The Long-Term Economic and Ecologic Impact of Larger Sustainable Aquaculture

The Long-Term Economic and Ecologic Impact of Larger Sustainable Aquaculture Alistair Lane - European Aquaculture Society Courtney Hough Federation of European Aquaculture Producers John Bostock University of Stirling Institute of Aquaculture. 09/12/2014 Presentation for the Committee on Fisheries 1

Structure of the Presentation 1. Current status and challenges to growth. 2. Consequences of a larger sector. 3. Economic considerations and public support. 4. Sustainable development and public policy. 09/12/2014 Presentation for the Committee on Fisheries 2

Sub-sectors considered Coldwater marine fish Warmwater marine fish Freshwater fish Shellfish 09/12/2014 Presentation for the Committee on Fisheries 3

EU production of coldwater marine fish 2003-2012 09/12/2014 Source: FAO Presentation for the Committee on Fisheries 4

EU production of warmwater marine fish 2003-2012 09/12/2014 Source: FAO Presentation for the Committee on Fisheries 5

EU production of freshwater fish 2003-2012 09/12/2014 Source: FAO Presentation for the Committee on Fisheries 6

EU shellfish production 2003-2012 09/12/2014 Source: FAO Presentation for the Committee on Fisheries 7

11 Technologies selected Freshwater pond aquaculture Coastal pond aquaculture Intensive freshwater flow-through and partial recirculation Intensive marine flow-through and partial recirculation Indoor land-based recirculated aquaculture systems (freshwater) Indoor land-based recirculated aquaculture systems (marine) Small cage systems freshwater Small cage systems sheltered marine Large cage systems marine in exposed sites Marine bottom culture Marine supported and suspended culture. 09/12/2014 Presentation for the Committee on Fisheries 8

Coldwater marine production (2012) Large cage systems exposed sites (90%) 09/12/2014 Presentation for the Committee on Fisheries 9

Warmwater marine production (2012) Small cages (55%) Large cages (45%) Land based (5%) 09/12/2014 Presentation for the Committee on Fisheries 10

Freshwater production (2012) Flow through or partial recirculation (60%) Pond (30%) 09/12/2014 Presentation for the Committee on Fisheries 11

Shellfish production (2012) Supported and suspended culture (90%) Bottom culture (10%) 09/12/2014 Presentation for the Committee on Fisheries 12

Principal challenges to growth Challenge for development Coldwater marine Warmwater marine Freshwater Shellfish ECONOMIC Productivity gains + +++ +++ + Access to capital + +++ ++ + Diversification of the offer + +++ +++ ++ ENVIRONMENTAL Access to high quality water + ++ + +++ Spatial planning +++ +++ +++ +++ Use of outputs + + ++ 09/12/2014 Presentation for the Committee on Fisheries 13

Principal challenges to growth Challenge for development Coldwater marine Warmwater marine Freshwater Shellfish SOCIAL Communicating the attributes and benefits of the sector ++ +++ +++ + Recruiting high level workforce + ++ ++ + Generation change + + +++ ++ MARKET Changing consumer preferences Labelling and certification conditions + +++ +++ + ++ ++ + + Multiple Retail Store domination +++ +++ ++ + 09/12/2014 Presentation for the Committee on Fisheries 14

Important note on sources Scenarios from EATiP/Aquainnova Regional workshops. Input from 350 producers & researchers. Enshrined in the 2012 EATiP Vision. No data from MS multi-national plans Delays in adoption of EMFF. Several MS have submitted, many have not. Plans do not generally contain quantified production estimates or scenarios by species. 09/12/2014 Presentation for the Committee on Fisheries 16

