Fish Farm Fcf-Recirculation

Cefas contract report <C3529 >
FES220: A review of the landbased, warm-water recirculation fish farm sector in England and Wales.
Authors: Keith Jeffery, Nicholas Stinton & Tim Ellis Cefas Weymouth Lab, Barrack Road, The Nothe, Weymouth, Dorset, DT4 8UB
1 Executive summary
ThewarmwaterRecirculationAquacultureSystem(RAS)sectorhasshownconsiderablegrowth withinEnglandandWalesoverthelastdecade.Environmental,politicalandsocialfactorswithin Englandarecombiningtoprovideconditionsfavourabletofuturedevelopmentofthesectorwhich ticksmanyboxesforenvironmentalandsocialsustainability.RASrepresentahighlyproductive meansofgrowinganimalproteinonsmallareasofland.Ifenergy(fossilfuel)useandtheassociated carbonfootprintcanbereduced,RASsystemswouldappeartomeettherequirementfor sustainableintensification,recognisedasakeymeansofaddressingfoodsecurity 1 . Nevertheless,itmustberecognisedthatfinancialviabilityofRAShassofarbeenmarginal.RAS businesseshaveapoorrecordforlongevity,andanumberofventureshavefailed.Thisproject identifiedpoorsystemdesign,lackofattentiontoeconomicfactors(e.g.electricitycosts),andlow demandforproducts(resultinginlowpriceandsalesvolume)asthecausesoffailure.However,this pessimisticviewoftheUKexperiencemaybeskewedasthesectorhasbeennumericallydominated byfreshwatertilapiasystemswheresystemdesignissueswerecommon;veryfewseawater systemsproducinghighervalueproductsareoperatingtojudgetheviabilityofmarineRAS. Newentrantsneedtoproceedwithcautionandoptimisesystemdesign,economiesofscale,input costs,andmarketingandsalesplans.Inaddition,experiencedstaff,systemflexibilityandfurther developmentofsurroundingindustry(i.e.frysupplyandtechnologicalprogress)remaincriticalifthe RASsectoristogrow.Issuesthatremaincanbeaddressedthroughacombinationofresearchand developmentandadoptionofaccreditationandqualitylabellingschemes. Grantawarders(andinvestors)shouldensurethatapplicantshaveresearchedsystemsadequately, havefirsthandexperience,andthatbackupsystemsareinplace.Applicantsalsoneedtominimise inputcostsandproducerealisticbusinessplansthataddressmarkets.Pilotstudiesshouldbe encouraged.Projectsshouldnotbedismissedthatareinnovativeortransfertechnologyfromother industriestosupportsustainability.
GodfrayHCJ,BeddingtonJR,CruteIR,HaddadL,LawrenceD,MuirJF,PrettyJ,RobinsonS,ThomasSM,ToulminC(2010) Foodsecurity:thechallengeoffeeding9billionpeople.Science327:812818
Table of contents
1 2 Executive summary ...................................................................................................................... 1 Introduction ................................................................................................................................... 2 2.1 Disclaimer..............................................................................................................................................4 3 Methodology .................................................................................................................................. 5 4 Status and prospects of the warm-water RAS industry in England and Wales. .................... 7 4.1 NumbersofRASsitesinEnglandandWales......................................................................................... 7 4.2 ProductionoftablefishinRASinEnglandandWales..........................................................................8 4.3 RAScontributiontotablefishproduction............................................................................................ 9 4.4 TheRASindustryinEurope................................................................................................................... 9 4.5 ProspectsfortheRASsectorinEnglandandWales...........................................................................11 4.6 ProspectsforRASuseintheScottishsalmonsector..........................................................................11 5 Technology, performance and operation of RAS .................................................................... 12 5.1 ThefundamentalsofRAS.................................................................................................................... 12 5.2 Mechanicalfiltration........................................................................................................................... 14 5.3 Biologicalfiltration.............................................................................................................................. 15 5.4 Aeration/oxygenation......................................................................................................................... 16 5.5 Heating................................................................................................................................................17 5.6 Sterilisationofinlet/returnwater....................................................................................................... 17 5.7 Pumping..............................................................................................................................................18 5.8 Tanks...................................................................................................................................................18 5.9 Pipework............................................................................................................................................18 5.10 Monitoringsystems.............................................................................................................................19 5.11 Automaticfeedingsystems................................................................................................................. 19 5.12 Watersources,replacementanddischarge....................................................................................... 19 5.13 Lessonstobelearnt............................................................................................................................ 20 5.14 NextgenerationRAS........................................................................................................................... 22 6 Financial sustainability of RAS ................................................................................................. 24 6.1 Fundingsources..................................................................................................................................24 6.2 Buildandsetupcosts......................................................................................................................... 24 6.3 Runningcosts......................................................................................................................................24 6.4 Plannedvactualsalesprice............................................................................................................... 27 6.5 Productioncosts,paybackandaccountingrateofreturn..................................................................27 6.6 Literaturereviewfindings................................................................................................................... 28 6.7 Overallassessmentoffinancialsustainability..................................................................................... 29 7 Factors leading to historical failure of some RAS ................................................................... 30 7.1 Top10criticalfactors...................................................................................................................... 30 7.2 Additionalfactorscontributingtofailure............................................................................................ 31 7.3 Markets...............................................................................................................................................31 7.4 Addingvalue:processing,accreditationschemesandbranding........................................................32 7.5 Economiesofscale.............................................................................................................................. 33 8 Sustainability issues relating to RAS ....................................................................................... 34 8.1 Environmentalprotection................................................................................................................... 34 8.2 Naturalresourceuse........................................................................................................................... 36 8.3 Socialissues.........................................................................................................................................39 8.4 Employment........................................................................................................................................42 9 Strengths, weaknesses, opportunities and threats to the RAS sector. ................................ 43 9.1 PESTAnalysis......................................................................................................................................43 9.2 SWOTAnalysis.....................................................................................................................................44 9.3 IdentificationofR&Drequirements.................................................................................................... 45 10 Conclusions ............................................................................................................................. 46 10.1 Acknowledgements............................................................................................................................. 47 11 Annex 1: Line graphs illustrating operating periods of individual farms ......................... 48
WarmwaterrecirculationfishfarmsinEnglandandWales
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2 Introduction
MostoftheexistingUKfinfishaquacultureindustryisbaseduponopen,flowthroughsystems wherenaturalwaterbodiesprovideacleanwatersupply,andremoveandassimilatewastes.Such culturesystemshavebeencriticisedastheyaredependentuponthissubsidyfromnatureand,if intensive,canincuranenvironmentalcostonthesupplying/receivingenvironment 2 .Analternative modelforintensivefinfishproductionisclosedRecirculationAquacultureSystems(RAS).InRAS, waterisrecirculatedandtechnologyisusedtoremovewastesandmaintainoxygenlevels.RASare oftenperceivedashavingstronggreencredentials 3 andRASproductsarepromotedassustainable byenvironmentalorganisationssuchasSeafoodWatch 4 andGreenpeacebecause,asclosed systems,they RASalsooffermanypotentialbenefitstotheproducerandsupplychain: controlofthefishesenvironmentallowsconsistentandpredictableproduction,essentialfor modernfoodproduction; removalofdependenceonanatural,clean,flowingwatersupplyeliminatesseasonalvagaries (e.g.floods,droughts)associatedwithnaturalwatersupplies,widenspotentiallocations,and enableslocationclosertomarkets; improvedbiosecurityinclosedsystemsreducestheriskofpathogeningressanddisease outbreaks; closedsystemseliminatelossesto,andconflictswith,predators; containmentwithinbuildingsaidstemperaturecontrol,therebyavoidingseasonalityin production; heatingallowsalternativetropicalfastgrowingspeciessuchasNiletilapia(Oreochromisniloticus) tobefarmed. abstractlittle,ifany,waterfromnaturalwaterbodies produceminimaleffluent,withreadilymanagedwastestreams reducethepotentialenvironmentalimpactsfromescapeeandpathogenrelease
PelletierN,TyedmersP(2008).Lifecycleconsiderationsforimprovingsustainabilityassessmentsinseafoodawarenesscampaigns. EnvironManage42,918931. 3 LittleDC,MurrayFJ,AzimE,LeschenW,BoydK,WattersonA,YoungJA(2008).OptionsforproducingawarmwaterfishintheUK:limits togreengrowth.TrendsinfoodScience&Technology19,255264. 4 Pelletier&Tyedmers(2008).op.cit.

2
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Despitetheseapparentbenefits,RASmayattractcriticismonenvironmentalgroundsduetohigh energyusageanditsassociatedenvironmentalimpacts(carbonandacidificationemissions) 5 and forethicalreasonsRASaretypicallyintensivesystems,whichmaybeviewedasfactoryfarms. Overthelast10yearstherehasbeenanotableincreaseinboththenumberandsizeoflandbased, warmwaterRASfarmsinEnglandandWales.In2000therewasacoupleofsmallscalefarms,buta decadelaterthisisapproaching20farmswhichvaryinscalefrom10to1000tonnesp.a..These newfarmsrepresentadiversificationintheUKaquacultureindustry,andprovideanadditional routetoproduceahealthyfoodproduct,therebystrengtheningUKseafoodsecurity.However, despitetheoptimismsurroundingRAS,anotableproportionhasgoneintoadministration 6 7 . Variouspotentialfactorshavebeensuggestedanecdotallyascontributingtotherecurrentfailureof commercialRASintheUK 8 9 : Todate,therehasnotbeenanobjectiveexaminationofthefactorsthatcontributetothefailure (andsuccess)ofcommercialRASintheUK.ThisprojectwasfundedbytheDefraFisheriesChallenge Fund,administeredbytheMarineManagementOrganisation(MMO,formerlyMarineFisheries Agency)toaddressthisgap,andreviewthetechnology,operation,production,problemsand sustainabilityofwarmwaterrecirculationaquaculturesystemsinEnglandandWales.Thisreportis intendedtoprovideasourceofUKspecificinformationonRASforprospectivefarmers,investors, policymakersandlobbygroupstoaiddecisionmaking.
5 6
poordesign toohighrunningcosts labourintensivetechnology steeptechnicallearningcurves lackofexperiencedstaff overambitiousproductionschedules overoptimisticmarketforecastsforproductsales poormanagementdecisions
SeeEllisetal.(2011)InitialinvestigationofthesustainabilityofEnglishaquaculture.CefascontractC3743reporttoDefra. LittleDC,MurrayFJ,AzimE,LeschenW,BoydK,WattersonA,YoungJA(2008).OptionsforproducingawarmwaterfishintheUK:limits togreengrowth.TrendsinFoodScience&Technology19,255264. 7 E.g.http://www.fishupdate.com/news/fullstory.php/aid/10782/Barramundi_farm_brings_in_administrators.html 8 http://www.slideshare.net/Cefas/largescaleintensiverecirculationsystemsandtheirpotentialdevelopmentwithinengland2373881 9 Littleetal.(2008)op.cit.
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2.1 Disclaimer
Whilsteveryefforthasbeenmadetopresentanaccuratesummaryofinformation,Cefasandthe authorscannotbeheldresponsibleforinaccuraciesoromissions.ReadersinterestedinRASare encouragedtoconducttheirowninvestigationsand/orseekspecialistadvice.
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3 Methodology
Theprojectwascomposedoffoursuccessivestages: adeskbasedliteraturereview; identificationofallwarmwaterRASfarmsinEnglandandWalesregistered(andderegistered) between2000and2010,andcollationofproductiontoassessthecontributiontothefinfish supplychain.[TheCefasFishHealthInspectorates(FHI)LiveFishMovementDatabase(LFMD) wasusedtoidentifyallregistered(andderegistered)warmwaterRASfarmsinEnglandand Walesandrelevantdatawasextracted]; TheaimofthesurveywastocoveralargeproportionoftheRASsitesinEnglandandWalesand includebothoperatingandnonoperating(inreceivershiporceasedtrading)sites,togatherdiverse feedbackontheissuesfacedbythissector.Theapproachtothesamplingmethodologywas discussedwithaCefasstatisticianandrecommendationsincorporated. Ofthe29farmsidentifiedonthedatabase,asampleoffarmswasselectedforpreliminary discussion(n=18)andthesewerecontactedbytelephonetorequestagreementtoparticipate.Two farmswereunwillingtoparticipateinthesurvey.Ascheduleoffieldvisitswasthenarranged. Duringschedulingtwofurtherfarmerswithdrewfromthesurvey,astheywereunavailableinthe allottedtimeframeorwerenolongerabletoproviderequiredinformation.Itwasjudgedthatthe remaining14farmswereadequateforthereview.Productionfiguresandotherrelevantdatawere gatheredduringtheinitialtelephoneconversationsforthenonparticipantsandareincluded(with permission). ThefieldvisitswereconductedoveratwoweekperiodinlateAutumn2010.Fourteensites producingavarietyofspecies,locatedthroughoutEnglandandWales(e.g.Devon,Cambridgeshire, York,DurhamandAnglesey)werevisited(Table1).Theschedulewasarrangedtominimise travellingwherepossible,andvisitswerecombinedwiththeroutineannualFHIinspectionwhere applicable. asurveyofrepresentativesofthewarmwaterRASindustry,i.e.farmersandconsultants,to gatherinformationontechnology,operation,production,problemsandsustainability. collationoftheinformationintothisreport,andreviewbyrepresentativesoftheindustry.
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SitevisitswereconductedbytwoCefasprojectstaff(theprojectleaderandanexperiencedRAS operator),andcomprisedaninspectionofthesiteandrecirculationsystemandasemistructured interviewwiththefarmmanger.Theinterviewwasstructuredaroundaquestionnaireproviding promptsforthemainissuesidentifiedfrompersonalknowledgeandtheliteraturereview.The presenceoftwoprojectstafffacilitatedcaptureofinformation.Farmerswereadditionallyaskedto identifyandranktheirTop10criticalfactorsforthesuccessorfailureofawarmwater recirculationfishfarmfromalistof34putativefactorsidentifiedfromtheliteratereviewand personalknowledge.Spacewasprovidedtoaddadditionalfactorsandcomments.Production figureswerecollecteduptoandincluding2010;forsitesthathadceasedoperating,finalproduction wasrecorded. RASconsultantswerepresentattwoofthefarmsites,andtheirinputwasgatheredfollowingthe samesemistructuredinterviewformat. Table1:BreakdownofRASoperatorsinterviewed,byspeciesfarmedandoperationalstatus. Typeoffarm Tilapia Tilapia&catfish Turbot Turbot,sole,prawn&seabass Seabass&turbot Barramundi Prawn Totals
Operational 3 1 1 1 1 7
Closure Imminent 2 1 1 4
Non operational 1 1 1 3
Total 6 3 1 1 1 1 1 14
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4 Status and prospects of the warm-water RAS industry in England and Wales.
Detailsofallwarmwaterrecirculationfishfarms(thoseproducingfoodfish)registeredinEngland andWalesbetween2000and2010wereextractedfromtheLFMDandsupplementedwithsite specificdata.DataforWaleswasincludedalongsidethatforEnglandduetothecoverageofthe database,andthenatureandimportanceoftheseoperations. 4.1 NumbersofRASsitesinEnglandandWales
WithinEnglandandWales,29warmwaterRASsiteswereregisteredduringtheperiod20002010 (Table2).Thesehavetargetedavarietyofspecies,withaclearinclinationtowardstilapia.Ofthese 29sites,only18arestilloperationaland11haveceasedoperating. Table2:Numbersofwarmwaterrecirculationfishfarmsitesregisteredbetween2000and2010, andcategorisedaseitheroperationalin2010ornonoperational.NB:Datacontainsonehatchery thatmovedlocation. Speciesheld Numbersites Sites Sitesnot registeredbetween operationalin operatingin 2000and2010 2010 2010 England Tilapia 18 9 9 Tilapia&catfish 3 3 0 Barramundi 1 0 1 Hybridstripedbass 1 0 1 Prawns 1 1 0 Turbot 1 1 0 Grasscarp 1 1 0 Subtotal 26 15 11 Wales Sole,bass,prawns&turbot 1 1 0 Turbot&bass 1 1 0 Bass 1 1 0 Subtotal 3 3 0 Total 29 18 11 ThewarmwaterRASindustryinEnglandandWaleshasshownconsiderabledevelopmentoverthe lastdecade,witha10foldincreaseinthenumberofoperatingfarms(Fig1A).However,thismarked increasedoeshidethefactthataround40%offarmshaveceasedoperating(Fig1B).
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NumerofoperatingRASfarmsinE&W 20
15
10
Newinyear Ceasedinyear
0 2000 2002 2004
2006 2008 2010
5 2000 2002 2004 2006 2008 2010
Figure1:A:NumberofwarmwaterRASfarmsoperatinginEnglandandWalesintheyears2000 2010.B:Foreachyear,thenumberofnewRASfarmsregistered,andthenumberthatceased operating. Simplelinegraphsareincluded(Annex1)toillustratesitenumbersbyspeciesfarmed,andthe periodofproductionofeachsite. 4.2 ProductionoftablefishinRASinEnglandandWales
AnnualproductiondataforthedifferentRASfarmswasextractedfromthelivefishmovements database(LFMD).ThiswassupplementedwithdatacollectedduringinterviewswiththeRASfarmers (Figure2).

