The competitiveness of the Chilean salmon aquaculture industry

Abstract

Commercial salmon and trout farming has emerged as a major industry in Chile during the 1990s. Salmon is not a native species to Chile, still excellent climatic conditions are provided for farming. Since 1992 Chile has been the second largest producer of farmed salmon and trout in the world after Norway. This report reviews the development of the Chilean salmonid industry from its early stages until today with respect to production patterns, legislation and main markets. A cost comparison between Chilean and Norwegian farmed salmon is also provided. Finally, the international competitiveness and future challenges of the Chilean salmonid farming industry are analysed.     

The development of the Norwegian wrasse fishery and the use of wrasses as cleaner fish in the salmon aquaculture industry

Norway leads the world aquaculture production of Atlantic salmon Salmo salar and farmed Norwegian Atlantic salmon is currently consumed around the globe. However, sea lice infestation is a major problem faced by the salmon aquaculture industry in Norway and elsewhere. The use of wild-caught cleaner fish, mainly wrasses, has been recommended over the other available methods as the most economical and environmentally friendly option to control sea lice infestation in salmon farming. Here, we review the development of the Norwegian wrasse fishery and the use of wrasses as cleaner fish. In this document, we address the sea lice problem and introduce the main wrasse species employed as cleaner fish, document the cleaning behaviour of wrasses, present the development of a new wrasse fishery associated with the salmon aquaculture industry, and finally, we identify the main challenges associated with the intensive use of wild-caught cleaner wrasses and provide some insight for future directions of the wrasse fishery and further development of aquaculture techniques to supply salmon facilities with domesticated cleaner fish.     

Salmon aquaculture in Chile

Abstract

Commercial salmon and trout farming has emerged as a major industry in Chile during the last two decades. Salmon is not a native species to Chile; however, excellent climatic conditions are provided for farming activities in the southern part of the country. After negligible production volumes during the early years, the harvest levels accelerated in the late 1980s, and since 1992 Chile has been the second largest producer of farmed salmon and trout in the world after Norway. This report reviews the development of the Chilean salmonid industry from its early stages until today with respect to production patterns, legislation and main markets. A cost comparison between Chilean and Norwegian farmed salmon is also provided. Finally, the international competitiveness and future challenges of the Chilean salmonid farming industry are analysed.     

Financial ratios and prediction on corporate bankruptcy in the Atlantic salmon industry

ABSTRACT

This article addresses the issue of credit risk in the salmon industry. During the period 2000–2002 the Norwegian salmon industry witnessed a period of low prices leading to a wave of defaults and bankruptcies. The consequences were large monetary losses for both investors and banks, highlighting the importance of early detection of failing firms. Using financial ratios measuring the firms’ financial status prior to this event, two credit risk models are developed; one using logit regression and the other Classification and Regression trees. The performance of the two models developed is compared to a cross-industry benchmark model developed by the Norwegian Central Bank. The model estimated on industry data is better at separating between companies with high and low credit risk in the salmon industry compared to the benchmark model.     

Aquacultural development,institution building and research and development policy: Norwegian salmon and Arctic char farming as cases

Abstract

During the past 20 years, Norwegian salmon fanning has grown to achieve export sales of 7 billion Norwegian kroner (NOK). In the same period, Arctic char has been promoted as a lucrative farmed species. Paradoxically, despite the well‐documented advantages of Arctic char farming, this commercial activity has not prospered. Here I study the interaction between research and development and fish farming, and how this interaction affects industrial development within salmon farming and Arctic char farming, respectively. Effective communication between these systems presumes organization by some superior structure that controls the flow of industrial information to the research system, and prepares research results for industrial utility. The focus here is on: the perceptions of industrial actors of tasks for the research community; how researchers interpret and respond to these tasks; how the results are imparted to the fish‐farmers; and how the research results function in practice. I contend that adequate conditions for interaction between research and industrial activity exists for salmon farming, but not for Arctic char farming.     

