MEDRAP II RAB/89/005-RER/87/009

FIELD DOCUMENT SEMINAR ON AQUACULTURE PRODUCTION SUB- NETWORK 92/17 Nador, September 22–24 1992

United Nations Development Programme

Food and Agricultura Organisation of the United Nations

Edited by MEDRAP II Regional Center Tunis - Tunisia All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the copyright owner. Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Director, Publications Division, Food and Agriculture Organisation of the United Nations, Viale delle Terme di Caracalla, 00100 Rome, Italy. Preparation of this Document

This document is one of a series of documents prepared during the course of the Project identified in the title page. The conclusions and recommendations given were considered appropriate at the time it was prepared. They may be modified in the light of further knowledge gained at subsequent stages of the Project. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organisation of the United Nations concerning the legal status of any country, territory, city or are or of its authorities or concerning the delimitation of its frontiers or boundaries. The opinions expressed by the Authors in this document are not necessarily those of FAO or the Governments of the participating contries. This document was edited by Hassen AKROUT and Mohieddine BELKHIR in collaboration with Othman BÉJI and Neila KAFFEL, the revision was made by MICHEL LAMBŒUF. Abstract

A Production Sub-Network Seminar was held in Nador, Morocco, on September 1992. Responsibles from Aquaculture Administration and the Organisation of Aquaculture Producers from member and associated countries attended. The participants dealt with all the aspects related to production in view of initiating a cooperative Network. The technological innovations for an optimisation of the production process and the proper use of available resources, were recognised as of great positive effect on the productivity. It was pointed out the necessity to asses the Project's viability and evaluate the costs of investments, the technical choice, the consequences of particular policy and/or management decisions. It was also stressed that quality, price and surety of delivery are the essential components of marketing and trading efficiency. The aspects of the consumer's convenience are increasingly taken into account, such as the diversified supply of processed aquaculture products (smoked fish, patés, canned or bottled and boneless product, etc…). In addition, marketing and distribution costs and other related expenditures have also to be taken into account. It was noted that underestimation of the needs of effective marketing strategies could lead to a potential economic catastrophe for the producer. It has been recognised that the role of insurance is vital. In fact, insurance is an investment against the risk of loss or damage. It is necessary to identify possible areas in which insurance will be required. After discussing all the above items, it was recommended the following: - the preservation of aquaculture sites, - the combination of efforts for marketing promotion, - the definition of norms - the creation of data bank to collect the necessary information. Acknowledgements

The Editor would like to thank the Moroccan Authorities, namely H.E. The Minister of the «Pêches Maritimes et de la Marine Marchande», the «Gouverneur» of Nador, the «MAROST» Company and the National Coordinator, Mr. Mohamed Rami, for the remarkable help and assistance in the assistance in the organisation of the meeting. The Editor would aslo like to thank the participants and the invited experts for their positive contribution to the success of the meeting.

Note from the reviser The revision and publication of this document could only be done a long time after the closure of the project. This has led to some difficulties in finalising the documents and implementing corrections, because authors and contributors as well as some of the original material or files were no longer available. Therefore contributions from participants and session papers annexed to most of the documents were left in their original form. No language corrections were introduced, the content was not modified and left under their respective authors responsibility. Considering the above, we hope that the reader will understand that a standard of publication could not be maintained on a level as high as we would have liked it to be. CONTENTS • Agenda. 3

• List of participants. 5 • Final Report and Recommendations 9 • Memorandum of aquaculture producers 11 • Déclaration des producteurs aquacoles Maghrébins 14 COMMUNICATIONS 15

• Technology and production development for marine land-based fish farms 17 in the Mediterranean sea A. MORETTI (Italy)

• Production and training human resource development 33 J. MUIR (Scotland)

• Fish marketing and producer's problems 43 C.A.M. HOUGH (Belgium)

• Critères de sélection d'un site de production 61 VAN OBBREGEN (France)

• Comparative production costs : Analysis, forecasting, and monitoring 69 J. MUIR (Scotland)

• Aquaculture insurance and risk management 83 C.M. KENNEDY (Scotland)

• Les organisations de producteurs et La coopération régionale 105 VAN OBBREGEN (France) Annexe I Producer's organisation overview on aquaculture development in 109 Portugal Paulo Serra Lopez (Portugal) Annexe II Status of the production association, cooperative, etc…, in the 113 MEDRAP countries by the representatives of : Turkey, Algeria, Malta, Croatia, Albania, Cyprus Annexe III Allocution d'ouverture du Ministre des Pêches Maritimes et de la 119 Marine Marchande du Maroc AGENDA TUESDAY 22 SEPTEMBER 1992 Morning session 11h30 - Opening of the Seminar - Welcome speeches - Officials designations - Adoption of the Agenda

Coffee break. • Technology and Production Development. By Mr. A. MORETTI (STM - ITALY) • Discussions. Afternoon Session 15h00 • Comparative production costs for several rearing technies: - Intensive rearing in raceways/cages - Semi-intensive - extensive rearing - Polyculture system - Global management of zones and joint farms - etc…

By Mr. J. MUIR (Stirling University - Scotland) • Discussions • Marketing (Methodology) and Producers Problems (Packeting, transport, label, intermediaries, quality norms, etc…) By Mr. C. HOUG (Ste. GABRIEL - BELGIUM) • Discussions 20h30 • Dinner offered by the Moroccan Authorities WEDNESDAY 23 SEPTEMBER 1992 Morning session

09h00 • Aquaculture Production Analysis in the Mediterranean (Quantities, species, countries, distribution and markets) By Mr. SPAGNOLO (IREPA - ITALY) • Criteria of site selection for production By Mr. VAN OBREGEN (FRANCE) • SIPAM “Information System for the promotion of Aquaculture in the Mediterranean” • Coffee break 11h45 • Production and training : - Identification of human resources needs. - What kind of training and for which level? - Can Producers contribute to training? at which level? By Mr. J. MUIR • Discussions

Afternoon session 15h00 • Production management phases (programming) By MR. DUJAKOVIC (CROATIA) • Insurance : should there be an insurance coverage?, what kind of risks : Health? Environmental damage? What kind of products should be insured and bow? By Mr. Chris KENNEDY (Aquaculture Risk Control) • Discussions Coffee break. 17h00 • Status of the Production Association, Cooperative in the MEDRAP Countries : By MEDRAP Representatives. 20h30 • Dinner offered by MAROST THURSDAY 24 SEPTEMBER 1992

Morning session

• Regional Organisation and inter-professionnal 09h00 cooperation By MR. VAN OBREGEN (FRANCE) • Discussions 10h30 – 11h30 • Private producers meeting • Production Networking (Round Table): - Mechanism of cooperation. - Costs of functioning and Producers contribution. • Seminar report. • Adoption of the recommendations. • adjournment of the Seminar. Afternoon session 17h00 • Visit of MAROST LIST OF PARTICIPANTS

ALBANIA - Mr. ALEKSANDER FLLOKO Phone: 335-42-28621 - Telex : 4206 Minlet - Mr. GODA KOZO Phone: 355-42-28621. Telex: 4206 Minlet ALGERIA - Mr. ZOUBIR FARSI - Mr. BOUNOUNI ABDELKADER ONDPA. Phone: 213-2-384 971 - Fax: 467533 - Mr. KHODJA BOUALEM phone : 213-2-8674008 CROATIA - Mr. ADAM BENOVIC phone: 38-50-27937 - Fax: 25775 - Mr. INO STERBIC Phone: 38-52-811243-Fax :816677 - Mr. JURICA JUG DUJAKOVIC Phone: 38-58-46688 -Fax : 46593 CYPRUS - Mrs. STEPHANOU DAPHNEE - Mr. ROGER APOSTOLIDES Phone: 357-2-303526 -Fax : 365955 EGYPT - Mr. FAROUK FOUAD FRAG - Mr. MOSTAFA ADAM ABD EL TALEB Phone: 20-22-620118 -Fax: 2-620117 LEBANON - Mr. KOUYOUMJIAN HRATCH - Mrs. MARIA ABOUD ABI SAAD C/O UNDP or FAO BEIRUT MALTA - Mr. CARMELO AGIUS - Mr. CARMELO GALEA Phone: 356-828863 -Fax : 356-688380 MOROCCO - Mr. MOHAMED RAMI (CN Morocco) - Mr. ABDELLATIF BERRAHO - (ISPM) - Mr. ABDERRAHMENE ABOUHALA - (MAROST) - Mr. BOUKABOUS - (MAROST) - Mr. MUSTAPHA TALBAOUI - (MAROST) - Mr. AHMED LAILI - (ATLASALMO) - Mr. NASSER EL HASSEN - (United Trading and Consultancy) - Mr. HICHEM AHMED - (ISPM) - Mr. MOUNIR LAMINE - (ISPM) - Mr. El AHDAL M'HAMED - (ISPM) - Mr. RAFIK MOHAMED - (ISPM) PORTUGAL - Mr. JAIME MENEZES Phone: 351-1-3010814 -Fax: 3015948 - Mr. PAULO SERRA LOPES Phone: 351-1-7975696 -Fax: 7930590 SPAIN - Mr. JUAN LGACIO RODRIGUEZ VASQUEZ - (CORELSA) - Mrs. CRISTINA MARTINEZ - (CORELSA) SYRIA - Mr. ALI AL MOHAMED - Mr. ISSAM KROUMA C/O FAO DAMASCUS TUNISIA - Mr. SLAHEDDINE BEN DAI Phone : 216-1-730538 -Fax : 732622 - Mr. SAMI ZINE EL ABIDINE Phone : 216-3-48188/41844 TURKEY - Mr. GAGLAR MEMISOGLU - Mr. LEVENT OGUZ Phone : 90-6141-2491 -Fax : 6141 - 2492 LECTURERS - Mr. M. SPAGNOLO (ITALY) Phone : 39-89-241503 -Fax : 89-241145 - Mr. HOUGH COURTENAY (BELGIUM) Fax : 32-80-338644 - Mr. ALESSANDRO MORETTI (STM - ITALY) Phone : 49-8640866 -Fax : 49-617171 - Mr. JAMES MUIR (Stirling University - SCOTLAND) Phone : 44-78651461 -Fax : 78651462 - Mr. CHRIS KENNEDY (Aquaculture Risk Control - Malting Business Centre UK) Phone: 44-463713183 - Fax : 463710736 - Mr. VAN OBREGEN (FRANCE) Phone: 33-95570443 - Fax : 95570271 MEDRAP II - Mr. HASSAN AKROUT - Mr. OTHMEN BEJI Phone : 216-1-784 979 - Fax : 216-1-793962 Final Report and Recommandations SESSION (1) The seminar on the constitution of Aquaculture Production Network, organised by MEDRAP II was held from 22nd to 24th September 1992 in Nador, Morocco. (2) The Meeting was opened by His Excellency the Minister of the “Pêches Maritimes et de la Marine Marchande” in presence of the “Gouverneur” of Nador and several Senior national and regional staff. The welcome speeches are given in Annex. (3) The meeting was attended by representatives of Member Countries, Albania, Algeria, Croatia, Cyprus, Egypt, Lebanon, Malta, Morocco, Portugal, Syria, Tunisia, and Turkey. From Associated Countries, representatives from Spain were also present. Experts invited as lecturers also attended the Seminar. (4) The officials of the meeting were unanimously designated as follows: President : - Mr. A. ABOUHALA (Morocco) Vice-Presidents : - Mr. M.A. Abdel Taleb (Egypt) - Mr. P.S. LOPES (Portugal) Reporters : - Mr. C. AGIUS (Malta) - Mr. Z. FARSI (Algeria) - Mr. R. APOSTOLIDES (Cyprus) in collection with: - Mr. O. BEJI (MEDRAP Expert). (5) The agenda was unanimously adopted after minor changes. (6) All speakers presented their communications according to the agenda. The contents and the diversity of their talks made the discussions fruitful and beneficial, namely on the following topics: - Productions, technology and costs analysis; - Training on Production; - Marketing and Producers problems; - Insurance against risks; - Producers Organisation. The participants also discussed the opportunities of initiating a Production Network, its objectives and operating mechanisms. RECOMMENDATIONS 1) It was recommended the creation of a National Producers Association to speed up the establishment of the Production Network. 2) Producers from MEDRAP Member and Associated Countries should cooperate in all the fields to facilitate the start up of the Network. In this framework, it is worth to mention the efforts of the North African Producers, present at the meeting, and their willingness to cooperate and extend the network to involve other producers. 3) The Regional Coordinator recommended that common actions should be undertaken to use the SIPAM system to facilitate the exchange of information. It will then give the benefit of circulating the updated information on Production technics among the Mediterranean Region. The complementarity of two networks (Production and Information) is meant to give greater chance of success and continuity to the cooperation. The participants expressed their satisfaction towards the creation of the SIPAM Network. 4) The meeting requested the Project Coordinator to continue cooperation with the Associated Countries (France, Italy, Greece and Spain) to ensure their active participation in the Project Activities. It was noted that Greece is an important Aquaculture Producer among other Mediterranean Countries and should be involved in the Production Network activities. MEMORUNDUM DES PRODUCTEURS Les pays du bassin Méditerranéen ont une longue histoire commune, une même civilisation, leur avenir est lié. La mer Méditerranée connait des pollutions urbaines et industrielles de toutes sortes, un appauvrissement de ses ressources halieutiques induisant un déficit d'approvisionnement en produits maritimes. L'aquaculture des espèces, dont la filière d'élevage de nos jours maîtrisée, trouve en Méditerranée des conditions idéales, pour son développement et, notamment, dans les pays du Sud. L'aquaculture peut contribuer à: 1. palier progressivement au déficit de la ressource et réduire le recours aux importations dans certains pays, et, améliorer la balance des échanges commerciaux dans d'autres; 2. Créer des emplois directs et indirects et notamment là où la pêche et ses activités périphériques en perdent. 3. Contribuer à restaurer l'environnement, notamment, par l'exploitation des lagunes et anciens marés salants et maintenir ainsi, une activité dans des zones vouées la désertification. Les producteurs des pays Méditerranéens, dont la liste est étabile en annexe, réunis à Nador, dans le cadre du séminaire sur la production aquacole, organisé par MEDRAP du 22 au 24 Septembre 1992, rendent hommage au MEDRAP, pour leur avoir donné l'occasion de se rencontrer, de se concerter, de recencer leurs besoins et de définir leurs priorités. Ils proposent ce qui suit: 1. Le regroupement des initiatives de développement et de défense de l'aquaculture Méditerranéenne. 2. La coordination des recherches fondamentales et appliquées, l'accés à une documentation centralisée concernant les recherches en la matière. 3. La définition de normes et la veillance de leur application. Les participants s'adressent à leurs autorités nationales afin de définir des appellations légales ne portant àaucune confusion pour les espèces loup et daurade. 4. Un effort de marketing commun pour le dévelopement de marchés nouveaux, de marchés intérieurs. 5. La défense de l'image de poisson de Méditerranée autour du concept de spécificité et d'ex cellence de la diète Méditerranéenne. 6. La création et l'accés à une banque de données informatisée permettant une réponse adéquate aux demandes de marchés. 7. La structuration de la défense des intérêts des producteurs face aux agressions exogènes soitdisant écologiste et bureaucratie diverse. 8. Une participation active des pays associés aux activités du Projet MEDRAP afin d'établir le dialogue et la coopération entre les producteurs des rives Nord et Sud de la Méditerranée. 9. L'identification, par l'administration, en accord avec la recherche, dans chaque pays, de sites favorables et leur réservation à l'activité aquacole. Les producteurs réunis, le 24.9.1992 à Nador, expriment leur soutien total au Projet SIPAM et souhaitent l'organisation, dans les plus brefs delais, d'une réunion pour la constitution du réseau des producteurs, qui permettra de dégager le mécanisme de coopération, les coûtes de sa mise en place et la contribution des producteurs. Dénominations de vente applicable à certaines espèces de poissons marins Noms français Autres dénominations Noms scientifiques № de officiels Dénominations admises à la famille admises au réunion du 27/11/91 28/11/91 PERCICHTHYIDES PERCICHTHYIDE 283 (= MORONIDES) (= MORONIDAE) Bars DICENTRARCHUS B. commun bar, loup bar, loups, dragon D. labrax B. tacheté ---- D. punctatus Bars MORONE (=ROCCUS) B. blanc d'Amérique ---- M. americana B. d'Améque ---- M. saxatilis CORYPHAENIDES CORYPHAENIDAE 308 CORYPHENES CORYPHANEA C. commune Coryphène Coryphène C. hippurus SPARIDES SPARIDAE 322 DENTES DENTEX D. à tache rouge Dorade dentée Dentée, Denti D. canariensis D. commun Dorade dentée Dentée, Denti D. dentex D. rose Dorade dentée Dentée, Denti D. gibbosus D. à gros yeux Dorade dentée Dentée, Denti D. marcrophthalmus D. du Maroc Dorade dentée Dentée, Denti D. maroccanus MARBRES LITHOGNATHUS M. d'Afrique Dorade marbrée Marbré L. lithognathus M. commun Dorade marbrée Marbré L. mormyrus PAGEOTS PAGELLUS P. acarné ------P. acarne P. d'Arabie ------P. affinis P. rose Dorade rose Daurade rose P. bogaraveao P. à tache rouge Dorade rouge ---- P. coupei P. commun Pageot Pageot P. erythrinus SPARIDES SPARIDAE 322 PAGRES PAGRUS P. des tropiques Dorade Pagres P. africanus P. du Japon Dorade Pagres P. major P. commun Dorade Pagres P. pagrus SPARES SPARUS Dorade royale Dorade Daurade, Dorade S. aurata GRISETS SPONDYLIOSOMA Griset Dorade grise Daurade grise S. Cantharus ANARCHICHADIDES ANARCHICHADIDAE 366 POISSONS LOUPS ANARHICAS P.L. denticulé Poisson-loup Dragon A. denticulatus P.L. de l'Atalntique Poisson loup Dragon A. lupus P.L. tacheté Poisson-loup Dragon A. minor Déclaration des Producteurs Aquacoles Maghrébins présents au séminaire de Nador sur la constitution d'un sous-réseau production Compte tenu de l'évolution de la production aquacole au niveau du bassin Méditerranéen, des difficultés que rencontrent les producteurs et, à la lumière des informations et des communications présentées lors du séminaire de Nador, il est nécessaire de constituer un sous-réseau production, pour l'établissement et l'intensification des échanges de coopération entre producteurs et promoteurs Maghrébins. Les producteurs présente sont convenus de dynamiser les relations existantes et de les étendre autant que possible. Les représentants des producteurs et promoteurs Magrébins sont convenus aussi de provoquer dés que possible, et avant la fin de l'année 1992, Tunis, un regroupement des principaux producteurs Maghrébins en vue de réfléchir à la création d'une Association. • Technology and production development for marine land-based fish farms in the Mediterranean sea A. MORETTI (Italy)

