China Freshwater Pond Aquaculture Update The total pond area was 2.7 million ha, accounting for 43.9% of the total FW aquaculture area (6.14 million ha) in 2015. Over 71.2% freshwater aquaculture production was from pond operation, which is the most important sector. The average pond production was 8,128 kg/ha. Fish Yield: 7,852 kg/ha

Challenges and Opportunities Limited water and land resources Poor pond facilities, more pollution and difficult to manage Increasing diseases and using more chemicals Increasing production costs and less profitability for fish farmers…

China Aquaculture Development Trend Innovation of aquaculture technology Intensification of aquaculture production

In-Pond Raceway Aquaculture Technology (IPA) It’s a new aquaculture technology which has been developed based on the principles of conventional pond culture and raceway production. Traditional Open Pond Culture In-pond Raceway Confinement Culture

USSEC IPA Model In-pond raceway: 22 x 5 x >2 m QZ: 3-4 m wide

Sketch of In-pond Raceway Aquaculture Technology (IPA) Water flow Open pond for non-fed species Baffle White water units In-pond Quiescent zone raceways/cells for Water flow fed-species Operation Platform

Advantages of USSEC IPA Technology Improve fish production and survival Improve FCR and feeding efficiency Minimal use of drugs and chemicals to ensure food safety Reduce production costs per unit of fish production Better inventory control with a 100% catch rate without discharging any water More fish species to be cultured to minimize market price risks

Advantages of USSEC IPA Technology Increase cash flow through staggered stocking and harvesting Easier fish health management and production operation Capture of 70% of nutrients for removal and use as a crop fertilizer Zero water discharge for environmental protection and sustainable development

IPA Adoption in China The USSEC IPA technology has been highly promoted and adopted in more 10 provinces and cities since the first IPA demo was conducted in 2013. Over 140 farmers have adopted the USSEC IPA technology. The total scale of in-pond raceways was over 150,000 m2

USSEC IPA Demonstration Update The USSEC has conducted 7 IPA demonstrations in 2016. More freshwater fish species are being tested in the IPA system, including grass carp, black carp, crucian carp, wuchang carp, largemouth bass, channel catfish, snakehead, tilapia etc. The USSEC IPA technology has been highly recognized and prioritized by the NEC/MOA as one of the new and modern aquaculture technologies to be promoted in China. The USSEC IPA technology has been reported by various medias and local TV stations.

Promotion of U.S. Soy 100% IPA demonstrations used the U.S. soybased feed; 2 aquafeed mills (Techbank and Xiexin) were contracted to produce the U.S. soybased feeds for FY16 feeding trials; 1 cold water fish trial (rainbow trout) was added into the USSEC/China aquaculture program to further increase the use of U.S. soy; Provided more technical service to aquafeed mills and aquaculture farms to promote the U.S. Soybean Sustainability Assurance Protocol (SSAP) and aquaculture sustainability.

New IPA Developments in China The new model of auto waste collection device and auto-feeder have been developed for IPA system.

New Auto-Feeder for IPA

New IPA Developments in China The new model of auto-monitoring and alarm devices have been developed and used for IPA system.

New IPA Developments in China More freshwater fish species are being tested in the USSEC IPA system. Grass carp Largemouth bass Black carp Japanese perch Common carp Pacu Crucian carp Tilapia Wuchang carp Channel catfish Yellow catfish ………

IPA Publications/Papers

USSEC IPA Demonstration Results in China Red Tilapia Grass Carp

Lu’an City, Anhui Province Inventory Harvest Results of the USSEC IPA Demonstrations in 2016 Location Lu’an City, Anhui Province Fish species Grass carp (182 days) Yellow Catfish (119 days) Stocking size (g/fish) 250 40 Stocking density (fish/cell) 12,000 76,000 Harvest size (g/fish) 1,576 118 Survival rate (%) 98.3 96.6 Fish yield (kg/m3) 84.5 40.3 Total fish production (kg/cell) 18,591 8,663 Feed conversion rate (FCR) 1.4 1.3 Return of investment (%) 7.0 51

