284
F. Asche et al.
Agglomeration effects have been revealed for Norway (Tveterås 2002), and are
most likely present for the other three main producing countries as well.
9.3.2.4 Cost Reductions in the Supply Chain
Productivity growth is most easily observed in the production process and in the
main input factors but also stems from improvements in distribution and supply
chain logistics. When looking at the growth of the salmon industry, it is important
to keep in mind that improved logistics account for a substantial part of the productivity growth, as economies of scale and transportation methods that have not been
used for other types of fish have reduced the cost of bringing the product to the
consumer. To illustrate this, one can look at Norwegian and Icelandic exports of
fresh cod to the UK (Asche et al. 2007). The fishermens’ share of the retail value
is about 10–15%, which is in the range observed for wild fish all over the world,
and also for many farmed species. In contrast, salmon farmers receive about 50%
of the retail value. If cod had the same efficient logistics as salmon, its price could
be reduced by about 70%. We find a similar example in France, where the price of
salmon in supermarkets is about 2 euros/kg lower than in fish markets and fishmongers’
shops.
Salmon currently has the most efficient distribution and logistics system, and
it is not obvious that all other species and producers will be able to achieve the
same level of efficiency. This is largely down to the need for a high degree of
organisation. Small scale aquaculture producers in many developing countries
will face supply chains with market clearing at each level, similar to what traditional fishermen face, and have a competitive disadvantage because of this. This
is an issue that is difficult to overcome, as it is often related to how the society
around the farm is organised. However, there are some examples, such as in
Vietnam, where larger-scale operators invest not only in the production, but also
in the whole supply chain to obtain cost savings and competitive advantage where
they can be found.
9.3.2.5 Environmental Factors as a Limitation to Growth
A number of authors have claimed that aquaculture growth will be limited by environmental factors (e.g., Naylor et al. 2000). These possible limitations appear as
two different issues; local environmental carrying capacity and limited availability
of food (the fishmeal trap).
Local Environmental Issues
Any production process that interacts with the environment has the potential to
damage the environment around the production site. This includes destruction of
F. Asche et al.
Agglomeration effects have been revealed for Norway (Tveterås 2002), and are
most likely present for the other three main producing countries as well.
9.3.2.4 Cost Reductions in the Supply Chain
Productivity growth is most easily observed in the production process and in the
main input factors but also stems from improvements in distribution and supply
chain logistics. When looking at the growth of the salmon industry, it is important
to keep in mind that improved logistics account for a substantial part of the productivity growth, as economies of scale and transportation methods that have not been
used for other types of fish have reduced the cost of bringing the product to the
consumer. To illustrate this, one can look at Norwegian and Icelandic exports of
fresh cod to the UK (Asche et al. 2007). The fishermens’ share of the retail value
is about 10–15%, which is in the range observed for wild fish all over the world,
and also for many farmed species. In contrast, salmon farmers receive about 50%
of the retail value. If cod had the same efficient logistics as salmon, its price could
be reduced by about 70%. We find a similar example in France, where the price of
salmon in supermarkets is about 2 euros/kg lower than in fish markets and fishmongers’
shops.
Salmon currently has the most efficient distribution and logistics system, and
it is not obvious that all other species and producers will be able to achieve the
same level of efficiency. This is largely down to the need for a high degree of
organisation. Small scale aquaculture producers in many developing countries
will face supply chains with market clearing at each level, similar to what traditional fishermen face, and have a competitive disadvantage because of this. This
is an issue that is difficult to overcome, as it is often related to how the society
around the farm is organised. However, there are some examples, such as in
Vietnam, where larger-scale operators invest not only in the production, but also
in the whole supply chain to obtain cost savings and competitive advantage where
they can be found.
9.3.2.5 Environmental Factors as a Limitation to Growth
A number of authors have claimed that aquaculture growth will be limited by environmental factors (e.g., Naylor et al. 2000). These possible limitations appear as
two different issues; local environmental carrying capacity and limited availability
of food (the fishmeal trap).
Local Environmental Issues
Any production process that interacts with the environment has the potential to
damage the environment around the production site. This includes destruction of