Welshseabass Englishcatfish Annualproduction(tonnesp.a.) 600 Englishbarramundi Englishtilapia 400
200
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Figure2:AnnualproductionoftablefishinRASbyspeciesandcountry,fortheyears20002010. Pleasenoteproductionofotherspeciesisnotincludedasitisnegligible.
WarmwaterrecirculationfishfarmsinEnglandandWales Page8of48
Atthatstartofthedecade,RASproductionamountedto2tonnesofcatfish.Attheendofthe decade,RASproductionwasover600tonnes,whichequatestoan80%p.a.increaseinoutput. Productionin2010wascomprisedalmostentirelyofseabass(77%)andtilapia(23%).Therewasa notableproduction(400tonnes)ofbarramundiin2008fromasinglefarm,whichthenceased production. 4.3 RAScontributiontotablefishproduction
AlthoughproductionfromRAShasincreasedmarkedly,itisstillonlyaminorcontributortotablefish productioninEnglandandWales(Figure3).Tablefishproductionisdominatedbyrainbowtrout, withRAS(allspeciescombined)contributingapproximately12%.Nevertheless,differenttrendsare apparent:RASproductionhasbeenincreasingagainstabackdropofdecliningtroutproduction.

8000 7000 6000 Tonnesp.a. 5000 4000 3000 2000 1000 0 1994
E&Wtabletrout E&WRAStablefish
1996
1998
2000
2002
2004
2006
2008
2010
Figure3:AnnualproductionoftabletroutandtablefishinRASinEnglandandWales19942010 10 .
4.4 TheRASindustryinEurope
AlthoughtherehasbeenanincreaseinRASproductioninEnglandandWalesoverthelast10years, itcannotbeassumedthatthistrendwillcontinue.TheBeneluxcountriesandDenmarkhavea similarclimate(andgeography)toEnglandandWales,andleadEuropeintheproductionoftable fishinRAS 11 .(PossiblecontributingfactorstoenthusiasmforRASfishfarminginthesecountries are:adietwithatraditionalfishcomponent;lackofuplandareasforcool,cleanwatersupplyfor salmonidfarming;coastlineinappropriateforcageculture;astrongenvironmentallobby;along

10 11
Source:FHIproductionfigures,FinfishNewsandcollectedduringsurvey. MartinsCIM,EdingEH,VerdegemMCJ,HeinsbroekLTN,SchneiderO,BlanchetonJP,dOrbcastelER,VerrethJAJ(2010)New developmentsinrecirculatingaquaculturesystemsinEurope:aperspectiveonenvironmentalsustainability.AquaculturalEngineering43, 8393.
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standingeelfarmingsectorwhichusesRAS).Experiencesfromthesecountriesmeritconsideration whenreflectingonthepotentialfuturedevelopmentoftheRASsectorinEnglandandWales.
IntheNetherlands,thefinfishaquaculturesectorisuniquewithinEuropeasitisbasedalmost
entirelyonthecultureofvariousspeciesinRAS.ProductionoftablefishinDutchRAS(ca.8,000 tonnesp.a.,Table3)exceedsthetotalproductionofalltablefish(flowthroughandRAS)inEngland andWales(5,500tonnesp.a.,Figure3). However,theDutchRASindustryhasshownaveryrecentdownturn.Thenumberoffarmshas halved,andproductioncapacityhasreducedbymorethan16%within2years(Table3).Various reasonshavebeenproposedforthisdecline 12 :
issuesoverthesustainabilityofeelproductionduetodependenceonendangeredwildelvers highproductioncostsforspeciessuchasturbot,soleandtilapia novelspecies,e.g.whitelegshrimp,beingunabletoestablishinnichemarkets
Table3:Production(tonnesp.a.)ofthemostimportantspeciesinDutchRAS 13 . 20072008 Expectedforendof %Change2007 Species 2009 08/2009 No.of Production No.of Production No.of Production farms farms farms Eel 43 4250 19 <3000 56% >29% Africancatfish 18 3100 56 1000 6772% 68% NileTilapia 4 840 0 0 100% 100% Turbot 4 210 2 210 50% 0% Barramundi 2 135 0 0 100% 100% Pikeperch 2 130 3 130 +50% 0% Doversole 1 10 1 20 0% +100% European 1 100 2 3000 +100% +2900% catfish Totals 75 8775 33 7360 56% 16% AtilapiafarmingprojectwaslaunchedinBelgiumin2006,whichclaimedtobethelargestRASinthe world;theprojectcost15millionandplannedproductionwas3000tonnesp.a..However,itwent intoadministrationin2009 14 ,andthefailurewasattributedtodiseaseproblemsandthelowprice ofcompetingfishproducts 15 .
12 13
http://www.oecd.org/dataoecd/19/21/45032957.pdf TheDutchcaseforpracticesinfinfishaquacultureusingRAS,Schneider,Oetal,Abstractat8thInternationalrecirculatingaquaculture conference. 14 http://www.fishnewseu.com/latestnews/world/2097endofthelineforvitafish.html 15 http://www.fishnewseu.com/latestnews/world/1684priceofcodblamedforbankruptcyofvitafishtilapiafarm.html
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4.5 ProspectsfortheRASsectorinEnglandandWales
TheDutchRASindustryproducingmorethan10timesthatoftheEnglishandWalesRASsector indicatespotentialforfurtherexpansionintheUK.However,itmustalsoberecognisedthatDutch RASproductionisdwarfedbycagefarmedsalmoninNorway(800,000tonnesp.a.)andScotland (145,000tonnesp.a.) 16 .Historically,RAShaveapoortrackrecordintheUK,withfewfarms persistingformorethanafewyears;thisisnotuniquetotheUK.RASproductsmayalsohaveto increasinglycompetewithcheapimports,suchasPangasiuscatfishfromAsia(alsoknownasbasa, rivercobblerorpanga).Consequently,projectingthefuturesizeof,andproductionfrom,theRAS sectorinEnglandandWalesisextremelydifficultwitheithergrowthordeclineforeseeable.The commercialviabilityofRASintheUKwilllargelydependupondomesticdemandforRASproducts andfarmgatepricesachievable. 4.6 ProspectsforRASuseintheScottishsalmonsector
Scottishsalmonproductioncanbeviewedasa3stageprocess:thefreshwaterhatchery,freshwater ongrowing(smoltproduction),andmarine(seacage)production.Allthreestageshavetraditionally beenbaseduponopensystems:assalmonareacoldwaterspeciesanddonotneedadditionalheat, openflowthroughsystemsaregenerallyacceptedasbeingmorefinanciallyviablethanRASculture. However,duetoenvironmentalconcerns,thereisincreasingpressuretoproducesalmoninclosed containmentsystemsandresearchisongoinginNorthAmerica 17 todevelopandmakethese systemscommerciallycompetitive.IntheFaroeIslandsandNorwayfreshwaterproductionhasbeen shiftingtowardsRAStechnologytoalleviateproblemsassociatedwithfreshwaterresources,i.e. shortage,poorqualityandvariabletemperature 18 .IthasbeensuggestedthatRASproductionoffers benefitstotheindustrythroughimprovedfreshwatergrowthratesandsmoltquality(improved survivalandgrowthratesonceinseacages) 19 .However,arecentreportbytheScottishSalmon ProducersOrganisation(SSPO)considerslandbasedRASforongrowingstagesnotfinanciallyviable, withthehighenergyuseandcarbonfootprintmakingitanenvironmentallyunfriendlyoption 20 .
16 17
2008Europeanfinfishaquacultureproduction.FinfishNews9,5455. http://www.fishupdate.com/news/fullstory.php/aid/15659 18 MartinsCIM,EdingEH,VerdegemMCJ,HeinsbroekLTN,SchneiderO,BlanchetonJP,dOrbcastelER,VerrethJAJ(2010)New developmentsinrecirculatingaquaculturesystemsinEurope:aperspectiveonenvironmentalsustainability.AquaculturalEngineering43, 8393 19 Martinsetal.(2010)op.cit. 20 http://www.scottishsalmon.co.uk/userFiles/885/Salmon_Annual_Report_2009(1).pdf
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5 Technology, performance and operation of RAS

Arecirculatingaquaculturesystemisanartificialgrowingenvironmentthatrecyclesusedwater.As waterisretained,RASpotentiallymakesheatingwaterforfishfarmingcosteffective 21 .Awarm waterRASallowstheproductionoftropicalspeciesincoolerclimates.Itmayalsobeusedfor temperatespecies:asfisharecoldbloodedanimals,growthrateislinkedtotemperature,so increasingthewatertemperatureaboveambientincreasesgrowthandproduction. Waterqualitydoesneedtobemaintainedtoprovideoptimumconditionsforfishgrowth,and assurefishhealthandproductquality.Thisisachievedbyremovingthewasteproducts(uneaten food,faecesandexcretedmetabolites)bytreatingthewaterusingfiltrationandcleansing technology.Thesystemwaterpassesthroughthetreatmentprocessmanytimesperday,ata recirculationratetypicallyequatingtoonesystemvolumeevery1to2hours.Inaddition,a percentageofthetotalvolumemustbereplacedwithnewmakeupwatertopreventexcessive buildupofnitratesanddissolvedorganiccompounds.WhenRASsystemswerefirstbeing developed,theyweredescribedintermsofthevolumeofwaterexchangedduringeachcircuit(e.g. 10%ofsystemvolume/pass).CurrentRASrequiremuchlessmakeupwater,andaredescribedby thedailyreplacementrate(e.g.5%systemvolume/day)22 . AlthoughRASofferanumberofadvantagesasdescribedaboveandintheIntroduction,theyalso sufferfrompotentialdrawbacks: largesetup/investmentcosts,withaneedforbackupsystems. highrunningcosts productionlimitedbythecapacityofsystems:theloadthatfilterscanprocesswilllimitthe productionofaRAS shorttermincreasesinfishproductionarelimited:thebiofilterneedstimetoadaptand changecapacitytodealwithwastes 5.1 ThefundamentalsofRAS experiencedstaffareneededtorunRASwhichactaslifesupportsystems
21
22
LittleDC,MurrayFJ,AzimE,LeschenW,BoydK,WattersonA,YoungJA(2008).OptionsforproducingawarmwaterfishintheUK:limits togreengrowth.TrendsinfoodScience&Technology19,255264. http://www.slideshare.net/Cefas/largescaleintensiverecirculationsystemsandtheirpotentialdevelopmentwithinengland2373881
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InRAS,thewaterfromtheproductionunitsistreatedtoremovesuspendedsolidparticles(uneaten food,faeces),toremoveorconvertdissolvedchemicalwastesandgasses(e.g.ammonia,nitriteand CO2)andtoincreasedissolvedoxygenlevels,beforereturntotheproductionunits.Thefiltrationis carriedoutbytwomainprocesses: Mechanicalfiltration,wherebythesuspendedsolidsareremoved(c.f.asieve) Biologicalfiltration,wherebythedissolvedsubstancesandorganicchemicalwastesare convertedtolesstoxicsubstances.Biologicalfilters,throughtheirdesign,usuallyalso increaseoxygen,andreducecarbondioxide,levels. RASmayalsouseadditionalprocesses:aeration/oxygenation,sterilisation(toremovepathogens andundesirablebacteria),chemicalbuffering(ofwaterqualityparameters),etc.Theseadditions dependontherequirementsandtheloadingofthesystem 23 .AlthoughloadingofRASisoften consideredintermsoffishbiomass,itisprimarilytheamountoffoodthatisthelimitingfactor 24 : foodmassdictatesthemetabolicrate(andoxygenrequirements)ofthefish,therateofwaste production,andthefishbiomassthatcanbeheldinthesystem.
Oxygenation Water either pumped or via gravity Water return by gravity Sterilisation Production units
and/ or aeration
Chemical buffering
Biological filtration
Water pumped to next stage
Mechanical filtration
processes applications Figure4:Featureofrecirculationaquaculturesystems

