Captured-based farmed cod a potential business in Norway

Caged wild cod that can be sold fresh year-round bring new market potential with their steady supplies, a study by Norwegian Fisheries and Aquaculture Industry Research revealed.

"We have examples of customers who are prepared to pay significantly higher prices in order to be assured of supply on set days of the week," said scientist Oystein Hermansen.

Unlike fisheries of wild cod, which vary with access to fish in the sea, capture-based aquaculture provides new earning opportunities. The concept is to catch wild fish, transfer them to sea cages, feed them until they weigh twice as much and then sell them for a good price when supplies of wild fish are low.

"Experiences associated with selling farmed cod and feedback from exporters both indicate good market opportunities for a first-class product of the right size and with guaranteed supply," added Hermansen.

The scientists have developed economic models to calculate the profitability of capture-based aquaculture, and are now about to conclude an interview round with all the companies that practised this method in 2009. Their experiences with growth, different feed types, operation and routines will form a central part of the models.

Last year around 2,000 tonnes of cod was harvested in the sea and fed out in cages, which is an extremely low proportion of the total supply of cod. However, the scientists believe there is significant potential.

"Our provisional calculations indicate that there is good profitability in capture-based aquaculture of wild cod," said Hermansen. "If you deduct the costs associated with fishing, feed and harvesting, you will still be able to earn more than NOK2/kg (US$0.34/kg). The assumption is that the price development follows a normal season pattern.

The fishing vessels that catch the fish and transport it live to the sea cages can gain extra rewards from capture-based aquaculture. They get a better price for fish supplied live and, as they do not need to gut the fish, they can reduce expenses by reducing crew numbers on board. In the meantime, the fishermen have also received extra quotas for supplying fish for capture-based aquaculture.