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Free Content Profitability Analysis of Sea Ranching with Atlantic Salmon (Salmo Salar), Arctic Charr (Salvelinus Alpinus), and European Lobster (Homarus Gammarus) in Norway

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The Norwegian Sea Ranching Program (PUSH, acronym for Program for Utvikling og Stimulering av Havbeite) was started in 1990 and is scheduled to terminate by the end of 1997. The program has focused on four species: Atlantic salmon (Salmo salar), Arctic charr (Salvelinus alpinus), cod (Gadus morhua), and European lobster (Homarus gammarus), with the main objective of examining both the biological and economic basis for sea ranching. In the present study, profitability analyses have been conducted by the net present value (NPV) method and application of available data from a research program. From the results, we conclude that sea ranching of Arctic charr will not be economically profitable at the present juvenile costs, recapture rate, and market price and that this conclusion is unlikely to change in the near future. For Atlantic salmon the activity will be profitable only if the present recapture rate more than doubles, to approximately 10%. On the basis of the present juvenile cost, recapture rate, and market price for European lobster, the analyses show negative net present values. These results indicate that, to reach profitability, juvenile lobster production costs must be reduced 50% and the release strategy simultaneously optimized to increase the recapture rate to approximately 15%.

Document Type: Research Article

Publication date: March 1, 1998

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  • The Bulletin of Marine Science is dedicated to the dissemination of high quality research from the world's oceans. All aspects of marine science are treated by the Bulletin of Marine Science, including papers in marine biology, biological oceanography, fisheries, marine affairs, applied marine physics, marine geology and geophysics, marine and atmospheric chemistry, and meteorology and physical oceanography.
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