23 3 3
Additional
Basic
withaerationstockingdensitiesof5060kg/m (50kg/m isthemaximumcapacityusedinthedesign)canbeachievedwhilst 3 maintaininghighfishwelfarestandards.Higherstockingdensitiesupto120kg/m canbeachievedwiththeuseofoxygenTilapiainfo packUniversityofStirlinghttp://www.tilapiascotland.org/resources 24 Ellisetal.(2010).Sustainablefinfishaquacultureworkshop.FinfishNews9,422.
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5.2 Mechanicalfiltration
WhatevertheRASdesign,theremovalofsuspendedsolidwaste(SSW)bymechanicalfiltrationis oneofthemostimportantpartsofwatertreatment.Alldesignsshouldaimtokeepsolidwastesas intactaspossiblepriortomechanicalfiltration.IfSSWarebrokenup,thesmallerparticlesarenotas easytosieveout,andthelargersurfaceareafacilitatesdissolvingofsolubleorganiccompounds. Dissolvedorganicsaddtotheloadonthebiologicalfilterandencouragethegrowthoflessdesirable heterotrophicbacteriawhichincreasetheoxygendemandofthesystemandcompetewiththe nitrifyingbacteriainthebiofilter. TherearemanytypesanddesignsofmechanicalfiltrationtoremoveSSW,suitedtodifferent operatingsystems.Thetwokeyfactorstoconsiderwhenselectingmechanicalfiltrationare: theexpectedSSWloading theflowrateofwaterthatthefilterwillhavetoprocess.
ThemechanicalfiltershouldremoveSSWasquicklyaspossiblewithoutdamagingtheparticles. Variousmechanicalfiltrationmethodsareavailable: drumfilters screen/beltfilters beadfilters sandfilters vortex/settlementfilters
ForlargescaleRAS,onlydrumfiltersofferapracticalmethodforremovinglargequantitiesofSSW atahighflowrate.Drumfiltershavetheaddedadvantagethat,dependingonthescreenareaand meshsize,ahighpercentageofSSWcanberemoved.Screen/beltfiltersaregenerallydesignedfor lowflowrates.Intheotherthreemethods,SSWaretrappedinthefilterbutnotremovedfromthe systemimmediately,whichallowsleachingofsolubleorganiccompounds.Thelatterfourmethods arethereforegenerallyonlysuitedforsmallerRASorthosewithalowloading. Industryobservations AllsitesvisitedrecognisedthatpromptremovalofSSWwasanimportantfactor.Approximatelyhalf ofthesitesuseddrumfilters.Althoughtheygenerallyhadnoproblems,oneissuewasinappropriate selectionofdrumfiltersbythesystemdesigner,i.e.undersizedfiltersortoofinemeshinscreens, whichresultedinthedrumfiltershavingtorunconstantly.Constantcleaningofdrumfilterscreens requiresahighwaterusageand,wheretapwaterwastheonlysupply,thisbecameasignificant cost.Nevertheless,thisprovidedtherouteforwaterexchangefortheRASand50%ofthesesites
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installedawaterrecoveryprocessfordrumfilterscreenwashing.Asdrumfiltersareexpensive, mostRAShadtobeoperatedasasingleunitratherthanseveraldiscreteunits;thiswashighlighted bysomefarmersasundesirable,asithasimplicationsfordiseasespreadandcontrol,andtherewas lessflexibilityinthesystem. ThreesmallersiteshadusedalternativessuchasbeadfilterstoremoveSSW.However,asthe quantityoffish(andfeed)increased,thesefilterscouldnotcopewiththeSSWloading,andwere typicallyreplacedwithdrumfilters,whichwasacostlyprocess.Twositesusedscreen/beltfilters; althoughonefoundthemgenerallyadequate,theothersitehighlightedthemasamajorproblem theywereinadequatefortheirroleandrippedandfailedonaweeklybasis.Thereplacement screenscouldonlybesourcedfromaspecialistsupplierandprovedveryexpensive(1,8002,000 ea)andtimeconsuming(taking3menhalfaday)toreplace.Onesiteusedvortex/settlement methodstoremovesolidsandfoundthisadequateatthemodestscaleofproduction,providedthe solidswerebackwashedoutregularly. 5.3 Biologicalfiltration Biologicalfiltersaregenerallyplaceddownstreamofthemechanicalfiltersotheydonotbecome cloggedwithSSW.Nitrifyingbacteriawithinthebiofilterconverttoxicammoniatonitrite,andin turnnitrate 25 .Thebasicprincipleofbiologicalfiltrationistoprovideasurfacefornitrifyingbacteria togrow.Thisisachievedbyusingasubstratumwithaveryhighsurfacearea:volumeratioto maximisetheamountofbacteriawithinalimitedspace.Therearemanydifferentdesignsof biofilter:theinstallationofofftheshelfsystemsistheexception,andmosttendtobebespoke. Manybiofilterscombineasubmerged(wet)stageandatrickle(nonsubmerged)stage.The submergedstageusuallycomprisesavesselcontainingplasticfiltermediaspecificallydesignedfor itshighsurfaceareawithaflowpassingthroughthevessel.Mostdesignsalsousestrongaerationto constantlymixthemedia(afluidisedbiofilter)whichgivesvariousbenefits:
25
filtermediaiskeptclean,preventingSSWsettlementandheterotrophicbacteriabuildup mixingensuresallmediaisutilisedbynitrifyingbacteria increasedoxygen(O2)levelswithinthefilterensuresahigherconversionofammoniatonitrite andinturnnitrate(nitritetonitraterequiresahighO2environment). CO2andanyotherundesirablegassesaresloughedoffbytheaeration

