Norwegian Aquaculture: A Density Independent Development?

Abstract

This thesis investigates the impact of farmed salmon density and the spatial proximity of salmon farms on mortality rates and company profitability in the Norwegian aquaculture industry. Despite significant growth driven by innovation and regulatory frameworks, the industry's productivity has stagnated since 2005. This research aims to determine whether innovation can mitigate the adverse effects of increased biomass density on profitability and mortality. The methodology, inspired by Thyholdt (2014), utilizes econometric analyses, specifically OLS models, to assess fish population dynamics. Data from three distinct datasets on production, mortality rates, financial metrics, and environmental variables were analyzed. Key findings reveal significant variability in profitability and mortality rates across different years, despite constant biomass and production site densities. This suggests that innovation has had mixed success in mitigating adverse density impacts. Higher densities correlate with increased disease risks and mortality, reducing profitability. However, variations in results indicate that some innovative practices may have partially mitigated these effects. The study highlights the inadequacy of current technology and regulatory oversight in addressing these challenges. To meet future global demand and enhance profitability, the industry must adopt new technological and regulatory innovations. Proposed advancements include improved delousing methods, offshore farms, and closed farming facilities, requiring significant investment and further research. Government intervention through research licenses and supportive regulations is crucial for sustainable growth. Limitations of the study include data constraints, potential multicollinearity, and the use of aggregated data, which may obscure local variations. Future research should explore additional environmental and economic factors, employ longitudinal studies, and evaluate management practices' effectiveness. In conclusion, this thesis provides empirical evidence on the effects of salmon density and farm proximity on mortality and profitability, offering insights for policymakers and industry stakeholders aiming to balance growth with sustainability in Norwegian salmon aquaculture.