• Production and training human resource development J. MUIR (Scotland)

• Fish marketing and producer's problems C.A.M. HOUGH (Belgium)

• Critères de sélection d'un site de production COMMUNICATIONS VAN OBBREGEN (France)

• Comparative production costs : Analysis, forecasting, and monitoring J. MUIR (Scotland)

• Aquaculture insurance and risk management C.M. KENNEDY (Scotland)

• Les organisations de producteurs et La coopération régionale VAN OBBREGEN (France) TECHNOLOGY AND PRODUCTION DEVELOPMENT FOR MARINE LANDBASED FISH FARMS IN THE MEDITERRANEAN SEA By A. Moretti Italy 1. INDTRODUCTION For applied technology in aquaculture we intend the integration among engineering, biological knowledge and management. If properly applied, any technological innovation can greatly affect production in a positive way. The main targets of technological innovation could be summarised as follows: a) Optimisation of production process This means mainly to increase the efficiency of the rearing practices in terms of higher production per unit volume together with lower biological risk. to decrease running production costs by developing simpler techniques and/or by automatization of routines and consequent lower labour cost. Example The development of new methods to increase survival and growing performance of eggs, larvae, fry and marketable fish (balanced broodstock diets, eggs/larvae desinfection, new diets based on enriched live food, new feed formulations and more efficient automatic feeding procedures) The introduction of self-cleaning or automatic cleaning procedures, automatic dissolved oxygen analysis and control, fast fishing and grading systems by means of fish pumps and electronic grading/counting devices. b) Proper utilization of available resources It means to dimension the productive plant taking into consideration any available local resource, saving time and investment costs. Human resources: the need of specialised personnel should be carefully considered for example in countries where aquaculture technicians are not easily recruited (absence of professional schools or post-degree specialisation) and managing staff is not accustomed to the very special character of a fish farm. Technological resources: to reduce whenever possible the import of special equipment could save money in a carefully planned farm; the choice of locally available building materials and building standards often represents a suitable, low-cost alternative to international standard (for example a brick walled shed instead of a precasted one). Technology and Production Development Therefore not every country can afford the same level of technology, since it is closely related to its purchasing capacity, the locally available engineering knowledge and the human resources. But every country has the duty to adapt and develop its own technological standards to the needs and resources of fish farming. 2. MEDITERRANEAN AQUACULTURE SYSTEMS IN SEA FISH CULTURE At present, in the Mediterranean area two rearing systems are the most widely used, intensive and extensive aquaculture. True semi-intensive aquaculture is indeed a rearing system seldom found : more frequently we experience semi-natural pond farms shifting quickly to an all-artificial feed supplement (intensive) in order to keep profitability within acceptable levels. Some time we wrongly referred to these systems (intensive and extensive) as “high technology” and “low technology” systems, such difference could easily become a misleading concept. It seems therefore probably much more appropriate to introduce a distinction for aquaculture systems having respectively high and low engineering contents. Both systems in fact need a deep knowledge of the biology of reared organisms, their relationships with the rearing environment and a proper management. Thus a proper and as high as possible technological knowledge should backup also the extensive aquaculture, and only the low profitability per surface unit does not allow an adequate development of technology. Nevertheless, we cannot ignore for the figure the existing valuable traditional know-how and the large space for further improvement showed by it. On the contrary being intensive aquaculture expansion based on the actual possibility of higher revenues, it obviously becomes object of important technological upgrading. It is evident in fact, how greater and more fruitful has been the technological evolution in the last ten years in the field of intensive aquaculture, if compared to the extensive one. For all these reasons we are going to limit our lecture to an exposition of practices and techniques applied to intensive marine aquaculture. 3. FIELDS OF OCCURRENCE OF THE TECHNOLOGICAL EVOLOUTION Technology has dramatically changed in the past years and a stable positive evolution and optimization of production has been achieved in intensive aquaculture systems This can be recognized mainly in the following sectors: - Farm and rearing facilities planning - Fingerling production - Pre-fattening and on-growing feeding - Fish pathology - Automatisation of rearing methods and monitoring systems - Environmental protection 3.1 Farm and rearing facilities planning Fish farm planning has been for years a job lacking accuracy and completeness. The “all-engineering” approach has been proved substantially incapable to solve most of the biological problems arising from this special form of zooculture. Only a full integration among biological, engineering and economical aspects, together with computers and the essential data from the environmental survey let us set up a properly planned, well- managed production unit, allowing true savings in investment, running costs and positive performances. The main technological criteria for a functional planning are: a) Safety A fish farm is clearly based on few key structures whose functionality must be carefully selected, dimensioned and checked through simulating models. These works are the farm core and should be designed by highly specialized people only Example : à Sea water intake facilities (offshore and inshore works) are often underestimated and a cheap solution is preferred with no regard to hydraulic parameters (actual hydraulic need of the farm, water carrying capacity, turbulence, etc) and geographical factors (exposition, sediment pattern, erosion, waves effect, tides, etc.). Experience shows that this mistake is frequent and can rapidly spoil the pumping station, limit drastically the standing biomass and even affect fish survival due to f.i. a clogged water intake. à Hydraulic structures such as water conveying pipelines, open channels, tanks and reservoirs are again subject to frequent underestimation. Whenever an unsuitable solution is preferred because cheaper, it quickly shows its ineffectiveness due to a frequent clogging by sediment deposition and/or fouling, difficult cleaning, uneasiness of repairing fails, etc. Cheap ongrowing rectangular tanks are easy to built with bricks, but at the same time they could often represent a poor alternative to true raceways which show a correct length/width ratio, self-cleaning water current, easy-to-use inlet/outlet monks. à Pump choice must depend on actual carrying capacity figures and careful estimates of spare water flow, together with a suitable motor turnover. à The production and distribution of electrical power does necessitate of properly sized and connected emergency generator set. It has to be able to enter automatically the power line. The indoor electrical network must be equipped with self-extinguishing materials and safety switches which are exposed to a moist saline environment. b) Ergonomics A general criteria of logical arrangement of working activities should be the base of any correct planning. This means to design a fish farm hearing in mind what follows : Suitable organisation of open spaces Example : wide areas devoted to cleaning and desinfection, of small equipment (syphons, brushes, buckets, screens); tank shape and dimensions suitable for easy access and cleaning; sufficiently large aisles among tanks rows to guarantee easy access for working routines; arrangement and coordination of functional sectors to let comfortable movement of staff and quick transfer of food, fish and various material. Logical accomplishment of routines Example; transport and distribution of live food should be achieved by pumping concentrated cultures through pipelines, not by hand Pellets should be delivered once a day to the automatic feeders to avoid waste of time and labour. Fish is better moved and graded when ongrowing tanks are grouped, allowing easy installation of belt graders and electronic counters. c) Concern of the biological component A more complete knowledge of fish biology and behaviour can help to plan the rearing structures in a way to minimize any stress originated by abiotics factors variations. Example : size and shape of rearing tanks are chosen also following the best swimming and eating behaviour of reared fish (circular shape is preferred if dealing with larvae, rectangular or circular shape are presently the best for marketable fish): in-tank water circulation and current must support free swimming, homogeneous distribution and predation of live food, pellet buoyancy; light intensity and photoperiod are chosen according to the optimal species- specific needs; handling procedures and frequency also should respect the way different species behave when fished to weighed; tank cleaning must not affect feeding and normal fish respiration. d) Economizations Every farm should be planned by carefully selecting suitable. long-lasting and easily serviced materials and equipments. Example : substantial saving can be reached by selecting proper insulation of buildings, by minimization of covered surfaces and compactation of external facilities (such as race ways for weaning and on-growing, having walls in common) to save space. 3.2 Fingerlings production This sector of aquatic animal husbandry has likely experienced the mot evident technological changes in the past ten years. As a consequence, a constantly increasing larval survival and fry production per unit volume has been achieved. This can be pointed out mostly in the following fields: a) Eggs and larvae quality Several methods have been developed to improve the quality of the first living stages of fish: a) breeders conditionment either through manipulation of abiotic factors (temperature and light), or kept under natural conditions; b) spawning induction by means of highly effective hormons, lacking of harmful side-effects as L.H-RHa; c) development of enriched diets for breeders to supplement essential nutritional factors to eggs; d) mechanical and chemical (avoidance of possible anoxya as a consequence of overcrowding) non-stressing techniques to collect and incubate fertilized eggs; e) desinfection by means of various chemicals to eliminate harmful bacteria film from egg surface. b) Plankton culture The introduction of selected algal, rotifers and artemia strains has allowed higher growing performances in plankton populations. Due to their general smaller size and high nutritional content, these live preys are better fitted to the mouth size of larvae and to their nutritional requirements. Utilization of zooplankton as special nutrients and various chemicals carrier through bioencapsulation techniques has provided a unique system to supply fish larvae with required amount of essential factors and medicaments. c) Larval and post-larval rearing techniques improvement The development of well-balanced artificial diets for the early weaning has contributed to reduce substantially the covered areas requested to produce the live food of high nutritional quality. It makes also feasible the automatic distribution of post-larval feed, saving labour and gaining reproducibility. Self-cleaning cylindro-conical tanks greatly contribute to maintain good hygienic conditions in the rearing environment. Disinfection of tank small equipment (filters, air stones, air pipes, skimmers, etc.) is essential also to avoid disease spreading. New vaccines (f.i. against vibriosis) and more effective antibiotics have allowed to outline more successful prophylaxis. d) Rearing environment improvement A great progress has been achieved in water quality control by means of microscreen mechanical filters and quasi-closed bio-reactors. The widely used recycling systems are now able to strictly control several environmental parameters by; a) Continuous pure oxygen supply; b) debacterization by means of high pressure UV lamp of raw and recycled water; c) fine temperature modulation through electronically controlled titanium plate heat exchangers; d) biofilters show greater nitrifying efficiency when using plastic substrates with a very high relative surface : biopack, open cell polyurethane foam. Significative results have been attained by rank size and shape optimization (rectangular and square vs circular, cylindrical or cylindroconical), in order to gain an optimal water circulation and complete self-cleaning performance. The choice of atoxic and seawater-resistent materials (reinforced fibreglass, PVC, nylon, polypropilene, high density polyethilene, titanium stainless steel, aluminium, etc) have been preferred when selecting main equipment (tanks, pumps, sterilizers, heat exchangers, pipes), to avoid any possible form of intoxication of rearing water and to increase life span of structures. e) Introduction of new species The interest in rearing new species is mainly due to: diversification of products with consequent better market penetration and limitation of possible market difficulties; increased biological diversity in the farm to reduce disease risks; better exploitation of the geographical conditions (rearing of warm-water and cold-water finfish.) New species whose induced reproduction and industrial on-growing have been standardized in recent years are: gilthead sea bream, Japanese sea bream (madai), turbot. 3.3 Pre-fattening and on-growing feeding A wider knowledge of alimentary needs of reared species does allow to achieve a more efficient conversion ration with an increased crop. It also makes the fish healthier and more resistent to possible pathologies. The main factors which enter the formula of a well balanced diet and the development of an efficient feeding system are: Formulation Physical properties Handling & storage Feeding methods Quality of rearing environment Practically speaking, a successful feeding must put together on appropriate chemico- physical composition of fond with adequate delivering methods and handling/storage systems. All these things must be tailored to the existing quality of the rearing environment. A well balanced diet is useless if stored in moist, hot environments and/or distributed under anoxic conditions. Among the areas in which the technological development takes place there are: a) feeding procedure (methods and places of distribution) and frequency; b) feed composition (chemical and physical properties, stability in water, capacity of delivery essential nutrients after ingestion and during assimilation); c) proper storage (stability of essential components under common stocking conditions); d) feed formulation (selection of essential and inerts raw materials, selection of attractants and other components able to improve assimilation); e) achievement of special organolectic features related to the market demand (what consumer shows to prefer). f) selection of fast growing hybrids. 3.4 Pathology Improved knowledge on more effective prophylactic systems (vaccines, vitaminized integrators) and treatment systems (antibiotics, chemotherapeutics) is essential to either prevent, or treat the most common diseases occurring in fish farming. Basic knowledge on morbidity of new diseases and on biology of new parasites could prevent from their spreading around and limit possible damage or loss. Minimisation of the disease-risk by means of polyculture, species diversification and non-stressing rearing methods (reduced handling, continuous feeding, limited density, self-cleaning environment, continuous oxygenation, etc.) Quarantine systems applied to breeders and wild fingerlings prior to stocking are key factors to avoid diseases spreading among fish farms and inside the fish farm itself. 3.5 Automatization of rearing practices and control systems Positive results are obtained by automatization of routine procedure. A more careful and reproducible control of the environment together with error-proof and non-stressing rearing practices is possible. This fact leads to substantial savings in terms of labour, energy and feed, not to mention the possibility in avoid massive mortality due to alteration of environmental factors (oxygen, temperature, etc.) Examples: - Water quality control (aeration and oxygenation controlled by dissolved oxygen computerised probe) to keep the rearing conditions stable. - Controlled feed distribution (a computer driven by temperature and oxygen sensors) to integrate several parameters in the optimal management of feed supply. - Standing stock control and grading (a computer controlled electronic scanner integrated with a vacuum fish pump and a belt grader). - Fishing and package. 3.6 Environmental protection Even being a relatively low pollution activity, fish farming must take in consideration its impact on the environment and carefully select technologies able to control it. Successful methods for farm effluent treatment have been developed by means of: a) micro-screen filters placed at the farm outlet; b) lagooning (organic particles sedimentation and natural oxidation of sediments); c) compacted sludge reutilization (coming from mechanical filters and lagooning cleaning). The use of an extruded feed can also help to minimise residual organic matter and sewage from rearing tanks. Nutrients content of effluent waters, once lowered their sediment load, could be positively exploited by extensive culture methods (molluscs, shrimps, mullets), providing and addition marketable crop. Applied technology in aquaculture is the integration among Engineering, Biological knowledge and Management.

