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A Viability Assessment of Commercial Aquaponics Systems in Iceland

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A Viability Assessment of Commercial Aquaponics Systems in Iceland A VIABILITY ASSESSMENT OF COMMERCIAL AQUAPONICS SYSTEMS IN ICELAND CHRISTOPHER WILLIAMS Supervisors: Magnus Thor Torfason Ragnheidur Thorarinsdottir Williams, Christopher Page 1 of 176 A Viability Assessment of Aquaponics in Iceland Christopher Williams 60 ECTS thesis submitted in partial fulfillment of a Magister Scientiarum degree in Environment and Natural Resources Supervisors: Magnus Thor Torfason Ragnheidur Thorarinsdottir Business Administration Faculty of Social Sciences at the University of Iceland School of Environment and Natural Resources University of Iceland. Reykjavik, June 2017 Williams, Christopher Page 2 of 176 A Viability Assessment of Aquaponics in Iceland This thesis is an MS thesis project for the MSc degree at the Faculty of Business Administration, University of Iceland, Faculty of Social Sciences. © 2017 Christopher Williams The dissertation may not be reproduced without the permission of the author. Printing: Háskólaprent Reykjavik, 2017 Williams, Christopher Page 3 of 176 ACKNOWLEDGEMENTS I would like to give the sincerest thanks to my advisors, Magnus Thor Torfason and Ragnheidur Thorarinsdottir for all their support and patience throughout this endeavor. They have opened so many opportunities for me in this journey and have given such incredible feedback and guidance. Without your help, none of this would be possible. The resources you have given me are invaluable and instrumental to completing my thesis. I would also like to give my thanks and gratitude to the wonderful staff and classmates I have had the pleasure of working with at the University. You have given me an enormous gift in letting me pursue work in something that I am personally passionate about and driven towards. I am so pleased to have had the pleasure of learning with you and sharing in ideas. Williams, Christopher Page 4 of 176 ABSTRACT Aquaponics is an emerging practice that incorporates a hydroponics-based setup up for soilless propagation of plants along with the utilization of rearing fish in a recirculating aquaculture system. This study has been developed to determine if aquaponics production could be a viable alternative or accent to the current means of production of plants and fish species in Iceland, based on import trends, local production, energy allotments, cultural nuances and consumer habits. The thesis analyzes a literature review for previously-held theories on purchasing habits for consumers, provides a review of agriculture and aquaculture production and adopts a consumer analysis survey over motivators for organic/sustainable fish and produce. Ultimately, the thesis suggests that aquaponics is a viable option in theory, given the conditions of the environment and access to resources; however, for it to be a successful venture will take a higher level of awareness and precise promotion in domestic ventures that reaches out to both locals and tourists. The consumer models suggest a niche attitude for Icelandic consumers that can be capitalized on to help provide a more positive attitude that manages price barriers as incentives and gives a more transparent environmental appeal. Williams, Christopher Page 5 of 176 Table of Contents Chapter 0: Introduction............................................................................................................................................. 7 0.1 What is Aquaponics? .................................................................................................................................... 11 0.2 Boundaries and Scope .................................................................................................................................... 13 Chapter 1: A Review of Established Theories on Consumer Behaviors in Purchasing Motivators for Organic Products ..................................................................................................................................................... 17 1.1 Introduction..................................................................................................................................................... 17 1.2 Parameters of Research .................................................................................................................................. 19 1.3 Models Used for Measuring Consumer Behavior ..................................................................................... 24 1.3.1 ABC Theory ....................................................................................................................................... 24 1.3.2 VBN Theory ....................................................................................................................................... 27 1.3.3 The Theory of Planned Behavior & Theory of Reasoned Action ............................................... 28 1.3.4 Alphabet Theory ............................................................................................................................... 31 1.3.5 Schwartz Theory ................................................................................................................................ 33 1.3.6 Other Considerations ........................................................................................................................ 34 1.4 Discussion ........................................................................................................................................................ 37 1.5 Conclusion ....................................................................................................................................................... 41 Chapter 2: Greenhouse Production and Competitiveness to Imported Produce ......................................... 47 2.1 Introduction .................................................................................................................................................. 47 2.2 Methodology ................................................................................................................................................ 51 2.3 Import Statistics ........................................................................................................................................... 52 2.4 Icelandic Production ................................................................................................................................... 61 2.5 Expanded Production Selection and Tourism ........................................................................................ 67 2.5.1 Tourism ............................................................................................................................................... 69 2.6 Discussion ..................................................................................................................................................... 72 2.7 Conclusion .................................................................................................................................................... 75 Chapter 3: Aquaculture in Iceland: An Overview of Developments and Future Prospects ...................... 80 3.1 Introduction ................................................................................................................................................. 80 3.2 Background ................................................................................................................................................ 82 3.2.1 Fish farming in Iceland ................................................................................................................ 82 3.2.2 Domestic Sales ............................................................................................................................. 87 3.2.3 Development from 2007 Onwards ............................................................................................ 90 3.3 Development .............................................................................................................................................. 93 Williams, Christopher Page 6 of 176 3.3.1 Production Numbers in a Globalized Context ........................................................................ 93 3.3.2 Market Characteristics ................................................................................................................ 98 3.3.3 Regional Characteristics ............................................................................................................ 105 3.4 Conclusion ................................................................................................................................................. 106 3.4.1 Future Development .................................................................................................................. 106 3.4.2 Final Remarks ............................................................................................................................. 109 Chapter 4: Motivators for Organic Produce Purchases in Iceland: Consumer Surveys .......................... 118 4.1 Introduction ................................................................................................................................................ 118 4.2 Methodology ............................................................................................................................................. 120 4.3 Methodology: Category Breakdown...................................................................................................... 123 4.4 Results .......................................................................................................................................................
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