Stockfeed processor Ridley Corporation is to pay $1 million a year to an ongoing prawn feed research alliance with CSIRO which promises potential gains for land-based livestock feed regimes, too.
Prawn growth rates have increased by at least 40pc in trials conducted by the company in Thailand and at Yamba on the NSW North Coast.
“There is a reasonable likelihood that Novacq can have a positive application in other species, not only fin fish, but also potentially for land-based animals,” said Ridley managing director, Tim Hart.
“Improved growth and survival rates at a fraction of what we are seeing in prawns, could similarly revolutionise the poultry industry, for example.
“Very small improvements in feed conversion ratios already lead to significant commercial returns in poultry, due to the sheer volume of birds being processed on a daily basis.”
Novacq is a natural prawn feed ingredient additive developed during 10 years of CSIRO research which has used marine microbial processes to work as a metabolic stimulant in prawn feed diets.
It increases the prawn’s food intake and permits the animal to utilise feed more efficiently, enabling it to grow faster and use less feed.
Ridley has also extended its current licence agreement with CSIRO, winning the international rights to market the natural prawn feed ingredient, Novacq.
Under the research alliance with CSIRO, Ridley will contribute annual cash funding of $1m so the parties can further advance collaborative research relating to the existing Novacq technology.
An annual program will be established to improve Novacq’s application as a stock feed additive in a range of species.
Novacq is currently produced at Ridley’s Yamba operating site and has been included in feed for prawn trials at Mackay in Queensland.
Ridley’s applied research and development efforts in the past two years using feed product trials, including Novacq ingredients, consistently demonstrated growth rate improvements in the vicinity of 40pc or more.
The trials also exhibited improvements in animal well-being via enhanced resistance to viral or bacterial attacks and better survival rates.
The groundbreaking feed also promises to help replace scarce fishery resources such as fish meal in prawn diets, which is important to overall industry sustainability.
Novacq has generated worldwide interest, prompting Ridley to extend its existing licence agreement which has covered Australia, Thailand, Indonesia, Malaysia and the Philippines, so it now has exclusive rights to produce and market the additive worldwide.
The agreement covers new applications for Novacq, including potentially its use as a feed additive for species other than prawns and crustaceans.
Mr Hart, said a key factor in committing to Ridley had been the extent of the company’s investment and progress at Yamba, and Chanthaburi in Thailand.
Last year Ridley acquired a 49pc stake in a feed mill in Thailand where new prawn feed diets will be manufactured.
“We are transporting the technology and knowhow developed at Yamba to Thailand, where there are significant opportunities to scale up our production activity in a low cost, ideal climate environment,” he said.
“Extending our licence agreement provides us with the rights to market and sell Novacq into the remaining world prawn markets, of which Ecuador and India are the two most prominent producers.”
CSIRO’s aquaculture research director, Mat Cook, said the national research institution viewed the Novacq opportunity as “a perfect example of our commitment to innovation”.
“We are excited to be partnering with a like-minded local organisation in Ridley to take Australian science to the world.”
Ridley’s Mr Hart said the prospects for Novacq were exciting and his company was working hard to reduce the costs of goods sold and prove up the commercial benefits and value proposition to prawn farmers.
“Until we have progressed further with of these activities, particularly with regard to the three potential value streams of growth, health and reduced nitrogen levels, we are unable to provide a financial quantification of the project benefits,” he said.
“We are, however, increasing our confidence in generating a positive return for Ridley shareholders with the passing of each project milestone.”
Ridley’s share price, which hit highs around $1.60 a year ago, has traded around the $1.27 mark this year.