Songjiang District, Shanghai Inventory Harvest Results of the USSEC IPA Demonstrations in 2016 Location Songjiang District, Shanghai Fish species Grass Carp (260 days) Black Carp (260 days) Stocking size (g/fish) 1,530 100 Stocking density (fish/cell) 8,600 10,000 Harvest size (g/fish) 2,800 900 Survival rate (%) 99.5 99.2 Fish yield (kg/m3) 119.8 44.7 Total fish production (kg/cell) 23,951 8,929 Feed conversion rate (FCR) 2.07 1.19 Return of investment (%) 11.2 41.3

Hangzhou City, Zhejiang Province Channel Catfish (180 days) Inventory Harvest Results of the USSEC IPA Demonstrations in 2016 Location Hangzhou City, Zhejiang Province Fish species Channel Catfish (180 days) Japanese Perch (180 days) Stocking size (g/fish) 90.9 2.0 Stocking density (fish/cell) 20,000 15,000 Harvest size (g/fish) 865 375 Survival rate (%) 97.9 53 Fish yield (kg/m3) 78.4 18.6 Total fish production (kg/cell) 12,555 2,985 Feed conversion rate (FCR) 1.62 1.4 Return of investment (%) 50.4 27.7

Jianhu County, Jiangsu Province Channel Catfish (195 days) Inventory Harvest Results of the USSEC IPA Demonstrations in 2016 Location Jianhu County, Jiangsu Province Fish Species Channel Catfish (195 days) Wuchang Carp (195 days) Stocking size (g/fish) 40 71 Stocking density (fish/cell) 25,000 40,000 Harvest size (g/fish) 326 350 Survival rate (%) 98 99 Fish yield (kg/m3) 37 63.6 Total fish production (kg/cell) 8,150 14,000 Feed conversion rate (FCR) 1.5 1.4 Return of investment (%) 39.8 29.2

Multiple Win Program USSEC IPA Technology Aquaculture Industry Friendly environment Food safety Sustainability Fish Producers Higher production Easy to manage Better economics Less labor….. Aquafeed Industry More feed demand Better economics….. USSEC IPA Technology U.S. Soy Family More soy demand Good for soy farmers & USSEC….. Multiple Win Program

FY17 Work Schedule Continue to promote the use of U.S. soy through feeding demonstrations, seminars, technical service and field visits; Conduct 7 IPA demonstrations and 1 rainbow trout trial with U.S. soybased feeds; Conduct one lab research to compare the U.S. soy vs other origin for collecting the first hand information; Contract 2 aquafeed mills to produce the USSEC formulated trial feeds with U.S. soy only; Continue to organize national-level IPA forum to discuss about IPA status, constraints and research needs for better transfer and dissemination of the USSEC IPA technology;

FY18 Work Focus SUSTAINABLE AQUACULTURE Provide more technical service to aquafeed mills and end users to create more awareness of U.S. Soy Sustainability Assurance Protocol (SSAP), generate more preference and demand for the U.S. soy in China SUSTAINABLE AQUACULTURE Sustainable Technology (IPA) Sustainable U.S. Soybased Feeds

The Global Soy in Aquaculture program strives to promote a profitable and sustainable approach to aquaculture that specifically shows the utility and value of U.S. soy products

U.S. SOYBEAN EXPORT COUNCIL Rm. 1802 Shanghai Int’l Trade Center THANK YOU U.S. SOYBEAN EXPORT COUNCIL Rm. 1802 Shanghai Int’l Trade Center No. 2201 Yanan Xi Lu Shanghai 200336, P.R. China Tel: (86)-21-6219-1661 Fax: (86)-21-6219-5590 ehzhou@ussec.org

China Aquaculture Overview Jim Zhang, USSEC China Aqua Program Manager January 2017 Panama City