Assurance bonds: A tool for managing environmental costs in aquaculture

Abstract

The environmental costs associated with coastal aquaculture, though poorly understood, can in some cases be quite large. The presence of risk, uncertainty and insufficient monitoring can greatly reduce the power of traditional economic instruments such as environmental taxes and tradable permit systems to internalize these costs. Using the Texas shrimp farming industry as a specific example, this article explores the potential of environmental assurance bonds (EABs) as an alternative economic instrument to internalize environmental costs of aquaculture production under such conditions. Drawing from previous literature, an explicit distinction is made between two mechanisms simultaneously incorporated in the EAB: a deposit‐refund incentive and social insurance. The article discusses the role of each of these mechanisms in shifting the environmental costs of production back to firm. Practical application of EABs in the Texas coastal shrimp farming industry is then examined.     

Generating information for aquaculture development: The art and science of economic policy modelling

Abstract

The rapid growth of aquaculture and concerns about economic and ecological ‘sustainability’ have focused attention on industry externalities. Developing institutions which ‘sustain’ aquaculture will require skills in the ‘art and science’ of public policy modelling. Analysis of existing approaches demonstrates that no single modelling paradigm is ‘best’ for all aquaculture policy situations. Modelling approaches other than cost‐benefit including multiobjective analysis may be more appropriate if the objective of the modeller is to improve the effectiveness of the policy process itself. A review of the relatively small but growing literature on aquaculture policy models reveals a wide range of issues and approaches. In general, economic models have focused on the single objective of maximizing efficiency; in contrast, models used in actual aquacultural policy and planning focus on controlling environmental pollution. The findings suggest that economic models have not yet played a significant role in aquacultural policy development. This raises concerns that myopic views of ‘sustainability’ will result in institutions which do not promote socially efficient aquacultural industry growth.     

On the drivers of cost changes in the Norwegian salmon aquaculture sector: a decomposition of a flexible cost function from 2001 to 2014

Abstract

Since 2005, Norwegian salmon farmers have experienced increasing unit costs, contrasting pre-2005 trends characterized by innovations, rapid productivity growth, and diminishing unit costs. This article investigates these cost changes using a panel of salmon producers. The drivers behind cost changes in the industry are identified for the period of 2001–2014 using a flexible cost function. In particular, it is explored how cost changes can be attributable to scale economies, negative productivity shocks, production expansion, and input prices. The results indicate that cost increases in the sector are affected by external factors out of the control of individual firms such as input prices and environmental conditions like sea lice.     

The Potential and Sustainability of Aquaculture in India

ABSTRACT

India is a very populous country with more than one billion people. In order to provide food for this growing population, serious environmental problems may result. Despite many benefits from the green, blue, and silver revolutions adopted in India, there has been much concern resulting from intensive agricultural practices that led to environmental problems in both terrestrial and aquatic ecosystems. Increasing demand for aquatic resources also caused inland fisheries to decrease over the past few decades. The location of aquaculture projects, landscape destruction, soil and water pollution by pond effluents, over-exploitation of important fish stocks, depletion in biodiversity, conflicts over agriculture and aquaculture among various stakeholder groups over resource and space allocation, and international fish trade controversies have threatened the long-term sustainability of fisheries and aquaculture industries. The subject of sustainable aquaculture has not been adequately projected in terms of current aquaculture practices aimed to boost a rural economy. This review briefly describes the key issues of aquaculture unsustainability in terms of intensive aquaculture, nutrient enrichment syndrome, soil and groundwater salinization, destruction of mangroves, loss of biodiversity, marine pollution and loss of fish stock, use of aquachemicals and therapeutics, hormone residues, etc. The strategies for sustainability have been highlighted with respect to rice-cum-fish culture, carp polyculture, integrated farming with livestock, rural aquaculture, intensification of small farms, wastewater-fed aquaculture, crop rotation, probiotics, feed quality, socioeconomic considerations, environmental regulations and fisheries acts, transboundary aquatic ecosystems, impact of alien species, ethical aspects of intensive aquaculture, responsible fisheries, and environmental impact assessment. A suggested model outlines the feedback mechanisms for achieving long-term sustainability through improved farm management practices, integrated farming, use of selective aquachemicals and probiotics, conservation of natural resources, regulatory mechanism, and policy instruments.     

