WWW.WAS.ORG • WORLD AQUACULTURE • MARCH 2024 33 cases ingredient supply chains are so complex that feed companies themselves do not even know the origins of certain ingredients. As ingredients are combined to formulate a feed, the embedded liabilities of each of the ingredient supply chains are aggregated. All the ingredient liabilities are then passed on to the animal protein producer. The liabilities from farming the animal protein are then added to the liabilities of the feed and passed on to the animal protein buyer. Because the risks that are being passed through feed ingredient supply chains cannot be measured, they cannot be mitigated. Ideally, feed companies should be able to go on the record and inform their customers of the risks embedded in all the ingredients used in the feed the customers purchase. Feed companies have supply chains that draw on a variety of agricultural and animal byproducts and co-products that might otherwise be landfilled. Thus, feed companies can be considered at the forefront of circularity. But because of the secondary nature of many ingredients used in aquafeeds, the origins of their ingredients are seldom known. Feed companies may be purchasing product through many tiers of suppliers depending on what product is being sourced. They have developed complex algorithms to create least cost formulations based on species, life stages, nutritional requirements, Introduction Global food systems are estimated to be responsible for 70% of the water extracted from nature [1], cause 88% of deforestation [2], and generate up to 34% of human greenhouse gas emissions [3]. Food production is responsible for 70% of biodiversity loss [4], and 90% of fisheries are at or beyond their harvestable limits [5]. Animal protein production, especially the feed consumed by animals, is a major contributor to these impacts. An increase in global population and humanity’s animal protein consumption is driving the reliance on feed, which in turn brings feed and feed ingredient sustainability to the forefront. Since feed is now such a large component of animal husbandry, retailers and investors are both increasing attention on feed and associated challenges. However, animal protein producers, retailers and investors do not currently have sufficient knowledge of most of the environmental, social, and governance (ESG) risks embedded in ingredients used to make animal feed. While buyers of animal feed can obtain key nutritional information to ensure that health and optimal nutrition requirements for the animals are met, they usually do not get a complete breakdown of what ingredients are in the feed, in which proportions, where they are from, and how they are produced or manufactured. Feed formulations are proprietary, and in some “What Gets Measured Gets Managed” Aquaculture ESG Feed Ingredient Risk Tool Danny Miller, Sophie Ryan, Kristina Furnes, Tor Eirik Homme (CONTINUED ON PAGE 34)
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