Growth scenarios Summarised Assumptions Growth Forecast growth (tonnes) Value 2010 Value 2030 % 2010 2020 2030 M M Coldwater Marine 101.0% 190,322 274,021 382,016 572.49 1,159.88 Freshwater 43.0% 331,868 396,156 476,068 869.33 1,355.94 Mediterranean 112.0% 212,784 316,474 452,548 1,032.36 2,212.54 Shellfish 30.0% 653,318 746,407 849,935 1,017.37 1,444.77 Subtotal 1,388,292 1,733,058 2,160,566 3,491.55 6,173.13 TOTAL INCREASE 55.6% 772,275 2,681.58 Jobs 2010 2030 Coldwater Marine 2,139 2,865 Freshwater 22,686 29,409 Mediterranean 13,679 20,365 Shellfish - - Total Jobs 38,504 52,638 Feeds (tonnes) 974,230 1,369,453 Source: EATIP / Aquainnova 09/12/2014 Presentation for the Committee on Fisheries 17

Salmon feed composition Source: IFFO 09/12/2014 Presentation for the Committee on Fisheries 18

Alternative sources Processed Animal Proteins (PAPs) Plants oil seeds - soy, rape, cottonseed cereals maize, wheat Cultured organisms insects, worms, bacteria Marine organisms micro-algae seaweed krill There are many advantages to using PAPs in fish feeds, having strong environmental and nutritional credentials and high availability. It is estimated that there is 10 times more PAPs than fishmeal. 09/12/2014 Presentation for the Committee on Fisheries 19

Comparable resource use per Kg of edible product 14 1200 12 1000 Arable Land (m 2 ) 10 8 6 4 Irrigation water (L) 800 600 400 2 200 0 Beef Pork Chicken Salmon 0 Beef Pork Chicken Salmon 180 3,5 Nitrogen (g) 160 140 120 100 80 60 40 20 Ag Chemicals (g) 3 2,5 2 1,5 1 0,5 0 Beef Pork Chicken Salmon 0 Beef Pork Chicken Salmon Source: Welch et al., 2010 09/12/2014 Presentation for the Committee on Fisheries 20

Ecological impact of production technologies Source: FAO, 2012 09/12/2014 Presentation for the Committee on Fisheries 21

Key drivers selected for this study Reliance on wild seed Reliance on feed Use of fishmeal and oil Use of power Infrastructure needs Freshwater footprint Area/production volume Habitat impact Escapee impact/risk Disease spread/risk Chemical discharge Protein input/output 09/12/2014 Presentation for the Committee on Fisheries 22

System Major Species Projected production increment (t) Large cage systems marine in exposed sites Marine supported and suspended culture Small cage systems sheltered marine Intensive freshwater flow-through and partial recirculation systems Marine bottom culture Cumulative production increase MOST SIGNIFICANT ecological impact issues Salmon, sea bream (sea bass) 263,522 31.3% Reliance on feed Use of fish meal/oil Mussels, oysters 143,529 48.3% Sea bass, sea bream, trout 106,610 61.0% Reliance on feed Habitat impact Nutrient discharge Escapee impact Disease spread risk Chemical discharge Trout 87,416 71.3% Reliance on feed Use of fish meal/oil Freshwater footprint Nutrient discharge Mussels, slipper shells, cockles 83,877 81.3% Reliance on wild seed Area/t production 09/12/2014 Presentation for the Committee on Fisheries 23

System Major Species Projected production increment (t) Freshwater pond aquaculture Indoor land-based recirculated aquaculture systems (marine) Indoor land-based recirculated aquaculture systems (freshwater) Intensive marine flowthrough and partial recirculation systems Coastal pond aquaculture Small cage systems freshwater Cumulative production increase MOST SIGNIFICANT ecological impact issues Carps 67,249 89.3% Area/t production Sea bass, turbot, sole, shrimp 39,711 94.0% Reliance on feed Use of power Infrastructure requirements Tilapia, catfish 39,153 98.6% Infrastructure requirements Turbot & other flatfish 10,585 99.9% Reliance on feed Use of power Infrastructure requirements Sea bream, sea bass, shrimp, 1,168 100% Trout -136 100% Reliance on feed Use of fish meal/oil 09/12/2014 Presentation for the Committee on Fisheries 24