Rice fields to prawn farms: a blue revolution in southwest Bangladesh?

This paper examines freshwater prawn (Macrobrachium rosenbergii) farming in southwest Bangladesh where a large number of farmers have converted their rice fields to export oriented prawn farms, locally known as gher. The gher design potentially provides good opportunities for diversified production of prawn, fish, rice and dike crops, that has brought about a ‘blue revolution’. The average annual yield of prawn, fish and rice was estimated at 467, 986 and 2,257 kg ha⁻¹, respectively. Large farmers produced higher production due to more inputs, larger farm size and longer experience of prawn farming than others. All farmers in different gher size categories (i.e., small, medium and large) made a profit, with seed and feed dominating variable costs. Despite a higher production costs per hectare, the average annual net return was higher in large farms (US2,426), compared with medium (US2,426), compared with medium (US1,798) and small (US$1,420) farms. Prawn production in gher systems has been accompanied by a great deal of social and economic benefits. Most farmers associate the blue revolution with increases in income and living standards. Socio-economic benefits of the households of prawn farmers depend on resource ownership (i.e., farm size) and are very apparent. Nevertheless, a number of significant challenges, particularly social and environmental issues, are vital in translating its benefits effectively to the thousands of rural poor.     

FRESHWATER PRAWN FARMING IN GHER SYSTEMS IN SOUTHWEST BANGLADESH

The livelihoods of a large number of farmers are associated with freshwater prawn (Macrobrachium rosenbergii) farming in gher (modified rice fields with high, broad peripheral dikes) systems in southwest Bangladesh. Most farmers integrated prawn with fish and rice in their gher and followed extensive methods using low inputs. Although farmers have improved their social and economic conditions through prawn farming, constraints include high production costs, low supply of wild fry and snail meat as prawn feed, lack of technical knowledge of farmers, and negative environmental impacts.     

Aquaculture in Egypt and issues for sustainable development

Abstract

Although aquaculture in Egypt has the potential for satisfying the increased demand for protein and has been experiencing unprecedented growth during the last decade, questions remain regarding the sustainable development of the industry. It is thus the objective of this article to review the current status and practices of the aquaculture industry in Egypt, highlighting the major issues confronting the sustainable development of the aquaculture industry.

Several issues are identified as limitations to future sustainable development, namely, production technology, fry supply, a feed industry sufficient to meet the demands of a growing aquaculture industry, and marketing and distribution systems necessary to accommodate the strong seasonal supply pattern. The article then concludes with a discussion of recommendations for alleviating these limitations.     

An overview of salmon trout aquaculture in Finland

Abstract

In this case study, we describe the evolution of Finnish salmon trout aquaculture; how salmon trout farming grew as a vital industry, how Finland became the world's leading producer of salmon trout, and how the opening of markets to international competition led to a decline of the industry. The focus is on the continuous interaction between the changing market situation and production decisions. The study reveals the impact of national environmental policy on the competitiveness of the industry. At the moment, the industry is undergoing major structural changes; production has moved to neighbouring countries, and the value chain is concentrated. In future, closer interaction and co‐operation between the actors along the entire fish value chain will be the key factors for success.     

Willingness-to-pay for value-added freshwater prawns

ABSTRACT

This article utilizes sensory analysis and auction experimental design to examine consumer willingness-to-pay for value-added freshwater prawns relative to the standard freshwater prawn. Although the combination of these two techniques has been previously applied to other food products, this is the first time that prawns have been the focus of such a study. Consumer willingness-to-pay was found to be significantly enhanced by two alternative salt processes, salt acclimation and marination. Results also show that salt acclimation had a stronger effect than marination on consumer bids, with flavor being the most significant sensory attribute.     

