China’s aquaculture sector is going through a period of major consolidation, according to executives at Chengdu, China-based Tongwei Group, a producer of aquafeed, tilapia, and catfish.
China’s cage aquaculture acreage has shrunk by 51 percent between 2014 and 2017, while earthen pond space has dropped by 8.5 percent in the same timeframe, according to Tongwei executives speaking at the company’s year-end conference.
China’s aquaculture sector is going the way of the country’s increasingly consolidated pork and poultry sectors, Gao Li Song, aquaculture consultant at Tongwei’s feed plant in Yangcheng in Jiangsu Province – a key production region for freshwater species like crabs – said at the conference.
“Small players are gradually withdrawing from this industry,” Gao said. “The future will be about scale, standardization, and automation.”
Also at its conference, the company announced its “Tongwei Fish 4.0” plan, which calls for the construction of a chain of aquaculture parks where tenant farmers – who will also supply Tongwei plants – can be assured they’re meeting all the new environmental regulations which have forced the closure of many smaller operators in recent years. Aquaculturists can also avail themselves of Tongwei nutritional advice, feed, and fry on site.
Tongwei has also sought to become a solar power pioneer by installing solar panels over its aquaculture ponds.
China’s government has long looked to and championed “dragon heads,” or regional champions, like Tongwei to help it meet goals such as promoting food safety and reducing farm-related pollution and disease through the promotion of standardization and model production parks. Under its current Five-Year Plan, China’s government wants 2,500 “demonstration” aquaculture parks built nationwide by 2020 and wants 65 percent of all aquaculture production to be classified “healthy” by that same date.
Photo courtesy of Tongwei