Economic analysis of land based farming of salmon

Abstract

Land-based farming of salmon is emerging for a number of reasons. The demand for salmon is increasing in many parts of the world. In recent years there has been limited growth in production due to binding government regulations and environmental challenges in sea-based salmon aquaculture. This is true both for Norway (sea lice, salmon escapes) and Chile (sea lice, disease problems), the two largest producers of salmon. Growing demand and limited expansion in production have made for a very profitable industry. At the same time, there have been technological developments when it comes to land-based farming (a technology used for smolt production and species such as sole and turbot), and cost of production has changed. Currently, land-based salmon farming is in operation or in development in several countries including the USA, Denmark, and Norway. In this paper, the economics of land-based salmon farming in a Norwegian context is presented, with an emphasis on the relative competitiveness of this vis-à-vis sea-based farming. If successful, land-based farming could potentially have an important impact on the dynamics of the salmon market.     

Valuation of salmon farming companies

Financial statement information is important for evaluating a firm’s performance, and for forecasting its future cash flows. This paper studies the relationship between financial accounting information and market valuation for publicly listed salmon farming companies. Of special interest is the impact on market valuation, of a requirement for salmon farmers to disclose the effect on their financial numbers of the fair-value adjustment of biomass. The results suggest that the fair-value adjustment results in higher volatility of profits, and lower value relevance for investors.     

Prediction of size-dependent risk of salmon smolt (Salmo salar) escape through fish farm nets

The escape of small smolt through farm cage netting is a major challenge faced by the Norwegian salmon farming industry. Escape can occur when the smolt placed in the cages are smaller than the size estimated by the farmers. Furthermore, one may assume wrong mesh-properties as the cage netting change shape and/or state from stiff (mesh bars with tension) to slack (mesh bars without tension) due to sea currents or waves and become more suitable for penetration. The latter represents an increased risk for cages placed in more exposed sea areas, which is a growing trend in the industry due to increased demand for farming sites. The potential influence of mesh shape and state on the risk of escape from salmon farm cages is predicted. The morphological characteristics of salmon smolt are assessed and used to determine the risk of potential escape through meshes of different sizes, shapes and states. The results showed that fish smaller than 47 g and 201 g have the potential to escape through 30 mm and 50 mm meshes, respectively. In general, the risk of smolt escape is highest when the meshes in the netting are slack. Semi-slack meshes with mesh openness of between 65 and 95 % also present a higher risk of smolt escape than square stiff meshes. The highest risk of escape was identified at approximately 80 % mesh openness. This study illustrates the importance of mesh states in fish farming cage nettings. In many cases the minimum smolt size needed to maintain an escape risk below 1 % was approximately twice as large for slack square meshes than for stiff square meshes of the same size.     

New organizational forms within the aquaculture industry: The fish‐farming enterprise as a ‘virtual’ organization

Abstract

The international aquaculture industry is characterized by a global integration process with increasing competition across borders and continents. The rapid development of technology, the extended market rivalry due to new firm entries, and the elevation of quality standards in the international seafood market place a heavy strain on the strategy development process of aquaculture enterprises. In this article, we focus on the ties between strategic positioning in the market and the organizational configuration of the firm. The virtual organization is introduced as an organizational form for a dynamic fish‐farming enterprise. A virtual organization is characterized by flexible borders, emphasis on external cooperative relations and networks instead of ownership integration, and norm‐based relational contracts as focal governance mechanism. The results from an in‐depth, longitudinal study of a Norwegian fish farming enterprise are presented.     

Challenges and emerging technical solutions in on-growing salmon farming

Farming of Atlantic salmon has grown rapidly from its start in the early 1970s until today, with production approaching two million tonnes. Sea cages are the dominant production system for the on-growing stage of salmon farming. It represents an effective production system with lower investment and running costs than land-based systems. The development and improvement of the sea cage farming system has been one of the most important factors for the growth of the salmon farming industry. However, during recent years certain problems related to their placement in the open marine environment have proved highly challenging, increasing operating costs and impacting on industry public relations. The problems are mainly due to parasites, diseases and escape of fish. In this article, emerging technical solutions for solving those problems are described.     

