ANTICIPATING THE GROWTH OF AN OCEAN AQUACULTURE INDUSTRY

In assessing the future expansion of aquaculture in coastal-ocean environments, most studies focus only on the constraint posed by the local environmental assimilative capacity. In open-ocean environments, however, the assimilative capacity is difficult to gauge. We develop an alternative economic approach for projecting the growth of the open-ocean aquaculture industry. We evaluate equilibria in the market for seafood, where the product may be supplied either by a wild-harvest fishery or open-ocean aquaculture or both. In our framework, the net demand for farmed fish determines the size of the aquaculture industry and, in turn, the levels of pollution discharges. We illustrate our approach with a case study of a groundfish fishery and the proposed open-ocean aquaculture of Atlantic cod in New England. We find that, for a range of competitive production costs for aquaculture, the optimal industry structure would comprise both a wild-harvest fishery and aquaculture.     

The potential impact of summer flounder (Paralichthys dentatus) aquaculture on regional flounder price

Abstract

Increasing consumer demand for flounder and dramatic reductions in ocean flounder harvests have raised interest in summer flounder (Paralichthys dentatus) aquaculture. Flounder farmers have several potential markets, including regional seafood dealers and high‐end niche (e.g., sashimi and ike‐jime) buyers. Prices paid by buyers are exogenous to typical aquacultural budgeting models, yet they are a key determinant of potential profitability. We develop a simple economic model to assess the impacts of aquaculture industry supply on prices paid by regional seafood dealers. The model is parameterized for a region with established flounder dealers and active field research in flounder production methods. We derive the price elasticity of regional seafood dealer demand for farmed flounder, and we examine the impacts of changes in production cost and ocean harvest on regional price and the level of aquacultural production that maximizes returns to the aquaculture industry.     

DEMAND FOR AQUACULTURE PRODUCTS IN TAIWAN: AN APPLICATION OF THE GENERALIZED MODEL

ABSTRACT

Policy decisions on what aquaculture products to develop require information on consumer demand for cultured species. However, information on the structure of demand for aquaculture products is limited and what few studies there are in Taiwan, where aquaculture is a major industry, suffer from methodological problems. To clear up some of these problems, we used modified nonnested testing techniques and performance forecasting to determine which generalized models could best estimate the demand for Taiwanese aquaculture products. The results of modified nonnested testing of the aquaculture demand system showed that prices predetermined and quantities predetermined could be used to estimate demand. The generalized ordinary demand model was able to better forecast performance than the generalized inverse demand model. We used the likelihood ratio test to discriminate among the four competing models for the generalized ordinary model; the AIDS model could be more suitably applied to the data. A more general model that is able to incorporate different dynamic structures (partial adjustment, first autoregressive, and static). This general framework is applied to the AIDS model. The first autoregressive AIDS model we used to calculate the own and cross-price elasticities for milkfish, tilapia, shrimp, shellfish, and carps found that price elasticities varied across fish type, that some products had high long-run own price elasticities, and that the demand for aquaculture products was largely determined by inertia.     

A model to assess trade-offs between environmental impact and profitability of offshore salmon farms: A case study on Chile

ABSTRACT

In recent decades, aquaculture has emerged as a viable method to help supply the growing global demand for seafood; however, expansion of the industry comes with potential negative impacts. Regulatory decisions governing aspects like aquaculture farming practices and farm siting inherently lead to trade-offs between profitability and the health of the surrounding environment through impacts including pollution, disease, and disturbance from escaped fish. Efficiently and sustainably scaling up aquaculture will require the development of methods for explicitly examining the trade-offs among these impacts and socioeconomic objectives. We developed a model to assess these trade-offs and illustrate the approach with a case study of salmon aquaculture in southern Chile. In the case study we found evidence that all 21 farms with approved permits may be underperforming on both profitability and the protection of ecosystem health. Our model suggests that explicit evaluation of trade-offs can illuminate the potential for improvements on multiple outcomes simultaneously.     

An overview of aquaculture in Turkey: With emphasis on sea bass and sea bream

Abstract

Aquaculture is a relatively recent industry in Turkey, enjoying great potential for development. Both freshwater and marine aquaculture are being practised in over 800 operational units. Rainbow trout (Oncorhynchus mykiss), Sea bream (Sparus aurata), Sea bass (Dicen‐trarchus labrax), comprise 90% of the total production, together with Atlantic salmon (Salmo salar), Common carp (Cyprinus carpio), Shrimp (Penaeidae spp.) and Mussel (Mytilus gal‐loprovincialis). Total aquaculture production reached 45 450 t in 1998, constituting 9% of total national fisheries production. Sea bass and sea bream farms are located along Aegean Sea and Mediterranean coasts and comprised 16% of the total number of aquaculture enterprises and 30% of total aquaculture production in 1997. Supplies of these two species have been steadily increasing in Turkey and other producing countries since 1990 resulting in market saturation and declining prices both locally and internationally. Mediterranean species including Epinephelus spp., Puntazzo puntazzo and Pagrus pagrus, are considered to be new candidates offering good prospects for mariculture.     