The main targets of technological innovation are: THE OPTIMIZATION OF PRODUCTION PROCESS • to increase efficiency of rearing practice, in terms of higher production per unitary volume and lower biological risk and production costs THE PROPER UTILIZATION OF AVAILABLE RESOURCES

Technology and production Development in Aquaculture

Evolution of sea bream average survival rate in hatchery and main breakthrough Nutrition highlights in aquaculture

Effects of storage temperature on diets quality

Automation and control systems PRODUCTION AND TRAINING: HUMAN RESOURCES DEVELOPMENT by Dr James F MUIR, Scotland 1. INTRODUCTION The purpose and value of training: - the specific, utilitarian, product/production oriented approach - the wider, more altruistic, resource oriented view - the pragmatic view, dictated by the availability of resources? The role of people and their skills; importance for basic skill, potential job-satisfaction, productive reward, general motivation, capability for care, for ideas, improvements; The different ideas of human involvement; the changes traditional agrarian, traditional craft, industrial productive e.g. Marxist units of labour, deskilled, post-industrial, e.g. Japanese/Swedish work-group ideas. The changing history of training, from generalised ideas, simple ‘learning by looking’ or ‘learning by doing’ (‘sitting next to Jeanie’), to the present application of MBO type principles, i.e. the definition of needs, the setting of objectives, the specification of the inputs needed to meet these objectives, the monitoring, pre and post-hoc; the objective means by which attainment might be measured. 2 • Some definitions and concepts - training/education/extension; more specific, usually practical aim of former, education more general, possibly theoretical, abstract skills; extension more the process of involving, motivating, passing on messages, ideas, skills of often diverse nature; Agricultural extension has been defined as “a service or system which assist farm people through educational procedures in improving farming methods and techniques, increasing production efficiency and income, bettering their levels of income, and lifting the social and educational standards of rural life” (Maunder, 1973). - ‘technological transfer’ extension process is often so described; however limited component of process involving not only technology but social, cultural, political, economic and marketing aspects. - in-service, experience; direct, day-release, part-time, correspondence, distance learning - formal, informal; the increasing preference for the latter, understanding of its worth if controlled and managed properly within structured conditions: - periodic, continuing; the nature of the type of skill involved; access to opportunity; the idea of progressive development; - targeted, general; the problem of the scale of aquaculture; big enough for a wide range of specialist training? Better to poach from other fields? - assessment, certification, re-testing; the importance for moral 3 Defining needs; general case Essential before training/extension process initiated; mistake often made of preconceptions, or standardised approaches; - strategic (sectoral) and specific (business-level); the usefulness of manpower planning; the logic of grouping by skills across the sector; the example of the FAO Malaysian assessment; the need within individual companies to plan training needs, skills, qualifications; - the role of producers; in identifying skill requirements, assessing management and workforce structure; their current and future patterns; in understanding costs and values of training - the role of specialists; in clarifying training needs, specifying qualitative aspects, defining costs, times, identifying mechanisms, preparing, developing media materials, carrying out training, training trainers: - the recognition of need; important throughout the sector; as proactive and reactive response; the changing demands of technical change: e.g. hatchery skills, disease diagnosis and treatment; demands of legislative development - e.g. safety, environmental protection; The primary activities of a training/extension programme, with specific reference to aquaculture, are: - promote the creation and organisation of aquaculture production and distribution units in the community; - get fish farmers conductive to acceptance of technological change; - bring potential fish farmers into contact with sources of practical and useful information through organised action; - assist people to acquire the necessary knowledge, skills and attitudes to utilise effectively information related to the culture of fish (i.e. the education process); - communicate new, more productive and efficient technologies to the fish farmers; - provide technological and diagnostic back-up service for fish farmers and a feedback of problems from farmers which require research or investigation; - provide, in the short-term, the necessary inputs to initiate production and assist the farmer in becoming self-sufficient; - help fish farmers gain improved management capability to operate in more productive ways in the longer term, by providing training and guidance in decision- making; - promote the consumption of aquaculture products. The structure, goals, strategies and organisation of any training/extension service vary according to a range of factors and objectives, e.g. as defined by government. A particular system tends to reflect underlying cultural, political, economic and social environment in which it evolves. Regardless of structure and activities of a training/extension programme, the principal measure of success is the degree to which specific aims, attitudes, practices are taken up by target groups. Within this specific training objectives need to be defined. 4 Defining needs; setting objectives Once the overall aims, structure, general ideas of resources have been defined, it is appropriate to consider the specific, practical objectives; - the need to define short and longer-term objectives - the need to clarify these in terms of capacity, resources, time, consolidation, etc - identifying specific individual needs; corresponding with externally perceived needs? - preparing training plans The example of objectives within extension programme: Functions of aquaculture extension services Component Objectives/Activities Community development * Create awareness and participation among fish farmers, particularly in the lower social and economic strata, about all areas of work by means of individual contact and group meetings. * Promote and create organisations. * Strengthen the role of women by introducing and supporting income-earning activities such as subsistence level farming. * Train link workers from communities. * Participate in development and carrying out of non-formal education programmes with emphasis on vocational aspects and on changing unscientific and conservative attitudes views, norms and rituals. Technological transfer * Further dissemination and diversification of traditional education technology. * Introduce new appropriate technologies and methods. Supply of production Transport of materials, feeds and seed for fish farmers inputs * Provide materials, feeds and seed for production at no change, low-cost or credit basis Diagnostic services * Water quality analysis and recommendations, treatment required including fertilisers and liming. * Disease diagnosis and treatment recommendation Handling/processing * Improve existing, introduce new methods and technologies, such as use of ice after harvesting, improving hygiene and durability of fish products. Marketing/distribution * Promote fish consumption including new methods and technologies, such as use of ice after harvesting, improving hygiene and durability of fish products. * Promote fish consumption including distribution of recipes; demons trate preparation methods for fish. * Supply market information to fish farmers about wholesale and retail prices, potential markets, etc. * Strengthen the position of fish farmers against middlemen by organisational and financial support of marketing through cooperatives. * Promote and create marketing organisations. Credit and finance * Facilitate direct contacts between banks and fish farmers. * Facilitate indirect institutional finance through cooperatives, credit societies, etc. * Promote institutional savings. Enforcing regulations * Regulate and enforce laws relating to fisheries and natural resources.

5 Designing and quantifying - skill definitions; existing and/or potential staff; costs availability - understanding of processes; access, stimulus, reinforcement of response, relative power of methods, messages, enactors, etc; - bases for assessment; generalised qualifications? - extent of gain at each stage - incorporating within ongoing programmes 6 Training decisions; The primary decisions involved in training include: - who: abilities, motivation, potential staff turnover; - how; local, informal, with training staff, or via series of organised sessions, with optional outside people? - where; on-site, ‘sandwich’ type training rooms, access; use of distance learning packages - when - how often The selection of the most appropriate method requires careful consideration. Training methods are used to set up learning situations and to transfer as much information and skills as possible to the learners. Whilst planning the participation/learning situation, important that different steps in the adoption/teaching/learning process will require different techniques. Generally, mass contact methods are useful at the attention and interest stage. They include the use of folders, campaigns, bulletins, leaflets, posters, exhibits, agricultural shows, mobile audio-visuals, radio and television. Group contact methods bring more specific information about the practices and help individuals through the desire stage to the conviction and action phase. Methods used include demonstration fish farms to highlight methods and results, training and visit techniques, meetings and group discussions, lectures, seminars and workshops, and field trips and tours. Choice of training methods associated with different levels of response Mass contact methods

