Monday, 13 August 2018

On-Shore Fish Farms - the Way of the Present and Future



Dear Letters Editor

Randy Shore’s above article on on-land/in-ocean fish farms contains many errors. Typical ‘new’ designs such as the Egg by Marine Harvest, Havfarm and Aquadome by Cermaq and so on, are not fully closed containment systems. They leak viruses up to 56 billion particles per hour, and do not collect their waste and use it as a revenue stream, so it pollutes the ocean. They have a 'potential' to collect sewage, but it is not something fish farms care about, hence they will not do it.

My list of on-land fish farms has 242 different on-land RAS systems around the world, and in the list are several dozen studies on cost comparisons. On-land is not massively more expensive, that is industry spin. Any academic who holds such a view is out of date by a decade, and/or connected with the fish farm industry. And current in-ocean licenses run $32- to $40-million dollars, while on-land licenses are free in Norway.

The reality is that in-ocean is a dying, dinosaur industry. In fact, the BC industry may likely be wiped out by the USA on-land newcomers, if BC doesn’t get on land also. The Atlantic Sapphire, Nordic Aqafarms, Aquabanq and Whole Oceans on-land farms coming on stream in the USA at 218-thousand metric tonnes will be almost 2.5 times as large as the entire BC industry that has as much as 85% of its product currently sent to the USA.

With transportation cost savings for USA companies and consumer preference for environmental sustainability, BC will be hard pressed to sell its product in the USA any longer. It is vital for them to move to land or their workers could well be out of jobs in the next two years.

DC (Dennis) Reid


FYI, here is the link to the 242 systems and several dozen economic studies on my site: http://fishfarmnews.blogspot.com/2016/05/152-different-on-land-fish-farm-systems.html

Saturday, 11 August 2018

Increase License Fees to $32- to $40-Million


Hi John  Horgan et al

In Norway, the big companies are spending $32- to $40-million for a license.

Do you know what the big companies pay in BC? $5000. In other words, they are not investing in BC, they are raping BC oceans.

You need to include in your fish farm policies a drastic increase in license fees. Charging the same as in Norway would bring in for the 120 licences the industry claims it now has in BC: $32 X 120 = $3.8 Billion to $40 X 120 = $4.8 Billion. That is how much BC is subsidizing fish farms to ruin our oceans.

Raise the license to $32 million and Marine Harvest, Cermaq and Grieg Seafood would pay it because they are doing so in their own country, Norway. And it is a bargain rate for them.


“393. Huge License Costs - Norway:  http://salmonbusiness.com/have-the-salmon-auction-winners-paid-too-high-a-price-for-the-gold/. "“Adding a minimum price of NOK 120 (€ 12.7) million per license is incomprehensible. In areas with the highest dominance of listed companies, the real price can quickly reach between NOK 200-250 (€ 21-26) million per license. You don’t have to be a mathematician to figure out that this is a gratuitous fit for only a handful of the major publicly listed companies,” NSL Managing Director Robert Eriksson said."

At an exchange rate of .16, the license cost in CDN dollars is: 120 X .16 = S19.2 million; 200 X .16 = $32 million, and 250 X .16 = $40 million.”

DC Reid

**********

Note that the reason Marine Harvest, Cermaq and Grieg Seafood can spend this much is high fish farm profit margins. Typically the margin is about 23%, which is very high, but the margin can be as high as 45%, which is phenomenal. Look at this list: http://salmonbusiness.com/northern-dominance-on-profit-among-norways-largest-salmon-farmers/.

The graph is:



And in 2017, one fish farm topped 80% profit EBIT!: http://salmonbusiness.com/a-whopping-80-2-percent-has-korshavn-havbruk-topping-norwegian-producers-profit-margin-list/.




Thursday, 9 August 2018

BAD NEWS BITES - Aug 13, 2018

I receive 30 global press fish farm/seafood industry newsletters every week. In these, I have found a startling amount of bad news, and decided to do a post on it. I had no idea there was as much bad news as there is.

I am at my tenth post. In little more than two years, I have found 3,500 BAD NEWS BITES. Some days I am stunned by the amount of bad news in the fish farm/seafood industry.  Find the fifth BAD NEWS BITES post here: http://fishfarmnews.blogspot.ca/2017/05/bad-news-bites-fifth-post.html. And that reaches 2,000.