Evaluation of Diquat as a Potential Algicide for Controlling the Musty-Odor-Producing Cyanobacterium,Oscillatoria perornata,in Catfish Aquaculture Ponds

ABSTRACT

The synthetic herbicide diquat was applied to a catfish aquaculture pond containing a heavy bloom of the cyanobacterium Oscillatoria perornata(a major contributor to musty off-flavor in farm-raised catfish) in order to determine the effectiveness of diquat as a selective algicide to prevent musty off-flavor in cultured catfish. Levels of the musty-odor compound 2-methylisoborneol (MIB) and numbers of O. perornata were monitored. Results indicate that diquat is not useful as an algicide for controlling O. perornata in catfish aquaculture ponds, despite its usefulness in controlling other aquatic weeds.     

Sustainable commercial aquaculture: A survey of administrative procedures and legal frameworks

Abstract

Commercial aquaculture which, for this paper, is defined as the rearing of aquatic organisms that is profit oriented and primarily by the private sector, contributes to food security, directly by producing food fish, and indirectly by generating employment, and thus, income for the purchase of food. In addition, commercial aquaculture can be sustainable because it depends on private, rather than public funds that are usually lacking or scarce. The paper describes some enabling policies that are conducive to the promotion of commercial aquaculture. In particular it focuses on administrative and legal frameworks. The paper concludes that development of aquaculture can be enhanced by legislation specific to the sector rather than relying on general fisheries legislation; such a legislative framework (particularly for land‐based aquaculture) would resemble that of agriculture. Regulations require expensive and time‐consuming monitoring and enforcement; they should focus on environmental protection and a sustainable industry.     

Comanagement for aquaculture: Suggestions from a comparative study between two major production areas of milkfish in the Philippines

ABSTRACT

This study examined if, and how, comanagement is effective in controlling aquaculture industry in the municipalities of Anda and Bolinao in the province of Pangasinan, in the Philippines, the locations of two major production areas of milkfish (Chanos chanos) in the country. Institutional and community analyses conducted in these study sites revealed a unique hierarchy of resource users, as well as unique social and economic problems in aquaculture, distinct from those of capture fishery. It was also indicated that comanagement is seen as a solution for essential practices to be enforced practically and sustainably for the management of this industry. To improve aquaculture governance, it is desired that the comanagement scheme shall include not only the governments and fishers but also business operators who often have large capital and a high degree of power.     

In situ hypochlorous acid generation for the treatment of brackish shrimp aquaculture wastewater

This study presents an unconventional framework for treating shrimp aquaculture wastewater based on in situ hypochlorous acid (HOCl) oxidation. The in situ oxidation process makes use of the salinity present in aquaculture wastewater to generate HOCl. The undivided electrolytic cell consisted of two sets of graphite as the anode and stainless sheets as the cathode. The electrochemical oxidation of shrimp aquaculture wastewater was carried out for an influent COD concentration of 1730 mg L^?1 at current densities of 37.2 and 74.5 mA cm^?2. The results showed that in order to achieve a residual COD concentration of 50±5 mg L^?1 at current densities of 37.2 and 74.5 mA cm^?2, electrolysis periods of 60 and 30 min are required respectively. Hence, for the above‐mentioned current densities, the corresponding energy requirements were found to be 19.4 and 13.3 W h L^?1. The cost incurred in treating 1 m³ of shrimp aquaculture wastewater was found to be RM 4 and 3 when the electrolytic reactor was operated at a current density of 37.2 and 74.5 mA cm^?2 with a salinity of 23‰. The foregoing study highlights the potential of in situ HOCl oxidation in treating brackish shrimp aquaculture wastewater.     

Justification for genetic improvement in growth rates of black bream (Acanthopagrus butcheri): A partial budgeting analysis

Abstract

Black bream (Acanthopagrus butcheri) appear an ideal candidate for the developing saline aquaculture industry of inland Western Australia. However, current maximum growth rates of 150g/annum are too slow for profitable production. This study investigated whether enhanced growth rates of black bream would improve profitability and justify a genetic improvement program. A partial budget analysis was conducted for two different fish production systems; a commercial operation that incurred more operating expenses due to costs associated with farm initiation (stand‐alone farm model), and an existing farm that diversified into aquaculture using the saline water resources of established farm dams (integrated farm model). Sensitivity analyses indicated that a 33 per cent increase in growth rate to at least 200g/annum would allow either production system to return a profit at a farm‐gate price of AUS$6/kg whole fish, with fish survival rates of 98 per cent for the stand‐alone farm, and 65 per cent for the integrated farm model. These results are discussed in the context of the genetic and economic consequences of selection for improved growth rates, and for developing breeding objectives and a genetic improvement program for black bream.     