Projected demand for raw materials from fisheries Fishmeal (t) Fish oil (t) Data source EU28 production in 2011 505.000 177.000 FAO EU28 demand in 2012 209.000 80.000 Authors estimate EU28 demand in 2030* 392.000 142.000 Authors estimate *Assuming no change in diet formulation Assuming supply only from capture fisheries (i.e. without offcuts or trimmings), this scenario would represent a demand for 1,96 million tonnes of feed fish based on fish meal requirements, or 2,37 million tonnes for both fish meal and oil hence exceeding the 2014 quota (1,86 million tonnes) by up to 0,51 million tonnes. 09/12/2014 Presentation for the Committee on Fisheries 25

Raw material solutions Further reduce fishmeal and oil inclusion rates Increase use of offcuts and trimmings Use of PAPs Use of GM oil seeds Alternative marine ingredients Discards 09/12/2014 Presentation for the Committee on Fisheries 26

Economic performance FR, IT, GR, ES & UK - 80% of aqua production. EU aquaculture dominated by microenterprises and family firms (90% by number), but also large multi-national companies (marine cold and warm water sub-sectors). Continued growth in the sector is likely to be linked to proving added value products, developing niche markets and being price-competitive in EU markets. Economic Performance of the EU Aquaculture Sector. JRC/STECF 2013 09/12/2014 Presentation for the Committee on Fisheries 28

Public support Of EUR 1.24 billion programmed under EFF Axis 2, only EUR 518 million (43%) had been committed across all Member States in 2011. Delays in implementation included limited co-financing in an unfavourable economic environment, and late launch of the programme, mostly due to delays in validation of the Operating Programmes. Under Axis 2, aquaculture represented 27%, inland fishing less than 1% and fish processing and marketing the vast majority with 72%. Ernst & Young Interim Report, 2011 09/12/2014 Presentation for the Committee on Fisheries 29

Production technology trends Coldwater and warmwater marine increase - larger cages, offshore. Shellfish production - continues to be dominated by supported/suspended cultivation systems. Intensive flow-through systems for freshwater decline. Freshwater pond production - stable or increasing. Coastal pond decline or stagnate yields & space. Indoor recirculation (marine and freshwater) - increase for hatcheries limited increase for grow out. Freshwater recirculation - increase. 09/12/2014 Presentation for the Committee on Fisheries 30

Where should public support be directed? MS national plans Environmental compatibility Market orientations Adequate funding for spatial planning Improved support services (vet, health) Improved networks/best practice transfer Productive systems better water/waste systems Updating skills and knowledge in the workforce FLAG approach S 09/12/2014 Presentation for the Committee on Fisheries 31

Public policy Aquaculture is an evident component of many recent European strategies, including Blue Growth and the Bioeconomy. To date, very few Member States have clear policies on aquaculture development Within the reformed CFP, aquaculture should contribute to the Europe 2020 strategy for smart, sustainable and inclusive growth. 09/12/2014 Presentation for the Committee on Fisheries 33

Policy recommendations Follow up and monitoring of MS multi-annual plans. Data Collection Framework adapted to include all forms of aquaculture. Position of aquaculture within existing environmental legislation - recommendations existing for Natura2000 and under development for the WFD and for the MSFD. This is essential so as to boost the potential integration of the activity and the expansion of site availability. 09/12/2014 Presentation for the Committee on Fisheries 34

Policy recommendations (2) Assessment and agreed quantification of environmental services provided by aquaculture requires to be integrated in environmental policy, alongside potential incentives. Uniform availability throughout the EU of therapeutic agents and products required for the welfare of farmed fish. 09/12/2014 Presentation for the Committee on Fisheries 35

Policy recommendations (3) EMFF budget for MS on size of their fisheries sector, employment, adjustments and continuity of the measures in hand. It is not clear whether or how aquaculture development is fully considered. It is recommended that the EMFF allocation for aquaculture be made in the light of the multi-annual plans of the Member States, and separated from fisheries. 09/12/2014 Presentation for the Committee on Fisheries 36

Policy recommendations (4) The Fisheries Committee of the European Parliament could consider the creation of a sub- Committee dedicated to aquaculture. 09/12/2014 Presentation for the Committee on Fisheries 37