1. 1 Norwegian salmon aquaculture and the environment by Sigbjørn Tveterås Centre for Fisheries Economics Norwegian School of Economics and Business Administration

2. 2 Introduction I Examine the sustainability of the Norwegian Salmon Aquaculture: There are two main groups of environmental concerns 1)Pollution of local and regional environment due to discharges from the production process, and in some cases destruction of habitat 2)Increased pressure on wild fish stocks due to the use of fishmeal and fish oil in salmon feed

3. 3 Introduction II The environmental problems of the Norwegian salmon aquaculture seem to have followed an inverse-U-shaped curve over time; first increasing, then decreasing.

4. 4 Waste discharges Loss of ecological systems in immediate vicinity of cages Eutrophication, algal blooms Drugs and chemicals Antibiotic resistance spreading to the wild Residue of chemicals in fish, farmed and wild. Local and Regional Environmental Issues I:

5. 5 Escaped farmed salmon Genetic ”contamination” of wild salmon. Loss of genetic diversity Potential problems of transgenic salmon Diseases and parasites Furunculosis, Gyrodactylus salaries etc. spreading to wild salmon Sea-lice problem Local and Regional Environmental Issues II:

6. 6 Internalisation of Waste Discharge Problems The local external effects from organic waste discharges, i.e. eutrophication and sedimentation of organic waste, have a negative impact on salmon production,  Salmon farmers have internalised waste problem due to economic incentives  Salmon farms in Norway have moved away from fjords with poor flushing + feed and feeding regimes have improved

7. 7 Share of costs Development in Cost Components

8. 8 Average Feed Conversion Ratio Consumption in kg / Production in kg

9. 9 Situation Today Salmon farms are located in places with good water exchange  Organic waste is spread thin over large areas  Eutrophication and sedimentation do not in general present any problems  Organic waste from salmon farms can contribute to net nutrient flow to sea, but Nutrient discharges from salmon farms represent a fraction compared with other sources like agriculture, industry and sewage from Northern Europe Outtake of marine resources for use in salmon feed makes it uncertain whether salmon farming represent net input or outtake of nutrients to the sea

10. 10 Diseases and Parasites Major outbreaks of diseases in 1986 – the hitra disease, 1990-1992 – furunculosis and ISA, 1994- 1996 – ISA  Public and private R&D for drugs  In 1992 an effective vaccine against furunculosis was developed.

11. 11 Use of Antibiotics

12. 12 Use of Chemicals

13. 13 Escaped Farmed Salmon and Wild Salmon Salmon escapes have been reduced: 1,5-2 million salmons escaped on average through 1988 to 1992 277 900 and 123 000 escapes were reported in 1995 and in 2000 respectively However, salmon escapes have not been internalised like waste problems  Government has considered restrictions, e.g. fjords banned for salmon farming

14. 14 Situation Today II Escaped salmon is together with sea lice probably the most serious environmental concerns in salmon farming today More research regarding the impact of farmed salmon on wild salmon is needed Vaccines against sea lice are tried being developed The use of antibiotics is minor

15. 15 The world’s fishmeal and vegetable oilmeal markets Oilmeals are first and foremost used in animal feeds as rich protein sources The crucial question is if fishmeal is primarily demanded because: a) it is a unique product with special qualities (e.g. unique amino acid profile) that other oilmeals lack, or because b) it is a cheap protein source. If this is the case fishmeal is a substitute with vegetable oilmeals like soymeal

16. 16 World production of oilmeals 1996/97

17. 17 Fishmeal consumption

18. 18 Monthly European fishmeal and soya meal prices 1981-1999

19. 19 Aquaculture’s share of fishmeal and consumption is increasing. Still, the fishmeal and soybean meal markets are integrated.  Since there are close substitutes to fishmeal, increased fishmeal demand will spill over to other oilmeal markets  Unless the pelagic fisheries are poorly managed it is unlikely increased demand for fishmeal presents a threat to these stocks However, if aquaculture continues to expand market structures may change Situation Today III