3. Critical assumptions regarding the peruvian fishmeal industry

In order for us to put meaningful values on the unit operations that result in yield loss, it is necessary to make some assumptions (guesses). These are educated guesses that have been further modified by using very conservative figures. You might not agree with these so we should discuss them a little later in the presentation. These assumptions are outlined in Figure 10 and Figure 11.

3.1 % OF PRODUCTION BY CITY 3.2 5-11 YEAR AVERAGE FAQ FISHMEAL PRICE, HAMBURG LESS US$60 3.3 5-44 YEAR AVERAGE PERUVIAN LANDINGS 3.4 5-11 YEAR AVERAGE CRUDE FISH OIL PRICE, ROTTERDAM LESS US$60 3.5 HIDROSTAL PUMP 2:1 RATIO OF WATER TO FISH 3.6 PROTEIN + OIL IN DISCHARGE = FISH SOLIDS 3.7 CALCULATIONS

Several formula were developed in the EP3 project to convert data into tons of fish, tons of fishmeal and the value of the fishmeal. These are outlined in Figure 12 and Figure 13.

3.7.1 METRIC CONVERSION MG/L TO KG/TON 3.7.2 MG/L SOLIDS/500 = KG DRY SOLIDS LOST PER MT FISH 2:1 RATIO 3.7.3 MG/L SOLIDS/1000 = KG DRY SOLIDS LOST PER MT FISH 1:1 RATIO 3.7.4 5:1 CONVERSION OF RAW FISH TO FISH MEAL 3.7.5 KG DRY SOLIDS X 1.11 = KG FISH MEAL AT 10% MOISTURE 3.7.6 KG OF FISHMEAL LOST/TON OF FISH X $381/TON = REVENUE LOST US$ 3.7.7 ASSUME 2000 HOURS PER SEASON OF OPERATION AT A CAPACITY OF 50 TONS OF FISH/HOUR (1 LINE)

If we assume 2000 hours per season of operation at a capacity of 50 tons/hour, we come up with a plant that processes 100,000 metric tons of fish per season. Figure 14 gives the expected material balance for a typical plant. It is based on 1000 kg of fish and assumes that there are no losses.