DETERMINANTS OF INEFFICIENCY IN NORWEGIAN SALMON AQUACULTURE

This article builds on the literature investigating productivity and efficiency in the Norwegian salmon farming industry. The objective of this article is to investigate the determinants of inefficiency. We use a stochastic frontier approach that allows the estimation of a production function and an inefficiency function. The sources of inefficiency can be separated into temporary shocks and factors that lead to permanent efficiency differences. The results indicate an improvement in technical efficiency over time. This improvement can partly be explained by a restructuring of the industry, with firms becoming bigger and more specialized, as well as by improvements in government regulations. The inefficiency that is still present is mainly the result of temporary shocks. Disease outbreaks seem to be the most important of these temporary shocks, as disease problems lead to early harvesting or destruction of the fish and thereby, obviously, increase inefficiency.     

Variation in semen production of farmed Atlantic salmon and rainbow trout

The variation in semen production among farmed Atlantic salmon (Salmo salar) and rainbow trout (Salmo gairdneri) has been studied. Both species were stripped at weekly intervals, the Atlantic salmon four times and the rainbow trout three times.The individual variation in volume of semen was very high, particularly in rainbow trout. The total volume of semen obtained was 137 ml (20 ml/kg body weight) in Atlantic salmon and 23 ml (5 ml/kg body weight) in rainbow trout. The intraclass correlation for volume of semen was estimated at 0.73 in Atlantic salmon and at 0.59 in rainbow trout. The correlations between volume of semen and body size (weight and length) were all positive. They were all significant and medium in Atlantic salmon whereas in rainbow trout they were all low and significant only for volume of semen at first stripping.The number of males needed to supply the Norwegian fish farming industry with semen is discussed. It is concluded that the possibility of disseminating genetic improvement throughout the whole population of farmed Atlantic salmon and rainbow trout by transport of semen from selected males is considerable.     

Comparison of growth rate in Atlantic salmon,pink salmon,Arctic char,sea trout and rainbow trout under Norwegian farming conditions

Growth rates of Atlantic salmon, pink salmon, Arctic char, sea trout and rainbow trout were compared under Norwegian farming conditions. During the juvenile, freshwater period, growth was fastest in pink salmon, followed by rainbow trout and Arctic char. Freshwater growth of sea trout and, especially, Atlantic salmon, was slow. After transfer of smolts or fingerling to sea water, Arctic char failed to survive the autumn. Sea water growth of sea trout was slow, but the three species, rainbow trout, Atlantic salmon and pink salmon, all grew rapidly through all seasons. When in sea water, rainbow trout and pink salmon were regularly attacked by vibriosis, while Atlantic salmon were rarely attacked, and sea trout never. It is concluded that, for commercial farming in Norway, rainbow trout are of value for production of fish of any size up to 3–4 kg, and pink salmon for production of small fish of 0.5–1.5 kg. Atlantic salmon is the only species suitable for production of a very large salmonid, i.e., more than 4–5 kg.     

Mortality and weight loss of Atlantic salmon,Salmon salar L., experimentally infected with salmonid alphavirus subtype 2 and subtype 3 isolates from Norway

Pancreas disease (PD) caused by salmonid alphavirus (SAV) has a significant negative economic impact in the salmonid fish farming industry in northern Europe. Until recently, only SAV subtype 3 was present in Norwegian fish farms. However, in 2011, a marine SAV 2 subtype was detected in a fish farm outside the PD‐endemic zone. This subtype has spread rapidly among fish farms in mid‐Norway. The PD mortality in several farms has been lower than expected, although high mortality has also been reported. In this situation, the industry and the authorities needed scientific‐based information about the virulence of the marine SAV 2 strain in Norway to decide how to handle this new situation. Atlantic salmon post‐smolts were experimentally infected with SAV 2 and SAV 3 strains from six different PD cases in Norway. SAV 3‐infected fish showed higher mortality than SAV 2‐infected fish. Among the SAV 3 isolates, two isolates gave higher mortality than the third one. At the end of the experiment, fish in all SAV‐infected groups had significantly lower weight than the uninfected control fish. This is the first published paper on PD to document that waterborne infection produced significantly higher mortality than intraperitoneal injection.     

