1. Fishery management: Wild and farmed fish Frank Asche IRIS, 01.06.12

2. 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

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

4. And Brazil is not too dissomilar

5. We like to think of fishing as traditional and romantic,

6. 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

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

8. Norwegian landings and prices by use for spring spawning herring

9. Norwegain Mackerel landings

10. Chilean Jack Mackerel

11. 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

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

13. …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

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

15. World fishery production Million tonnes

16. 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

17. 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

18. 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

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

20. Innovations increase scale – a pen from 1980 and one from 2010 5 m 50 m

21. Improved logistics Air freight Truck carries chilled fish Distribution terminals

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

23. The product is not only the physical seafood product…

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

25. Norwegian export price and production cost for salmon 1985-2010 (2010=1)

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

29. Shrimp production and real unit price(2008=1)

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

31. US imports of frozen whitefish, 1990- 2008 (tonnes product weight)

32. Annual growth rate Aquaculture vs agriculture %

33. 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

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

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

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

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

38. Brazil has success stories as well as challenges

39. 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

40. 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