Fishery management: Wild and farmed fish Frank Asche IRIS,

Norwegian Fisheries Norway is the world’s 12 th largest seafood producer when measured by quantity produced, Brazil is 19 th Norway is the world’s 2 nd largest exporter of seafood, while Brazil is 51 st The structure of the fisheries and management system has changed dramatically since the 1970s –Aquaculture

Real production value, harvest and aquaculture(2009=1)

And Brazil is not too dissomilar

We like to think of fishing as traditional and romantic,

But the fleet structure is varied Different regulations are required to address specific needs Norway did regulate access to fisheries in the 1930s, but did not try to protect stocks until 1972 Fisher´s opportunities and behavior varies with the regulatory system

Better regulation allows better handling: Total Norwegian landings and share used for reduction to fishmeal/oil

Norwegian landings and prices by use for spring spawning herring

Norwegain Mackerel landings

Chilean Jack Mackerel

Wasteful organization implies losses in more dimensions Overcapacity is one problem Rent dissipation due to foregone market opportunities is probably larger than rent dissipation due to over- capacity Good management is necessary to protect stocks and exploit economic opportunity

The world’s ocans covers 2/3 of the planet…

…and the world’s waterways and oceans is a great underutilized resource Increasingly, land-based technologies are adopted to use this resource Aquaculture is the “food production” arm –Aquaculture is farming while fisheries is our last large hunting industry Aquaculture is an old technology, but a revolution took place in the 1970s as one started to use knowledge from agro-sciences to domesticate, breed and feed fish

World aquaculture production Aquaculture is the world´s fastest growing food production technology Million tonnes

World fishery production Million tonnes

Conditions favouring increased aquaculture production Population growth and economic growth lead to increased aggregate demand for food Stagnating global catches of fish reduce the competitiveness of wild fish Globalization has reduced the cost of shipping products and increased trade The growth of retail chains favour supply chains with sufficient control to enable efficient logistics

Conditions favouring increased aquaculture production Population growth and economic growth lead to increased aggregate demand for food Stagnating global catches of fish reduce the competitiveness of wild fish Globalization has reduced the cost of shipping products and increased trade The growth of retail chains favour supply chains with sufficient control to enable efficient logistics To exploit these conditions, one must be competitive

Aquaculture is competitive Aquaculture is the result of systematic R&D and innovation in water based food production systems Expansion of aquaculture production is profitable because of lower production cost due to technical innovations –Productivity growth –Demand growth This is a necessary development if the world’s oceans and waterways are to be significant sources of food

Innovations in aquaculture are leading to rapid technological progress Specialiced suppliers increase productivity with their own R&D work

Innovations increase scale – a pen from 1980 and one from m 50 m

Improved logistics Air freight Truck carries chilled fish Distribution terminals

Product innovation increase demand Branded salmon Pre-prepared meals Better cuts

The product is not only the physical seafood product…

…but also a set of services for the industrial buyers related to: Volume Timing and frequency Flexibility Cost efficiency in distribution Food safety etc.

Norwegian export price and production cost for salmon (2010=1)

There will be environmental challenges, but these can be solved: Use of antibiotics in the Norwegian salmon farming industry

Shrimp production and real unit price(2008=1)

Channel catfish – Decline of USA and rise of China Source: FAO, USDA

US imports of frozen whitefish, (tonnes product weight)

Annual growth rate Aquaculture vs agriculture %

Governance Not only the government, but also the industry itself is responsible for good governance The influence of other stakeholders on governance has increased over time –Competing economic interests, environmental concerns, food safety concerns In a successful industry, governance cannot be too light, not too heavy handed Governance should recognize structural changes in the industry –And not prevent innovations and sustainable technological developments

It can take time to find a good governance system: Norwegian landings of mackerel

It can take time to find a good governance system: Shrimp production, Thailand Source: FAO

One may never get there because governance is lax: Shrimp production, Taiwan

Or because governance prevents innovation and new technologies: Salmon production, USA

Brazil has success stories as well as challenges

Conclusions The seafood sector is very much separated into two different parts – harvesting and farming Harvesting industries need well protected stocks and management that allow economic opportunities to be exploited

Conclusions Aquaculture production will continue to increase –Because one have just started to adopt technology from agriculture, and there is a tremendous scope for further productivity growth As for all biological production processes, this creates environmental challenges –Can be solved North-America and EU lags behind