Betaine supplementation enhances the seawater adaptation of salmon, Salmo salar L.

Abstract. The growth of the Atlantic salmon, Salmo salar L., aquaculture industry has been tremendous; from a modest beginning, today's world production of salmon farming is close to 260 million tonnes in ten different countries. In particular the last 20–30 years have seen a dramatic increase in annual sales and production.
The methods vary. From exploiting the natural migrations of this anadromous fish, sea ranching has produced a viable industry. However, controlling the entire life cycle in closed systems has been more successful.
The growth of the farming industry is seriously hampered by such factors as diseases and parasites, algae blooms, environmental pollution, sabotage and rough seas. Several of these factors will not easily be eliminated, although methodical research and development could make the fish farming industry more efficient. Most of the fish farming is situated in remote regions, and the product has to be transported to heavy populated areas for sale, often across borders. The approximate average production costs per kilo differ according to the organization of the industry, average salary, the feed costs and the industrial hurdles, expressed as loss of fish, due to a variety of factors. Even though the market is growing, we must expect fierce competition. Farms producing fish of high quality at low cost will survive. The industry needs healthy fish in well-run farms, smart farmers and a government which helps the industry with reasonable regulations, guidance, applied and basic research, and insight into the future.     

Reduced sensitivity of the salmon louse, Lepeophtheirus salmonis, to the organophosphate dichlorvos

Abstract. Anecdotal reports from the Scottish fish farming industry suggested a reduction in the sensitivity of salmon lice, Lepeophtheirus salmonis , to the organophosphate dichlorvos. In this study, pro-adult and adult lice were collected from marine salmon sites showing a variety of 'sensitivities' to dichlorvos and subjected to dichlorvos exposure at a range of doses for a 48-h period in vitro. From the lice mortalities, 24 and 48 h LC50 values were calculated, and using a 'sensitive' source of lice as a reference, resistance ratios calculated. The data generated suggests that L. salmonis from different geographic areas shows differences in sensitivity to dichlorvos. The implications for the salmon farming industry are discussed.     

Comparison of the Nutritional Quality of Fish Meals Made from By-products of the Alaska Fishing Industry in Diets for Pacific Threadfin (Polydactylus sexfilis)

The nutritional quality of 13 commercial fish meals (10 from pollock, two from salmon, and one from cod) made from by-products of the Alaska fish processing industry was determined in diets for the marine fish Pacific threadfin Polydactylus sexfilis . Pelleted feeds were manufactured containing these meals as complete replacement of a low-temperature processed Norwegian fish meal (control). These feeds were fed to triplicate tanks of fish at the facilities of the Oceanic Institute, Hawaii for a period of 9 wk. At the end of the trial, the final weight, feed efficiency, protein efficiency ratio and survival data were subjected to ANOVA procedures. The performance parameters of the fish fed the white fish meals (pollock and cod) were not significantly different from the control. Of the two salmon meals, one promoted good growth and efficiency and one did not. It is concluded that the nutritional quality of Alaska white (pollock and cod) fish meals is equivalent to that of the low-temperature Norwegian fish meal and are of suitable quality for inclusion in commercial feeds for Pacific threadfin.     

