Welcome   Sponsored By
Subscribe | Register | Advertise | Newsletter | About us | Contact us
   


Photo: courtesy Nofima

Profitable cod farming requires high sales prices

Click on the flag for more information about Norway NORWAY
Tuesday, May 24, 2022, 07:00 (GMT + 9)

It can cost between NOK 40 and 43 per kilogram of round weight to farm a cod until it is ready for slaughter. Is it possible for cod farming to be profitable with such production costs?

“A profitable industry requires either high prices for wild cod, or that cod farming actors are able to differentiate farmed cod from wild cod, so that one can justify production costs in terms of market price”, says Morten Heide, market researcher at Nofima. 

He has led the work on the recent report, which highlights the potential of farmed cod – quality, market perception and economy. Eleven Nofima scientists with different professional backgrounds have compiled the report. 

A brief summary: There are no major issues in terms of quality, and the market seems to welcome farmed cod. Economically important parameters such as slaughter weight, mortality rates and sexual maturation have been significantly improved through initiatives such as the breeding programme, and better knowledge among the fish farmers about raising the fish. 

“Profitable production requires that one achieves sales prices that outweigh the costs”, Morten Heide states.

Biologically ready

Five generations of farmed cod have been produced at the Aquaculture Research Station in Tromsø. The sixth-generation is being raised at the Centre for Marine Aquaculture, which Nofima runs on behalf of the Ministry of Trade, Industry and Fisheries. Over the course of five or six generations of breeding, the cod has become a type of tame ‘livestock’, which thrive, grow well, and no longer escape. Fifth-generation cod have better characteristics in terms of survival, growth and behaviour than has been the case for previous generations of farmed cod. 

Photo courtesy from Nofima

“Biologically speaking, farmed cod are therefore ready for commercial operations”, says Øyvind Hansen. He is head of the cod breeding programme at Nofima.

Bioeconomic model

There is very few available economic studies related to cod farming. Since there are few commercial actors currently engaged in cod farming, there are no statistics on production costs. Therefore, the scientists had to resort to a bioeconomic model of a production cycle to calculate these costs. The model is based on several conditions with varying degrees of uncertainty. 

“We calculate the sum of fixed and variable costs during the production period in order to estimate the average costs per kilogram of cod produced. The largest variable costs are associated with feed, slaughter and packing costs. We have estimated average production costs to be NOK 40-43 per kilogram of round weight, and this includes slaughter, packing and capital commitment costs”, says scientist Ekaterina Nikitina. 

Photo courtesy from Nofima

She points out that profitable production obviously requires a sales price of the fish and its by-products that exceed production costs. 

Better conditions than ten years ago

Although the scientists are currently uncertain about the profitability of cod farming, they see significantly better conditions now than when cod farming in Norway came to a complete standstill eight to ten years ago. 

The previous generation of farmed cod achieved an average weight of 3.85 kilograms in 22-23 months. Ten years ago, only a very small percentage of the farmed cod achieved this weight. 

“Less feed is required than before, which reduces the largest cost item in cod farming, and there is better knowledge about light regimes which means that one avoids the negative effect of sexual maturation. This reduces the costs for the cod farmer’s”, says Ekaterina Nikitina

The Centre for Marine Aquaculture aims to use the knowledge gained from the breeding programme for cod to contribute to the knowledge of marine species in aquaculture and has concessions for several marine species. Photo courtesy from: Lars Åke Andersen / Nofima

The development has also given cod farmers better conditions for the stable production of fish over two kilograms. This weight class achieves the best market prices. 

The mortality rate of farmed cod also appears to have decreased, which improves the economic side of things.  Nofima’s most recent production had a mortality rate of approximately 14 percent, which was significantly higher 10 years ago. 

In general, knowledge about all aspects of production has improved. The positive development contributes to a decline in all unit costs for the farmers. 

“It improves the basis for efficient and profitable commercial cod farming”, says Ekaterina Nikitina. 

Author / Source: Anne-May Johansen / Nofima

[email protected]
www.seafood.media


 Print


Click to know how to advertise in FIS
MORE NEWS
Denmark
Jul 2, 00:00 (GMT + 9):
Other Media | Aqua: BioMar commits to follow the most ambitious path to reach net zero
Spain
Jul 2, 00:00 (GMT + 9):
Other Media | La Voz de Galicia: The veto on bottom fishing in 94 areas throws out a thousand boats from traditional fishing grounds
Argentina
Jul 1, 07:10 (GMT + 9):
Cedepesca says that shrimp certification is closer
Faroe Islands
Jul 1, 07:00 (GMT + 9):
Seaweed consortium awarded Horizon Europe grant
South Africa
Jul 1, 07:00 (GMT + 9):
Salvage operation under way after fishing vessel capsizes off Cape Point Nature Reserve
Spain
Jul 1, 07:00 (GMT + 9):
Spain on the podium of the largest fish consumers in the world
Norway
Jul 1, 07:00 (GMT + 9):
Norway Bringing salmon sushi to your bento box since the 1980s
Worldwide
Jul 1, 06:00 (GMT + 9):
MSC Press Release: Blue transformation requires setting aside national interests
United Kingdom
Jul 1, 02:00 (GMT + 9):
Scottish Sea Farms names new Regional Manager to build on Orkney success
Argentina
Jul 1, 01:50 (GMT + 9):
WTO Agreement: 'Until a month ago subsidies for illegal fishing were allowed'
Japan
Jul 1, 00:50 (GMT + 9):
Volumes and prices │ Surimi products │ Tokyo Central Fish Markets | May-2022
Japan
Jul 1, 00:40 (GMT + 9):
Volumes and Prices │ Pollock roe (Tarako & Mentaiko)│ Tokyo Central Fish Market │ May-2022
United States
Jul 1, 00:40 (GMT + 9):
Products derived from alaska pollock and pacific cod (NMFS of DAP in GOA-BSAI): surimi, fillet, roe and fishmeal | week 24
United States
Jul 1, 00:30 (GMT + 9):
Alaska pollock catches in season B (DAP in NMFS count) | week 24
United Kingdom
Jul 1, 00:00 (GMT + 9):
Other Media | SeafoodSource: UK lifts restrictions on Fukushima seafood