+
ammoniaispresentintwoformsfree(NH3)whichisverytoxictofish,andionized(NH4 )whichisstilltoxicbutlessso.Thehigherthe pH,thegreatertheratioofthemoretoxicfreeformtotheionizedform.Nitrosomonasbacteriaoxidizeammoniaintonitrite(NO2 )bythe additionofoxygen,andNitrobacterbacteriaoxidizenitriteintonitrate(NO3 ).Thesetwotypesofbacteriaarereferredtoas"nitrifying bacteria,"http://www.pondsystems.com/news_biofilt.html#TheNitrogenCycle
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Trickle(nonsubmerged)filtersagainmakeuseofspecificmediabutthesearefreestanding,either withinavesselorstackedwithcurtainsides,ratherthansubmerged.Tricklefiltersaregenerally positionedafterafirststagesubmergedfilterandoftenusegravitytofeedwatertothetopofthe filterwhichthensimplytricklesdownthroughthemedia.Themainadvantageofatricklefilteris thehighsurfaceareaincontactwithairwhichallowsbothdegassingandaerationofwaterand providesanoxygenrichareatocompletetheprocessofconvertingammoniatonitrate. Industryobservations Approximately60%ofsitesvisitedusedfluidisedbiofiltersofvariousdesignsandcapacities.One commercialmedia(KaldnessK1plasticmedia)wascommontoallsystems.Sitesproducingtilapia justusedasubmergedfilter(notricklefilter).AllseawaterRASusedtricklefilters,andnoissues werehighlightedwiththese. Acommonfindingwasoverexpectationofperformanceofbiofiltersintheoriginalsystemdesign, withtheinstalledbiofilterfailingtodeliveranticipatedperformance.Nearlyeverysitehadto increasebiofiltercapacitybyaddingmoremediaand/orincreasingthefiltersize.Factorsthat contributedtoreducedperformancewere: 5.4 Aeration/oxygenation inadequatemechanicalfiltration,soSSWaddedtothebiofilterloading lowerthanexpectedoxygenlevels inadequateflowratesthroughtheRASwhichallowedammoniatobuildupinproductionunits andreachthebiofiltersatahighlevel.(UnprocessedSSWcouldalsobuildup). deadspotsinfilters. O2levelsinthewaterareboosted(forreturntothefish)
Adequateoxygenlevelsareobviouslycriticalforfishproduction,healthandwelfare,aswellas biofilterperformance.Variousmethodsareemployedrangingfromaerationviadiffusersdelivered fromacompressor/blowertotheapplicationofpureoxygenviafinediffusersorinjectionsystems. Carehastobetakenwiththeapplicationofpureoxygenasoveroxygenationispossible;an automaticmonitoring/controlsystemthatdosesthecorrectamountisrequired.Itispreferableto applyoxygeneitherdirectlytotheproductionunitortothereturnwaterratherthanthewholeunit.
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Industryobservations Allsitesusedaerationasthemainsourceofoxygen,andalsotooperatefluidisedbiofiltersand opposingflowproductionsystems(whereaerationcreatesopposingcircularcurrentsalong productionunitsinordertodistributefishmoreevenly).Severalsiteshadneededtoincrease aerationabovethatoriginallydesignedandinstalled.Atleastonesitehadexperiencedthetotalloss ofabatchoffishwhichwasattributedtolowoxygenlevelsduetoinstallationofaninadequate aerationsystemwhichhadsincebeenupgraded.OnesitemoveditsairblowersoutsidetheRAS buildingtoreducehumidityandimproveturnoverofairandreduceCO2buildupwithinthewhole building.Onesiteinstalledahydrogenperoxidedeliverysystemforbothroutineandemergency oxygenation,whichwasconsideredtobeasimpleandeconomicalsolutionforthatsite. 5.5 Heating
Heatingcanobviouslybedeliveredinnumerousways;spaceheaterswereusedbythe65%ofsites asitisgenerallyconsideredmoreeconomicaltoheattheentireunitthanjustthewater.This assumesthatthebuildingiswellinsulated.Thespacetoheatisthereforeafactortoconsiderinthe initialdesign:thereshouldnotbeanexcessivespace(airvolume)toheat,althoughthereshouldbe sufficientexchangetopreventCO2buildup.Nevertheless,approximately80%ofunitsusedpre existingbuildingssotheairspacedwasalreadyfixed;onesitehadinstalledlowerceilingstoreduce it.At60%ofsites,spaceheatersweresituatedinthemainproductionbuilding;however3siteshad movedthemoutsidethebuildingtodirectfreshairintothebuildingandprotecttheheatersfrom thehumidenvironmentinsidetheRASbuilding. Onesiteusedtheheatgivenoffbyonsitegenerators.Heatrecovery(fromwastewateror ventilatedair)wasinstalledatseveralsites.Onesiteexpendedconsiderableeffortinrecovering dischargedheattoreduceheatingcosts,and4ofthelargersites,whereheatingwasrecognisedasa significantcost,wereexploringheatrecovery. AlmosteverysitesituatedheadertanksfornewmakeupwaterinsidetheRASunitsoitcouldwarm up,butoftenthewaterwasincirculationbeforeithadreachedtemperature. 5.6 Sterilisationofinlet/returnwater
Waterissterilisedtokillpathogens,removeundesirableheterotrophicbacteriaandimprovewater quality.ThetwomainmethodsareexposuretoUVlightandozone.Bothmethodshavetheir advantagesanddisadvantagesandsuitabilitydependsonthesituation.UVisgenerallythecheaper
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option,butisonlyeffectivewithclearwater;inturbidwaterpenetrationofUVisinsufficient.Ozone ismoreexpensiveandhasobvioushealthandsafetyimplications,butitismoreeffectiveandworks inturbidwater.Ozonemayhavetheadditionalbenefitofimprovingwaterqualitybyremoving flavourtaintssuchasgeosmins 26 andorganictoxins.InseawaterRAS,ozoneisoftencombinedwith proteinskimmerstoboosttheirperformanceinfractionalremovalofproteins.Onesiteusedozone todisinfectincomingwaterwhichwasdrawnstraightfromsea. 5.7 Pumping
PumpingofwatertoensurecirculationofwaterwithinRASisobviouslyanextremelyimportant factorforbothdesignandoperation.Therightpumpneedstobeselected:undersizedpumpsresult inapoorturnoverinthesystemandleadtounderperformingfilters,waterqualityissuesand reducedproduction.Oversizedpumpsareuneconomicaltorun.Thereisawidevarietyofpumps availablefordifferentpurposes: Approximately30%ofsitessaidtheyhadthecorrecttypeandsizeofpumpsinplace.Asmall numberofsiteswouldhavepreferredtohaveaseriesofsmallerpumpstogivegreaterflexibilityin thesystemandactasbackupsincaseoffailure.Three(cooperating)sitessharedasparepumpas contingencyforpumpfailure. 5.8 Tanks highpressurepumpsaremoresuitableforaringmainsystem liftpumpsaresuitedtomovinglargevolumesofwaterbutwithlittleheight(head) sludgepumpsaredesignedtomovehighlyviscoseliquidsladenwithsolids.
Tankandholdingsystemsvariedacrosssites.However,themostcommontypesfortilapiaunits wereabovegroundrectangularconcreteorfibreglassraceways.Marinesitesmostlyoperatedeither circularorhexagonaltankswithonelargesiteconstructingtankspartiallybelowgroundlevel. Smallersitesusedavarietyofcircularfibreglassholdingunits.Depurationtanksusuallyinvolveda separatefiltrationsystemusingnewcleanwatertosupplysmallerfibreglasstanks. 5.9 Pipework
PipeworkisoftenoverlookedwithinthedesignofanRAS.Inadequatepipeworkandfittingcanslow flowrates.Itisdifficulttocleanclosedpipeworkso,wherepossible,openchannelsshouldbeused
26
SchraderKK,DavidsonJW,RimandoAM,SummerfeltST(2010).Evaluationofozonationonlevelsoftheoffflavourcompoundsgeosmin and2methylisoborneolinwaterandrainbowtroutOncorhynchusmykissfromrecirculatingaquaculturesystems.Aquacultural Engineering43,4650.
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toenableroutinecleaning,especiallyfordirtyreturnwater.Atoneofthesites,deepchannels returnedwastewaterataslowratetothefilters:thisallowedSSWtosettlewhichaddedto maintenanceandleachedorganiccompoundswhichincreasedbiologicaloxygendemand.The inappropriatelocationofpipeworkcancauseoperationalissues:at2sitesitwaspositionedontop oftheproductionunitswalls:thisreducedaccessandwasthereforeconsideredapoordesign. Overhalfofthesiteshadchangedpipeworktoimprovesuchaspects,whichrequiredextratimeand expenditure. 5.10 Monitoringsystems AlarmedmonitoringsystemsareobviouslyacriticalpartofanyRASdesign.Incomparisontoa simpleopen/flowthroughfishfarm,therearealotmoretechnologicalcomponentsthatcanfail,the responsetimeisshorter(duetotypicallyhigherfishdensities),andthereislikelytobemorethan oneissuetoresolveifsystemsstop.Acomprehensivealarmsystemshouldcoverelectricitysource, allpumpsandtheiroutput,otherkeyequipment,oxygenlevelsinall(oratleastthelargest) productionunits,andpH.Thealarmsystemshouldbelinkedtodialoutcontrol. Nearlyallofthesitesdidhavealarmsystemscoveringtheelectricitysupplyandpumps,butdiffered inwhatelsewascovered.Allbuttwositesdialledouttoalistoftelephonenumbers;theexceptions usedanonsiteaudiblealarmwiththedisadvantageofrequiringpersonneltobewithinearshot. 5.11 Automaticfeedingsystems Automaticfeedingsystemswereusedonrelativelyfewsites.Theseweresuggestedasbeneficialby freeingupstafftimeandallowingfeedingtobecontrolled(amountandtiming)whichcanbe importantforensuringconsistentwaterqualitywhenrunningRAS. 5.12 Watersources,replacementanddischarge Thefreshwatersitesvisitedwereeitherusingmains,springorboreholewaterandweretypically onlyreplacingbetween1to10%ofsystemwaterperday.Twocoastalseawatersitespumped seawaterashore,whilsttheotherinlandsitesmixedtheirownfrompurchasedsaltandmainswater. Theseawatersitesreplaced210%ofsystemwaterperday. Dischargeofreplacedwater(usuallydrumfilterbackwash)wasmostcommonlytoasettlementtank orlagoonandoccasionallytoasewer.Anyexcesswateraftersettlementwasdischargedtoamains
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sewer,intoaconstructedwetlandareaordrainageditch.Theconcentratedsettledsolidswere disposedofbyspreadingontofieldsorbeingtakenawayforoffsitedisposal. 5.13 Lessonstobelearnt Themajority(80%)ofsitesthatusedapreexistingbuildinghadtoaccommodateaspectsofthe buildingdesign(e.g.lowceilingsandsupportpillars)intothesystemlayout.Thedisadvantagesof usingapreexistingbuildingwillbesitespecific,andmustbebalancedagainstthecostofacustom madebuilding. RASmustbeconsideredasaselfcontainedecosystem,withthebiofilteratitscore.Akeyfactorthat washighlightedbysomeofthesitesisthatRASmustberunasfixedoperations,i.e.inputs(i.e. feed)andoutputs(harvest)mustbeconsistenttoensurereliableproduction. ToensurethattheproductionpotentialofaRASisreached,itmustbedesigned,constructedand operatedwell.Everysitevisitedrecognisedthatdesign,constructionanduseofcorrect/adequate equipmentwereextremelyimportantinrunningaRAS:wheretherehadbeenfailures,aproblem withoneofthesefactorshadbeenamajorcontributor. AhighpercentageofsitesidentifiedpoordesignoftheRASitselfasthemaincauseofongoing issues:thesetendedtoemergeasthebiomassintheRASincreased,andrequiredaconsiderable amountoftimeandmoneytoaddress.Examplesofdesignerrorswere: ammoniabuildupinproductionunitsduetoinadequatewaterflowthroughthesystem oxygenlevelsbecominglowasbiomass/feedingrateincreasedduetoinsufficientaeration pHdroppingcausedbyCO2buildupduetoinadequateventilation/aeration(couldalsobe addressedbybuffering) onesitestoppedusingaventurideliverysystemasthiswascausinghighlevelsofO2 (supersaturation). MakingchangestoRASonceinuseisobviouslyundesirable:ontopoftheadditionalcost,itis logisticallydifficultandcancompromiseproduction.Somefundamentalflawscouldnotberectified withouttotalshutdownoftheRAS,whichwasnotarealisticoptionforarunningbusiness.Onesite didhavetoresorttototalshutdowntoaddressfailingdesignandpoorconstruction,whichpushed thebusinesstowardsfinancialfailure.
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Approximately60%ofRAShadbeendesignedtorunasonelargesingleunit.Althoughthismay economiseonconstructioncosts,itwasrecognisedasacompromiseasitmakessystemsinflexible. Anexampleiswhensmallfryneedtobeongrown(ratherthanfingerlings)fryrearingfacilities separatetothemainproductionRASneededtobesetupbysomesites.Inhindsight,approximately 30%ofsiteswouldhavepreferredsmaller,separateRASdespitetheadditionalcapitalinvestment required,togivegreaterflexibilityandmanageability,particularlywhilenewbusinessventureswere findingstheirfeet. RASoftenseemtobedesignedtorunatthelimitofcapacity,withfiltrationjustadequateto managethemaximumbiomass/feedloadingonasystem.RunningaRASatthislevelleavesno marginforfluctuationsinwaterquality,errorinpractices,maintenance,andforunforeseenevents suchasequipmentfailure.Therealityisthatthingswillnotproceedsmoothlyatalltimes,andspare capacitydoesneedtobebuiltintothedesign. Sitesthatconstructedvessels(forfishandfilters)ofconcretewereparticularlyrestrictedcompared tositesconstructedoffreestandingvessels.Concreteproductionunitsweregenerallyofaraceway design,butonesiteusedlargeconcretecirculartanks.Modificationstothefiltrationunits, frequentlyidentifiedassitesapproachedtheirexpectedmaximumbiomass(andfeedingrate),were particularlydifficultandrestrictedifconstructedfromconcrete.However,concretemaybetheonly viableoptionforlargeRAS.Notably,atonelargesiteconstructedofconcrete,thefiltrationhadbeen carefullydesignedandwasworkingwellwithinexpectedparameters. Forgettingoperationconsiderationsduringdesignledtotwocommon,andpotentiallyimportant, designflaws: storagecapacityforinletwaterisoftenunderestimated,somakeupwaterdoesnothave sufficienttimetowarmuptotemperaturebeforeuse alackofcapacitytoretainwaterwhentanksneededtobedrainedforharvestormaintenance. Ifdrainedtankwaterislostfromthesystem,thenitmustbereplaced.Replacementmay representasignificantcostintermsoflostwaterandheat,ontopofthetimeforreplacement (particularlyiftapwateristheonlywatersource). Examplesofotherdesignflawsrelatedtoignoringhowstaffwouldaccessareas,conductroutine activitiesandmaintenance: pipesfittedtotopsofwallspreventedaccessalongthem
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hexagonaltanks,neatlyfilledspace,butpreventedaccesstothoseinthemiddle awalkway,postfittedtoprovideaccess,necessitatedstaffhavingtooperate4mabovethe watersurface,makingactivitiessuchasmortalityremovalverydifficult.Thistrickyoperation wascompoundedbytheoutletsbeinginstalledatthebottomofthevessels. InconclusionthemajorityofRASoperatedwellandproducedfishoncetherightcombinationof mechanicalandbiologicalfiltrationwasinplace.Sitesthatachievedtherightfiltrationfromthe outsetwereaminority;mostrequiredconsiderableadaptationandmodificationstoapoorinitial design.Underestimatingfiltrationcapacityfortheproductiontarget(=overestimatingproductionfor thedesignedfiltrationcapacity)wascommon.Whetherinitialdesignwasgoodorbad,changes alwaysneededtobemade;minorchangescanbeaccommodated,butlargeunforeseenchangescan provecostly.Poorconstructionwasaproblemforsome,butnotall,sites. 5.14 NextgenerationRAS ActiveresearchisongoinginEurope,NorthAmericaandelsewheretofurtherdevelopRAS.Progress isbeingmadeinareassuchasdenitrificationreactors,sludgethickeningtechnologiesandozone treatments.Thesewillallcontributetoreducingwateruse,wastedischargeandenergyuseinRAS (recentlyreviewedbyMartinsetal.2010)27 .However,whilstsuchdevelopmentsofferpromisefor thenextgenerationofUKRAS,theyarenotyetwidelyavailabletotheexistingsector. Nitrogenouswasteremoval:Twonewapproachesarebeingappliedtoremovenitrogenouswastes fromRAS.Thefirstisbasedonrecentdevelopmentsindeammonificationinotherwastewater treatmentapplications.TheEUFP7DeammRecircprojectisdevelopingdeammonificationreactors forfreshandseawaterRAS,whichconvertammoniatonitrogengasinonestep.Ifthetechnology isproven,deammonificationreactorscouldbenefitcommercialRASbyreducing:theneedforclean makeupwaterandassociatedpumpingandtreatmentcosts,oxygenandbufferingchemicaluseand cost,carbonfootprint,andlevelsofnitrateineffluent28 .Thesecondapproachisdenitrification reactorswhichremovethenitratethatbuildsupinRASbyconversiontonitrogengas.Varioustypes ofdenitrificationreactorshavebeendevelopedthatallowhighnitrateconcentrationstobe
http://deammrecirc.com/ProjectDescription Page22of48
tankshape(e.g.hexagonalwithawkwardcorners),makingconfinementofthestockdifficult duringharvest lackofanyprovisionindesignformechanisedharvest,necessitatingmanualhauling.
27 28
Martinsetal(2010)NewdevelopmentsinrecirculatingaquaculturesystemsinEurope:Aperspectiveonenvironmentalsustainability, AquacultureEngineering43(2010)8393.
counteracted,e.g.theupflowsludgeblanketdenitrificationreactor.Martinsetal(2010)discussthe benefitsofthesesystemsandsuggestthatinstallationcostsarerewardedbyloweroperatingcosts duetoreducedwaterexchange.However,boththesenewapproachestoremovenitrogenand reducewaterreplacementmayprecipitateotherproblemssuchasaccumulationofgrowth inhibitingfactors(anareathatrequiresfurtherresearch). Suspendedsolidswastetreatment:Sludgethickeningtechnologiessuchasbeltfilters,geotextile bagsortubesallhelptodewaterandreducethevolumeofSSWthatneedsstorageanddisposal. Thesetechnologiesmayalsochangethewasteintoaformmoresuitableforuseasafertiliserorin integratedaquaculture. Effluenttreatment:Constructedwetlandsandmicroalgalcontrolledsystemsarecommonlyusedto treatmunicipalwastewaterandofferopportunitiesfortreatmentofwastewaterfromRAS. Energyefficiency:ResearchbeingcarriedoutattheFreshwaterInstitute(Virginia,USA)on improvingthesustainabilityoflandbasedclosedcontainmentsystemsforsalmonidtablefish productionistargetingthepotentialforgreaterenergyefficiencyinwaterrecirculationsystems throughimprovedlowliftpumpingandgastransferprocesses.TheUSDepartmentofAgriculture scientistshaveshownthatacombinationoflowheadpumps,properplumbingandlargerdiameter pipesused30%lessenergythanhighheadcentrifugalpumps.
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6 Financial sustainability of RAS

