ANS18-10-L14-SALMON-RISE

ANS18-10-L14-SALMON-RISE - Fuzio’s in Davis •...

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Unformatted text preview: Fuzio’s in Davis • Mediterranean salmon grilled salmon, kalamata olives, sun-dried tomatoes, basil, pine nuts, wine reduction, cream and penne pesto pasta 13.95 Outback Steakhouse • • North Atlantic Salmon - $ 14.99 Botany Bay Catches Lightly seasoned & grilled Pacific Rim Salmon - $ 15.99 North Atlantic Salmon topped with honey balsamic glaze & orange-ginger butter ANS 18 - SALMON ANS 1 • • Atlantic salmon = 1,475,000 mt Other salmon = 144,000 mt All salmon • Trout = 1,619,000 mt (~ 5% of all fish) = 667,000 mt Salmon + trout = 2,296,000 mt (~ 6.8% of all fish) Atlantic ANS 18 - SALMON ANS Salmon - other Rainbow trout 2 Salmon culture Salmo salar ANS 18 - SALMON ANS 3 Salmon Farming Locations ANS 18 - SALMON ANS 4 Capture vs Culture • Fishery - strongly anadromous, 1 – 5 yr. in seawater, weight at maturity up to 30 kg 823,000 mt Farming – freshwater hatchery, growout in seawater cages, harvest weight 6 - 8 kg; farmed throughout the world where seawater temperatures are appropriate, optimum temperature range for growth 12 – 15 oC, upper threshold 23 oC. 1,619,000 mt • 2/3rds (66%) of all salmon consumed now comes from the net pen culture of salmon; of that 90% is Atlantic salmon. ANS 18 - SALMON ANS 5 Salmon Life Cycle ANS 18 - SALMON ANS 6 Smoltification Biological processes involving physiological, morphological, biochemical, and behavioral, changes. For example, salmon smolts develop a silvery color and tolerance for seawater when about to migrate out to sea. ANS 18 - SALMON ANS 7 Freshwater (1 – 1.5 yrs) • Broodstock – gametes stripped; dry fertilization. • Eggs to hatching - trough and battery type incubators are used for hatching; ~ 2 months (50 – 60 days). • Hatching to alevins - ~ 30 days • Alevins to fry - alevins are similar to trout sacfry although gut development is more pronounced and thus they are capable of beginning to feed even before the yolk is absorbed. ~ 30 days. ANS 18 - SALMON ANS 8 Freshwater (1 – 1.5 yrs, cont.) • Fry to parr - fry are reared in high densities, starting at ~ 10,000 fry per inch of tank surface (tank depth about 25 cm) and then gradually reduced. After a few months (60 – 90 days) indoor they are transferred to outdoor tanks where they grow quickly in the summer months (optimum temp. 16-18 oC) and by fall they have matured into parr. ANS 18 - SALMON ANS 9 Degree Days (number of days to reach a specific stage at a specific temperature) • Atlantic salmon are a coldwater species; optimum temperature 6 – 16oC • Fertilization – hatching = 500 degree days (e.g. 50 days at 10oC; 33 days at 15oC) • Hatching – first feeding (alevins) = 300 degree days • Alevins – fry = 300 degree days • Fry – parr/smolt = 8 – 16 months ANS 18 - SALMON ANS 10 • then Smoltification • Physiological pre• adaptation for life in seawater Salmon are ready to smolt after ~ one yr. Acclimatization takes several weeks of gradually increasing salinity. Smolting can take place in animals as small as 15 g, larger animals, 40 - 120 g, survive much better in net pen culture. ANS 18 - SALMON ANS 11 Salt Water Growout ~ 2 yrs Net pen culture – fed high protein diets – routine cleaning of nets – disease and sea lice control – harvesting of farmed salmon is done before the fish reach sexual maturity. At sexual maturity, the quality of the flesh is reduced and it loses its distinctive flavor and color ANS 18 - SALMON ANS 12 ANS 18 - SALMON ANS 13 Marketing – preferred market size (2 - 5 kg) (typically 3 years old) Production in net pens ~ 10 kg/m3 (up to 100 mt/ha, assuming a 1 m deep net) ANS 18 - SALMON ANS 14 Salmonid Aquaculture – Global Value Production Atlantic salmon Rainbow trout