Derby
Crew Member
Federal fisheries recommends study of alternative to conventional open net pen salmon farming
Photograph by: Submitted, Vancouver Sun
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."
" These sensitivities are due largely to the high initial capital investment and subsequent costs associated with it."
Nonetheless the department says this technology "warrants further assessment, and assumptions should be validated in real-life scenarios."
"Potential next steps could include a pilot scale or demonstration system capable of producing salmon at commercially viable levels (e.g., one module scalable to financially feasible levels) to demonstrate the technical and financial feasibility of closed containment rearing of salmon under real world conditions."
Salmon aquaculture operators along British Columbia's Pacific coast rely exclusively on conventional net pens which have been strongly criticized by environmental groups due to potential transfer of disease including blood infections and sea lice infestations.
As well, there have been numerous incidents in which the pens fail and farmed salmon escape into the open ocean, posing risks to wild salmon.
Marine Harvest, the leading open net pen salmon farming company on the B.C. Coast, is consulting with CAAR as the company works to develop the first commercial-scale closed containment project on the B.C. coast.
"The Coastal Alliance for Aquaculture Reform (CAAR) is delighted that the federal government is finally recognizing the potential of closed containment technology as a serious alternative to harmful net-cage operations," CAAR said Wednesday in a news release.
The release says the report, titled The Feasibility Study of Closed-Containment Options for the British Columbia Aquaculture Industry, "recognizes that land-based recirculation aquaculture systems are likely to show positive returns and that once the technology becomes more widely adopted within the sector, capital and operating costs may continue to go down."
"This new study shows that closed containment salmon farming is economically viable, something we have said for years," says David Lane of T. Buck Suzuki Environmental Foundation and CAAR. "In fact, numerous companies are moving ahead with plans for closed containment in B.C., creating a potential multi-million dollar sustainable salmon farming industry, with new jobs and an economic boost for coastal communities."
CAAR notes that it has frequently called for government investment to spur development of the technology "and is urging the federal government to allocate funds for this purpose in the 2011 federal budget."
"Our federal government must step up to the plate now to ensure that this green technology moves forward quickly so that Canada can capitalize on this enormous opportunity in sustainable aquaculture," says Catherine Stewart of Living Oceans Society and CAAR.
© Copyright (c) The Vancouver Sun
Read more: http://www.vancouversun.com/busines...ilot+project/3878099/story.html#ixzz16E2qmoIc
Photograph by: Submitted, Vancouver Sun
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."
" These sensitivities are due largely to the high initial capital investment and subsequent costs associated with it."
Nonetheless the department says this technology "warrants further assessment, and assumptions should be validated in real-life scenarios."
"Potential next steps could include a pilot scale or demonstration system capable of producing salmon at commercially viable levels (e.g., one module scalable to financially feasible levels) to demonstrate the technical and financial feasibility of closed containment rearing of salmon under real world conditions."
Salmon aquaculture operators along British Columbia's Pacific coast rely exclusively on conventional net pens which have been strongly criticized by environmental groups due to potential transfer of disease including blood infections and sea lice infestations.
As well, there have been numerous incidents in which the pens fail and farmed salmon escape into the open ocean, posing risks to wild salmon.
Marine Harvest, the leading open net pen salmon farming company on the B.C. Coast, is consulting with CAAR as the company works to develop the first commercial-scale closed containment project on the B.C. coast.
"The Coastal Alliance for Aquaculture Reform (CAAR) is delighted that the federal government is finally recognizing the potential of closed containment technology as a serious alternative to harmful net-cage operations," CAAR said Wednesday in a news release.
The release says the report, titled The Feasibility Study of Closed-Containment Options for the British Columbia Aquaculture Industry, "recognizes that land-based recirculation aquaculture systems are likely to show positive returns and that once the technology becomes more widely adopted within the sector, capital and operating costs may continue to go down."
"This new study shows that closed containment salmon farming is economically viable, something we have said for years," says David Lane of T. Buck Suzuki Environmental Foundation and CAAR. "In fact, numerous companies are moving ahead with plans for closed containment in B.C., creating a potential multi-million dollar sustainable salmon farming industry, with new jobs and an economic boost for coastal communities."
CAAR notes that it has frequently called for government investment to spur development of the technology "and is urging the federal government to allocate funds for this purpose in the 2011 federal budget."
"Our federal government must step up to the plate now to ensure that this green technology moves forward quickly so that Canada can capitalize on this enormous opportunity in sustainable aquaculture," says Catherine Stewart of Living Oceans Society and CAAR.
© Copyright (c) The Vancouver Sun
Read more: http://www.vancouversun.com/busines...ilot+project/3878099/story.html#ixzz16E2qmoIc