INTEREST

DESIRE Group contact methods CONVICTION

ACTION SATISFACTION Individual contact methods Individual contact methods on the other hand are most relevant at the conviction and action phases, because of the effect of face-to-face interaction that is afforded. These methods include farm and home visits, office calls, correspondence and result demonstration fish farms. Other criteria for the choice of methods are: - the nature of the subject to be taught, e.g. its complexity; - the availability of teaching or other media materials; and - the individual ability and preference of the trainer. Note all recipients will learn or take up ideas, skills, recommendations at the same speed, i.e. some may be at the awareness stage while some may have already adopted them. For this major reason a variety of teaching (communication) methods is most effective in bringing about the desired outcome. The demonstration/teaching process Demonstration is generally referred to as one of the cornerstones of training and extension practice and has been widely successful. The method is based on the adage that ‘seeing is believing’. They incorporate two main attribute, namely they “recognise the importance of demonstrated success on any new technique and its subsequent adoption by farmers, and the importance of farmer of farmer communication” (Engle and Stone, 1989). Two types of demonstration exist: the method demonstration, which basically teaches skills (e.g. methods of liming and fertilisation of ponds fish handling, etc), and the results demonstration which shows the outcome of an idea or activity (e.g. the results of fertilisation of a pond after time). The effectiveness of a demonstration depends on the effort put into its preparation, planning and implementation. When planning a demonstration one should clearly identify its objective as well as the skill to be taught. All the material and know-how necessary to conduct the demonstration should be gathered before-hand. Finally the presentation should be planned step-by-step and rehearsed. To maintain interest when implementing the activity a number of points should be addressed: - the audience should be able to sec and hear all that is going on; - explain the importance and need for the skill to be demonstrated; explain both the theory and procedure of the demonstration and what they should look for; - involve the audience in demonstrating various aspects and allow some time for them to try out the skill; - while conducting demonstrations; repeat difficult steps, answer questions and ask questions to ensure the message has been grasped; - look out for the slow learners and offer special attention without necessarily embracing them; - summarise the importance of the skill, the steps and the materials needed. Once the demonstration is complete follow-up visits to interested parties are valuable. It is also important to evaluate the effectiveness of the demonstration by seeing how many people adopted the skill, what problems are faced and how successful the technique is in raising productivity. This information can be fed-back into future demonstrations to improve or adjust the message presented. 7 Key elements in aquaculture production The main practical focus; i. e. primarily production-oriented - basic technical skills; mechanical repairs, pumps and engines general workshop skills electrician/electrical engineering simple building and repair earthwork carpentry, pipework/plumbing boat and vehicle handling gear and net maintenance - basic husbandry skills; feed preparation and feeding practice cleaning and hygiene hatchery management live food production laboratory skills stock handling skills harvest skills disease monitoring and treatment environmental monitoring - business/management skills; personal management dealing with others presentation, negotiation book-keeping and accounting dealing with customers office management computing report writing Secondary issues Other training areas, of increasing interest and relevance, particularly in developed areas where production management and product liability is becoming increasingly rigorously defined; - safety and safety management; COSHH - environmental management; e.g. BS7750; 8 TQM - new ways of thinking? - chain of quality control and quality procedures; audited system; specific responsibilities for specific aspects of business; UK is BS5750; now being insisted on by various retail customers; their own procedures increasingly demand inputs under at least as good a quality regime as their own-even for essentially ‘primary products’. 9 Selecting the product External source training, often needed, particularly as initial stimulus, prior to establishment of local training system. General points concerning the selection of training choices: - cost; relative to benefit, absence of losses?; how specialised, can product be sold elsewhere? relative costs of travel, accommodation, vs e.g. localised training; sending trainers to the location; - quality; both absolute, and in terms of specific aims of training needs; i.e. - relevance; immediate, and longer-term; particularly if more general activity for wider range of participants - timing; with respect to overall plans, also e.g. seasonal needs, and internal schedules of training activity - specialist or general training; former can be more targeted but usually needs minimum number to be viable; letter allows wider range of coverage, of use to wider range of participants; Training centers Aquaculture is often still a new technology and a novel concept. As a result there is a need for a great deal of investment in training. One choice, often quite cost effective, is to establish a centre which can be used for intensive training and extension personnel and to promote and educate farmers. Also useful for group meetings, seminars and workshops. Training centres should be linked or in close proximity to at least one demonstration fish farm which exhibits all the necessary technology. It should have a classroom equipped with a range of audio visual equipment (overhead projectors, slide projectors, videos television) sufficient to deliver the massage in the most comprehensive manner possible. It possible, also enough accommodation to house trainers and a small number of participants. Attached to the classroom should be a small laboratory where its is possible to undertake basic water quality analysis, examination of biological material and general disease diagnosis. The laboratory can also be used as a basic extension back-up service. It is recommended that the senior officer is based at the centre as it will become a focal point for enquires and the other activities. Under no circumstances must the laboratory be used as a research facility as it will hinder the development of the training and extension services. Demonstration Fish Farms Two types of demonstration farms can be used; those owned and operated by the government and those operated by the private sector but used by the extension services. Government operated farms are useful because they act as models for presenting new technologies and ideas. It is important that the farm portrays as image of efficiency and success. It should be well-organised with no surplus equipment or rubbish lying around, all personnel should be active and show an interest in their job, it should be well stocked with healthy fish, produce copious quantities of fish and preferably be run at a profit. This latter point may not always be possible considering the monies required to continuously keep the farm up-to date with new technologies. There is a danger that the demonstration farm will turn into a research facility and not meet the demands of an effective extension service. The use of private sector farms is perhaps slightly better orientated to the philosophies of rural development. When a new or existing technology has been developed by researchers to a point where there is good potential for success in particular region, it is selected for implementation on a cooperator's farm. The co-operator is selected on his or her willingness to devote time and space to the activity, and with the resources to meet the particular requirement of the new technology Implementation of technology demonstrates to the local farmers the viability and potential benefits In additions the local farmers believe they are involved in the process and are often more willing to adopt the technology more quickly. Consideration, however, must be given to compensating the farmer if the loses production through failure of the technology. This particular activity functions well when run in parallel with a training and visit scheme. 10 The organisation and the trainers Organisation For a training/extension system to function and operate successfully, organisation and management are important (Pollnac, 1985). Need to establish an efficient organisational set-up to achieve its primary objective of adoption of technological development by the farmers. The basic requirements can be summarised as follows: - Regionally and hierachically differentiated structure with the hierarchical component directed towards action-orientated, systematic planning, budgeting, staff control and programme evaluation and the regional component geared to take into account local peculiarities and needs of the target group(s). - Sufficient degree of decentralisation, especially in job areas such as programme planning and evaluation budgeting and staff control to ensure flexible programmes, realistic targets, need-orientated plans timely and full utilisation of inputs and funds and better co-ordination and increased initiative among local personnel. - Well qualified generalists as local training/extension officers who receive regular in- service training and impact knowledge to interact with contact fish farmers, who again act as multiplicators. - Subject matter specialist in all functions, who train the local level officers, assist in their practical field work and maintain contacts with research institutions. This basic organisational framework decentralises the training/extension function. It makes the programme more responsive to local initiatives and allows more localised input into the development processes and activities. It does however require a central administration because provincial people will be divorced from up-to-date developments in aquaculture and of the political requirement of the region. Coupled with the decentralisation is the need for local control over aquaculture funding. As the local personnel should have a better understanding of the requirements of the area under their jurisdiction, this control allows the funds to be targeted toward those projects with the greatest chance of success. Built into the organisation structure should be a two-way flow of both technical and management information. Whilst the service's primary function is to pass on important technological information to the farmers there must be feed-back to evaluate the effectiveness of the programme in terms of improved production, the problems that may have arisen and how the farmer coped with them, and to establish a route through which complex problems can be resolved by researchers or other agencies. When establishing a development programme the central administration requires information about the rural community, its needs, concerns and priorities to formulate projects. This information must come from the interface between the farmers and the rural extension workers. There is little point in dictating policy about development projects to the rural communities if they do not address the needs and concerns of the local communities. Indeed, some of he most successful development efforts have been those that have involved the producers in the project formulation and planning. Staffing The heart of any programme is personal contact between the farmer and the agent. However, the criteria for selection of training/extension agents, particularly local workers, is usually a good academic education to university level. No consideration tends to be given to communication and social skills which are essential for the agent to function effectively. In the organisational structure outlined above, three tiers of personnel are involved; local workers, supervisory level staff, and headquarters staff. Local workers require an education level marginally above the average for the population. They should have a good understanding of the local cultural and social backgrounds of their target audiences and be able to communicate with them. Formal training in aquaculture practices is achieved through continuous, quality, in-service training. This component is essential because poorly trained agents may justly feel inadequate and insecure in their knowledge and shy away from contact with the farmers. Similarly, inadequately trained staff can cause a lot of damage by giving the wrong information to farmers. This leads to loss of credibility by the farmers and failure of the service. Supervisory staff would be posted at the main district town and responsible for no more than five lower tier staff. Their tasks should include modification of central programmers to local needs, development of detailed work plans, assist in field work, involvement in training, supervision of local workers, maintaining contact with local administration and budgeting. The number of supervisory levels required depends on the size and differentiation of the services. If it is small this tier can be excluded and the supervisory functions carried out by headquarters staff. They should have a higher level of education, probably to university level. This should allow them a degree of specialisation in their background which should be useful to the service as a whole. The problem that tends to arise from appointing graduates is that they generally expect an office job and regard a position that is located in the rural community, or involves frequent travel to such places, as a demotion. Also they do not normally expect to do physical work of the type experienced by extension personnel. An experienced, broadly qualified officer should be in charge of the aquaculture service and based at headquarters of the appropriate department. S/he may be assisted by deputies depending on the size and differentiation of the service. The following functions have to be performed at headquarters level : administration, personnel management, finance, programme planning, developing in-service training programmes, maintaining contacts with research institutions, and programme execution, implementation, monitoring and evaluation. According to the size of the service and the degree of differentiation, the subject matter specialists can be posted at headquarter level, at the district level or, if the extension service is very small, be drawn from other branches of the department. In the latter case they should be given training in training and extension techniques. In-service training of the extension staff at all levels should be given by senior staff and specialist personnel. The latter may be researchers and, preferably, managers of government fish farmers who have the day-to-day expertise in up-to-date fish production techniques. The role of women In many countries women play an active role in fish farming and fish farming can be an important component in developing economic opportunities for women. In certain countries women working on fish farms can create problems because of cultural taboos associated with them working in the presence of men. Good management can easily resolve these problems and women can be actively encouraged to participate. In those circumstances difficulties may arise from training women because most personnel are, by tradition, male. This can easily be overcome by appointing am appropriate number of female officers. If necessary, they can be centrally based to serve the requirements of the entire region. Even in the absence of cultural problems, it is often found that women respond better to learning and development when taught by someone of their own sex, not least because of the better levels of understanding of actual needs, and of the feedback needed in assessing the effectiveness of training. Thus when local training/extension officers recognise the need/desire of woman to become involved, women extension officers can be drawn upon to overcome cultural barriers and promote development. Such a mechanism has worked will in agricultural development and should be encouraged in aquaculture. FISH MARKETING AND PRODUCER'S PROBLEMS BY C.A.M. Hough Belgium 1. OVERVIEW 1.1 Markets The European fisheries sector developed initially in order to supply its own domestic markets but the combination of low catches (and the recognition of the effects of over- fishing) with the development of the logistic capacity to move fish around the world in an economic fashion has led to increased imports by the EC and enforced, reduced domestic catches. Concurrently, aquacultural production of fish has expanded, providing both marine and freshwater fish to a marketplace traditionally furnished by fisheries. In addition, the EC market demand for fisheries products has changed considerably. The average consumer purchaser is moving away from whole fish, in the round, to fillets, particularly in the Northern part of Europe. Also, a distinct increase in the consumption of prawns and shellfish is evident. The availability of similar products from other world regions has pushed even speciality fish into an overall commodity market where trading is the key word. Quality, price and surety of delivery are the essential components which puts considerable accent on marketing and trading efficiency. There is no doubt that the cost of freight can be a determining factor for the purchase of medium and low-value products, but good marketing and communications are also very important. The higher value products are much less affected by freight cost increases. 1.2 Products Between 1987 and 1991, the EC imports of fresh fish increased by 25% (to 482.000 tons) where prices have risen by 10% (2.0 ECU/kg). A developing sector of importance is ready-to-eat preparations which may be complete meals. Although many such products are frozen, new lines of non-frozen items (e.g. chilled or using Controlled Atmosphere packaging) are being introduced. In respect of fisheries products, most points of sale now offer smoked fish, patés and mousses, pickled and marinated fish dishes in addition to canned or bottled products. The aspects of convenience and choice are essential elements within the marketing philosophy used. Increasingly, consumers are looking to purchase of “fresh” as opposed to “frozen”. Nonetheless, the demand for choice convenience has also affected the frozen, processed sector where a much wider range of more elaborate products are being marketed (for example, a complete fish meal with a sauce, vegetables and rice a opposed to breaded, fish fingers). In France, such preparations have increased their market share from 21% in 1988 to nearly 30% in 1990, where overall fresh sea product consumption dropped from 40% in 1985 to 35% in 1990. The consumer's acceptance of a brand name as a guarantee of quality is also a major element within a marketing programme (Iglo, Captain Birdseye, Frimo etc.). In fact, every fish processor within the SEM has to adhere to such marketing phenomena, putting more efforts into product presentation than ever before. Investments in packaging, advertising and quality control are inherent to success within the SEM due to increasing competition at the point of sale and through the lifting of internal trade barriers. 1.3 AQAUCULTURE The measures for economic impact and quantitative production for aquaculture in Europe have not ceased to increase over the last decade, assisted by the imposition of quotas on fisheries. Growing interest from both the public and private sectors, accompanied by extremely positive publicity on the dietary advantages of fish, have also contributed to this expansion. In addition, investment and marketing assistance schemes have also played important roles in the development of aquaculture. These forms of assistance have been made available to projects through the Commission of the EEc and National or Regional Public Agencies. With the benefit of hindsight, one can state categorically that the sector has also suffered from a healthy degree of over-optimism, particularly in respect of the profitability. Investment booms for marine salmon farming in the 70's and for sea-bass and sea- bream in the 80's are direct results of this phenomenon. The farming in fresh-water of trout and other species, by comparison, has involved more slowly but surely. A Case History Salmon farming is seen as being a victim of its own success where the remarkable production increase in Norway, Scotland and Ireland were accompanied by significant drops in the market values, particularly so in the early 90's. This effect considerably reduced the financial viability of many farms and, in certain circumstances, has led to bankruptcy. In the marketplace and in the eyes of the consumer, salmon is no longer the high value fish that it was only 5 years ago. The position has also had knock-on effect on the markets and farming characteristics for trout. The main trout product is portion-size of 200–250 g. but during the 80's many of the EEC producers had increased their production of larger size pigmented trout (> 1. 000 g) to provide a competitive product to salmon (production increased from 2000 t in 1983 to > 12,500 t in 1990). The Scandinavian countries had specialised in large-size trout production since they have little or no market for portion-size fish. The drop in the wholesale value of salmon affected the value for large trout and consequently such producers moved over to producing portion-size fish which, when combined with existing production levels, resulted in a glut has had a negative effect on market values. Presently, after a several years of sliding prices, the value of salmon is slowly climbing, reflecting a stabilisation of supply and demand after several years of oversupply. The need for increased sales volumes, accompanied by aggressive marketing, has allowed the establishment of new markets outside of those associated traditionally with salmon consumption (middle and northern Europe), particularly in Spain, Italy and Portugal. Marketing strategies that have been used have included 1. clearer national identification of the product (in the consumer's eyes) i.e. from Scotland, Ireland, Norway etc with each producer country using advertising to his purpose (TV, press, tagging fish (red label) 2. improved packaging - notably for added - value products (e.g. smoked salmon) 3. wider product range - patés, mousses, prepared dishes A similar position seems, to be developing for sea-bass and sea-bream which are traditionally “high-value” products. The following table resumes the Greek position Sea-Bass Year Sales Price Production Cost Profit Margin 1987 100 100 100 1988 95 109 78 1989 95 114 69 1990 94 115 70 1991 74 93 48 Sea-Bream