Economic characteristics of extensive shrimp farms in the Mekong delta

Abstract

Extensive forms of shrimp aquaculture have become an important source of income for farm households in the brackish water region of the Mekong Delta, Vietnam. The economic and production characteristics of farms are discussed in this paper, based on a 1997 farm survey, with particular emphasis on shrimp farming practices. Two types of shrimp fanning practice were observed, one based on natural recruitment of seedstock with few supplementary inputs, and the other based on relatively high cash investments in Penaeus monodon seedstock and other inputs. Households practising monodon culture made significantly more income, but faced high risk associated with shrimp mortality. An investigation of the factors affecting monodon yields indicated that investment in higher quality inputs had a positive effect on yield and income. However, further research is needed on the extent to which management can reduce risk of shrimp mortality by investing in such premium quality inputs.     

A review of production frontier analysis for aquaculture management

Abstract

This paper examines recent advances in production economics with special reference to efficiency measurement using production frontiers and its implications for aquaculture management. Compared with agriculture and other industries, the use of production frontiers in aquaculture is still very limited. However, in recent years several frontier applications in aquaculture have appeared in the literature, suggesting potential applications of these techniques in aquaculture. A synopsis of stochastic frontier production function model and data envelopment analysis (DEA), the two most popular approaches to efficiency measurement, is presented, followed by a review of recent frontier studies in shrimp, carp and tilapia production. The paper concludes with a brief discussion of future development and prospects of frontier applications for aquaculture management.     

Common and Emerging Diseases in Commercially-Cultured Summer Flounder,Paralichthys dentatus

Abstract

Infectious diseases are one of the most common causes of losses in commercial aquaculture for all life stages of fish production. Parasitic infestations such as Trichodinasp., Cryptocaryonsp., Amy-loodiniumsp., Trypanoplasmasp., and monogenic trematodes may have detrimental health consequences when present in high numbers within a cultured population. Bacterial agents such as Vibriosp., Edwardsiellasp., Flexibactersp., and Mycobacteriumsp. may be dormant in some populations but then result in high morbidity or mortality when the fish become stressed by environmental or nutritional factors. Viral diseases are more difficult to diagnose but there are reports of lymphocystis and other viral diseases occurring in flounder species. Many of these diseases result in similar clinical signs of disease. For accurate disease diagnosis, appropriate methods must be implemented to identify and prevent the introduction or dissemination of disease in an aquaculture facility.     

Price volatility dynamics in aquaculture fish markets

Abstract

In this paper, a time-varying student-t copula is used to capture information on price volatility dependence in the short-, medium-, and long-run horizon in the US market for frozen and fresh salmon, trout, tilapia and catfish. Using monthly data from July 1992 to March 2017, the volatility dynamics for these aquaculture species are assessed. The analysis allows indicating significant differences in the volatility relationships, depending on time-frequency. While short-run volatility has limited dependency, there is significant dependency in both the medium- and long-run, indicating that market integration is stronger in the long-run. The information is particularly important to buyers and producers utilizing the futures markets, as contracts are typically traded using a set of frequencies, and may help them manage and reduce price risk.     

BIOECONOMICS OF RESERVOIR AQUACULTURE IN VIETNAM

Reservoir aquaculture has developed in an ad hoc manner in Vietnam to date. A bioeconomic model of reservoir aquaculture in northern Vietnam is presented in this paper to highlight issues of developmental importance of reservoir aquaculture in Vietnam. The biological model is based on a conventional von Bertalanffy growth function and the economic model is a net revenue function. The greatest source of costs for the operation are restocking costs (75%) and contract labor costs (18 percent). Benchmark net revenue is approximately 8.7 million VND (approximately US$539). The stocking density, length of time between stocking and harvest and harvesting efficiency have the largest impact on net revenue. The inclusion of aquaculture into government fisheries development plans with research focused on development of fingerling production, preparation of flooded land for aquaculture production and strengthening institutional arrangements for reservoir leasing and credit arrangements, is likely to lead to increased capitalization and investment, and therefore greater revenues for local fishing populations.     