The solution to pollution? The value and limitations of environmental economics in guiding aquaculture development

Abstract

The notable increase of aquaculture production in recent decades has in many instances been matched by growing concern for its impacts. Environmentalists, consumers and members of the general public are increasingly demanding to account for its resource use and to balance its proposed benefits with its environmental sustainability. Although conventional financial and economic analyses have demonstrated a broadly positive impact for many forms of aquaculture, including the more intensive resource‐demanding systems, the use of economic tools embracing wider measurements of social and environmental costs and benefits might provide different and possibly more critical perspectives. However, although these techniques hold promise for such analyses, their development and application in sectors such as aquaculture are as yet limited. This paper reviews the relevant issues, considers the tools and applications of environmental economics and proposes ways in which these may be more effectively be applied in strategic and local decision‐making for aquaculture development.     

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.     

A Comparison of Two Feeding Technologies in Freshwater Prawns,Macrobrachium rosenbergii,Raised at High Biomass Densities in Temperate Ponds

ABSTRACT

Recent developments in prawn production technologies (i.e., added substrate, increased stocking densities, size grading, and increased feed rates) have increased production rates from 900-1,000 kg/ha to over 2,500 kg/ha. While prawn can receive substantial nutritional benefit from natural foods at the lower biomass densities, at higher production rates prawn are likely to be more dependent on prepared diets. To ensure that maximum production is being achieved by these new production technologies, production rates must not be nutritionally constrained. This study was conducted to compare the current recommended technology of phase feeding of different quality feedstuffs to prawns of different sizes with the feeding of a high-quality penaeid diet throughout the production season. Two treatments were evaluated: Treatment 1 was phase feeding (current technology-control) where prawns were fed unpelleted distillers' grains with solubles (DDGS) for the first four weeks, then a 28%-protein prawn diet for weeks 5-12, and finally a 40%-protein penaeid diet for weeks 13-16. In Treatment 2, prawn were fed the 40%-protein penaeid diet throughout the entire production period. Feeding rates in both treatments were based upon a feeding table. Three 0.04 ha ponds were used for each treatment. All ponds were stocked at 59,280 juveniles/ha and were provided with artificial substrate in the form of a polyethylene “safety fence” oriented vertically to increase available surface area by 50%. After 106 culture days, no significant differences (P >0.05) were observed between treatments in terms of yield, average individual weight, food conversion ratio (FCR), or survival, which averaged 2,575 kg/ha, 46 g, 2.3, and 94%, respectively, overall. Due to the higher cost of the penaeid diet (US$0.84/kg), feeding costs for the penaeid diet treatment (Treatment 2) were 38% higher than those for Treatment 1. No benefit to using higher protein diets during the first 12 weeks of prawn pond production was observed.     

Effect of Shelters,Densities, and Weight Groups on Survival,Growth and Limb Loss in the Freshwater Prawn,Macrobrachium nobilii (Henderson and Matthai, 1910)

Abstract

Three weight groups of juvenile prawn, M. nobilii, were raised at three stocking densities (22,38, and 77 prawns/m²) under three substrate conditions (sand, pebbles, and pebbles with shelter in the form of PVC pipe). Stocking density had a significant (P < 0.001) influence on the survival and growth of the prawn. A higher incidence of limb autotomy was recorded at the higher stocking density. Provision of pebbles and PVC pipe increased the survival, and mean growth rates, and reduced the percentage of limb loss.     

Quality Issues in the Danish Seafood Industry

Abstract

A questionnaire on quality management and measurement issues was conducted in the Danish seafood industry. The aim of the survey was to investigate to what extent the industry uses quality management systems, and which measurement methods are used. The results showed that the mandatory Own Check Systems, EU directive no. 91/439, were very well established. However, the application of more comprehensive systems was only found in 4% of the participating companies. Characteristics common to these companies were a high export rate, over 100 employees, and high turnover. The survey demonstrated that the measuring and control methods utilized by companies were mainly directed at controlling temperature, weight, sensory aspects, and microbes.     