Theaimofthissectionistoprovideanoverviewofthefinancialexperiencesofthe14different warmwaterRAS.Itshouldbenotedthattheextentanddetailofthefinancialdataprovidedvaried betweenintervieweesduetoconfidentiality,positionwithinthebusiness,andavailablerecords. 6.1 Fundingsources
Fundingoftheoperationsvariedconsiderablybetweenbusinessesfromthosewhojustusedtheir ownmoneytomixturesofinvestorfunding,bankloans,mortgagesandgrants.Approximatelyhalf hadborrowedinoneformoranothertogetthebusinessupandrunning.Fewerthanhalfthesites hadobtainedsomesortofgrantfunding:grantsvariedfromaslittleas1,000tomany100,000s forthelargestsites.Accesstocontingencyfundingwasmentionedasimportantbyonesite. 6.2 Buildandsetupcosts
Thescaleofthesitesvisitedvariedfromthosecosting70,00080,000builttoproduce1050 tonnesp.a.,tositescosting10to14milliondesignedtoproduce1,000tonnesp.a.. Underestimationofthebuildandsetupcostswascommon,withfiguresforoverspendvarying between15and40%.Thereasonsgivenvariedandincluded: 6.3 Runningcosts designsnotincludingcostofinstallationofspecificelectricalsupplies additionofsupplementarydenitrificationfilters modificationstofaultysystems.
Electricity:Mostofthesitesvisitedconsideredelectricitytobeamajorcost:typicalfiguresquoted were1520%ofrunningcosts.Monthlycostsof5001000weretypicallyquoted,evenbysites producinglessthan100tonnesp.a.Somesitesexpressedconcernthatinappropriate,power hungrypumpshadbeensupplied,whichunnecessarilydoubledtheelectricitybill.Somesiteswere investigatingtheuseofalternativeenergysources. Heating:Thenecessityforsupplementaryheatingvariesbetweensitesandwithspeciesheld. However,mostsitesconsideredthatheatingwasaminorcost,andthelargestsitedidnotconsider heatingasignificantcostatall.Figurestypicallyquotedwere5%ofrunningcostsor50%ofpumping costs.Withgoodinsulation,alotofthesitesonlyusedsupplementaryheatingfor24monthsin winter.Somesmallersitesfoundcheaperalternatives,e.g.
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Water:Agoodsupplyofwateriscriticalevenforarecirculationsystemasitisrequiredfortopup, emergencyuse,shippingetc.Waterquantityandqualityissuesmustberesolvedbeforelocatingan aquaculturefacility 29 .Themajorityofsiteshadnoissueswithsupplyandoftenbenefittedfrom agriculturalrates.Watersupplycostsdidnotrepresentasignificantproportionofrunningcostsfor themajorityofsites.However,asmallnumberofsitesdidexperienceunexpectedwatercosts,e.g.: Staff:Responsesvariedbetweensites:somethoughtstaffcostswerenothigh,whileothers emphasisedthetimecommitmentinrunningRASandtheneedfortrained,experiencedbackup availableatalltimes.Onesite,betweendevelopmentphases,didexpressconcernaboutthe intensityofmanpowerrequired.Entrylevelpayintoaquacultureisacknowledgedtobelow 30 and manysiteshavebenefittedfromcheapeastEuropeanlabour.Twolargersites,inoperationwith goodfinancialmanagementsystems,bothestimatedstaffcostsat15%ofrunningcosts. Fry:Ofthe14RASsitesvisited,5hadsourcedUKfryandonehadusedtheirownbroodstock,while 10hadimportedeggsorfry.SomesiteshadongrownbothimportedandUKfry.Frysupply thereforefrequentlynecessitatedimports,duetoalackofUKhatcheries.Fryhadbeenimported fromFrance,Holland,Israel,USA,SouthAfricaandIndonesia.Themethodofshippingvaried:road deliveryfromEuropeancountriesandairfreightfromfurtherafield.Althoughfrywouldhavebeen movedatasmallsize,transportinwateraddstoshippingcosts.Onelargersitestatedthatfrycosts were8%oftotalrunningcosts. Feed:Thepriceofaquafeedwasaconcerntoallbusinessesandcomprisedasizeableproportionof runningcosts.Theactualcostsoffeedsvariedbetweenthespecies,anddidnotcorrelatewiththe percentageofrunningcostsquoted,varyingbetween20%and40%ofrunningcosts.Factors thoughttocontributetorelativedifferencesbetweensitesincludeeconomiesofscaleinfood purchase(bulkbuying),howmuchthefishwerefed(%bodyweightperday),aswellasthe magnitudeofothercostcategories.Issuesaroundfeedcostsincluded:
29 30
burningwoodchip switchingfromanLPG(liquidpropanegas)heatsourcetodiesel.
aswitchtomainswatersupply makingupsaltwateronsite,costingupto2.10perm3 underestimatingthecostofpumpingwaterfromthesourceintothefarm.
http://www.aces.edu/dept/fisheries/aquaculture/documents/Wheaton.pdf http://www.sparsholt.ac.uk/pages/template.aspx?idSection=69&idPage=139
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largeincreasesinfeedpricesoutsidefarmercontrol aswitchindietsnecessitatedbynutritionalproblemswhichincreasedfeedcostsfrom1,000to 1,600/tonne. onetilapiafarmer,experiencedinsourcingterrestriallivestockfeedexpressedfrustrationatan inabilitytosourcehisowningredientsandconsideredthataquafeedsupplyoptionsweretoo limited. producersofturbotandbarramundiexperiencedproblemsinsourcingappropriatediets becausetheyweretheonlymarketintheUK.Thisalsomeanttherewasnochoicein formulation. Maintenance:Thereliabilityofequipment,itslifespanandthemaintenancecostsneedstobe knownandassessedbyalloperatorspriortopurchase.Examplesofmaintenancecostissuesraised are: Pumpmaintenancecostswerehighlightedbyseveralsites Onelargefarmhadtoreplacefilterbeltsonanalmostweeklybasis.Thistook3mendayeach andcost1,8002,000atime.Althoughacheaperbeltsupplywaseventuallyfound,thetime andcostshadalreadyhadacripplingfinancialimpact. Solidswastedisposal:Disposalofsettledsolidsfrommostfreshwaterrecirculationsystemswasnot seenasasignificantcostastheywereabletospreadontofields.(Somesitesdidmentionthatthe systemsadoptedhadincreasedtheirassociatedpumpingcosts).However,forsaltwatersites disposalwasfarmorecomplicatedduetothepresenceofsalt.Foronesitepumpingoutthe settlementtankapproximatelyeverytwomonthscost1,500atime.Inaddition,regulatorshave notappliedpolicyuniformlyacrossregionswithsomefreshwatersiteshavingtheirwaste categorisedasindustrialwastewhichrequiresaspeciallicensecosting4,000p.a.. Mortalitydisposal:Disposalofmortalitieswasconsideredaminorissuebysomesitesthathad readyaccesstofacilities,whileotherssuggestedthatitincurredasignificantcostalthoughthiscould notbequantified. Rental:Over90%ofthesitesownedtheirownbuildingsoconsequentlyrentalcostswerenotan issueandalmostallofthesehadutilisedexistingvacantbuildings.However,foronelargersite, rentalcostswereconsideredexcessiveatapproximately25,000permonth.
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Oxygen:Oxygenwasnotusedatmanyofthebusinesses,butdidamounttoupto5%ofrunning costsatsomesites.Onefarmmentionedhydrogenperoxideuse,butthiswasnotconsidereda majorcost. Unexpectedcosts:Sitesoftenfoundrunningcostsweregreaterthaninitiallybudgeted,which occurredduetoavarietyof,oftensitespecific,reasons: salescosts(formarketing,packaging,icemachinesanddelivery)werecommonlywrongly anticipated.Onesitequotedsalescostsat0.25/kgoffish. supermarketcompliancecosts modificationofnewlyinstalledsystemsandadjustmentstotechnology,e.g.deliveringadditional ozonetoproteinskimmers.Therewastypicallyasignificantadditionalsetupcosttoaddress teethingtroubles. 6.4 Plannedvactualsalesprice Biofilterscouldrequireuptoseveralhundredm3ofmedia,costingupto300/m3 frycostshigherthananticipated
Althoughonesiteachievedandonesiteexceededtheirpredictedsalesprices,manyofthesiteshad beenunabletoobtaintheirplannedsalesprice.Onesiteplannedasalespriceof16/Kg,revisedthis downto6/Kg,butthebestpriceachievedwas3.20/Kg,withafinalaverageof2.40/Kg.Prices quotedwereclearlyhigherforpremiummarinespeciessuchasturbotandbass.Sitesproducing lowervaluespeciessuchastilapiaorcatfishindicatedthatsalesat3.00/Kgwouldprovideaviable business,butmanywerestrugglingtoachieve2.202.80/Kg.Thepressuresandproblemscaused bysupermarketswerementioned,e.g.promotionalofferswhichreducedpricesthefarmers receivedandcausedashorttermincreaseinsales.Severalsiteshadmanagedtoobtainhigher pricesbydeliveringtolivefishmarkets. 6.5 Productioncosts,paybackandaccountingrateofreturn
Accuratefiguresforfinancialappraisalweredifficulttoobtainwithmanyfarmerseitherunwillingor unabletosupplythese.Insomecasesfigureswerewithaccountants.However,threesitesnolonger inoperationquotedproductioncostsofbetween1.50/Kgfortilapiaand7.70/Kgforturbot. Paybackistheperiodtakenforaprojecttorecoveritsoriginalcostinfuturecashflows.Twosites mentionedthattheyhadexpectedtoachievethiswithintwoyearsbutapaybackperiodof5years wasmorerealistic.Onesite,currentlybetweendevelopmentphases,wasconcernedaboutthe
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lengthoftimebeforeareturnwasachieved(interpretedbyinterviewerstomeanachieving payback). Accountingrateofreturnmeasuresthepercentagereturntheprojectachievesoveritslifeinterms ofprofitability.Twositesthatarenolongeroperatingdidprovidecrudefiguresonrateofreturn statingthatitwasjust2550%ofthelevelspromisedbythesystemsalesperson/installer. Thelargescale,operatingsiteswithbetterfinancialmanagementdidnotquotefigures,butwere optimisticandfirmlybelievedinthefutureofRAS.OnedidindicatethatthecurrentRASsystems didneedtoevolvefurtherforanother10yearstoassurefinancialsustainability.Oneinterviewee gavethemainreasonhesoldupasteethingproblemsthatwentontoolongsoheendedupwith halftheexpectedsalesanddoublethecosts. 6.6 Literaturereviewfindings
TheUniversityofStirling,hasexaminedthepotentialfordevelopmentofwarmwaterproduction systemsasadiversificationrouteforUKagriculturalfarmers 31 .Onepartoftheprogrammelookedat theeconomics,withsensitivityscenarios.Usingtypicalfarmgatepricesfortilapiaof3.00,3.70 and4.50/Kg,salespriceemergedasthemostcriticalsensitivityitem.Manyofthetilapiafarmers interviewedinthecurrentstudyhadstruggledtoachieveeventhelowestmodelledsaleprice. TheStirlingresearchshowedthatcontinuousproductionwasmoreprofitablethanbatch production:forprofitablebatchproduction,thesmallestunitswouldneedtoachieveasalespriceof 3.20/Kgtobringthemtoprofitability,comparedto2.65/Kgforcontinuousproduction.The analysisshowedthatprofitabilityiscloselyrelatedtoproductionscale,butalsoindicatedthatrisk increaseswiththescaleofoperation.Theresearchalsopointedoutconsiderablescopefor increasingprofitsbyincreasingenergyefficiencyandintegratingcombinedelectricityandheat biomasssystems. The(somewhatcrude)industrysurveyinformationsummarisedaboveandtheStirlingprojectdonot supportstrongfinancialsustainabilityoffreshwaterRASinEngland.However,thesituationcould changemarkedlyifsalespricesareincreasedbyexternaldrivers.Thepressureonwildfishstocksis mountingasglobaldemandforseafoodproductsgrows32 ,humanpopulationsincrease 33 ,andper
31 32 33
http://www.tilapiascotland.org/relu http://www.fao.org/docrep/007/y5767e/y5767e0d.htm http://www.statistics.gov.uk/cci/nugget.asp?id=1352
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capitademandincreasesduetotherecentmessageforincreasedfishconsumption 34 .Therehave alreadybeenpricesrises 35 andshortages 36 ,whichcouldleadtohigherfarmgateprices.Thepromise offeredbyRASisfurtherillustratedbyinvestmentinresearchanddevelopment,e.g.: ArecentfeasibilitystudyofclosedcontainmentoptionsfortheBritishColumbiaaquaculture industry 37 comparedopencagestoRAS.Overall,thestudyfoundasignificantadvantagefor cagesintermsofpretaxincome.AlthoughRAStechnologywasmarginallyviablefinancially,it representedahigherlevelofrisk.RASbenefittedfrommoreefficientbiologicalfeedconversion ratio(FCR),temperaturestability,andimprovedenvironmentalcontrol,butthiswasatthecost ofhigherexpenditureoncapital,energyandlabourwhichimpactedoverallprofitability. Nevertheless,aswithmostemergingtechnologies,oncewiderRASuptakeisachieved,capital andoperatingcostsmaygodown.Ifclosedcontainmenttechnologiesachieveacriticalmassof production,operatorsmaybenefitfromeconomiesofscaleforacquiringcapitalitems,and increasingexpertisecouldreduceoperatingcosts 38 . InManitoba,Canada,amodelinlandrecirculationtroutfarmisbeingdeveloped,with encouragementfromtheauthorities,fromwhichdataisbeingrecorded. InNorway,NOFIMAhavejustopenedastateoftheartrecirculationaquacultureresearch facilityandacknowledgethatrecirculationwillbeimplementedwithintheindustryinthenear future 39 . 6.7 Overallassessmentoffinancialsustainability
Historically,thefinancialviabilityofrecirculationaquaculturehasnotbeengood:itisadeveloping sectorthathasmademanymistakes.Currentsalespricesformanyspeciesmakethereturnon investmentmarginal.Howeverifcapitalcostsreduce,andtechnologyandenergyefficiencyreduces runningcosts,theoutlookmayimprove.Furthermore,salespricesmayincrease:consumersare becomingincreasinglymoreadventurouswiththeireatinghabitsandRASofferanopportunityto growadiverserangeofspeciesclosetomarkets.Potentialinvestorsshouldthereforeproceedwith cautionandpayparticularattentiontominimisinginputcostsanddevelopprudentbusinessplans thatreflectthemarket.
http://www.food.gov.uk/news/newsarchive/2006/mar/oilyfish http://www.talkingretail.com/news/industrynews/fishpricestoriseby5asdemandincreasesandinflationbites 36 http://www.enn.com/top_stories/article/41773 37 http://www.dfompo.gc.ca/aquaculture/libbib/nasapiinpasa/BCaquacultureCBeng.htm 38 http://www.dfompo.gc.ca/aquaculture/libbib/nasapiinpasa/BCaquacultureCBeng.htm#executive 39 http://www.fishnewseu.com/index.php?option=com_content&view=article&id=4838:berghansenopensrecirculationresearch centre&catid=46:world&Itemid=56

35
34
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7 Factors leading to historical failure of some RAS

7.1 Top10criticalfactors
Duringthevisits,the14intervieweeswereaskedtopickandranktheirtop10keyfactors contributingtothesuccess(orfailure)ofawarmwaterRAStablefishfarm.Rankingswere convertedtoscores(highscore=importantfactor)whichweresummedfordisplay(Figure5).

Rank score System design Marketing Fingerling supply (& price) Electricity/gas/heating costs Demand for product Choice of species Sales price achieved Planning Owner / manager experience Water quality issues Staff aquaculture knowledge Growth rate Competition from cheap imports Lack of backups (alarms) Access to markets Product quality Diet / nutrition Paperwork Supermarkets Food conversion rates Scale of site System failure Disease Food costs Husbandry difficulties Staff costs Supplier support Lack of funding Added value/own processing Survival rates Technical stock issues (e.g. maturation) Certification Veterinary support Lack of automation Government support
Figure5:CriticalfactorsforthesuccessorfailureofwarmwaterRAS,asscoredbyRASindustry interviewees. Technical(systemdesign)andsomeeconomicfactors(marketing,energycosts,demandfor product),alongwithfingerlingavailability/price,emergedasthekeyissues.Staffknowledgeand
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biologicalfactorsappeartobeconsideredaslesscritical;regulatoryandcertificationissuesappear tobeofminorimportance. 7.2 Additionalfactorscontributingtofailure
Otherkeyissuescontributingtofailedoperationswereidentifiedduringinterviews.Theseare categorisedinTable4. Table4:OtherkeyissuesidentifiedduringinterviewsascontributingtofailedRASoperations. Reasonsforclosingtheoperation Operationaldesignissues Cashflowanddebts Salesvolumes Marketprices Overheads Systemspecificproblems Modificationstooriginalbuild Inadequatefiltrationsystem Qualityofsystembuild Pipeworkandflowdesign Lackofautomatedsystemsforharvesting andmortalityremovals Inflexibilityofsystem Sitespecificproblems Inappropriatewatersupply Restrictedaccesstofacilities Sitetoosmall Wastetreatmentanddrainageproblems Distancefrommarkets Mistakesmade Onlyconsultingonesupplier/designer Notpilotingbeforescaleup Unrealisticexpectations Notenoughattentiontodetail Inputsandcoststoohigh Notcheckingaccesstomarkets
Ofthemajorreasonsidentified,thetechnicalandeconomicreasons(costs)forfailurehavebeen discussedabove.Otherissuesthatmeritdiscussionrelatetomarketsandeconomiesofscale.
7.3
Markets
Fishfarmersnaturallyfocusonproducingfishandsalesisrecognisedasanareawheretheyoften droptheball 40 .Manysitesappearednottohaveunderstoodthemarketatthebeginningofthe operationandhadconsequentlychangedorstruggledtofindoutlets.Fewoperationsappearedto haveinvestedeffortinthefourPs(Product,Price,PlacementandPromotion) 41 . Intendedmarketsvariedbetweensites,largelyduetodifferencesinthescaleofoperation. Smallersiteswereunabletosupplysupermarketswiththevolumesdemanded,sofocussedon localorethniclivemarkets.Sitesthattargetedethnicmarketshadgoodinitialuptake,butthen
40 41
http://aquaculture.ext.wvu.edu/r/download/59173 http://www.eldis.org/go/topics/resourceguides/healthsystems/keyissues/marketdevelopmentapproaches/tools/4ps
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hitaceiling.Severalfoundtheprocessofdistributiontolocalorpremiummarketsonerousand endedupsupplyingwholesalers,processorsorsupermarketsasalastresort. Manysitesciteddifficultiesindealingwithlargersupermarketssuchasbeingunabletosupply whentheydemanded,andcopingwithpromotions.However,contractshadbeensetupto facilitatetwowaycommunicationandunderstandingoftheproblemssupplybythefarm,and thesupermarketsneedforpromotions. Otherissueswithmarketsthatemergedduringinterviewsincluded: BreakinginSomeofthelargertilapiaproducersfeltthatthemarketwasthere,butwasdifficult toaccess,possiblybecausetheydidnothaveadiversebasketofproductstooffer. DependenceAfewsiteswerereliantonasingleoutletfortheirproduct,andwereleft flounderingifthisavenueclosed. ProductqualityOnesitereleasedfishontothemarketbeforethedepurationsystemwas operationalandasaresultacquiredareputationfortaintedfishthatproveddifficulttoshift. CompetitionThelowcostofimportsinrelationtodomesticproductionwasraisedseveral times. Twositesdidrecognisetheimportanceofmarketingtheirproducts: Onesiteallocated10%ofproductioncoststomarketingand,asaresult,hadalwaysachievedor exceededtheirfarmgateprices. Anotherofthelargersiteshadadedicatedsalesmanagertokeepcustomershappywhichwas perceivedasakeytosuccess. 7.4 Addingvalue:processing,accreditationschemesandbranding
Nearlyalloperatingsitesdidtheminimumamountofprocessingtheysoldwholefishwith negligibleamountsofdescalingandpacking.Afewsitesstatedthattheydidnotwanttoget involvedinprocessing.Incontrast,severalsiteswerecontemplatingprocessing,withonegroup consideringasharedfacility. Approximatelyhalfofthesitesvisitedhadneverbeeninvolvedinanaccreditationscheme.Twoof thelargeroneshadjoinedupwiththeQualityTroutUK(QTUK)scheme,andothersiteswere consideringjoining.
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Somesiteswereconsideringdevelopingtheirown,orlocal(group)brands.Severaltilapiafarmers consideredthathighlightingtheirproductsaslocally/regionallyproduced(e.g.bredinNorfolk, raisedinSuffolk)wouldbeamarketableattribute.Severalfarmerswerekeentoconveythe sustainabilityattributesoftheirproductsandmakethemostofgreencredentialsthrougheco labelling 42 .However,thiswasnotyetoccurring,becauseeithertheywereunclearofhowtogo aboutit,oritwasbeingleftassomethingforthefuture. 7.5 Economiesofscale
Whilstthisdidnotrankhighlyasatoptenfactor,thevastmajorityofsitessuggestedthat economiesofscalewereveryimportantintermsoffinancialsustainabilityandcriticalinsupplying supermarketchains.Afewnonoperationalsitesexpressedtheopinionthatiftheyhadpilotedthe projectorstartedsmallthiswouldhavereducedthecostlymistakesmadelater.Twofarmers expressedtheopinionthatbeingsmallhadreducedtheirlossestomostlytheirownlabour, althoughoneofthesesitesdidqualifythisbysayingthathecouldhavehadaviableoperationif productionhadincreasedfrom10to20tonnesp.a..
42
MungkungRT,deHaesHAU,CliftR(2006).PotentialandlimitationsofLifeCycleAssessmentinsettingecolabellingcriteria:acasestudy ofThaishrimpaquacultureproduct.IntJLCA11,5559.
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8 Sustainability issues relating to RAS