This is the link to the fourth post, Jan 14, 2017, it has 500 BAD NEWS BITES in it: http://fishfarmnews.blogspot.ca/2017/01/bad-news-bites.html. it has links to the previous three posts since July 2015. You can find earlier ones at these links.

This is the link to the ninth post, March 29, 2018: http://fishfarmnews.blogspot.com/2018/03/bad-news-bites.html.

Here is a summary of the bad news stories:

"In one mouthful, here are the kind of stories I am finding: boom bust industry, billions made and lost, crisis in lice and disease, bankruptcy, workers fired, executives jumping company to company, dividing big bonuses, fraud, corruption, litigation, conflict of interest with government and scientists, using the ocean as a free open sewer – $10.4 Billion in BC alone, killing of whales, seals and sea lions – more than 12,000 in BC so far, slavery, unpaid labour, taxpayers paying millions for diseased, dead fish – $177 Million in Canada, dueling scientists, weakening of laws, unsustainable feed, illegal fishing, jail sentences, disasters in Norway, Scotland, Chile, Canada, bullying of scientists, governments and anyone critical of their business, cartels, collusion, price fixing, fishing down the food chain to Antarctic krill, carcinogens and persistent organic pollutants, fluoroquinolones, chicken feathers in feed, animal feces in feed, eutrophication in a time of global warming, Malachite Green fungFicide in USA seafood, fake industry awards, all the wild salmon in the Pacific ocean, more than a billion, put in peril... it goes on."

Update, Dec 11, 2017: I have found 500 BAD NEWS BITES in less than 3.5 months. That means well over 1000 in a year. That is how much bad news there is in fish farms/seafood industry. This post, the sixth, may be found here: http://fishfarmnews.blogspot.ca/2017/08/bad-news-bites-salmonseafood-industry.html.

Update, Mar 29, 2018: You will find the previous posts on these dates: 23/1/2018, 11/12/17, 29/8/17. 5/5/17, 14/1/17, 1/7/16, 6/5/16,  1/7/15, and a total of nearly 3,500 BAD NEWS BITES.  

Update Aug 9, 2018: I have found 500 BAD NEWS BITES since Mar 29, 2018. The total now stands at 3,500 in three years.

And now, the BAD NEWS BITES leading from this most recent post:

41. 

40. Retail Giants Push for Email Release - Bumble Bee price fixing case: https://www.undercurrentnews.com/2018/08/14/retail-giants-push-for-bumble-bee-parent-to-release-incriminating-lischewski-emails/?utm_source=Undercurrent+News+Alerts&utm_campaign=36f753ee96-Americas_briefing_Aug_14_2018&utm_medium=email&utm_term=0_feb55e2e23-36f753ee96-92426209.

39. Ripe for Industry Consolidation - Chile:  https://www.undercurrentnews.com/2018/08/14/agrosupers-deal-for-aquachile-surprises-former-salmones-magallanes-owner/?utm_source=Undercurrent+News+Alerts&utm_campaign=433bbdbe50-Europe_briefing_Aug_14_2018&utm_medium=email&utm_term=0_feb55e2e23-433bbdbe50-92426209.

38. Fish Farms May Challenge Stocking Rules - Chile: https://www.undercurrentnews.com/2018/08/14/chiles-salmon-farmers-may-challenge-govt-plan-to-toughen-stocking-rules/?utm_source=Undercurrent+News+Alerts&utm_campaign=433bbdbe50-Europe_briefing_Aug_14_2018&utm_medium=email&utm_term=0_feb55e2e23-433bbdbe50-92426209.

37. On-Line Shrimp Management - India, to revamp industry:  https://www.undercurrentnews.com/2018/08/13/omni-channel-shrimp-tech-platform-looks-to-modernize-indian-sector/?utm_source=Undercurrent+News+Alerts&utm_campaign=07be4ffbf0-Europe_briefing_Aug_13_2018&utm_medium=email&utm_term=0_feb55e2e23-07be4ffbf0-92426209.

36. On Land Shrimp Farm Milestone - Spain, Gamba Natural: http://www.intrafish.com/aquaculture/1553189/european-land-based-shrimp-farmer-hits-milestone?utm_source=IntraFish+Aquaculture+Newsletter&utm_campaign=b31f6edced-EMAIL_CAMPAIGN_2018_08_13_11_00&utm_medium=email&utm_term=0_ec4b681694-b31f6edced-244877629.