Lenguaje
FEATURED EVENTS
  
TOP STORIES
Alarm over demersal shutdown proposal
European Union European fishing industry representatives are sounding the alarm over the likelihood of the European Commission’s plans to shut down 94 sea areas across French, Spanish, Portuguese and Irish wat...
Exports with a slight drop in May
Argentina According to data provided by CAPECA, foreign sales registered a 1.6% decline compared to the same period in 2021. In the first 5 months of 2022 there were sales of 674 million dollars. The biggest fa...
New shrimp prospecting and closure of subarea 15
Argentina Taking into consideration the biological data of the season that indicate the movement of shrimp north, it was decided to carry out a survey in subareas 11 and 12. Eight freezer vessels were designate...
Corean import of frozen boiled welk meat
South Korea Decrease in imports of boiled frozen whelk meat by 12% In May 2022, a total of 538,472 tons of seafood were imported, and the proportion of boiled frozen whelk meat was 0.32%, 1,727 tons, and in 20...
 

Maruha Nichiro Corporation
Nichirei Corporation - Headquarters
Pesquera El Golfo S.A.
Ventisqueros - Productos del Mar Ventisqueros S.A
Wärtsilä Corporation - Wartsila Group Headquarters
ITOCHU Corporation - Headquarters
BAADER - Nordischer Maschinenbau Rud. Baader GmbH+Co.KG (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Sea Harvest Corporation (PTY) Ltd. - Group Headquarters
I&J - Irvin & Johnson Holding Company (Pty) Ltd.
AquaChile S.A. - Group Headquarters
Pesquera San Jose S.A.
Nutreco N.V. - Head Office
CNFC China National Fisheries Corporation - Group Headquarters
W. van der Zwan & Zn. B.V.
SMMI - Sunderland Marine Mutual Insurance Co., Ltd. - Headquarters
Icicle Seafoods, Inc
Starkist Seafood Co. - Headquearters
Trident Seafoods Corp.
American Seafoods Group LLC - Head Office
Marel - Group Headquarters
SalMar ASA - Group Headquarters
Sajo Industries Co., Ltd
Hansung Enterprise Co.,Ltd.
BIM - Irish Sea Fisheries Board (An Bord Iascaigh Mhara)
CEFAS - Centre for Environment, Fisheries & Aquaculture Science
COPEINCA ASA - Corporacion Pesquera Inca S.A.C.
Chun Cheng Fishery Enterprise Pte Ltd.
VASEP - Vietnam Association of Seafood Exporters & Producers
Gomes da Costa
Furuno Electric Co., Ltd. (Headquarters)
NISSUI - Nippon Suisan Kaisha, Ltd. - Group Headquarters
FAO - Food and Agriculture Organization - Fisheries and Aquaculture Department (Headquarter)
Hagoromo Foods Co., Ltd.
Koden Electronics Co., Ltd. (Headquarters)
A.P. Møller - Maersk A/S - Headquarters
BVQI - Bureau Veritas Quality International (Head Office)
UPS - United Parcel Service, Inc. - Headquarters
Brim ehf (formerly HB Grandi Ltd) - Headquarters
Hamburg Süd Group - (Headquearters)
Armadora Pereira S.A. - Grupo Pereira Headquarters
Costa Meeresspezialitäten GmbH & Co. KG
NOAA - National Oceanic and Atmospheric Administration (Headquarters)
Mowi ASA (formerly Marine Harvest ASA) - Headquarters
Marubeni Europe Plc -UK-
Findus Ltd
Icom Inc. (Headquarter)
WWF Centroamerica
Oceana Group Limited
The David and Lucile Packard Foundation
Ajinomoto Co., Inc. - Headquarters
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
CJ Corporation  - Group Headquarters
Greenpeace International - The Netherlands | Headquarters
David Suzuki Foundation
Fisheries and Oceans Canada -Communications Branch-
Mitsui & Co.,Ltd - Headquarters
NOREBO Group (former Ocean Trawlers Group)
Natori Co., Ltd.
Carrefour Supermarket - Headquarters
FedEx Corporation - Headquarters
Cooke Inc. - Group Headquarters
AKBM - Aker BioMarine ASA
Seafood Choices Alliance -Headquarter-
Austevoll Seafood ASA
Walmart | Wal-Mart Stores, Inc. (Supermarket) - Headquarters
New Japan Radio Co.Ltd (JRC) -Head Office-
Gulfstream JSC
Marine Stewardship Council - MSC Worldwide Headquarters
Royal Dutch Shell plc (Headquarter)
Genki Sushi Co.,Ltd -Headquarter-
Iceland Pelagic ehf
AXA Assistance Argentina S.A.
Caterpillar Inc. - Headquarters
Tiger Brands Limited
SeaChoice
National Geographic Society
AmazonFresh, LLC - AmazonFresh

Copyright 1995 - 2022 Seafood Media Group Ltd.| All Rights Reserved.   DISCLAIMER