The Effect of Biomass Density,Temperature, and Substrate on Transport Survival of Market-Size Freshwater Prawn,Macrobrachium rosenbergii

Abstract

After harvest, adult prawn are often transported for sales to live markets, such as ethnic Asian outlets, in major urban centers. Poor survival during transportation has hindered development and expansion of these markets. Methodologies to increase survival during transport could contribute to industry viability. Three independent trials were conducted. In the first trial, three biomass densities (25, 50 and 100 g/L) were evaluated in 100-L, open plastic containers aerated with pure oxygen and compressed air. Water quality analyses were performed prior to stocking. After 24 hours in the model transport containers, water quality analysis was conducted and all prawn were removed, determined to be alive or dead, and each group weighed and counted. There was no significant difference (P > 0.05) for prawn survival (overall mean 98%) among the three densities. Concentrations of dissolved oxygen and nitrite were not effected by hauling density (P < 0.05). Total ammonia-nitrogen and un-ionized ammonia-nitrogen concentrations increased (P < 0.05) as biomass densities increased, though values remained within what are considered tolerable ranges. In the second trial, the effect of added substrate and temperature on transport survival was evaluated with prawns stocked at the high density (100 g/L). Two water temperatures (21°C and 26°C) with and without substrate were evaluated in a 2 × 2 factorial with three replicate, 100-L model transport containers per treatment combination (12 containers total). Factorial analysis indicated no significant statistical interaction (P > 0.05) between the presence of substrate and water temperature on any measured variable. The main effects of substrate and temperature were then analyzed separately. The presence or absence of substrate had no significant impact (P > 0.05) on prawn survival. However, temperature had a highly significantly impact (P < 0.01) on survival; prawn survival at 21°C averaged 97% compared to 24% at 26°C. The third trial was a commercial verification trial in which 500 kg of live prawn were transported to New York from Kentucky. These data indicate prawn can be successfully transported at 100 g/L for 24 hours when temperatures are maintained near 21°C. Adding substrate to the transport tank appears to provide no benefit.     

Is aquaponics good for the environment?—evaluation of environmental impact through life cycle assessment studies on aquaponics systems

Aquaponics is often presented as a sustainable food production system that can reduce environmental costs of global food production; yet, its actual environmental effects are understudied. The aim of this research was to review the limited number of life cycle assessment studies dealing with aquaponics, and to highlight environmental cost and benefit of this practice. Our assessment highlights some of the problems, challenges, and advantages of aquaponics as a valuable food production system. We propose guidelines for future life cycle assessments of aquaponics that will facilitate policy and decision-making for farmers with respect to aquaponics.

     

Operating costs and health management strategies in shrimp hatcheries

Abstract

This paper presents a study of operating costs in shrimp hatcheries. Size effects are presented for fixed, variable, unitary, and marginal costs. Cost structures by functional production department and by cost‐category are discussed for a hypothetical 100‐million postlarvae/month hatchery in an industrialized country, and compared to those of a hatchery in a developing country. Health management issues, mainly measures commonly used to manage bacterial diseases, and their economic impact are discussed, focusing on the trade off between survival rates and sanitation down‐time.

Salaries and benefits represent the largest cost‐component (37%) for hatcheries in industrialized countries, while feeds and operating supplies constitute the most important costs in developing countries (60%). The need to import hatchery feeds and other operating supplies into developing countries works against savings from lower labor costs typical of developing countries.

Total fixed costs depend on the size of a hatchery and are constant for all possible levels of output. Average fixed cost per unit (thousand postlarvae) can be reduced by producing high postlarval outputs. Hatcheries in areas with seasonal shrimp crops face the challenge of covering fixed costs with revenue from a short production season. Hatcheries with large fixed costs can operate in a cost‐efficient manner only by producing high levels of output. Average total cost and average variable cost curves follow a U‐shaped curve, in which costs first decline as output increases, then reach a minimum, and finally increase as output increases above a point of diminishing returns.