35. Deadline to Recapture Escaped Salmon  - Chile, Marine Harvest 10% of 690,000 escapees:  https://www.undercurrentnews.com/2018/08/13/marine-harvest-has-until-sept-3-to-recapture-escaped-fish/?utm_source=Undercurrent+News+Alerts&utm_campaign=c42f609648-Americas_briefing_Aug_13_2018&utm_medium=email&utm_term=0_feb55e2e23-c42f609648-92426209.

34. On-Land Shrimp - USA, Texas, RAS, Guolian: https://www.undercurrentnews.com/2018/08/13/guolians-us-arm-to-take-shrimp-from-new-texas-ras-farm-to-market/?utm_source=Undercurrent+News+Alerts&utm_campaign=c42f609648-Americas_briefing_Aug_13_2018&utm_medium=email&utm_term=0_feb55e2e23-c42f609648-92426209.

33. Open Ocean Fish Farms - vastly increases number of fish, sewage, and so on, Norway: https://www.bloomberg.com/businessweek. July 30, 2018. "The $300 Million Plan to Farm Salmon in the Middle of the Ocean. The semi-submersible Ocean Farm 1 off the coast of Norway can hold 1.5 million fish."

32. Workers Fear Job Losses - AgrpSuper takeover, Chile: http://www.intrafish.com/aquaculture/1552279/aquachile-workers-fear-job-losses-after-agrosuper-takeover?utm_source=IntraFish+Aquaculture+Newsletter&utm_campaign=aac2da2c53-EMAIL_CAMPAIGN_2018_08_10_11_00&utm_medium=email&utm_term=0_ec4b681694-aac2da2c53-244877629.

31. Unlawful Pesticide Use - NB, suspected:  http://asf.ca/emails-show-nb-suspected-unlawful-pesticide-use.html.

30. Neither DFO Nor NL Govt Taking Responsibility for Escapes - NL?:  http://asf.ca/farmed-fish-free-for-all.html. And: http://www.thetelegram.com/opinion/editorials/farmed-fish-free-for-all-232205/

29.  Fish Welfare Greatly Negative - Scotland, Marine Harvest, etc, OneKind report: https://www.undercurrentnews.com/2018/08/06/animal-charity-report-criticizes-welfare-on-scottish-salmon-farms/?utm_source=Undercurrent+News+Alerts&utm_campaign=d9eb512389-Salmon_roundup_Aug_10_2018&utm_medium=email&utm_term=0_feb55e2e23-d9eb512389-92426209. "Firms criticized for their alleged poor standards in the report include Loch Duart, Marine Harvest, the Scottish Salmon Company and Grieg Seafood's operation in Shetland. The farm labeled as having the worst record for fish welfare was Poll na Gille on Loch Shuna in Argyll, run by Marine Harvest.
Other caged salmon farms ranked highly for “negative welfare” included MacLean’s Nose at Kilchoan in Highland, Bagh dail nan Cean in Argyll, Vuiabeag off the Isle of Lewis, Badcall Bay in Sutherland, Loch Carnan off South Uist and Inch Kenneth in Argyll."
28. Boom - $850M Agrosuper takeover of Empresas AquaChile creates second largest fish farmer in world, after Marine Harvest: https://www.undercurrentnews.com/2018/08/08/agrosuper-850m-takeover-likely-to-scupper-aquachile-ipo/?utm_source=Undercurrent+News+Alerts&utm_campaign=d9eb512389-Salmon_roundup_Aug_10_2018&utm_medium=email&utm_term=0_feb55e2e23-d9eb512389-92426209.

27. High Seas Fisheries Play Little Role in Food for World - Dalhousie U, NYU, National Geographic: https://www.seafoodnews.com/Story/1112946/Researchers%2DSay%2DHigh%2DSeas%2DFisheries%2DPlay%2DLimited%2DRole%2Din%2DFeeding%2Dthe%2DWorld.

26. Diseases - Canada, CFIA, ISA, IPN, IHN, VHS: http://inspection.gc.ca/animals/aquatic-animals/diseases/reportable/2018/eng/1339174937153/1339175227861.

25. Mapuche People Against Fish Farms - Chile, aboriginal grouphttp://salmonbusiness.com/terrorist-group-claim-arson-attack-on-chilean-salmon-farm/.

24. Government, Citizens Divided - NL, look at the complications that the Placentia Bay development by Grieg has been through because citizens don't want in-ocean, but government won't listen: https://www.mae.gov.nl.ca/env_assessment/projects/Y2016/1834/index.html.