TheEUAquaculturestrategycallsfordevelopmentofasustainableindustry.Awidelyused definitionofsustainableisdevelopmentwhichmeetstheneedsofthepresentwithout compromisingtheabilityoffuturegenerationstomeettheirownneeds 43 .Sustainabilityisanideal aimedatensuringsatisfactoryenvironmental,social,andeconomicconditions,andcanbe envisagedasaddressingfourobjectives 44 : effectiveprotectionoftheenvironment prudentuseofnaturalresources socialprogresswhichrecognisestheneedsofeveryone maintenanceofhighandstablelevelsofeconomicgrowthandemployment.
EconomicissuesrelatedtoRASarediscussedabove;herewediscussenvironmentalprotection, naturalresourceuse,socialissuesandemploymentinrelationtoRAS. Nearlyallofthefarmsvisitedwereawareoftheenvironmentalandresourceusecredentialsoftheir products,e.g.locallyproducedandlowfoodmiles,rearedonlowfishmealdiets,lowwaterusage, efficientuseofspace.However,farmersoftenstruggledtodiscusssocialsustainabilityissues,but didsowhenpromptedbyinterviewerswithexamples. 8.1 Environmentalprotection
RASfarmsscorestronglyintermsofenvironmentalprotection,largelyduetotheirinherent features. Finfishaquacultureisoftencriticisedovertheissueofescapeesandtheirimpactsonlocalstocks thoughcompetition,interbreedinganddilutionoflocalgenepools.Duetotheircloseddesign, typicallocationremotefromnaturalwaterbodiesandcultureoftropicalspecies,noneoftheRAS siteshadexperiencedanyproblemswithescapees. Openfinfishfarmsareoftenperceivedtoactasreservoirsofpathogensthatinfectwildstocks. Again,thecloseddesign,locationawayfromnaturalwaterbodies,treatmentofeffluentandculture oftropicalspecies,negatethisissuefortheRASfarmsvisited.

