Feasibility of different harvesting strategies and economies of scale in ranching wild cod (Gadus morhua)

• Main Authors: Halldórsson, Jón E., Björnsson, Björn, Gunnlaugsson, Stefán B.
• Format: Article in Journal/Newspaper
• Language: English
• Published: Research in applied business and economics 2012
• Subjects: Cod ranching; feasibility; harvesting strategies; profitability; sea$ranching; stock enhancement; Q22; Gadus morhua
• Online Access: https://ojs.hi.is/index.php/efnahagsmal/article/view/a.2012.9.1.2

The effects of different harvesting strategies and increased fish biomass on the feasibility of ranching wild cod in ‘herds’ formed with anthropogenic feeding were studied. The five following scenarios using purse seine as the method of capture were considered: I. Basic harvesting, II. Harvesting with size-grading and selling the smaller cod for on-growing, III. Harvesting with size-grading and on-growing the smaller cod in sea cages within the company, IV. Intensive harvesting at the end of the growth period, and V. Ranching larger biomass with basic harvesting. For basic harvesting it is assumed that wild cod are fully fed at several feeding stations for 165 days per year and harvested three days a week from September 1 to November 5 without size-grading. It is also assumed that the ranching company owns a suitable fishing vessel and cod quota, 200 tons in Scenarios IAIV and 500 tons in Scenario V. For a 15 year operating period, the net present value (NPV) for the five scenarios is €754 000, €809 000, €819 000, €700 000 and €1 504 000, respectively. Cod ranching is viable in all scenarios but the size of the operation has much greater effect than the harvesting strategy on the feasibility. Although intensive aquaculture will continue to grow globally, well managed fish stocks will always be an important food source for mankind and thus ranching, which basically is a quota multiplier, can increase this food supply, potentially at competitive prices.