A PESTEL analysis of which areas that are appropriate for offshore aquaculture

Abstract

The current conventional aquaculture industry represents a need for technology development as the locations suitable farming are limited. At the same time, there are other challenges such as salmon lice and pollution of the seabed that should be improved in order to preserve the environment as much as possible. Significant growth in demand in recent years has driven production to maximum capacity and the fjords are filling up, which has led to various consequences in terms of quality, the welfare of the fish and the environment surrounding it. This thesis assesses one of the possible solutions “Octopus”, which is an offshore installation modified for fish farming developed by Roxel Aqua. By moving the fish farming to more exposed areas offshore may contribute to an increase the production of farmed salmon, lower the mortalities and prevent diseases. In order to find the most suitable areas for “Octopus”, a PESTEL analysis as a decision tool is used to assess the external factors that could affect a business entering a new market. This tool showed that of Iceland, Scotland, Ireland and the Faroe Islands, it is the Faroe Islands that is the most suitable location for “Octopus” based on political, economic, social, technological, environmental and legal factors. There are recommendations for Roxel Aqua to be considered as they enter a new market, such as keeping up with the political landscape, be prepared for possible future foreign competition, enter the market with open communication and provide knowledge of the industry along with honouring the traditions and to ensure that operations goes in accordance with a sustainable future.