In contrast, the price stability of algal oil provides a dependable ‘hedge’ for feed companies, offering more predictability in formulation costs and better control over the nutritional quality of feed through a consistent supply of these essential nutrients.”
Veramaris welcomes new market entrants in this space…
“It’s no surprise that interest from new entrants in the algal oil market is growing. Veramaris has demonstrated that it is possible to produce a viable product at scale and at a price point that the market is willing to accept. We welcome competition, as it drives innovation and advancement in the industry.
“At the same time, we are confident in our position to outperform competitors and continue to lead growth in this exciting market.”
