Showing posts with label boom bust cycles in fish farming. Show all posts
Showing posts with label boom bust cycles in fish farming. Show all posts

Friday, 22 May 2015

Norwegian Fish Farm Disease and Lice Costs


Two recurrent themes in fish farm environmental damage are: disease losses and out of control sea lice and their associated diseases.


You judge for yourself::

1.      February 2015, Rabobank analyst Gorjan Nikolik suggested sea lice management will continue to define the global salmon picture this year.

2.      In 2015, Chile is once more constrained by its own biological situation.

3.      In Norway: Capacity growth is hard to come by... will involve managing all sanitary conditions, including pancreas disease (PD) and amoebic gill disease (AGD).

4.      In Norway, Marine Harvest: spent on sea lice problems: NOK 53m in Q1, NOK 80m in Q2, NOK 74m in Q3 and NOK 96m in Q4, for a year total of NOK 303m, or $40m.

Comment: The cost of seal ice chemicals was 70% higher than in 2013.

5.      Marine Harvest noted: NOK 199m… relating to sea lice mitigation and extraordinary mortality. [Pancreatic Disease and Amoebic Gill Disease].

6.      Salmar had: a challenging situation with respect to salmon lice and PD” in its central Norway region.

7.      Norway Royal Salmon: production cost was still high as a result of costs associated with AGD and PD.

8.      Norway Royal Salmon: was indicted by Norwegian government over misrepresenting sea lice numbers.

9.      Grieg’s costs were up: as a result of lice treatment, and mortality due to gill disease in Shetland, as well as fish that had been affected by PD in Norway's Rogaland region.

Then go back and read this post, a study that says one third to one half of global aquaculture product is lost to diseases. That was 2002, and in 2015, disease and lice are still big killers. All of this could be eliminated by on-land fish farms, and no exposing of wild Pacfic salmon to lice and disease from fish farms: 


Thursday, 29 January 2015

Fish Farm Boom Bust Cycle – Buying up the Competition, Barriers to Entry


Along with the boom bust cycle that drives global fish farming, to the detriment of employees, revenues and the environment, the big get bigger and the smaller companies get bought out; this results in barriers to entry as new fish farm companies cannot compete with the market prices their much larger competitors can produce fish at.

Barriers to entry cause cartels and monopolies. The larger firms, in this case Marine Harvest, keep on getting bigger and competition keeps slipping away.


Marine Harvest Buys Majority Stake in Chile's Top Salmon Producer, AquaChile
SEAFOODNEWS.COM [SeafoodNews] January 19, 2015

Marine Harvest has agreed to purchase nearly 43 percent of major Chilean salmon producer AquaChile in a deal that also gives the major Norwegian salmon producer the option to acquire at least 55 percent of the company starting in the middle of 2016.

Under the initial tender offer Marine Harvest will pay $0.8856 per share...

See my recent article on boom bust cycles in fish farms: http://fishfarmnews.blogspot.ca/2015/01/fish-farms-are-boom-bust-industry.html.