Year Sales Price Production Cost Profit Margin 1987 100 100 100 1988 95 108 77 1989 93 112 71 1990 85 108 54 1991 63 88 29 Overall, in current terms, between 1987 and 1991, the profit margins have reduced from 43% to 28% for sea-bass and from 43% to 20% for sea-bream These situations have arrived generally from supply exceeding demand in the traditional markets, misunderstandings of the needs of the market place and changes in the way that fish is sold. Markets for Aquaculture Products The most important markets for aquaculture products, in terms of volume include 1 Trout 150.000 2 Carps 28.000 (mainly Germany) 3 Eels 10,000 4 Salmon >200,000 5 Sea-bass/Sea-bream > 20,000 Outside of the main species cited, the other aquaculture fish markets are limited, being measured in thousands of tons rather than tens of thousands. 3. OBSERVATIONS ON AQUACULTURE MARKETS 3.1 Processing & EC Operating Standards The provision of products of high quality is a result of both public health policies and consumer demand, which are the major forces behind the instigation of new EC operating standards. The directives for common operating standards will come into action within the EC on the 1st January 1993, a direct result of the SEM and which are directed towards an overall improvement and standardisation of manufacturing practices. In respect of fish products, the standards are wide-ranging but are mostly related to guaranteeing the provision of products of the highest quality to the consumer. These standards cover the materials that may be used in construction and operation, the conditions, under which processing may be done, including additive use, and allow for the use of experts for the allocation of manufacturing “licenses”. In many senses, this action follows the referencing system adopted by US Food and Drug Administration (USFDA) which has long been the model for such action. However, it is to be noted that the regulations that apply to the major export markets are very similar in terms of the sanitary aspects. The EC has recognised that difficulties will occur in implementing these directives and have given a 3 year grace period within which the companies concerned will have to make the necessary changes. However, it is the wish of the Community not to allow the import of products from third-party countries under conditions that would disfavour the European sector who are being forced to make new investments. Thus exporting companies will be subject to similar “licensing” approvals before entry into the SEM. 3.2 Market Structures within the EC The traditional market structure for fish involved moving the product from the boat/farm to a wholesale market which would distribute to the retailer, generally the fishmonger, the processor or the institutionalised sales. Changes in consumer habits towards buying processed products (Fish fingers, fillets etc.) and the impact of supermarkets in consumer purchase has had a drastic, negative effect on the fishmonger'S trade. The major consumer fish purchases in northern EC countries are now made in the supermarkets and a similar trend is now being observed in the Mediterranean counties where, traditionally, fresh fish sales have dominated. This situation has opened opportunities for increased sales volumes but with a detrimental effect on prices. It has also had a dramatic effect on the way in which fish sales are marketed, forcing the producers and the processors to understand the complexities of consumer demands - presentation, packaging and price. The establishment of the product links between the needs of the customer and the producer are the first elements in this process. (Diagram) This is furthered by the definition of the “marketing mix” for a given product-the product can be the species or a product derived from whole fish. This is demonstrated in the following diagram (Diagram)/ It is essential that all those who are active in fish sales understand the basics of marketing fish and the success of individual producers and companies depends on this, perhaps even more than technical prowess. The main principles adopted are a. Quality - good quality is the basis of the reference image for live, fresh, frozen and processed products b. Packaging - particularly important for processed products, reinforcing the quality image, hygienic and attractive c. Product range - an individual species can find markets in a wide number of applications. Example - trout (Diagram) Trout Trout forms a major market estimated at 150 000 tons annum, giving an average annual consumption within the EEC at ± 400 g per person, having an average ex-farm price of 4–5 DK/Kg. There is not too much seasonal variation in consumption. Staggered production throughout Europe and the year-round availability of fry allows year-round availability. Trout is now presented in a number of different forms (live, fresh, frozen, whole, fillets etc.) Fillets and processed products are the subject of the largest recent market increases resulting from a drop in demand for whole fish. There is also a strong tendency towards the production of pigmented “salmonised” trout, where the pink flesh provides a comparison to salmon. i. Live - stocking farms, restocking rivers, lakes, sport fisheries ii. Fresh, Frozen - wholesale, processors and the HOTECA trade iii. Processed - e.g. smoked - HORECA, delicatessen, supermarkets etc. iv. Added Value - e.g. patés, mousses roe - retailers, HORECA Sales to sport fisheries and direct to the consumer, at the farm gate, account for nearly 30% of the market whereas frozen & smoked fish equal 16% of the total Production is rising slowly (+/- 3–5% per annum) but profitability is stagnating due mainly to lower prices. In analysing the evolution of the real price of trout, one can see from the following diagrams that, in nearly all of the countries in the EEC, stagnation or only slight rises can be observed for the sale price of trout; when adjusted for inflation, in nearly all cases, the real value of the product has dropped considerably. A similar situation is observed for the recent history of sea-bass and sea-bream. This effect is the direct result of market forces and have directed the industry to being more productive and more efficient. It is evident that the point of sale has a definite impact on the marketing strategy to be adopted and the sales value of the product. Mention has been made of the effect of supermarkets on prices. Traditionally, a range of intermediaries would be involved in distribution of the product from the farm to the consumer. This is determined by the size of a farm and the manner in which sales are made; grouping of small farms into sales associated or co-operatives has been a solution for resolving marketing and distribution problems encountered by various sectors of the industry. The overhead costs of bringing aquaculture products to the marketplace are numerous and depend on individual objectives and strategies. In each case, however, there are creation common objectives: i. Primary demand characteristics must be established ii. Appropriate information must be provided (quality, supply characteristics.) iii. Advertising should be used to reinforce consumers' appreciation and recognition of the product at varying levels (species, product, brand name.) iv. Increased acceptance and use of product v. Increased number of points of sale vi. Established image for product and producer/marketing image. The factors that have to be taken into account are the major variables that effect both the production costs and the market situation (Diagram)- comprehension of these allows the development of an integrated approach to the pricing of the products. Presentation Every market study carried out on fish demonstrates the reluctance to eat fish (particularly where children are concerned) because of hones. One of the ways of established new markets is to present a boneless product, as a fillet or as a processed product. For example, in the USA, all fish can be found as a boneless (25) product. In respect of trout, the head and the tail remain in the presentation but the bones have been removed. The product is sold as it is or with stuffing (Cheese, shrimps etc…) This sector of development has resulted in the Gabriel company developing a complete range of trout-based products including mousses and patés, mixed presentations with other fish (e.g. smoked trout with salmon and halibut.). The expansion of the markets for other fish species may well depend on the processor's ability to provide such an innovative approach to the product's marketing. Product Promotion It is only recently that the producer has had to rethink his sales strategy - previously what could be produced could be sold. For trout and salmon, this trend has been reserved and each producer now has to have a clear but flexible marketing strategy. It is clear, for some species, that now it is easier to produce the fish than it is to sell it for a profit. Underestimation of the needs of effective marketing strategies could lead to a potential economic catastrophe for the producer. The small size of many farms does not enable marketing actions to be done nationally (or even regionally) hence the accent towards the motivation of professional associations to be active to this sector. Advertising is expensive but generic promotional campaigns and public media support for the products have contributed to keep salmon and trout, as the foremost examples, in the public eye. The levels of production of the species cited and the constancy of supply allows continual presence in most EEC supermarkets throughout the year. However, the same is not true for nearly all the other species cited. Product Quality One cannot talk about marketing without referring to quality. Following the desires of the client, this factor can differ. A fisherman wants a lively fish, the gourmet wants taste and firmness of flesh, the processor wants a good meat/bone ratio. The producer has to ensure that the quality of his product is that desired by his market. 3.2 The Future Learning from past experience is properly the best means for predicting future situations. High prices are generally applied to producers having a limited supply and that are considered to be gourmet products. In aquaculture, this can be reinforced by the difficulties obtained in rearing the species concerned. Once the supply potential increases and traditional outlets can no longer accommodate the volumes supplied, the product has to find more market outlets and comes into competition with other products. In addition, to be present in markets that are further afield means significant increases in the coasts of sales. This is refers to marketing and distribution costs but packaging, export-related expenditure and other associated variables have also to be taken into account. The importance of regional and highly localised markets can also be the difference between success and failure. The Dutch catfish boom that occurred in the 80s banked on acceptance by the local market of the product at a relatively high price. Initial optimism was countered by poor consumer purchases which led to the disappearance of quite a few farms. However, those who have been able to market successfully have identified specific markets for a specific product (fresh, smoked, fillets…) where competition from cheap sources (Far East) is less important. As an example, we were offered 2 tons of catfish fillets from Thailand was made at 2.5 DFL/Kg. The marketing edge can sometimes be gained by specialisation, a factor that is becoming more important in the success of an individual farm. Such specialisation can mean i. early or late harvest to supply markets “out of season” ii. specific species of sizes iii. or even a variety of species It is often said that each farm has to find the niche that makes it different from others and this is becoming more so. The increased number of farms that have ventured into processing, either full or partial, refers the effect that market forces are having on the producer. The lessons learned indicate that the most sensible approach for the development of aquaculture is to follow the market's requirements. Sometimes these may not be clear but, in each case, the technical assessment must be accompanied by a market study that has to ask and answer the questions-where, how and how much? Thus the future should be regarded with cautious optimism. The technology for the major species exist and the sales outlets are there. The acceptance of fish as a consumer product has never been better. The reduction of overall margins imposes efficiency and structural support at the farm, forcing the producer to be more aware than ever of marketing conditions. The producer has to become an efficient financial and commercial manager. The future of aquaculture depends as much on recognising this change as on the improvements in rearing fish. Distribution des pisciculture par nombre d'entreprises et leur taille. Production évaluée à 143,595 tonnes (1989).

ANNEXE 12 Comparaison de Valeurs de la Truite Portion “Ex-Farm” et ajustées en Monnaie Constante DANEMARK

FRANCE

Sources : FES et SUSAN SFAW 1986 CAMPAGNES PROMOTIONNELLES BUDGETS 1985

Pays Production Prix au Kg Chiffre d'affaires Promotion % du C.A (tonnes) Ex-farm Ex-farm (écus) (écus) Dk 21.300 2,08 écus 44.304.000 101.899 0,23 Fr 25.000 2,13 écus 53.375.000 448.350 0,84 RFA 14.000 3,06 écus 42.875.000 72.888 0,17 RU 8.500 2,00 écus 17.008.500 83.342 0,49 It 20.000 2,10 écus 42.000.000 210.000 0,50 Esp 13.500 1,80 écus 24.300.000 75.330 0,31 Le total du budget “promotion” en 1985 pour les pays cités était 991.809 écus ou 0,45% du chiffre d'affaires. 1989

Pays Production Prix au Kg Chiffre d'affaires Promotion % du C.A. (tonnes) Ex-farm (écus) (écus) (écus) Dk 25.000 2,34 écus 58.500.000 93.600 0,16 Fr 29.000 2,24 écus 64.960.000 734.050 1,13 RFA 15.000 3,23 écus 48.510.000 97.020 0,20 RU 15.000 2,88 écus 43.263.000 276.688 0,64 It 30.000 2,45 écus 73.500.000 382.200 0,52 En 1989, les dépenses pour la promotion étaient de 1.583.558 écus pour les cinq pays cité (0,55%); par rapport à 1985, ce chiffre a augmenté par 667.079 écus (+73%) en se référant à une augmentation de la valeur de le production de 89.171.000 é cus (+44%). STRUCTURE DU MARCHE DE LA TRUITE

SCHÉMA DE LA VENTE PAR CANAL DE DISTRIBUTION.