Precision biometrics data of Atlantic salmon (Salmo salar L.) in commercial grow-out sea-cages: Manual sampling and infrared diode frames compared to processing plant

One of the critical challenges that the global salmon farming industry will confront when upscaling production is accurate biomass control. Commercial salmon farming requires a significant level of certainty regarding fish count, average weight measurement, live weight distribution, and other production indicators. A reliable control system for assessing the biomass of farmed Atlantic salmon is essential for sustainable and cost-effective precision aquaculture. A study was done in four production sea-cages in a Chilean Atlantic salmon marine grow-out farm to estimate the average weight and frequency distribution utilizing the Vaki Biomassdaily® diode frames as an alternate technology to manual weight measurement. From post-smolt reception to fish harvest, diode frames were put in each sea-cage in a secure position for 15 months. There were no significant changes in length or average weight between manual sampling and frame estimate. The mean degree of accuracy for the average weight estimation was 98.83 % for the frames utilized in the four sea cages. The diode frames also achieved a high degree of precision in predicting the frequency distribution of fish. There were no statistically significant variations between the distribution variances of the diode frame measurements and the distribution variances of the fish received at the fish processing facility (FPF). The maximum difference between the average weight calculated by the frames and the average weight of the fish received in the processing facility was 2.4 %, with 99.66 % being the highest accuracy with only 19 g of difference. We determined that diode frames might replace manual weight assessments with greater reliability for growth monitoring and production management. To assure the optimal performance of the diode frames in terms of accuracy and precision for future commercial-scale validations in the salmon farming business, the development of a standard best practice manual is necessary.     

Spatiotemporal distribution of Atlantic cod (Gadus morhua L.) with intact and blocked olfactory sense during the spawning season in a Norwegian fjord with intensive salmon farming

In several areas along the Norwegian coast local fishermen claim that wild migrating Atlantic cod (Gadus morhua L.) have changed their spawning migratory behaviour following establishment of salmon farms, and no longer enter their natural spawning grounds in the fjords. This has created a heated debate in Norway and, in some areas, passed down a moratorium on establishing new salmon farms. Research has so far not been able to show a causal connection, but it has been suggested that water-soluble odorants from high density salmon stocks in commercial fish farms might be responsible for the avoidance of areas with fish farming and abandonment of nearby traditional spawning grounds. The aim of this study was to test this hypothesis by studying the spatiotemporal distribution of wild migrating cod tagged with acoustic transmitters using an array of automatic listening stations in Øksfjord, a Norwegian fjord with intensive fish farming and traditional spawning grounds for cod. The tagged cod were released either in the outer parts of Øksfjord, i.e. in the area they were caught, or in the inner part of the fjord close to their traditional spawning areas. The olfactory sense was physically blocked for 50% of the fish. Only one cod released in the outer part of the fjord visited the traditional spawning grounds. The majority of the cod that were released in the inner part of the fjord remained in this area for approximately three weeks before they left the fjord. There were no differences in spatiotemporal distribution between cod with intact and cod with blocked olfactory sense. Thus, the results provided no evidence that migrating wild cod avoid areas with fish farming as a response to odorants, but the results do not per se contradict the fishermen's observation that coastal cod have changed their migratory pattern in this fjord.     

Effect of smolt age on migratory behaviour of Baltic salmon, Salmo salar L., transplanted to the east Atlantic

Abstract. This paper describes tests which were made to determine if smolt age at release influences the migratory pattern of three different stocks of salmon, Salmo salar L. The fish were hatchery-reared and released in two different rivers, the River Imsa and the River Akerselv. Based on the tag returns we found that Baltic salmon from the River Neva, USSR differed in migratory pattern from two Norwegian stocks from the River Lone and the River Imsa. A large proportion of the 2+ River Neva smolts stayed in the fjord during the summer and autumn after release. On the other hand, 2+ smolts of the Norwegian stocks left the fjord and migrated to the feeding areas in the Norwegian Sea within a short time after release. The 1+ smolts of all stocks showed the same migratory pattern as the 2+ smolts of Norwegian origin. We propose that the observed differences in migratory pattern are influenced by the developmental rate of the smolts. The effect of developmental rate on the migration may differ among stocks. Our results show that it is possible to develop a fjord fishery by releases of 2+ smolts of Neva salmon. However, such releases must be carried out with the utmost caution, preferably in fjords with no salmon rivers, so that the possibility of gene flow between populations is minimized.