http://archive.defra.gov.uk/sustainable/government/publications/ukstrategy/documents/NewGlossary.pdf http://archive.defra.gov.uk/wildlifepets/zoos/documents/zoohandbook/3.pdf Page34of48
43 44
ContainmentofwarmwaterRASwithinbuildingsalsoeliminatesinteractionswithwildpredators, withnositereportingpredatorproblems.Twositesdidmentionaneedforpestcontrolandused professionalcontractorstocontrolratsaroundthefarm. Openaquaculturesystemsmaynecessitatemodificationstonaturalwaterbodiesandchangesin flow,duetoconstructionofchannelsforabstractionanddischarge.Again,RASavoidsuchimpacts. Inopenaquaculturesystems,dischargeofveterinaryproductscanbeaconcern.Again,thelocation ofRASfarmsawayfromnaturalwaterbodiescoupledwithretentionofwaterwithinthesystem eliminatesthispotentialissue.Furthermore,RASaregenerallydesignedtohavehighbiosecurity beingwithinabuilding,drawingwaterfromsourceswithoutfishpathogensorsterilisingifdrawn fromnaturalwaterbodies.Alargeproportionofthesitesvisitedhadthereforenotusedany veterinaryproducts. Inopen,flowthroughfishfarms,thereisdischargeofeffluentcontainingsuspendedsolids, dissolvedinorganicanddissolvedorganicwastesintonaturalwaterbodieswhichcanreducethe qualityofthelocalenvironment.Again,thelocationofRASfarmsawayfromnaturalwaterbodies coupledwithtreatmentofwasteswithinthesystemeliminatesthisissue.RASdoneedtodischarge asmallpercentageoftherecirculatingwater(10%/day)topreventexcessivebuildupofnitrates andothercompounds.Thiseffluentcouldhavepotentialeutrophicationimpacts,butRAStendto dischargetosewers,settlementtanks,ditches,orconstructedwetlandsratherthannaturalwater bodies.Constructedwetlandsprovideanaturalmeansofcleaningeffluent,andcanprovideanew habitatforwildlife. RASsystemscaptureandconcentratesuspendedsolidswasteswhichrequiredisposal.SomeRAS farmsusewastedisposalsystemsalreadyinplaceaspartoftheiragriculturalfarms;somespread theirsolidwasteontofields(representingreuseasfertilizer);somehavewastetakenawayaspera septictank;othershavehadthewasteclassifiedasindustrialwasteandhavetopayforaspecial licenceanddisposal. OneenvironmentalweaknessofRASistheirhighenergyuse(seebelow)whichcontributestoglobal warmingduetotheburningoffossilfuels.RAStypicallyhavedoublethecarbonfootprintofflow throughsystems45 .ThekeytoreducingcarbonfootprintofRASistoswitchtorenewableenergy
45
SeeEllisetal.(2011)InitialinvestigationofthesustainabilityofEnglishaquaculture.CefascontractC3743reporttoDefra
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sources.Everysitevisitedhadinvestigatedorexperimentedwithalternativeenergysources,i.e. woodchipburners,solarpanels/photovoltaics,windturbines,biogasplants,anaerobicdigesters, groundsourceheatpumps,anduseofwasteheatfromanicerink.Althoughreuseofwasteheat fromthirdpartysourcesmaybegreen,asymmetriesbetweenthecooperatingbusinesseshave typicallymadepreviousattemptsunsuccessful 46 . OnepotentialadvantageofgrowingtilapiaintheUKoverimportofforeignproductionisthatthe associatedfoodmilesaremarkedlyless.However,simplyfocussingonfoodmilestravelledbythe finalproductignoresthemodeofproduction,modeoftransport,andtransportofinputssuchas feedsandfry.OnestudyassessedtheglobalwarmingimpactsofcagetilapiaproductioninIndonesia andtransporttoEurope 47 .Inthecontextofthefullproductioncycle,transportationimpactswere negligible,astransportoffrozenfilletsinoceanfreightedcontainersisefficient.ThismeansthatUK productioninRAScontributedmoretoglobalwarmingthanproductioninIndonesiacombinedwith importation 48 .Nevertheless,RASproductionintheUKwasassociatedwithlesseutrophication. FurthermoreaseparatestudyhasindicatedthatproductionofAfricancatfishinDutchRASresultsin lowercarbondioxideemissionsthanPangasiuscatfishfarmedinpondsintheMekongDelta 49 also takingintoaccounttransportationcosts. 8.2 Naturalresourceuse
RASsystemsareinamixedpositionintermsofresourceusage.Asintensivesystems,theydo requireinputofnaturalresources,sotheemphasismustbeonmaximisingefficiency. RASfarmsrepresentanefficientuseofland.Comparativeproductionfiguresfortilapiaare1340 tonnes/ha/yearforRASversus17.4tonnes/ha/yearforaconventionaltilapiafarm 50 . WateruseinRASisevidentlyefficientincomparisontoopen/flowthroughaquaculture: comparativedataare0.5m3/KgRASv31m3/Kgtilapiaproductioninaconventionalintensive farm 51 .RASalsocomparefavourablytoterrestrialanimalproductssuchaspigsandeggs 52 .
LittleDC,MurrayFJ,AzimE,LeschenW,BoydK,WattersonA,YoungJA(2008).OptionsforproducingawarmwaterfishintheUK: limitstogreengrowth.TrendsinfoodScience&Technology19,255264. 47 PelletierN,TyedmersP(2010).LifecycleassessmentoffrozentilapiafilletsfromIndonesianlakebasedandpondbasedintensive aquaculturesystems.JIndustrialEcology14,467481. 48 SeeEllisetal.(2011)op.cit. 49 th PoelmanM,SchneiderO,Abstractat8 InternationalConferenceonRecirculatingAquaculture. 50 Sustainablefinfishaquacultureworkshop.FinfishNews9,422;http://www.slideshare.net/Cefas/largescaleintensiverecirculation systemsandtheirpotentialdevelopmentwithinengland2373881 51 http://www.slideshare.net/Cefas/largescaleintensiverecirculationsystemsandtheirpotentialdevelopmentwithinengland2373881 52 http://www.oecd.org/dataoecd/19/21/45032957.pdf WarmwaterrecirculationfishfarmsinEnglandandWales Page36of48
46
However,simplecomparisonsofvolumeofwaterusedinproductionaretoosimplistic 53 .Themetric forwaterusem3/Kgproductiondoesnotaccountfortheimpactofabstractiononthesourceof thewater(i.e.mains,groundwater,river,lake,sea)whichwillberelativetoitsavailability. Furthermore,open/flowthroughaquacultureisanonconsumptiveuseofwaterasitispromptly returnedtothesamewaterbodyfromwhichitwasabstracted;incontrast,RAScouldbeconsidered asaconsumptiveuserofwater,althoughsomedischargedwaterwillfinditswaybackintothe watertableviasewageworksorspreadingontheland. RASfarmshaveahighenergyuseastheyrelyontechnologytomovewaterandmaintainitsquality. EnergyuseacrosstheproductioncyclehasbeenexaminedinanumberofstudiesandRASfarms typicallyrequire2to3timesmoreenergythanflowthrough/openaquaculturesystems 54 .Thekey toreducingenergyuseinRASistoimproveenergyefficiency.AtsomeofRASsystemsvisited,expert consultantshadbeeninvolvedinmakingimprovementstoimproveenergyefficiency.Heat exchangerswerecommonlybeinginvestigated,e.g.insettlementtanks.Onetilapiafarmersaidthat theheatexchangerontheairexchangeunitenabled60%recoveryofheat.Withincreasingenergy prices,incorporationofenergyefficiencyintodesignswillalsocontributetofinancialsustainability. ThereseemstobeabeliefthatfeeduseshouldbemoreefficientinRASthaninopen/flowthrough systems 55 .Theoretically,RASrepresentintensivelymanagedsystemswherefoodprovisionishighly controlled(tominimisewaste)andoptimumconditionsforgrowthareprovided.Whetherfood conversionistrulybetterinRASthanotheraquaculturesystemsremainstobedemonstrated 56 ,with comparisonsconfoundedbydifferencesindiets. Finfishaquaculturehasattractedcriticismbecausemanyspeciesfarmedarecarnivorousandfed formulatedfeedscontainingfishmealandfishoil(FMFO) 57 .Tilapiahasbeenpromotedasgreen duetoomnivorousdiet 58 .TheRASsitesvisitedpotentiallypresentadichotomybetweenthose producingtilapia,andthoseproducingcarnivorousfish(e.g.seabass,turbot). Mostofthetilapiasiteshadchangeddietsseveraltimestofindthemostsuitable,andafewwere contentwiththeircurrentdiet.However,concernswereexpressedthattilapiadietslowinFMFO
53 54
SeeEllisetal.(2011)op.cit. SeeEllisetal.(2011)op.cit. 55 DOrbcastelER,BlanchetonJP,AubinJ(2009).Towardsenvironmentallysustainableaquaculture:comparisonbetweentwotrout farmingsystemsusingLifecycleAssessment.AquaculturalEngineering40,113119. 56 SeeEllisetal.(2011)op.cit. 57 NaylorR,BurkeM(2005).Aquacultureandoceanresources:raisingtigersofthesea.AnnRevEnvironResour30,185218. 58 LittleDC,MurrayFJ,AzimE,LeschenW,BoydK,WattersonA,YoungJA(2008).OptionsforproducingawarmwaterfishintheUK: limitstogreengrowth.TrendsinfoodScience&Technology19,255264.
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reducedgrowthratesandcreatedmorewastefortheRAStohandle(presumablyduetolower digestibility).Therewassomeevidenceofgroup(bulk)purchasingbutthisprecipitatedconflictdue todifferingemphasisbetweenmembersonlowFMFOandfastergrowthrates.Thelargescalebass farmhadfoundthattheformulationofthebassfeedinitiallyused(designedforcagesystems)had tobealteredforRAS,andnowcontainedlowerlipidsandfishoil. AllsitesvisitedwereawareofthesustainabilitybenefitsofusingfeedslowinFMFO,andsomehad beguntomarkettheirfishaccordingly.TwositesstatedthatsupermarketsarekeenonlowFMFO feeds,andcandictatefeeds.OthersitesarguedthatthemarketsdidnotcareaboutlowFMFO diets,andsalepricedidnotredresstheslowergrowthandhigherwastes.Itmustalsoberecognised thatthepromotionoffishconsumptiononhealthgroundsis,toalargeextent,duetothepresence ofmarinederivedomega3oilsandtraceelementswhichoriginatefromFMFO. AsnitrateandphosphatelevelsbuildupinRAS,thereisthepossibilityofrecoveringthesewastesin effluentwaterintoadditionalvegetablecrops,therebymaximisinguseoftheoriginalfeed resources.Theseawatersitesvisitedhadbeeninvolvedinresearchprojectsgrowingseaweedand samphire59 hydroponicallyineffluent.Severalofthefreshwatertilapiasiteshadinvestigated commercialhydroponicunits 60 asaboltontotheirfarms,e.g.fortomatoes.However,threesites expressedconcernsabouttheeffortinvolvedinmakingtwosystemsruninharmony,andfeltthat makingthefishRASperformwasmorecritical. AquaponicsistheintegralcombinationofRASaquacultureandhydroponics:fishwastesare removedasnutrientsbyplants 61 ,andcontributetothebiologicalfiltrationprocess,helpingcleanse thewaterbeforereturntothefish.Despiteresearchinterestandagrowingnumberofhobbyists, aquaponicshasnotyetreachedcommercialreality. Polycultureisthefarmingofmorethanonetargetspecies,usingdifferenthabitsandtrophiclevels tomaximisetheefficientuseofspaceand/orfeed 62 .Approximatelyhalfthesiteshadnot consideredpolyculture,ordismisseditpreferringtoconcentrateononespecies.Somefreshwater siteshadconsideredproducingcatfishorcarpinconjunctionwithtilapia,onehadconsidered prawns,andanotherhadexperimentedwithproducingsnailsinthewarmair.Theseawatersites
59 60
http://www.llynaquaculture.co.uk/index.php?p=111 http://www.cropking.com/intro.shtml 61 http://aquaponics.org.uk/ 62 http://en.wikipedia.org/wiki/Polyculture
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hadalsoinvestigatedArtemia,clam,seaurchinandbiodieselproduction.However,noneofthese haveyetcometocommercialfruition. 8.3 Socialissues
SocialissuesaddressattributesofproductsthatareimportanttoconsumersandtheroleofRAS farmsinlocalcommunities.RASscorehighlyinrelationtosocialsustainability. Productqualitycoverstangibleandperceivedattributesofproductsofimportancetoconsumers, andthelatterwillalsoincludeperceptionsofenvironmentalimpact,naturalresourceuse,andlocal production.Tilapiafarmersconsideredlocalproductionwasanattributeconsumersmayfind attractiveintheirproducts. Akeyissueforseafoodqualityisfreshnessandwasrecognisedbymanyoftheinterviewees.UKRAS systemsclearlyenablefishproductstoreachtheUKconsumerquickerthanimports(seabassfrom WalesvafterroadtransportfromtheMediterranean)orinamoredesirableform(freshUKtilapiav frozenfilletsfromAsia). Foodsafetyisanothertangiblequalityissue,duetopotentialcontaminationwithindustrial chemicals,heavymetals,veterinaryproductsandbacteria.Importedfishproductshavefaced scaremongeringoverfoodsafety63 64 ,althoughsystemsareinplacetoprotectconsumers 65 .UK consumersmayneverthelessplacemoretrustindomestictraceabilitysystems: feedisanunlikelysourceofcontaminantsasrecognisedmanufacturersabidebystrictrulesfor levelscontaminantsintheirrawmaterials. allUKRASoperatorsmaintainrecordsofveterinarymedicineuseundertherequirementsof theirAquaticAnimalHealthAuthorisation. Twositeswerepartofanindustryaccreditationschemeandotherswerethinkingofjoining; anothersitewastiedintosupermarketqualityassuranceschemes
63
http://www.fishupdate.com/news/fullstory.php/aid/12949/Seafood_company_challenges_Scottish_Press_concerns_on_Vietnamese_fis h.html 64 http://www.fishupdate.com/news/fullstory.php/aid/14920/Vietnam_moves_to_upgrade_fish_safety_checks.html 65 http://www.fishupdate.com/news/fullstory.php/aid/15471/EU_politician_admits_misplaced_criticism_of_Vietnamese_pangasius.html
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OnepotentialissueforRAS,duetothelimitedreplacementwithnewwater,istheaccumulationof heavymetalsinthewater;however,recentresearchnegatesthisasafoodsafetyconcern,aswater levelsdonottranslateintofleshresidues 66 . OnerecognisedissueforRASisaccumulationofnontoxicorganicsubstancesinthewaterwhichcan taintthefishflesh,i.e.causeanoffflavourormuddytaste.Afewfarmerssaidthattheyhadnot receivedanycomplaintsandtaintwasnotaproblemforthem.However,mostoperatingfarmshad depurationtanksforreducingtaint.Twononoperationalfarmersmentionedthisasaproblem;one hadplacedproductonthemarketbeforedepurationtanksweresetupandthenhadbeenunableto losethestigma.Researchisongoingintotheissuesoftaintinrecirculationsystems 67 .Thispotential problemappearstoberesolvedbygoodsystemdesignandtheuseofclearwatertechnologysuch asfoamfractionationandozone. Thehealthandwelfareoffarmedfishmaybeaqualityattributeimportanttosomeconsumers 68 , andsupermarketsareincreasinglyincludingitinqualityassuranceschemes.Severalinterviewees wereconcernedaboutconsumerperceptionofintensiveproduction,andpossiblemisinterpretation offishaggregatingathighdensityatthesurfaceduringfeedingtimeorinresponsetoastockman. RASsystemshavehighbiosecuritytopreventingressofpathogens.RASarecontainedwithin buildingsandthewatersupplyiseitherfromsourceswithnopathogens(mains,groundwater)oris sterilisedbeforeuse.Ofthesitesvisited,hadnotexperiencedanydiseaseproblems.However,the intensivenatureofRASmeansthatifadiseasedoesenterasystem(mostlikelyviaintroducedfry)it canproliferateandspreadquickly.AsmallnumberofthetilapiaRAShadexperiencedoutbreaksof abacterialdisease(Fransicellaasiatica)infry,whichwasresolvedbysettingupseparatenursery systemsandchangingsupplier.Twositesmentionedthattheyhadoccasionallysufferedfrom commonlyoccurringparasitesbutthattheseweremanageable.Onesitementionedeyeproblems whichwereresolvedwithhelpofaveterinarysurgeon.Sitesusedeitherlocalvets,ormore commonlyspecialistfishvets. MostRASfarmersconsideredthattheonfarmwelfareoftheirstockasgoodbecausethefishwere feedingandgrowing(providedthesystemfunctionedwell).Mostoperatorsconsideredroutine
MartinsCIM,EdingEH,VerrethJAJ(2011).Theeffectofrecirculatingaquaculturesystemsontheconcentrationsofheavymetalsin culturewaterandtissuesofNiletilapiaOreochromisniloticus.FoodChemistry126,10011005 67 http://www.ars.usda.gov/research/projects/projects.htm?ACCN_NO=409122 68 OlesenI,AlfnesF,RraMB,KolstadK(2010).Elicitingconsumers'willingnesstopayfororganicandwelfarelabelledsalmoninanon hypotheticalchoiceexperiment.LivestockScience127,218226.
66
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mortalitylevelsaslow,althoughpeakshadoccasionallyoccurredduetohumanerror,systemfailure andfeedrelatedissues.Fivesiteshadexperiencedpoorqualityfrywhichdidnotgrow(poordoers), andrequiredculling.Onesitehadexperiencedabatchoffrywithahighlevelofphysical deformities,butthishadsincebeenresolvedbyselectivebreeding.Welfareduringtransportwas notamajorissue:onlyfryaretransportedwhensmall,astablefarmstypicallyslaughterharvested fishonsite;thereareoccasionallivesalestoethnicmarkets,butfarmersexpressednoconcerns overthis.Opinionsonwelfareatslaughtervariedbetweenfarmers.Mostsitesslaughteredfishby placingthemdirectlyintoiceslurry.Somefeltthiswasfairlyquickandhumane,whilstothers suggestedthatthetimetodeathwasunacceptable.Divergenceinopinionsmayreflectprevious experience:agriculturalfarmersareusedtoinstantaneousslaughter,withonefarmer(turkeyaswell astilapia)statingthatwhileturkeysdiedin13seconds,itcouldtakeupto10minutesfortilapiato die.Attherequestofasupermarket,onesitewasinvestigatingstunningmachinesfortilapia. Severalfarmershadtriedelectricalstunningasamorehumaneslaughtermethod,buthadreturned toiceslurryduetoproblemswithproductdamage.Turbotwereslaughterbymanualpercussion stunning. UKRASsystemsmaybenefitconsumers(andretailers)throughconsistencyofsupply.RASfarms createtheirownenvironment,soproductionandharvestareunaffectedbyseasonandweatherand astandardproductcanbedelivered.Oneintervieweesuggestedthatmostconsumersjustwanteda freshandconsistentsupply.TheproductioncostsdiscussedearlierindicatethatRASfarmersshould beabletoprovidefishproductswithinapricebracketthatenablesaccessbyalargeproportionof consumers. UKRASsystemsproducingexoticspeciesdoincreasediversityinchoiceforfishconsumers. Howeverseveralintervieweesfarmingtilapiasuggestedthatsalestoethnicmarketswereofprimary importanceduetotheconservativetastesoftheaverageUKconsumer.Onefishprocessorwas believedtobeproducinganethniclinetosupplysupermarkets.Theturbotfarmeralsoindicated thatlivefishsalesintoorientallivefishmarketsreturnedhighersalesprices. Withregardstointeractionswithlocalcommunities,allbuttwoofthe14RASsiteshadmadeuseof redundantfarmbuildings.Thismeantthattherewaslittleornoaestheticimpactonthesurrounding environment,withmanypeoplebeingcompletelyunawareoftheirexistence.Ofthetwonew builds: onehadexperiencedminorplanningissues
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theotherwasbuiltwithinadisusedbrownfieldsiteandhadreceivedcomplaintsfromlocal residentsallegingnoisedisturbance. 8.4 Employment
Nearlyallthesitesmentionedemploymentasthemainsocialbenefittonearbycommunities.Atthe initialconstructionorconversionstage,localelectriciansandbuildersweregenerallyused.Although employmentistypicallylowforrunningsystems(usually2or3staffandupto1015forlarger sites),severalintervieweessuggestedthatthiscouldbelocallyimportantinremoteruralareas(13 ofthe14ofthesitesvisitedwerelocatedinruralareas).Severalsiteshaveprovidedemploymentfor migrantsfromotherEUmembersstatesorevenfurtherafield.Onesitementionedthatthefish farmhadsecuredthefutureforstaffalreadyemployedontheagriculturalfarm. OnefarmerdididentifynegativeaspectsofRASoperationonqualityoflifeofworkers:operatinga RASmeanthavingtobeonhand24/7,whichaffectedhissociallife;furthermorethepossibilityof systemfailureswasasourceofconstantworry.
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9 Strengths, weaknesses, opportunities and threats to the RAS sector