CRITERES DE SELECTION D'UN SITE DE PRODUCTION par François Van Obregen France Je voudrais avant d'aborder “les critères de sélection d'un site de production” dire que le pessimisme dont j'ai fait part tout à l'heure est un peu de forme, parce que si j'étais véritablement pessimiste, je ne serais pas ici, je ne ferais pas de plans pour de nouvelles unités de production, je ne serais plus dans l'aquaculture. C'est un peu une question de philosophie et également d'expérience de ces dernières années où j'ai pu voir combien mes collègues et pas seulement en France ont et continueront déprouver des difficultés à s'entendre. Une question de philosophie. En partant du principe que ce que j'entreprends va fatalement échouer je fais ensuite tous les efforts nécessaires pour que ça n'échoue pas. Si jamais c'est un succès, je suis très content. Si e'est un échec, je l'avais prévu et je suis content aussi. J'essaie d'identifier toutes les difficultés pour mieux m'y attaquer et le problème que nous attaquons est, croyez-moi, compliqué. Dernière parenthèse. Je voudrais attirer votre attention sur la plaquette qui vient d'être éditée par la CEE le mois dernier “L'agriculture européenne àl'horizon 1992”. Ce sont les minutes d'une réunion qui s'est tenue l'an dernier à Bruxelles. La DG 14 de la Commission avait invité les producteurs de tous les pays, les représentants des administrations, les scientifiques, etc. environ 4 à 500 personnes. Des vérités ont été dites dont la Communauté a parfaitement tenu compte. Le MEDRAP n'est pas vraiment dans la Communauté, mais nous savons tous que nous dépendons aussi de la politique européenne. Donc je vous en conseille la lecture. Et j'attaque maintenant le sujet. Lorsque l'on parle de critères de sélection d'un site, la première question à se poser est::critères pour qui? Effectivement, si je suis une grande holding internationale, ou si je suis un restaurant à côté d'une lagune, ou un pêcheur avec sa petite barque, l'aquaculture, je ne vais pas l'aborder de la même manière. Lorsque je suis Seafarm ou l'Ona, ou telle société importante, je vais l'aborder encore d'une autre manière. Lorsque je m'appelle Préfécture de Région Nord Pas de Calais, dans le Nord de la France, et que j'ai de l'argent à dépenser en aquaculture, les critères de sélection d'un site, ne vont pas me permettre d'aller m'installer en Grèce ni même en Aquitaine, ni sur la Côte d'Azur. Je vais être réduit à ma seule région L'orsque je m'appelle FAO ou MEDRAP, mes buts vont être encore différents pour déterminer les critères de choix de sites, il est vraisemblable que le meilleur site de production se trouve être à Monaco, je n'irai pas m'installer à Monaco. Par conséquent, et on y reviendra tout à l'heure, il est certain que le pêcheur qui comme il le fait en Norvège, en Islande, comme il peut le faire au Canada, rentre de sa pêche en ayant pêché avec certaines précautions, des poissons immatures ne va pas choisir son site, le site est à côté de sa maison, il va mettre les poissons dedans en attendant qu'ils grossissent et il fera de l'argent avec. Lorsque j'ai un restaurant et qu'il s'agit de vendre à mes clients, comme ce restaurant du côté de Casa et qui va sans doute le faire, il est intéressant de pouvoir sortir le poisson directement de l'eau devant le client d'où une valeur ajoutée de fraîcheur incontestable Alors, vous voyez que les critères de sélection auront une importance relative dépendant déjà de “pour qui” on va choisir le site. Venons en à des critères généraux; deux critères rédhibitoires l'eau et la sécurité. Je l'ai dit hier et je le répéte “le poisson vit dans l'eau”. Il lui faut de l'eau et pas un égout Il lui faut de l'eau en quantité importante et de manière constante, j'ai dit également que l'aquaculture est “une science économique” et quand nous allons choisir notre site, c'est avec le but de produire de la qualité à un prix compétitif pour vendre avec un bénéfice de manière pérenne. Le premier critère, c'est la température de l'eau, la qualité et la quantité d'eau dont on peut disposer, ça ce sont les tout premiers critères. Avoir des températures létales une seule fois dans l'année, un seul jour dans l'année n'est grave, votre poisson ne mourra qu'une fois dans l'année. C'est dommage quand même parce que le lendemain, il ne va pas continuer à grossir. Les températures varient d'après les espèces qu'on va retenir. Important au moment de la décision peut-être cette température va être favorable au bar, au loup et à la daurade, et puis il y a l'espèce qui vient derrière, il faut toujours y penser, qui elle ne sera peut-être pas dans ces mêmes températures, dans cette même fourchette de températures et pourtant on sait qu'elle vient et que si le marché de la première espèce risque de baisser, il faut que ces températures soient aussi des températures où l'on puisse élever l'espèce que l'on sait déjà avoir de bonnes chances venir, et on a de bonnes idées là-dessus, la recherche nous les indique. Le deuxième critère rédhibitoire, c'est la sécurité C'est un critère absolu. Premièrement, il est bien certain que si l'on est dans une région troublée, instable, on va difficilement y investir et on va difficilement y trouver des investisseurs surtout étrangers. On y trouvera plus facilement des locaux qui iront investir ailleurs où c'est sùr, s'ils ont de l'argent et s'ils sont intéressés par l'aquaculture, ça s'est vu. Cela ne s'adresse pas à région particulière du MEDRAP, ça peut également s'adresser à la Corse d'où je viens, où techniquement c'est convenable, il y a des investisseurs intéressés mais qui, de préférance investissent ailleurs. La situation de l'Algérie fait qu'il y a sans doute assez peu d'investissements maintenant, etc. Deuxièment, il y a la concurrence d'espace. Elle est due à un nombre de critères, un nombre de données, premièrement le corporatisme des pêcheurs. Il faut en tenir compte, souvent les pêcheurs pensent qu'on est en train de manger leur pain et font tout pour qu'effectivement on ne puisse pas travailler convenablement dans une région. Il y a le corporatisme des aquaculteurs installés qui parfois ne voient pas d'un bon oeil qu'une autre exploitation vienne s'installer D y a des situations de monopole qui dans certaines régions se sont créees. Ce sont des conditions défavorables. Il y a des écologistes (je mets ce terme entre guillemets), les verts et les verts de gris. Les verts on peut les comprendre et on peut discuter avec eux. Nous avons tout intérêt à préserver l'écologie. Et nous ne survivrons et ne vendrons nos poissons qu'en ayant bien compris que l'écologie est et sera de plus en plus un argument de vente majeur, qu'il faut élever ses poissons dans de bonnes conditions, sans antibiotiques, sans staphilocoques dorés ou platinés, passons aux “verts de gris”. Toujours dans ce chapitre de la concurrence d'espaces, les spéculateurs immobiliers. Il est évident que dans un certain nombre de régions, le tourisme ne va pas voir d'un bon oeil s'installer une aquaculture. Il y a eu un problème à Chypre l'an dernier où on a pu voir que dans pollution qui s'est déclarée dans une baie, la responsabilité de l'établissement Aquacole après des études faites par des universités étrangères était de l'ordre de 0,3% et que 99,7% de la pollution venait de hôtels et de l'agriculture, la solution dès était simple, on a demandé à l'aquaculteur responsable de 0.3% de la pollution de fermer. Heureusement, avec l'aide de la Direction Aquaculture du Minsitète des Pêches et de l'Agriculture, Mme Daphnée Stephanou ici présente, notre amie… a survécu. Dans un prochain exposé demain je dois vous parler de la coopération et des organisations de producteurs, Juste une parenthèse la lettre, que j'ai lait parvenir au Ministère concerné, en tant que représentant des aquaculteurs français, à Chypre, a paraît-il pu y aider, tout comme les articles publiés dans Aquarevue et celui de John Joyce, président de EAS dans Fish Farming. En France, un armateur à pêche performant et dynamique, Adrien, a fait l'effort de croire et d'investir dans l'aquaculture du turbot sur la Côte Atlantique. Il a eu les pires difficultés et les a toujours. A cette occasion le mot “turboterie” très voisin de “porcherie” a été inventé. Il est clair qu'il allait “saloper” non seulement le voisinage mais tout l'océan d'où les poissons disparaîtraient. Un peu de sérieux s'il vous plaît. Sans doute ceci n'est-il basé que sur des considérations sentimentales, irrationnelles mais il faut aussi compter avec l'irrationnel surtout quand l'écologie est devenue un fromage politique. Dès lors les rats sont nombreux. Il y a les vols, Dans certaines régions ils sont importants et l'on s'aperçoit que même sans mortalité, les poissons disparaissent, mais on les retrouve au marché. Prédation de bipèdes. Plus habituelle que celle des oiseaux dont on peut généralement mieux se protéger. La Sardaigne, autrement est une très bonne région, j'y ai moi-même localisé des sites fort intéressants s'il n'y avait eu risque de vol. A 4 au 5 km à l'ouest de Cagliani, le fermier mitoyen d'une terre que je prospectais a eu la surprise de s'être fait volé un ha d'artichauts dans la nuit Toujours dans les critères de sécurité, l'insuffisance grave d'infrastructures générales. Aller s'installer quelque part où il n'ya pas de route convenable pour arriver au site, où l'électricité est absente ou ne fonctionne que de temps à autre avec de nombreuses coupures, ce qui fait que vous aurez de la glace ou vous l'obtiendrez par un générateur plus un ou deux en stand-by, ce ne sont pas de bonnes conditions. Si l'on est informatisé, des sautes de courant de 170 à 240 V comme j'en ai connu le cas, sont autant d'insuffisances d'infrastructures graves qui auront des conséquences sur votre sécurité. Vrai pour le téléphone et le fax.Je citerai également le contenu des mots : Nous voulons produire de la qualité. La qualité est un mot Que veut dire qualité? Une qualité suffisante pour le chef de l'exploitation peut ne pas être la qualité suffisante pour le marché, Il est très difficile dans un pays où pour certains la norme qualitative n'est pas élevée de produire une qualité plus éle véc. Je ne parle pas là seulement de pays sous- développés. Le mot “immédiatement” dans certains pays veut dire “sans délai”, dans d'autres il ne figure pas au dictionnaire. Un poisson est trais, comment est if frais? est bien emballé, est-il vraiment bien emballe? Est-il tué à la glace, à l'électricité, l'a-t-on laissé assez longtemps dans la glace? L'a-t-on rincé avant de l'emballer et ceux qui le manipulent ont-ils les ongles propres ou en deuil? Tout cela n'est pas facile à corriger s'il y a une insuffisance dans l'infrastructure d'éducation. Il y a également l'insuffisance grave dans l'assistance vétérinaire. Il faut pouvoir identifier rapidement une maladie pour pouvoir la traiter et la soigner. Si l'on n'a pas ces facilités toutes proches, on peut toujours importer les spécialistes mais ce n'est pas suffisant car il faut également qu'il ait le support local, si le support local n'existe pas on a des problèmes. Enfin, il y a l'impossibilité ou l'insuffisance d'assurance du cheptel. Dans certains pays, on aura beaucoup de difficultés à assurer le cheptel dans d'autres non. Or, on a vu que par prévention beaucoup plus que des moyens curatifs, on peut arriver à éliminer un nombre considérable de risques. Aujourd'hui, presque tous, j'allais dire 95%, mais ces 5% sont suffisants pour faire disparaître l'entreprise. Par conséquent même dans les sociétés les plus performantes, ce risque-la il faut le couvrir, si l'on n'a pas accès à une assurance convenable, aller s'établir dans un site est extrêmement dangereux Je passe aux critères d'environnement physique. J'ai cité tout à l'heure que tout danger de températures létales doit être exclu. Mais il faut regarder ça sur une période de 20 ou 30 ans. le me souviens qu'en décembre 1984 lorsque je suis rentré “en aquaculture” sur l'lie de Ré, on m'a dit qu'il n'y avait jamais de grands gels et que les températures les plus basses allaient être de l'ordre de 3 ou 4° dans les marais. C'est vrai. Sauf une fois tous les 30 ans ça s'est passé un mois plus tard. Tous les poissons sont morts. Statistiquement, j'étais tranquille pour 30 ans. L'ennui, c'est que l'an d'après on a remis ça le cheptel est mort de nouveau. Statistiquement, j'étais tranquille pour 60 ans. Il faut quand même faire très attention à ces accidents naturels qui statistiquement sont peut importants, mais qui s'ils se produisent deux fois suite peuvent tuer une entreprise. Il y avait donc intérêr à aller s'installer en Corse, ce que j'ai fait. Les températures mensuelles doivent y permettre un bon taux de croissance. Allons un peu plus loin. Dans le Nord de la Méditerranée, il n'y a pratiquement pas de croissance hivernale. Vous avez une croissance au printemps, l'été est magnifique, l'automne est merveilleux, et ensuite, Décembre, janvier, Février, souvent Avril, il n'y a pas de croissance ou pratiquement pas. Par conséquent, vous perdrez 4 è 5 mois. En Méditerranéc du Sud, généralement, il continue à y avoir une croissance l'hiver même si elle n'est pas maximale mais il y a une croissance. Critère dont il faut tenir compte, ça joue dans les prix de revient donc sur la compétitive. Pour les sites en mer, il faut également compter la hauteur des vagues. Bien sûr on peut s'installer avec des vagues de 8 ou 9 mètres, ça ne pose aujourd'hui aucun problème avec des cages Bridgstone ou Dunlop. Elever du loup et de daurade dans des cages de 5000 m3 dans des vagues de 9 mètres, il faut bien calculer combien ça coûte et il faut bien savoir si l'on va pouvoir livrer les clients. On produit du poisson, mais accessoirement, il est bon de le vendre et notamment de le vendre le jour où le client est là. Il semble préférable de s'installer dans des endroits où l'on a accès de manière continue aux poissons. Si l'on devait aller dans des endroits en mer où pendont quelques jours de l'année on n'a pas accès aux poissons parce qu'il y a trop de vagues, pourquoi pas, mais à condition d'être associé à un autre aquaculteur qui par exemple élève en marais ou en bassins et qui peur livrer à votre place. Donc pas rédhibitoire, mais il faut savoir qu'il y a des conséquences lorsqu'on établit un site qui n'est dans un endroit en permanence accessible. Autre critère, la quantité d'eau disponible. L'exemple des lagunes. Beaucoup ont la fâcheuse habitude d'ëtre mobiles au grau. Il y a du sable qui vient le fermer, puis il s'ouvre, puis il se referme et il faut l'entretenir. Donc ce n'est pas parce qu'il y a une grande lagune que tout va bien, il faut aussi savoir comment fonctionne le système d'ouverture et de fermeture de cette lagune et si on peut l'améliorer, la lagune étant l'endroit idéal pour faire de l'aquaculture si on a une bonne communication avec la mer. Si la lagune est fermée ou insuffisamment irriguée les accidents peuvent être mortels pas seulement pour le poisson mais aussi pour l'entreprise. Tout ça rentre dans les coûts. C'est facile d'ouvrir un grou, il est facile de faire des digues, mais cela coùt un certain prix qu'il faut intégrer au prix de revient, l'en ai terminé pour les conditions physiques et je passe au troisième point: la proximité des marchés On est là pour vendre, pas pour produire. Il faut produire pour vendre mais in fine c'est lorsqu'on a l'argent dans la poche, qu'on a terminé son boulot. Pas avant. Donc tout commence et finit par le marché. Si on est loin des marchés electifs, des marchés qu'on choisi, on peut choisir de tout vendre sur l'Italie, mais seuls les esprits un peu fragiles peuvent encore penser ne vendre qu'á l'Itslir. Il y a moyen de vendre ailleurs, il y a moyens de vendre dans son propre pays. A 15 km, à 20 km de chez soi, il y a sans doute des restaurants qu'il suffit d'aller voir, qu'il suffit d'approvisionner à qui il faut peut-être payer une machine qui lui permette de conserver le poisson à 2° ou 4° il faut peut-être payer l'aquarium pour montrer les poissons. Il y a du marketing à faire et c'est l'affaire des producteurs, pas du grossiste, de telle manière à ce que l'on ait un marché électif autre que celui de l'Italie, et peut-être ce marché est-il local et beaucoup plus stable. Là vous allez vraiment pouvoir produire et vendre des produits frais là vous allez pouvoir surveiller votre marché, au niveau même des consommateurs. Cest votre affaire ce n'est pas celle des grossistes. Toute chose que vous ne pouvez pas faire en Italie. Ainsi le choix du marché électif est-il un critère des plus importants pour déterminer le site de production. Si vous êtes installé en Mauritanie pour fournir la Norvège, ce n'est peut-être pas bon. Si vous vous trouvez ici pour fournir l'Espagne, c'est nettement meilleur. Il faut donc tenir compte des coúte d'approche des marchés électifs et contróler l'existence on non d'un marché local. Ce marché local va vous apprendre beaucoup que vous exploiterez ensuite lors de l'attaque d'un marché étranger, c'est un observatoire et une école de première classe. En point quatre, je parlerai de la disponibilité et du coût de la main-d'oeuvre. Vous verrez que je l'ai placé très loin parmi 8 critères de sélection, parce que c'est souvent un attrape nigaud. Nous savons que les grandes fermes optent le plus souvent pour l'automatisation des opérations pour des raisons de prix de revient, mais aussi pour des raisons de gestion et de sécurité. Notre ami anglais nous a montré tout ce qu'on pouvait obtenir par l'informatique des paramètres dont il fallait tenir compte pour mieux tenir sa ferme. Possible que si vous être équipé en informatique, que si vos cages sont équipées pour des contrôles automatiques de l'air, de l'oxygène, de l'ammoniaque éventuellement, de la salinité, etc. Tout ça ce n'est pas du manuel, ce n'est pas pour des manoeuvres à 600 F par mois, vous êtes forcé d'avoir du personnel de qualité qui est capable de faire fonctionner ces systèmes. L'autre option, c'est-à-dire un personnel extrêmement bon marché requiert un encadrement intermédiaire lourd et un management adaptés, mais il faut faire le bilan avant. C'est une chose d vouloir créer de nombreux emplois, c'est une autre de rester compétitif. Or ces emplois ne seront pas permanents si votre société ne reste pas compétitive. Il faut bien le savoir et en peser les conséquences Il y a également la disponibilité de la main-d'oeuvre, la disponibilité de main-d'oeuvre qualifiée, Pas de qualification sans éducation. L'apprentissage à l'école, on peut le faire ici ou là en France, en Italie, en Espagne ou ailleurs mais ensuite il faut avoir assez longuement pratiqué sur le terrain dans un système performant pour être compétent dans son métier tout ne s'apprend pas à l'école. loin de là. La disponibilité d'une main- d'oeuvre qualifiée est un des critères clé. Autres critères et un peu en vrac faute de temps. D'abord, la facilité ou la difficulté de dialogue