In hatcheries total costs are independent of larval survival, but lower output resulting from low survival increases unit costs. This effect is more pronounced at lower levels of output. Bacterial diseases decrease survival rates and increase unit costs.     

Resistance to vibriosis,production performance and tolerance to stress of the selected giant freshwater prawn (Macrobrachium rosenbergii)

The purpose of this study was to evaluate the resistance to vibriosis, growth, survival and tolerance to stress of the selected prawn, second generation, compared to a non‐selected control. The first generation of selected giant freshwater prawn, which has 10.4% higher of resistance, was used to attain disease resistant freshwater prawn (Macrobrachium rosenbergii) generation through challenge test‐based selection. Resistance test was conducted by infecting the prawn (mean body weight of 10.29 ± 1.40 g) with pathogenic Vibrio harveyi (5 × 10⁵ cfu prawn^?1). The growth and survival of the prawn were evaluated by rearing the two populations of prawn in both nursery and grow‐out phases. Stress tolerance test was done by evaluating the viability of postlarvae exposed to environmental stressors, i.e. temperature, salinity, NH₃ and formaldehide. Post‐challenge survival of the selected prawn (55.0 ± 5.0%) was about 46% higher than that of the control (37.5 ± 7.5%). The survival of the selected prawn in nursery culture (77.16 ± 0.841%) was significantly higher (p < .05) than that of the control (51.31 ± 2.938%), while the survival in grow‐out culture was similar (p > .05). The growth of selected prawn (4.99 ± 0.03% day^?1) was significantly higher than that of the control (4.81 ± 0.05% day^?1). There was no difference between treatments on the tolerance level against the tested environmental stressor. Overall data suggested that the selected prawn showed better performance in growth and resistance against vibriosis.     

Acute Toxicity of Copper to Juvenile Freshwater Prawns,Macrobrachium rosenbergii

Abstract

Copper sulfate is an algicide that is commonly used for phytoplankton and filamentous algae control and has been used as a therapeutant in aquaculture. The objectives of this study were to determine the acute toxicity of copper sulfate and the safe level for use in freshwater prawn, Macrobrachium rosenbergii, production ponds in a high calcium and alkalinity environment. Six concentrations of copper sulfate (0, 0.2, 0.4, 0.6, 0.8, 1.0 mg/L) were tested in 8-L glass aquaria for 48 hours with three replicate aquaria per treatment. Concentrations of calcium hardness and alkalinity were set at 100 mg/L using calcium chloride and sodium bicarbonate, respectively. After 48 hours, survival of the control treatment (0% CuSO₄) averaged 97%, which was significantly higher (P< 0.05) than that of all other treatments. The survival in the 0.2 mg/L and 0.4 mg/L (70% and 73%, respectively) concentrations of CuSO₄ were significantly greater (P< 0.05) than higher dose treatments; but were not significantly different from each other (P> 0.05). Treatments containing 0.6, 0.8, and 1.0-mg/L copper sulfate demonstrated a dramatic decrease in prawn survival, which averaged 30, 7, and 0%, respectively. Regression analysis of the data predicted 48-hour LC₅₀ for copper sulfate tobe0.46 mg/L. Since recommended application rates for use of copper sulfate as an algicide are 1.0 mg/L or more for water with alkalinities of 100 mg/L, copper sulfate treatments are not recommended for prawn production ponds.     

Environmental problems,productivity and innovations in Norwegian salmon aquaculture

Abstract

Environmental issues have been of central importance throughout the history of salmon aquacuiture in Norway. In this paper we will examine some of the issues, and show that while there are still problems, many have also been resolved. A major reason for this is the fact that salmon farmers have internalized many of the environmental effects into their decision‐making due to the relationship between environmental impact and productivity. Another reason, particularly when it comes to treatment of diseases, is that lack of private innovative activity due to different market failures has been compensated for by government‐sponsored research and development.