23. Worker Dies - Marine Harvest, Norway:  http://salmonbusiness.com/marine-harvest-employee-dies-after-found-lifeless/.

22. On-land, In-ocean Costs Converge - Grieg in NL edgy: http://salmonbusiness.com/grieg-edgy-as-marine-land-prices-converge/.

21. 'Big Money is in Land-Based' - AquaMoaf, Israel:  http://www.intrafish.com/aquaculture/1411154/israeli-giant-aquacultures-big-money-is-in-land-based.

20. Price Fixing Litigation - Thai Union, wipes out profit, set aside $44M:  https://www.seafoodnews.com/Story/1112804/Thai%2DUnions%2DProfit%2DNearly%2DErased%2Dby%2DTuna%2DPrice%2DFixing%2DLitigation.

19. Boom - Vietnam pangasius production over 20 years:  https://www.seafoodnews.com/Story/1111082/20%2DYears%2Dof%2DSpectacular%2DDevelopment%2Dof%2DVietnam%2DPangasius%2DDespite%2DTariffs.

18. Ocean Acidification to hit 14 Million Year High - Cardiff study:  https://www.seafoodnews.com/Story/1111073/Ocean%2DAcidification%2Dto%2DHit%2DLevels%2DNot%2DSeen%2Din%2D14%2DMillion%2DYears

17. Disease - India, EHP in shrimp, 21% of farms:  https://www.undercurrentnews.com/2018/07/25/india-still-finding-ehp-disease-on-shrimp-farms/?utm_source=Undercurrent+News+Alerts&utm_campaign=04e6719016-Americas_briefing_Jul_25_2018&utm_medium=email&utm_term=0_feb55e2e23-04e6719016-92426209.

16. Acquisitive Industry - Sysco eyes picking up Italian MARR: https://www.undercurrentnews.com/2018/07/25/sources-us-distributor-sysco-eyes-acquisition-of-italian-seafood-giant/?utm_source=Undercurrent+News+Alerts&utm_campaign=04e6719016-Americas_briefing_Jul_25_2018&utm_medium=email&utm_term=0_feb55e2e23-04e6719016-92426209.

15. Fish Farms Use Oceans as Toilets - BC, Fin Donnelly, NDP: https://www.cbc.ca/news/canada/british-columbia/they-are-still-using-the-ocean-as-a-toilet-ndp-fisheries-critic-proposes-removing-fish-farms-from-oceans-1.4757158?utm_source=Watershed+Watch+Email+List&utm_campaign=7ce6d52abd-SALMON_NEWS_2018_03_28_COPY_01&utm_medium=email&utm_term=0_405944b1b5-7ce6d52abd-166907249&mc_cid=7ce6d52abd&mc_eid=5777c92bcd.

14. Expired Leases Extensions Challenged - Kingcome INlet, BC, aboriginal court case challenges BC government plan to extend leases a month at a time:  https://www.northislandgazette.com/news/first-nation-files-judicial-review-of-provincial-salmon-farm-tenure-extensions/?utm_source=Watershed+Watch+Email+List&utm_campaign=7ce6d52abd-SALMON_NEWS_2018_03_28_COPY_01&utm_medium=email&utm_term=0_405944b1b5-7ce6d52abd-166907249&mc_cid=7ce6d52abd&mc_eid=5777c92bcd.

13. Giant Land-Based Shrimp Farm - Australia, Seafarm:  https://www.undercurrentnews.com/2018/07/26/australias-seafarms-awarded-license-for-giant-land-based-shrimp-farm/?utm_source=Undercurrent+News+Alerts&utm_campaign=6ab5204a12-Europe_briefing_Jul_26_2018&utm_medium=email&utm_term=0_feb55e2e23-6ab5204a12-92426209.

12. Unsustainable Grouper,  Snapper - only 8% is sustainable: https://www.undercurrentnews.com/2018/07/26/sfp-only-8-of-global-snapper-and-grouper-production-sustainable/?utm_source=Undercurrent+News+Alerts&utm_campaign=68d4ef6857-Americas_briefing_Jul_26_2018&utm_medium=email&utm_term=0_feb55e2e23-68d4ef6857-92426209.

11. Research to Combat Slavery in Supply Chainhttps://www.undercurrentnews.com/2018/07/26/researchers-offer-plan-to-combat-slavery-in-seafood-supply-chains/?utm_source=Undercurrent+News+Alerts&utm_campaign=68d4ef6857-Americas_briefing_Jul_26_2018&utm_medium=email&utm_term=0_feb55e2e23-68d4ef6857-92426209.