All salmonids 1,457,000 mt 576,000 mt 2,296,000 mt ANS 18 - SALMON ANS Value $ 7.2 billion $ 2.4 billion $ 10.7 billion 15 Dr. Rosamond Naylor, Prof. En. Sci. & Dir. Program on Food Security & the Environment., Stanford University ANS 18 - SALMON ANS 16 Salmon aquaculture - Norway • ADVANTAGES: Extensive sites for salmon culture: An extensive coastline dotted with islands and laced with deep fjords provide an approximately 70,000 sq km (eight times Norway's available land area for land-based agriculture) of protected salmon farming sites. The Gulf Stream provides relatively warm coastal water temperatures of 5 – 12 oC, ideal for salmon. Abundant fresh water: Clean snow-fed rivers provide ample supplies of fresh water for the production of smolts. Abundant feed: Large quantities of small pelagic fish for fish feed and a well-established fishery. ANS 18 - SALMON ANS • • 17 Salmon aquaculture - Norway • ADVANTAGES: • Sophisticated infrastructure: Processing facilities, rapid transportation (truck, rail, and plane), educated populous providing highly skilled labor and technical support. A supportive banking system. Supportive Government: The Government of Norway (GON) supported fish farming and marketing to maintain communities in the coastal area of Norway. Well established academic community which focused on the development of the industry. ANS 18 - SALMON ANS • 18 PIONEER YEARS; 1960 - 1980 • 1960 - Salmon culture was started, slow. • 1972 - Production exceeded 100 tons for the • • first time, 5 farms 1973 - Licensing of fish farms started - Fish Farming Act of 1973. 1978 - Norwegian Fish Farmers Association (NFFA) creates a sales organization (FOS) which has the sole right to sell farmed fish to approved buyers. The aim of the FOS was to achieve stable market prices and was financed through a fee of 3 % (1.5 % paid by each farmer and 1. 5 % by the salmon buyer) ANS 18 - SALMON ANS 19 • 1980 - Production almost 5 thousand metric tons • 1981 - 215 farms; GON makes it illegal to • • – 173 farms – 87 smolt growers - difficult time meeting smolt demand. establish new (or expand old) fish farms without permission. 1983 - 301 farms total (from 5 in 1972) GON limits salmon farm size to 8,000 m3[1]. These "small" farms were designed to operate as familyrun enterprises. This limit was aimed at promote employment and stimulating the local economy in the isolated coastal communities. [1] All pens assumed to be 1 meter deep for ease of measurement by the government. ANS 18 - SALMON ANS 20 • 1984 - Production – slightly over 20 thousand metric tons (~ 60 - 70 tons/farm) • 1985 - Annual return on investment – Smolt growers produced 16 million smolts - $ 1.75 @ – - 20% for grow-out farms; - 30% for smolt farms • Applicants for a farm license were only required • Smolt production becomes government priority – 2,500 applicants for 150 licenses. to demonstrate: 1) 25% of start-up costs, 2) a knowledge of salmon farming, 3) a suitable site. – 152 smolt producers but Norway still has to import 5 million smolts. – Furunculosis (a bacterial disease) infected smolts from Scotland infects 30 farms and 2,900 tons of fish had to be slaughtered and several farms went bankrupt. ANS 18 - SALMON ANS 21 • 1986 - Production 44,830 mt; 636 farms; Industry Expansion; 1985 - 1987 – 333 smolt producers registered. In spite of disease concerns, the NOG approves the additional importation of 2.2 million smolts from Sweden, Iceland and Finland to meet demand. – The GON continues to restrict large-scale farms, (~ 2/3 of the farms employ 1 - 4 workers; 23% = 1-2 people, 45% = 3-4) – However, improved technology allowed an 8,000 m3 farm to produce 150 - 200 mt of salmon (3 times that which could be raised in 1984). – the limited increase in production was due to some disease