Assessing the population transmission dynamics of tilapia lake virus in farmed tilapia

A novel virus, tilapia lake virus (TiLV), has been identified as a key pathogen responsible for disease outbreak and mass mortality of farmed tilapia. We used a deterministic susceptible‐infectious‐mortality (SIM) model to derive key disease information appraised with published TiLV‐induced cumulative mortality data. The relationship between tilapia mortality and TiLV exposure dosages was described by the Hill model. Furthermore, a disease control model was proposed to determine the status of controlled TiLV infection using a parsimonious control reproduction number (R_C)‐control line criterion. Results showed that the key disease determinants of transmission rate and basic reproduction number (R₀) could be derived. The median R₀ estimate was 2.59 in a cohabitation setting with 2.6 × 10⁵ TCID50 fish^?1 TiLV. The present R_C‐control model can be employed to determine whether TiLV containment is feasible in an outbreak farm by quantifying the current level of transmission. The SIM model can then be applied to predict what additional control is required to manage R_C < 1. We offer valuable tools for aquaculture engineers and public health scientists the mechanistic‐based assessment that allows a more rigorous evaluation of different control strategies to reduce waterborne diseases in aquaculture farming systems.     

Development of California Halibut,Paralichthys californicus,Culture

Abstract

In contrast to freshwater aquaculture and the culture of anadromous species such as salmon, marine fish culture is in its infancy. The small larval size of many marine species presents significant challenges to culture, however, these highly valuable fish offer considerable promise for aquaculture. A particularly attractive group for marine aquaculture is the flatfish. The California halibut, Paralichthys californicus, with a range in nature from Washington State south to Baja California Sur, Mexico is one such species.

With the goal of enhancing the fishery for this species, a hatchery program was developed over a decade ago. The hatchery at Redondo Beach, California, maintains a group of adults that routinely spawn throughout most of each year. Further development of routine culture and juvenile growout techniques ultimately aimed at commercial aquaculture was initiated last year with support from the California Sea Grant College Program.

Profitable commercial ventures culturing various flatfish species already exist in other parts of the world, but development of a flatfish culture industry in California confronts unique challenges. Two challenges in particular are the relatively high cost of energy and stringent environmental regulations. To meet these challenges, a culture system built around recirculation technology is being developed that would allow for an energy-efficient industrial-like approach to the culture of California halibut while minimizing environmental impacts.     

Risk efficient juvenile haddock production systems: An ex‐ante recursive stochastic approach

Abstract

The risk efficient live feed system for juvenile haddock production is derived through recursive ex‐ante stochastic cost estimation. Four alternative feeding technologies are simulated to capture the economic costs associated with live feed and juvenile production and scale economies are investigated by simulating three production levels. Using Monte Carlo simulation techniques, multivariate stochastic cost functions are derived in a time‐dependent recursive production model. With the current technologies and price levels, land‐based juvenile haddock production is viable. The marginal impact, in terms of cost‐savings, to additional research on optimal feeding periods will be minimal. On the other hand, the high opportunity cost of capital used in aquaculture production, due to numerous perceived risk premia, may pose a more immediate constraint for capital formation and industry development.     

First application in Turkey of the European Non‐native Species in Aquaculture Risk Analysis Scheme to evaluate the farmed non‐native fish,striped catfish Pangasianodon hypophthalmus

The European Non‐native Species in Aquaculture Risk Analysis Scheme (ENSARS) was used to assess one of the most popular aquaculture species in the world, the striped catfish Pangasianodon hypophthalmus (Sauvage, 1878), in two locations of southern Anatolia (Turkey). The overall mean risk score generated for P. hypophthalmus by the ENSARS Organism module (which assesses the risks of introduction, establishment, dispersal and impact) indicated that the species poses a medium risk under current climatic conditions. All other ENSARS modules rendered scores that indicated a moderately low risk under current climatic conditions. However, the risks of introducing novel diseases and the actual use (e.g. deliberate introduction to the natural habitats or food market) of the species both attracted scores indicating a medium risk. Confidence levels were medium or high for all modules except the Socio‐economic, with low confidence values also attributed to the risks for farming process of the organism, and its overall risk of spread into the wild during farming procedures and to marketing impacts. Recommendations are provided for further use of the ENSARS scheme, especially for a a priori assessment of potential aquaculture species in Turkey, where the sector has been remarkably developing in the last decades.     

Risk of exceeding bioeconomic limit reference points in shrimp aquaculture systems

Abstract

Designing intelligent management strategies for shrimp aquaculture systems require recognising the uncertainty and risks associated with different processes of aquaculture production. To account for natural variability and other sources of uncertainty, estimates of appropriate aquaculture bio‐economic indicators are needed to re‐evaluate periodically the production system and establish new reference points and corresponding management strategies. This paper concentrates on this aspect of the management process and presents a simple classification of indicators and reference points for aquaculture production systems. The uncertainty causing variability in the estimated values of bio‐economic parameters is incorporated through the use of Monte Carlo analysis to estimate the probability of exceeding limit reference points. To illustrate this process, the risks (i.e. probabilities of exceeding bioeconomic limit reference points) associated to alternative timing of harvesting decisions were estimated by randomly generating uncertain prices and natural mortalities with the appropriate probability density functions and corresponding variance. Alternative approaches to deal with risk and uncertainty in data limited management contexts are discussed.