10. Disease - Firda, Norway, pancreas and glandular diseases:  https://www.undercurrentnews.com/2018/07/26/biological-issues-hit-norwegian-salmon-farmer-firda-in-2017/?utm_source=Undercurrent+News+Alerts&utm_campaign=eec3fd6207-Salmon_roundup_Jul_27_2018&utm_medium=email&utm_term=0_feb55e2e23-eec3fd6207-92426209.

9. Aquaculture Great Threat to Workers - Stirling study:  https://www.undercurrentnews.com/2018/07/23/stirling-aquaculture-health-safety-overlooked-despite-great-risks/?utm_source=Undercurrent+News+Alerts&utm_campaign=eec3fd6207-Salmon_roundup_Jul_27_2018&utm_medium=email&utm_term=0_feb55e2e23-eec3fd6207-92426209.

8. Sanitary Crisis - Chile, after Marine Harvest escapes:  https://www.undercurrentnews.com/2018/07/23/salmon-escape-at-marine-harvest-farm-causes-sanitary-crisis-in-chile/?utm_source=Undercurrent+News+Alerts&utm_campaign=eec3fd6207-Salmon_roundup_Jul_27_2018&utm_medium=email&utm_term=0_feb55e2e23-eec3fd6207-92426209.

7. Pinney's Plant/Workers - still at risk, though Scotland govt helps out, after buyer backs out:  https://www.undercurrentnews.com/2018/07/27/scottish-govt-still-fighting-for-pinneys-plant-as-potential-buyer-withdraws/?utm_source=Undercurrent+News+Alerts&utm_campaign=d9157bedaa-Americas_briefing_Jul_27_2018&utm_medium=email&utm_term=0_feb55e2e23-d9157bedaa-92426209.

6. More Pac Andes Trainwreck - forensic audit:  https://www.seafoodnews.com/Story/1111359/Pacific%2DAndes%2DHas%2DOne%2DYear%2Dto%2DRelease%2DForensic%2DAudit%2Dand%2DRe%2DEnter%2DHong%2DKong%2DStock%2DExchange.

5.  Boom - Russian billionaire also bids for Iberconsa, Portobello eyes $300M payday: https://www.undercurrentnews.com/2018/07/27/russian-born-billionaire-bids-for-iberconsa-as-portobello-eyes-e300m-payday/?utm_source=Undercurrent+News+Alerts&utm_campaign=bf6540479f-Europe_briefing_Jul_30_2018&utm_medium=email&utm_term=0_feb55e2e23-bf6540479f-92426209.

4. Explosion at Feed Plant - Cargill, Norway:  http://www.intrafish.com/aquaculture/1541030/explosion-reported-at-cargill-norway-feed-plant?utm_source=IntraFish+Aquaculture+Newsletter&utm_campaign=ef80b23f67-EMAIL_CAMPAIGN_2018_07_30_11_00&utm_medium=email&utm_term=0_ec4b681694-ef80b23f67-244877629.

3. Boom - China shrimp imports drives Vietnam past $3B:  https://www.undercurrentnews.com/2018/07/30/china-demand-likely-drives-vietnam-shrimp-imports-past-3bn/?utm_source=Undercurrent+News+Alerts&utm_campaign=c0f090e958-Americas_briefing_Jul_30_2018&utm_medium=email&utm_term=0_feb55e2e23-c0f090e958-92426209.

2. Boom, Acquisition - Tyson, for McDonalds products, $3B deal for Keystone Foods:  https://www.undercurrentnews.com/2018/07/30/tyson-close-to-deal-for-mcdonalds-filet-o-fish-processor/?utm_source=Undercurrent+News+Alerts&utm_campaign=c0f090e958-Americas_briefing_Jul_30_2018&utm_medium=email&utm_term=0_feb55e2e23-c0f090e958-92426209.

1. Monopoly Defended - shrimp, Brazil:  https://www.undercurrentnews.com/2018/07/30/ecuador-exec-silence-on-thai-plan-shows-brazil-shrimp-lobbys-contradictory-stance/?utm_source=Undercurrent+News+Alerts&utm_campaign=c0f090e958-Americas_briefing_Jul_30_2018&utm_medium=email&utm_term=0_feb55e2e23-c0f090e958-92426209.