problems – however, the export value jumped to $ 314 million in comparison to the $ 233 million for the 1986 crop of 45,675 mt. ANS 18 - SALMON ANS • 1987 - Production 47,400 mt 22 The Salmon Gold Rush of 1988 • 1988 - Production 78,840 mt (almost double of the year before; wholesale price was around $ 8/kg ($ 3.60/lb). – In response to heavy industry pressure (15,000 workers) the GON increased the legal size of each farm from 8,000 m3 to 12,000 m3. – 728 farms; many immediately increased in size. – ? total market size ANS 18 - SALMON ANS 23 Over-production; 1989 • 1989 - Production jumped to 114,900 tons in 1989 (from 79,840 mt in 1988). – 95% of the harvest was exported earning over $ 500 million in revenues. – However, it also contributed to a 17 percent decline in world salmon prices. The wholesale price had dropped to around $ 4.83/kg (~ $ 2.19/lb) by the end of 1989. ANS 18 - SALMON ANS 24 A mountain of salmon, 1990 • 1990 - Jan. 4, 1990, the FOS announced plans to take up to 40,000 tons of the market by buying and freezing it. – $ 200 million dollars were borrowed from private banks to finance the freezing plan. A levy of $ 0.75/kg on all salmon exports was imposed to pay off the loan. – NFFA buys and destroys 15 - 20 million smolts. – Growers are urged to reduce feeding and slow production. ANS 18 - SALMON ANS 25 Production costs 1987 US$ % Smolt 1.50 23 Feed 1.75 27 Labor 0.90 14 Misc. costs 1.00 16 Capital 1.30 20 100 Total cost/kg 6.45 Price/kg 1988 US$ % 1.20 23 1.75 34 0.55 11 0.70 14 0.95 18 100 5.15 8.00 1989 US$ % 0.85 16 2.10 40 0.50 10 0.80 17 0.85 17 100 5.10 4.83 26 ANS 18 - SALMON ANS Collapse 1991 • 1991 - Prices temporarily stabilized around $ 6.49/kg (- $ 2.94/lb) by December of 1990 but by then nearly 10 percent of the industry had gone into bankruptcy. – Price continues to drop through 1991 to around $ 5.50/kg ($ 2.49/lb). – Sept. 1991 NFFA nearing bankruptcy in that its income had declined with declining prices and loss of membership due to bankruptcies. Some large companies, Mowi and Stolt Sea Farm, left the NFFA and joined the Federation of the Norwegian Fishing Industry (FNL). ANS 18 - SALMON ANS 27 The Collapse (cont.) • November 1991 - the FOS declares bankruptcy with debts of $ 312 million. – GON eventually stepped in growers only received about 50% on the $. – Norwegian salmon industry, which generated ~ $ 1 billion in export earnings and employed nearly 15,000 people in 1990 faces a chain of bankruptcies. ANS 18 - SALMON ANS 28 The Collapse (cont.) • Farmers forces to "dump" salmon to maintain cash • flow. "Dumping" leads to economic sanctions against Norwegian farms by the U.S. • Other countries, such as Chile, increase market share competing on ANS 18 - SALMON price ANS – A levy of more than 24% on exports of farmed salmon from Norway is imposed by the U.S. in 1990. In response, most Norwegian supplies were diverted to Europe exacerbating the depression in European prices. – The European Community under pressure from Scottish and Irish salmon farming industries imposes a minimal import price on salmon. 29 After the crash Cost (F.O.B.) Chile Canada Norway $ 4.82 $ 4.83 $ 4.88 (+ 24% U.S.) • GON allows integration - Approximately 400 • farms (50%) left after mergers and acquisitions. Many of the survivors are integrated companies, engaged in processing as well as growing. Norway losses production dominance. 1980 mt (%) 1990 mt (%) 2008 mt (%) Norway Chile Others 5,300 (81) <1 1,000 146,000 (65) 743,000 (51) 9,000 ( 4) 389,000 (27) 325,000 30 ANS 1871,000 - SALMON ANS ...
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This note was uploaded on 03/26/2011 for the course ANS 18 taught by Professor Mchenry during the Spring '11 term at UC Davis.

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