A new report from Fisheries and Oceans Canada says closed containment technology for salmon aquaculture offers less potential for profit than conventional open ocean net pens. The report, from the fisheries department's aquaculture management directorate, says land-based pen technology appears to be "marginally viable from a financial perspective" and presents a higher level of financial risk for operators compared to conventional net pens.
However the report recommends that the department support pilot studies of closed containment. The Coastal Alliance for Aquaculture Reform (CAAR) and the T. Buck Suzuki Foundation are hailing that recommendation as proof that closed containment systems can be profitable at a commercial scale. The department's conclusions are based on hypothetical economic modelling which suggests that closed containment pens may be unprofitable when the Canadian and U.S. dollars are at or close to par.
It says closed containment technologies are projected to be considerably more sensitive to market forces (e.g., exchange rate and market price) beyond the operator's control, and may likely prove non-profitable within a range of variability that has actually been experienced by the Canadian salmon aquaculture industry in the past." Read more...
This blog is written by Martin Little The Aquaculturists, published and supported by the International Aquafeed Magazine from Perendale Publishers.