Inthissection,weattempttointegratetheinformationcollatedaboveandhelpreadersmake judgementsonthepotentialfortheRASsectorintheEnglandandWalesbyconducting: 9.1 PESTAnalysis aPESTanalysis,i.e.collationofPolitical,Economic,SocialandTechnologicalissues aSWOTanalysis,i.e.collationofStrengths,Weaknesses,OpportunitiesandThreats
ItissometimesusefultocarryoutaPESTAnalysisasapreludetoaSWOTanalysis.Variouspolitical, economic,socialandtechnologicalissuesarelistedinTable5. Table5:PESTanalysisoftherecirculationaquaculturesectorinEnglandandWales. POLITICALISSUES ECONOMICISSUES Foodsecurity Currentfinancialsituation WaterFrameworkDirective Valueofsalmonaquaculture HabitatsDirective Generatingeconomicwealth Environmentalpermitting Regulatoryburdeninitiatives EnglishAquaculturePlan Importof40%80%ofUKconsumedseafood EuropeanAquacultureFramework Pangasiusproduction Alienspecieslegislation Lowinterestrates EFFfundingforaquaculture Banksreluctanttolend MarineProtectionAreas Poorinvestmentprofile Globalinstability Trackrecord ConservativeGovernment AirmilesGreencredentials SOCIALISSUES TECHNOLOGICALISSUES Increasingpopulation Technologytransferfromwaterindustry Healthyeating(FSAadvice) Freshwaterinstituteresearch Increasingaffluence SARFEATP Increasingethnicdiversity Developingtechnology FishFightcampaign Plugandplaysystems Celebritychefs Materialadvances Imageproblem Limitedmanufacturers Ethics&welfare Automation Mediaattacks Alarmsbackup Redtractorlabels Innovationpotential BuyBritish Globalinterestgroups
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9.2 SWOTAnalysis
SWOTanalysisisastrategicplanningmethodusedtoevaluatethestrengths,weaknesses, opportunitiesandthreatsinvolvedinaprojectorbusinessventure.Itinvolvesspecifyingthe objectiveofthebusinessventureorprojectandidentifyingtheinternalandexternalfactorsthatare favourableandunfavourabletoachievethatobjective 69 .BystatingthattheobjectivefortheRAS sectorasforfarmerstomakemoneyandcontributetothegrowthofsustainableaquaculture withinEnglandwecandevelopaSWOTanalysisfromtheinformationcollectedduringthefield visitsandliteraturesearch. Table6:SWOTanalysisoftherecirculationaquaculturesectorinEnglandandWales. Strengths Weaknesses Biosecurity(protectionfrominfection) Capitalsetupcosts Controloverdischarge ElectricityCosts Nopredatorproblems Investorconfidence/trackrecord Noescapeeproblems Intensiveimage Optimisationoftemperatureforgrowth Systemdesignstillevolving Protectionfromadverseweatherconditions Marginallyprofitablecomparedtocagesystems Conservationofwater Supplyoffingerlings(dependenceonimports) Locationclosetomarkets(lowairmiles) Notseenasorganic Allyearroundproduction Fleshtaintingissues Traceabilityandfoodsafety Cultureknowledgeforlimitedlistofspecies Lowornomedicineusage Experience/understandingofstafftorunRAS Efficientuseofspace Lackofmarketingexperience Saferworkingconditionsthancagefarms Sensitivetopriceschanges Opportunities Threats Reductionofcapitalcosts Increasingenergycosts Reductionofrunningcosts Cheaperforeignimports Linkingwithalternativeenergysources Fishmeal/oilcostsandavailability Secureforfarmingnewspecies Componentfailure Automation Lossofelectricity Alarmsystems/backups Humanerror Improvedmarketing/productplacement Diseases GeneticselectionforRAS&stockimprovement Missellingofpoorqualitysystems Reuseofnutrientsasfertiliser/aquaponics Scaleupproblems Increasingdemandforhealthyproduct Extremeanimalrightsgroups Efficientmanagement/recordkeepingofRAS Availabilityofveterinarymedicines
69
http://en.wikipedia.org/wiki/SWOT_analysis
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9.3 IdentificationofR&Drequirements
Attheendofeachsitevisit,intervieweeswereaskedforresearchanddevelopmentprioritiesto supporttheRASsectoroftheaquacultureindustry,whicharecollatedinTable7. Table7:PrioritiesforRASresearchanddevelopment,identifiedbythe14sitessurveyed. Economics&runningcosts Improvingenergyefficiency. Greaterintegrationofalternativeenergysourcestoreducecarbonfootprintandrunningcosts. Technology&Systemdesign Investigationoflongtermeffectsonrecirculationsystemsofsmallreplacementvolumes,e.g. buildupoforganicsandheavymetals,lossoftraceelements. Betterdeliverysystemsforoxygenandozone Cheaperwaterqualitymonitoringequipment Improvementandsimplificationofsystems,andmovementtowardsacommon,standarddesign InvestigationofthelongtermprospectsandissuesforRAS Stock SelectivebreedingtoimprovegrowthrateofcurrentRASspecies,andtoproducestrainsof open/flowthroughaquaculturespeciessuitableforfarminginRAS Newspecies:closureofthelifecycleincultureanddomestication Selectionofsaltwatertoleranttilapiastrains,assuchsystemsperformbetter Feed Developmentoffishmealandfishoilalternatives DevelopmentofRASspecificdiets Useofsproutedgrainsandseedsforherbivorousfish Product Consistencyofqualityofproduct Researchintotainting(taste) Discharge Reuseofeffluentsforcropsasveryrichinnutrients Aquaponics Others Improvingtheimageoffishfarming AppliedcollaborativeprojectsbetweenresearchprovidersandtheRASsector
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10 Conclusions
AlthoughtheRASsectorinEnglandandWalesissmallincomparisontotheproductionoffarmed salmoninScotland,ithasexpandedgreatlyinthelastdecade.Overthesametimetroutfarmingin EnglandandWaleshasshownagradualdecline.WhetherthisexpansionoftheRASsectoris sustainedwilldependontheperformanceofexistingfarmsandtheconstructionofmorefarms. RASventuresdohaveapoorlongevityrecordwithahighproportionofbusinessesclosing.Various factorscontributetofailure:technicalsystemdesignproblems,economicdifficulties(highenergy costs,toolowdemandandpriceforproducts),andproblemsinfrysupply. ManyoperatorshaveexperiencedconsiderableteethingproblemswiththeirRAS.Whilstrecognising thattechnologyhasdevelopedrapidlyoverthelastfewyears,wearestillonthesteeppartofthe learningcurveandissuesremaintobeironedout.Forthesectortoreallytakeoff,thetechnology needstomoveawayfrombespokesetupsthatrequireadaptationduringoperation,towards reliableplugandplayunits.Developmentofsuchunitsislikelytobeaidedbyfurthertechnology transferfromothersectors,suchasthewatertreatmentandornamentalfishsectors. Researchistakingplacetoimproveefficiencyandreduceenergycosts 70 . Itshouldberecognisedthattheconclusionsofthisreviewmayhavebeenskewedbytherecent dominanceintheUKoffreshwatertilapiaRAS;severaloftheconsulteesexpresseddissatisfaction withtheadviceandexperienceoftheindividualadvisorinvolved. Currently,theprojectsthatappeartobethemostfinanciallyviableareeithersmallscaleoneman nicheoperationsbasedonsmallinvestments(<100K),orthelargescaleventures(>1M).The recentlargescalesystemshavebenefittedfromsignificantsystemimprovementsprovidedby expertconsultants. Currentpolitical,socialandenvironmentaldriverswouldappeartofavourdevelopmentofthis sectorofaquaculture,asRASofferenvironmentalandsocialbenefits.Environmentalsustainability attributesarelargelyduetothehighlevelofcontainmentinRASwhicheliminateseffluent discharges,pathogenrelease,escapees,interactionswithwildpredators,andenableslowveterinary
70
http://www.freshwaterinstitute.org/ Page46of48
medicineuse.Resourceuse(water,land,feed,fishmealandfishoil)isalsotypicallylow.One remainingissuewithRASisenergyuseandtheassociatedcarbonfootprint,butthiscanbe addressedbyimprovingefficiencyanduseofrenewableenergysources.RASfarmsmeetconsumer needsforasafe,consistent,traceable,qualityproductandlocalUKproductionmightprovetobea sellingpoint.EcolabellingandaccreditationschemesmaydeveloptoreflecttheseattributesofRAS products,andallayconsumerconcernsoverthewelfareoffishfarmedinintensivesystems. Thesectorcanbeforeseenasexpanding,iftechnologyimproves,husbandryandmarketingskills increase,andacceptanceofRASproductsbyretailersandconsumersdevelops.Anyonewishingto entertheRASsectorshouldproceedwithcautionandpayattentiontominimisinginputandrunning costs,andensuringmarkets.TheRASsectorcurrentlyseemslessprofitablethanseacageculture, andthereforemorevulnerabletopricechanges(e.g.inenergy,feed,sales).Thebestchanceof financialsuccessisprobablyofferedbylargescaledevelopments(enablingeconomiesofscale) whichproducehighvalueproducts.Suchventureswillrequiresignificantinvestmentfunds,but giventhedemand,businesseswiththerightproduct,marketingandtechnologymayhavealong termfuture.
Grantfunders(andinvestors)interestedintheRASsectorshouldensurethatapplicantshave researchedtheirsuppliersanddesignerswell,ensuredenergyandinputcosts(andcarbonfootprint) areminimised,paidparticularattentiontomarkets,anddevelopedprudentlongtermbusiness plans.Considerationshouldbegiventowhetherabusinessplanrequiresaninitialpilotstudy. Innovationandnewtechnologydevelopmentshouldbeencouraged. 10.1 Acknowledgements Thankstoalltheintervieweeswhocontributedtheirtimeandexperiencetowardsthisproject,and theMarineManagementOrganisation(MMO)foradministeringthefunding(DefraFisheries ChallengeFund).
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11 Annex 1: Line graphs illustrating operating periods of individual farms

Tilapia farms in England: years of operation
EFF00886A EFF00882A EFF00482A EFF00839A EFF00838A EFF00823B EFF00489A EFF00828A EFF00826A EFF00823A EFF00812A EFF00810A EFF00809A EFF00807A EFF00805A EFF00804A EFF00859A EFF00798A EFF00729A(R) EFF00729A EFF00641A 2000 01 02 03 04 05 Year 06 07 08 09 2010
Grass carp, Catfish,Barramundi, Hybrid striped bass, Turbot and Prawns in England: years of operation
UFF02752A(G) QSS00032A(P) EFF00729A(C) EFF00489A(C) EFF00792A(B) EFF00786A(T) EFF00736A(H) EFF00641A(C) 2000 01 02 03 04 05 Year 06 07 08 09 2010
Bass, Turbot, Sole and Prawn Recirculation farms in Wales: years of operation
WFF00100B(B) WFF00097A(P) WFF00097A(S) WFF00097A(T) WFF00100A(B) WFF00100A(T) WFF00097A(B) 2000 01 02 03 04 05 Year 06 07 08 09 2010
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About us
Cefas is a multi-disciplinary scientific research and consultancy centre providing a comprehensive range of services in fisheries management, environmental monitoring and assessment, and aquaculture to a large number of clients worldwide. We have more than 500 staff based in 2 laboratories, our own ocean-going research vessel, and over 100 years of fisheries experience. We have a long and successful track record in delivering high-quality services to clients in a confidential and impartial manner. (www.cefas.defra.gov.uk) Cefas Technology Limited (CTL) is a wholly owned subsidiary of Cefas specialising in the application of Cefas technology to specific customer needs in a cost-effective and focussed manner. CTL systems and services are developed by teams that are experienced in fisheries, environmental management and aquaculture, and in working closely with clients to ensure that their needs are fully met. (www.cefastechnology.co.uk)
Customer focus
With our unique facilities and our breadth of expertise in environmental and fisheries management, we can rapidly put together a multi-disciplinary team of experienced specialists, fully supported by our comprehensive in-house resources. Our existing customers are drawn from a broad spectrum with wide ranging interests. Clients include:
international and UK government departments the European Commission the World Bank Food and Agriculture Organisation of the United Nations (FAO) oil, water, chemical, pharmaceutical, agro-chemical, aggregate and marine industries non-governmental and environmental organisations regulators and enforcement agencies local authorities and other public bodies We also work successfully in partnership with other organisations, operate in international consortia and have several joint ventures commercialising our intellectual property
Head office Centre for Environment, Fisheries & Aquaculture Science Pakefield Road, Lowestoft, Suffolk NR33 0HT UK
Centre for Environment, Fisheries & Aquaculture Science Barrack Road, The Nothe Weymouth, DT4 8UB
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Cefas contract report <C3529 >

poordesign toohighrunningcosts labourintensivetechnology steeptechnicallearningcurves lackofexperiencedstaff overambitiousproductionschedules overoptimisticmarketforecastsforproductsales poormanagementdecisions

Whilsteveryefforthasbeenmadetopresentanaccuratesummaryofinformation,Cefasandthe authorscannotbeheldresponsibleforinaccuraciesoromissions.ReadersinterestedinRASare encouragedtoconducttheirowninvestigationsand/orseekspecialistadvice.

0 2000 2002 2004

2006 2008 2010

5 2000 2002 2004 2006 2008 2010

AnnualproductiondataforthedifferentRASfarmswasextractedfromthelivefishmovements database(LFMD).ThiswassupplementedwithdatacollectedduringinterviewswiththeRASfarmers (Figure2).

Source:FHIproductionfigures,FinfishNewsandcollectedduringsurvey. MartinsCIM,EdingEH,VerdegemMCJ,HeinsbroekLTN,SchneiderO,BlanchetonJP,dOrbcastelER,VerrethJAJ(2010)New developmentsinrecirculatingaquaculturesystemsinEurope:aperspectiveonenvironmentalsustainability.AquaculturalEngineering43, 8393.

issuesoverthesustainabilityofeelproductionduetodependenceonendangeredwildelvers highproductioncostsforspeciessuchasturbot,soleandtilapia novelspecies,e.g.whitelegshrimp,beingunabletoestablishinnichemarkets

5 Technology, performance and operation of RAS

LittleDC,MurrayFJ,AzimE,LeschenW,BoydK,WattersonA,YoungJA(2008).OptionsforproducingawarmwaterfishintheUK:limits togreengrowth.TrendsinfoodScience&Technology19,255264. http://www.slideshare.net/Cefas/largescaleintensiverecirculationsystemsandtheirpotentialdevelopmentwithinengland2373881

Water pumped to next stage

processes applications Figure4:Featureofrecirculationaquaculturesystems

ThemechanicalfiltershouldremoveSSWasquicklyaspossiblewithoutdamagingtheparticles. Variousmechanicalfiltrationmethodsareavailable: drumfilters screen/beltfilters beadfilters sandfilters vortex/settlementfilters

Waterissterilisedtokillpathogens,removeundesirableheterotrophicbacteriaandimprovewater quality.ThetwomainmethodsareexposuretoUVlightandozone.Bothmethodshavetheir advantagesanddisadvantagesandsuitabilitydependsonthesituation.UVisgenerallythecheaper

SchraderKK,DavidsonJW,RimandoAM,SummerfeltST(2010).Evaluationofozonationonlevelsoftheoffflavourcompoundsgeosmin and2methylisoborneolinwaterandrainbowtroutOncorhynchusmykissfromrecirculatingaquaculturesystems.Aquacultural Engineering43,4650.

tankshape(e.g.hexagonalwithawkwardcorners),makingconfinementofthestockdifficult duringharvest lackofanyprovisionindesignformechanisedharvest,necessitatingmanualhauling.

6 Financial sustainability of RAS

aswitchtomainswatersupply makingupsaltwateronsite,costingupto2.10perm3 underestimatingthecostofpumpingwaterfromthesourceintothefarm.

http://www.tilapiascotland.org/relu http://www.fao.org/docrep/007/y5767e/y5767e0d.htm http://www.statistics.gov.uk/cci/nugget.asp?id=1352

7 Factors leading to historical failure of some RAS

Duringthevisits,the14intervieweeswereaskedtopickandranktheirtop10keyfactors contributingtothesuccess(orfailure)ofawarmwaterRAStablefishfarm.Rankingswere convertedtoscores(highscore=importantfactor)whichweresummedfordisplay(Figure5).

Figure5:CriticalfactorsforthesuccessorfailureofwarmwaterRAS,asscoredbyRASindustry interviewees. Technical(systemdesign)andsomeeconomicfactors(marketing,energycosts,demandfor product),alongwithfingerlingavailability/price,emergedasthekeyissues.Staffknowledgeand

biologicalfactorsappeartobeconsideredaslesscritical;regulatoryandcertificationissuesappear tobeofminorimportance. 7.2 Additionalfactorscontributingtofailure

8 Sustainability issues relating to RAS

http://www.llynaquaculture.co.uk/index.php?p=111 http://www.cropking.com/intro.shtml 61 http://aquaponics.org.uk/ 62 http://en.wikipedia.org/wiki/Polyculture

hadalsoinvestigatedArtemia,clam,seaurchinandbiodieselproduction.However,noneofthese haveyetcometocommercialfruition. 8.3 Socialissues

theotherwasbuiltwithinadisusedbrownfieldsiteandhadreceivedcomplaintsfromlocal residentsallegingnoisedisturbance. 8.4 Employment

9 Strengths, weaknesses, opportunities and threats to the RAS sector

11 Annex 1: Line graphs illustrating operating periods of individual farms

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