Preface ix
1 Introduction 1
2 The Production Process in Aquaculture 7
2.1 Salmon production 9
2.1.1 Biological system 9
2.1.2 The grow-out phase 12
2.1.3 The physical system 15
Bibliography 16
3 The Supply of Salmon 17
3.1 Farmed salmon production 17
3.1.1 Norway 18
3.1.2 Chile 23
3.1.3 United Kingdom 26
3.1.4 Canada 29
3.1.5 Other farmed salmon producers 30
3.2 Wild salmon production 31
3.3 Regulation of salmon aquaculture 34
3.3.1 Norway 34
3.3.2 Scotland 36
3.3.3 Chile 38
3.4 The growth of large multinational companies 39
Bibliography 41
4 Productivity Growth and Technological Change 43
4.1 Declining costs 43
4.2 Scale 45
4.3 Structure of production costs 48
4.4 Smolt production 51
4.5 Improved feed quality 52
4.6 Diseases and increased survival rates 53
4.7 Breeding 55
4.8 Cycles in profitability 56
4.9 Catching up: regional differences 58
4.10 Productivity development in Norway relative to other producers 59
4.11 Cost reductions in the supply chain 62
Bibliography 63
5 Environmental Issues 65
5.1 The fish meal trap 65
5.1.1 Fisheries management 66
5.1.2 The markets for oil meals 69
5.1.3 Concluding remarks on the fish meal trap 72
5.2 Local issues 73
5.2.1 Organic waste 74
5.2.2 Antibiotics and chemicals 76
5.2.3 Salmon escapees and sea lice 78
5.2.4 Concluding remarks 80
Bibliography 80
6 Markets for Salmon 83
6.1 The European Union markets 84
6.1.1 France 85
6.1.2 Germany 88
6.1.3 United Kingdom 89
6.1.4 Spain 90
6.1.5 Italy 91
6.1.6 Denmark 92
6.1.7 Poland 93
6.2 The Japanese salmon market 94
6.2.1 Japanese salmon supply 97
6.2.2 Outlook for the Japanese salmon market 99
6.3 The United States salmon market 100
6.3.1 US seafood consumption 100
6.3.2 Imported fresh and frozen salmon 103
6.3.3 Market trends 105
6.4 The Russian market 105
6.5 Price development 107
6.5.1 Real versus nominal price 108
6.5.2 Exchange rates 109
6.5.3 Prices in different markets 110
6.5.4 Prices in different weight classes and for different product forms 113
Bibliography 116
7 Competitiveness and Market Structure 119
7.1 What is a market? 119
7.1.1 Market size 121
7.1.2 Market power 122
7.2 The salmon market 123
7.2.1 Pacific salmon 124
7.2.2 The early development of the Atlantic salmon market 125
7.2.3 Early development of the farmed Pacific salmon and salmon trout market 126
7.2.4 Fresh versus frozen 126
7.2.5 Declining prices, new sales outlets and product forms 127
7.2.6 Salmon and supermarket chains: a marriage made in heaven 129
7.3 The size of the market 131
7.4 Salmon marketing 133
7.4.1 Health benefits, food scares and environmental concerns 134
7.5 Trade restrictions 136
7.5.1 Trade restrictions in the salmon market 139
Appendix: a market model 142
Testing for market interactions 147
Bibliography 148
8 Lessons for Other Farmed Species 151
8.1 Other farmed species 151
8.1.1 Shrimp 151
8.1.2 Sea bass and sea bream 153
8.1.3 Turbot 156
8.1.4 Tilapia 157
8.1.5 Other species 160
8.2 Lessons from other farmed species 160
Bibliography 162
9 Optimal Harvesting of Farmed Fish 163
9.1 A biological model 164
9.2 Bioeconomic analysis 165
9.2.1 Zero costs 166
9.2.2 Harvesting costs 168
9.2.3 Feed costs 168
9.3 The rotation problem 169
Appendix: optimal harvesting of farmed fish 171
A biological model 171
Bioeconomic analysis 172
Harvesting costs 175
Feed costs 177
Feed and harvesting costs 179
The rotation problem 179
Optimal harvesting: examples 182
Bibliography 184
10 Production Planning in a Salmon Farm 187
10.1 Cash flow analysis 188
10.2 Smolt release and biomass growth 190
10.3 Sales revenue 193
10.4 Feeding costs 195
10.5 Net present value 197
10.6 Selective harvesting 199
11 Investment in a Salmon Farm 201
11.1 A production plan 201
11.2 A liquidity budget 205
11.3 Cost of production 209
11.4 Investing in a new aquaculture company 211
11.5 Licence value 215
11.6 Buying a fish farming company 217
References 221
Index 231