avec les administrations. Ce n'est pas rien, c'est méme un critère clè, Dans certains pays, on va perdre un perdre un temps considérable surtout si on est étranger à essayer de comprendre les mécanismes de l'administration, les mécanismes de l'administration, les mécanismes de pensée des administrateurs et comme entretemps on ne comprendra pas de quoi l'on parle on risque de se tromper. Il est donc indispensable d'avoir un manager local, un partenaire local qui ne soit pas là simplement pour signer, mais qui véritablement soit un homme d'action á l'intérieur de l'entreprise pour pouvoir dialoguer avec les administrations locale. Il est souhaitable enfin, de démarrer l'exploitation avec une proportion de fonds propres locaux suffisants réellement versés, afin de s'assurer le concours volontariste et non passif de partenaires. Des opérations qui seraient basées sur une participation au capital de partenaires locaux par apport en nature et la nature de l'apport étant, par exemple, la propriété d'une concession sur le domaine public ont peu de chance de succès. Certains pensent qu'avec une concession et de bonnes introductions locales éventuellement en mettant 50000 F, ils démarreront une entreprise de plusieurs millions très profitable, où ils seront majoritaire au capital et plus encore dans la distribution des profits, laissant à d'autres le soin de risquer et de financer, et en espérant de surcroît que cela resteront leurs obligés. En quelque sorte une faveur Dans ces conditions, quelle que soit la qualité du site oubliez-le. Cette liste de critères n'est pas exhaustive. C'est avant tout en ouvrant les yeux, en réfléchissant à chacun des postes du bilan et du compte d'exploitation, en étant passé par l'excercice d'optimisation de plusieurs budgets prévisionnels concernant des sites différents que vous pourrez arriver à un choix aussi judicieux que possible. Des experts évidemment peuvent vous y aider mais il faut se rappeler que les conseilleurs ne sont pas les payeurs, et que le savoir théorique ne remplace pas le savoir faire, Aussi, le meilleur partenaire dans le choix d'un site est-il, sans doute, celui qui, par ailleurs, a déjà prouvé qu'il peut mener une entreprise aquacole à la profitabilité et qui est prêt à investir et à s'investir avec vous sur ce site. Ceci n'exclut pas, bien au contraire, d'avoir recours aux experts des administrations, aux spécialistes des banques et autres établissements scientifiques. Il y a les difficultés d'intégration du pays. Comment s'intégrer, non pas seulement quand on est étranger, mais quand on attaque une branche nouvelle comme l'aquaculture. Il y a la disponibilité et le prix des espaces. Je suis intervenu la semaine dernière en France auprès du Ministre de la Mer pour l'un de nos amis, qui élève des crevettes du côté de Montpellier. Il a 70 ha sur le Domaine public maritime, et l'Etat lui demande soit 5574 F par an de location par ha. Or un terrain mitoyen de 30 ha s'est vendu, il y a 4 ans pour 400.000 F, Ceci veut dire que l'Etat demande un loyer 5 ou 6 fois supérieur à ce qu'il coùterait pour l'acheter. Même sans frais de location la rentabilité d'une exploitation de crevettes en France n'est encore qu'un objectif, pas une réalité. De plus, chacun sait qu'il faut énormément d'espace pour élever des crevettes et qu'enfin cet élevage sur des surfaces suffisantes peut être le complément indispensable d'une exploitation piscicole en bassin et recyclage. Technique particulièrement recommandée pour la conservation sans frais du paysage. Ce qui est un objectif prioritaire des Etats … Comprenne qui peut. Parlons un peu du financement. En je citerai d'abord, Alain Parres, délégué général de l'Union des Armateurs à la Pâche de l'rance, lors du forum organisé à Paris le 26 septembre 1991 par le Crédit Coopératif: " Il est indispensable que conscience soit prise des réalités financières de l'aquaculture où d'importants capitaux sont généralement à risquer, et, parfois, à perdre, L a reconversion du marin-pêcheur dans l'Aquaculture (sauf au niveau d'un salarié de niveau modeste) relève du rêve ou de l'escroquerie intellectuelle. Les disponibilités financières nécessaires - même renforcées par des aides communautaires et nationales justifiées et qui devraient croître ne sont pas à la mesure du dirigeant de PME (“petit” armateur, ou, capitaine ou patron de navire). Les choix de l'Aquaculture et donc son large soutien financier doivent s'inscrire dans le haut de la chaîne alimentaire, là où les espèces ont une forte valeur directe sur le marché ou sont valorisables (…). Les soutiens financiers doivent viser les potentialités, pas les fantasmes…" Aujourd'hui, et sauf de très rares exceptions et alors sans doute seulement pour un temps limité, de petites opérations artisanales ont en effet peu de chance de survie Le profit ne résultera plus d'une forte marge sur de petites quantités, mais d'une petite marge sur de grosses quantités. D'où des moyens financiers très importants. Les aides et les subventions ne sont qu'un de moyens de financement, mais avant tout, c'est à l'entreprise elle-même d'apporter les fonds propres suffisants aux études préalables aux investissements de production et de commercialisation et pour assumer son fonds de roulement. Les subventions doivent être considérées comme des aides complèmentaires pour faciliter un démarrage ou un développement, pour compenser des difficultés particulières, et sont donc parfaitement légitimes. Tout baser sur les subventions, qui d'ailleurs sur un plan plus général comportent des effets pervers non négligeables, serait une grave erreur de gestion Néanmoins, l'accès des subventions, à des prêts bonifiés, à des prêts participatifs entre dans les critères de sélection. Les emprunts. Les établissements financiers peuvent, tant sur les investissements, que sur le fonds de roulement, avancer de l'argent aux entreprises souvent pour ce qui concerne notre activité avec des garanties réduites et même dans certains pays et, dans certains cas, sans garantie. Ce sont des facilités qu'il faut examiner avec soin et comparer d'un endroit à un autre, d'un pays à l'autre, s'il y a des sites autrement comparables. Dans certains pays, les crédits peuvent être très ressérés, peu disponibles, très chers, ce qui sont des conditions peu favorables. COMPARATIVE PRODUCTION COSTS : ANALYSIS, FORECASTING AND MONITORING Dr. James F MUIR, Scotland 1 INTRODUCTION It is necessary in many circumstances to evaluate projects, or parts of them, to determine whether they are cost-effective, and whether changes need to be made to make them acceptable. Cost assessments are commonly used for; - analysis; prior to establishing a project, in considering potential costs and returns; or in e.g. evaluating technical choice, scale, management aims - forecasting, the consequences of particular policy, investment, or management decision; - monitoring; the performance of businesses while they are in operation; defining e.g. pricing policy, considering management decisions; The typical range of costing and assessment measures would include: - Basic assessment of project approaches - Evaluating alternative project approaches - Carrying out ‘cost studies’ of specific components of a given project. - Defining the rate of build-up of the project - Describing ‘cash flow’ characteristics of the project. - Defining the risks - technical and other, and balancing these risks with returns available. - Defining the funds/financing required for the project - Identifying tax liabilities, grants available, subsidies, etc, examining the implications for the project type, scale, etc. - Looking at typical ‘what if’ question - such as defining ‘break-even’ prices, looking at consequence of stock losses, inflation of input resource prices, etc. - Looking at specific additional investment to existing projects. Some of the more commonly used definitions, methods and approaches are described in the following sections. These are generally from the fields of project studies, management accounting and business studies, and concern commercial business based decisions, though related concepts are used in more classical economic analysis. A wide range is available, and their cost, accuracy and usefulness varies equally widely. It is imported to know what is the purpose of any particular costing exercise, and what level of accuracy is required, and what level of risk is involved in imperfect knowledge. We are rarely fortunate enough to be able to describe an exact physical entity or specific management method; in many circumstances, and particularly in project planning, we must deal with broad ideas and characteristics, and must piece together a reasonably good picture of what we expect to be developed, and how it might operate; in other words, we use models and simulations; we estimate the inputs, and the resulting performance of the project. Some fundamental considerations; - Models are only as good as the quality of information used in them; - They are usually base on assumptions; the relative importance of these assumptions needs to be assessed (this is frequently the basis of sensitivity analyses - see later); - The internal structure of models should be effective; they need not replicate real life with complete exactitude, but should behave similarly in terms of inputs, processes and outputs; - More information usually costs more; it is important to establish the balance between the information needed, the risks of inadequate information, and the costs, of perfection; In practice, in many projects, a process is used of broad screening 'back of the envelope calculation in the initial stages; to define projects and commercial activities, moving successively to more careful analysis, finally reaching the stage of fully quoted, detailed description. Much of this work is no based on spreadsheets; computer software such as LOTUS 1–2–3, Supercale 5, Quattro, etc which are particularly useful for a range of financial and economic appraisals. These provide a matrix or tabular layout on which financial data can be entered, manipulated - e.g. by inserting formulae relating one value to others, such as sums of columns of figures, interest rate calculations, automatic discounting and NPV calculation. Once the structure of a particular spreadsheet is set, its formulae defined, etc. the individual values can be changed and the results of the changes automatically and quickly displayed by the system. Thus it is possible in examine quite quickly various project assumptions, changes in interest rate, changes in input costs, sales prices, etc, to consider the alternatives available. 2 Basic methods; capital and operating costs The capital costs describe those cost required for established the system, constructing the project, purchasing the equipment, etc. They may, but bot always, include the initial developers costs, the ‘pre-establishment costs’. The capital costs usually occur during the initial phase of the project, but may be spread over some years. It is important therefore to specify the likely timing of capital costs, as these will in turn define the basic financing requirements. This is clearly an area where the design/cost relationship is very important. These costs generally correspond to fixed physical items and material, and are normally accredited a specific life span. A further definition is that of fixed and variable capital costs. The former include those costs which are incurred regardless of the scale of the project, the latter are those which vary directly with the size of the operation. It is also possible to define semi-variable capital costs, which vary with the project size, but not proportionately. These concepts are useful for defining the potential for economies of scale; the extent to which the cost per capacity (e.g. $000 capital cost per tonne of stock held) decreases as the size of the project increases. Related to this is the marginal capital cost of additional output, defining the efficiency of expanding production. This is affected basically by whether it is necessary to increase capacity by a discrete amount, or whether additional production can be accommodated within existing capacity. As well as the initial cost, some estimate is usually made for the replacement of capital equipment, either; - by defining replacement costs, in which some or all of the capital material is replaced at specified intervals, or; - by using depreciation, the reduction in value of the capital items overtime, usually related either to the project life span or the duration of the particular materials, etc. Where materials are expected to last longer than the defined project life span, a residual value is usually specified, i.e. the net value the materials would be expected to realise if sold off at the end of the project. Depreciation is commonly calculated either as; - an average amount representing the difference between the initial cost and the residual value, divided by the life span of the project or component (the ‘straight-line’ method); - a varying amount, usually a specified percentage of the difference between start of year value and residual value, the start of year value reduces yearly by the depreciation amount (the declining-balance method)- this gives high initial depreciation, generally tailing off; - an amount defined by the prevailing taxation laws; depreciation at a specified percentage of capital investment can often be allowed against income: it is thus often in the interests of the enterprise to maximise the depreciation figure during major profit periods. Operating costs are defined as those relating to the output of product from the project; As well as raw materials, labour, etc. operating costs may also of maintenance, leases, rents, depreciation, interest and other capital charges. A distinction is sometimes made between basic ‘costs of production’ i.e. those directly linked with producing the output, and the additional ‘servicing costs’ or capital and other charges. This concept is linked to some extent with that of fixed, variable and semi-variable operating costs, defined as for capital costs Another related concept is the marginal cost of increased production in specific existing projects; usually a mix of variable and semi-variable costs, useful in defining the potential profitability of additional output, when related to the marginal, or additional income generated. The estimation of basic capital and operating costs, and the identification of their respective fixed, variable, and semi-variable components are useful initial stages in identifying the cost characteristics of a project, and is valuable in defining the fundamental feasibility of the project. However, it is limited in many respects. It shows a single ‘picture’ of the project; the total costs of its construction, or the total costs of a specified component, the operating costs and crude profit levels at a specified level of output (usually the planned larger level). It does not however identify such factors as the rate of build-up of the project, its operating costs and profitability during build-up towards target production, the means by which the project is to be financed, the effects of taxation, etc, all of which may have a significant effect on the actual viability of the project. The difference between such ‘steady-state’ descriptions, and the more accurate assessments such as cash-flow analyses, discounted methods, etc, which do take into account some of the above factors, will be discussed later. 3. Capital cost/scaling models Unless capital and operating costs can be specified directly - e.g. from fixed manufacturers or contractors quotations, from equipment, and supply quotes, published tariffs, rates, etc, it will be necessary to estimate them in some way. In practice it is usually possible to obtain some figures with precision, others as approximations. As discussed earlier, the importance of accuracy in such estimates depends to some extent on stage of project development; while it is always advisable to be as accurate as possible in the circumstances, this is not so important in the initial, cruder, ‘outline’ assessments of project feasibility, but becomes more important once detailed financing, risk assessment, etc. is being carried out. For the purpose of cost assessment, cost models - means of estimating cost projects or equipment, based on characteristics such as size, type, specification, etc, are a useful tool, and may be used in a range of applications. Cost models can be very simple - a knowledge of the cost of a similar type of project elsewhere, for example - or may be quite sophisticated - e.g. certain engineering cost models withe several cost indices. The more the precise the cost required, the more detailed will have to be the specification - in the initial stages, general or outline cost approaches are most effective, and are usually adequate to identify the most critical areas, and the most effective means of developing a project. There are basically two categories of cost model: Project cost models - which cover whole projects, or significant parts of projects - e.g. a hatchery, a pump-station, a raft of cages. These are useful for outline costs, but as actual specifications tend to vary from site to site, they may be less accurate. Component cost models- Which relate to specific components-e.g. aerators, pumps, tanks, pipes, etc. These are usually more precise, but of course have to be added together to provide estimates for a complete project. In both cases, the concept is similar the cost of the proposed project or component is related to that of an existing project or component, using factors covering size, specification or quality, date/inflation rate, and other relevant points. To be able to use and develop cost models (if none are readily available) The following basic information should be collected: - the actual cost of existing projects or equipment (specify currency and whether inclusive of delivery, taxes, etc) at the time of purchase or construction; - the time of purpose of construction; - quality information, such as specification; size, type, materials, etc. - importance of sub-components, e.g. what percentage cost is attributable to specific items or operations, e.g. installation, connecting to power supplies, spare parts for 1 year, etc. - special factors, such as difficulty of construction, special requirements, availability of discounts, subsidies etc. The cost models can then be developed from the primary data sheet, using the following methods; - bring cost together on common basis, normally converted to the currency of the present project, and adjusted using appropriate inflation and other indexes to current prices; - use size as the primary criterion; Try to estimate the fundamental relationship between cost and size, using e.g. log-log paper, curve-fitting techniques, etc; - the basic relationship is usually of the nature:

where C and P are respectively the costs and size of units 1 and 2, and n is a scale factor, normally less than 1. - an alternative and usually more precise format is:

where C and P are cost and size, a and b are constants, and n is a scale factor, normally less than 1. This can also be derived from various graphical techniques; also - check whether specifications or quality have a definable effect on the cost relationship, and incorporate this if possible into specific factors such as the a and b constants of the above formula. - check also whether sub-components can be identified, and costs estimated as approximate percentage of total cost. In practice, it may be difficult to use cost models in aquaculture with great accuracy, because of the great variability from project to project, and from one component's specifications to another. As sites are different, and as a ‘learning curve’ effect may occur (i.e. new projects may be better designed and more efficient than older ones), past cost records and cost models based on them may be useful only for preliminary estimates. However, there are some cost models which are reasonably standardised within the plant engineering and construction sector, covering items such as pumps, compressors, buildings, offices, cold stores. 4 Simple cost assessments The primary way in which projects or subprojects can be assessed is to be use the various static or ‘steady-state’ analysis, based on a ‘single picture’ description of the project, usually once it has reached its intended target. These methods would include (see earlier section): - capital and operating costs, as described earlier, and their analysis to define, e.g. the items contributing greater or lesser amounts to these; basic definitions of project build-up; i.e. when it is expected to reach target production. This factor is particularly important for aquaculture projects because of their relatively long start-up phase; techniques have to be established, stock has to grow, methods have to refined, etc; this will define approximately the point at which the expected project performance will be achieved, and the period over which the main investment inputs are required. - sensitivity analysis’ to define the effects on capital or operating cost, or profit, of changes in the main input capital or operating cost components; - analysis of fixed and variable costs to define the probable economies of scale; definition of basic ‘break-even’ sales price at specified production levels to define the project's longer-term strength, and profitability for example in more competitive future markets; profit and loss accounts; formal presentations - depending one the particular accounting methods preferred - of the project's overall investment requirement, and its profitability both before and after capital charges; - simple rate of return (SRR); normally defined as (before or after tax profit)/(total capital cost); this is related to e.g. current interest rates, company guidelines for investment, etc; the higher the risk considered for the project, the higher this value is normally required to be. For aquaculture projects an SRR of 25–50% may often be required; payback period (PB); the inverse of the above, i.e. (total capital cost)/(profit), gives an indication of how long taken before the investment is paid back out of the project's profits; again a higher risk project would be expected to perform better, i.e. pay back more quickly. An aquaculture project may be required to pay back within four or five years. Note that in practical terms, this time must be added to the estimated ‘start-up’ times. This concept can also be useful if it felt that uncertainties-market, technical, political factors, etc may lie ahead, and that project must ‘clear itself’ before this time; 5 Production planning and time-based models The most fundamental principle underlying most of the approaches used is that of the ‘time value’ of money, related in turn to interest rates; i.e. $1000 now is worth approx $1100 in one years time at 10% interest; an income amount of $1000 one year from now is at 10 % interest, equivalent to about $910 at present; an investment amount of $10,000 two years from now is equivalent to a payment of about $8,300 at present, at the same rate of interest. In this way, the year by year income from a particular project or part-project can be evaluated against the specific costs of setting it up at a specified time. One of the primary requirements here is to define the expected patterns of cost return over a specified period - usually either a specified project life span or a predefined period related to investment criteria, lease conditions and/or taxation rules. This will include components of: - capital build-up as the project is developed, expanded, modified, etc; - the performance of the stock; related to stock availability, inputs required, growth rate, mortalities, harvest and marketing conditions, etc; this can be defined using time-based ‘production plans;’ - investment characteristics; e.g. equity and debt conditions, interest rates, repayment terms. It is commonly the case that projects are evaluated in at least two stages, typically; - on the basis of comparing simple costs and simple returns; free of considerations such as tax, investment structure, depreciation scheduling; this offers the basic, though crude view of whether the project is fundamentally viable, whether it is better than alternatives; etc; - on the basis of full description of the financing proposed, the expected tax schedule, the mechanisms and timing of financing, and possible returns (e.g. to minimise exposure to taxation, etc, maximise returns to specific components of the financing) Time related assessments are far more sensitive in defining the actual characteristics of a particular project, as these identify the actual point where expenditure is made and income earned, and incorporate the ‘time value of money’ concept to assess their relative importance to the project. The fundamental tool in this approach is the basic cash-flow analysis in which the main categories of capital and operating expenditure, and of revenue earned, are laid out on appropriate time-interval chart or table, which serves to identify the main movements of funds through the project. The technique can be applied to complete projects, to parts of projects (e.g. a hatchery unit, a processing unit), or to additions to existing projects (e.g. new equipment being installed, resulting in improved production, reduced operating costs, etc). Time intervals of 3,6 or 12 months are common for aquaculture projects, through in some cases e.g. hatcheries with rapid start-up and short production periods, 2 or 4 weeks intervals might be used. The expenditures and revenues are totalled for each time interval, and the positive or negative balance entered at the bottom of the table. These can be carried forward to the subsequent time intervals for the cumulative cash flow. The table will normally extend for the defined project lifetime, or in some cases simply over the critical period in which investment is being made and must be recovered. The general pattern is that of a deficit ‘negative cash flow’ period in the early stages of the project, followed by increased earning as the project comes into production, which starts to offset the initial deficit, to create a ‘positive cash flow’; Assumptions about the phasing of capital development, the build-up of production and sales changes in the need and costs for staff, vehicles equipment etc as production increases can all be incorporated in the presentation Replacement of capital items can either be handled by defining the actual replacement time and allocating suitable capital expenditure, or by allowing an appropriate annual depreciation figure. In its simplest form, the cashflow depiction is extremely useful in presenting the actual movement of the project, and in allowing the implications of various development choices to be examined. By plotting thee net balance at cash time interval the characteristics of the project can be clearly displayed. In many cases, the cost of capital - e.g. interest charges, etc, are not included in the initial presentation, as the method can be used to identify the need and timing for ‘working capital’ and general project borrowing requirements. These can then be specified and their characteristics built in to a subsequent ‘run’ of the analysis. The method is however at its most useful if the discounted cash flow is assessed. In this approach, the net balances at each time interval are brought to a common time basis by incorporating an interest or discount rate balance. The basic relationship is defined by: n Ct = Co* (1+r /100) , where;

Ct = Value of sum at time t, e.g. years, monthly

Co = Value of the sum at present r = interest rate on corresponding time interval, e.g. annual, months n = number of time intervals from o to t These calculations can be done directly, or discount table can be used which provides the discount factors the amount the initial sums should be multiplied by - for particular interest rates and time intervals. There are two basic and related methods for handling or presenting these analyses. These are: the Internal Rate of Return (IRR), which is defined as the discount rate at which the sum of the discounted balances over the cashflow period equal zero, i.e. that the expenditure exactly balances the revenue. In the case, a project can be considered interesting if the IRR is greater than the current commercial interest rate. The higher the project risk, the greater the IRR would need to exceed the interest rate. This concept is similar to that of the simple rate of return, SRR, but is much more accurate. - the Net Present Value (NPV), which is defined as the net value of the expenditures and revenues when discounted by a specified interest rate, usually either the current or expected commercial rate, or the rate required for the project to be accepted. In this case the NPV should be positive at the tested rate; the more strongly so, the better the project. 6 GAMEPLAN; a ‘rapid evaluation’ spreadsheet system; A range of spreadsheet descriptions of aquaculture projects has been developed for different purposes, though these are usually tailor-made for specific projects in particular locations. As such, they are useful and explicit in their own particular field, but cannot be useful used outside of these. For a wider and simpler process, for rapid screening, a simpler system can be very useful. GAMEPLAN - Generalised Aquaculture Modeling and Evaluation Plan was developed to meet these objectives, and uses simple generalised criteria such as market price, growth rate, feed cost and conversion, and stocking density, together with localised cost data, to provide relatively rapid feasibility assessments in a range of conditions. The basic models provided typical and operating cost definitions and simple IRR/NPV data. This was later developed to include assumptions made about build-up time, both in terms of capital build-up and expected lead time to maximum output, and also considered aspects such as finance structure, availability of subvention, etc. Typical input and output worksheets are shown. Systems such as GAMEPLAN can be used for; - rapid comparison of different systems, different species - assessing implications of factors such as intensity of production, life span of key components - reviewing the effects of other aspects such as build-up time, investment support While they are very valuable in determining approximate characteristics, enable basic choices to be made, and illustrate very rapidly the implications of differing choices, they are not a full substitute for detailed models at the final business planning stage. 7 Business decisions While the methods just described provide the basic elements of evaluating and comparing projects, several other techniques or approaches may also be considered: - estimation of capital requirement and possible funding methods; may be one of the most crucial aspects once the project's basic needs have been defined, depending on the company or agency involved; the terms - cost of capital its availability, collateral required, equity and loan ratios, repayment needs, etc, will have a significant effect on the attractiveness of the project; - estimation of ‘working capital’; the funds required to carry the costs of production before the main sales are made, frequently sought from commercial capital at current market rates - e.g. bank loans, etc,. Some formulae are used for manufacturing processes, but their applicability for aquaculture is questionable - equity and loan ratios; define the proportion of the project's financing to be covered by share (owners) capital - the equity, and the amount required from commercial and other loans. Depending on the local conditions and project risks, etc acceptable ratios, or ‘gearing’ are often defined. In present (1992) conditions, if the ratio of loan to equity exceeds 1 or 2, commercial loans may be difficult to obtain. - rate of return and payback on equity calculated as SRR and PB, but based only on the equity component of the funding; i.e. the shareholders capital; on the assumption that the remainder of the capital is raised on the normal markets, with definable interest rates and repayment terms, these figures represent the potential returns to the principal investors, the developers of the project. - rates of return on operating costs; can usefully indicate the overall profitability of the current financial inputs to the project, and the possible marginal revenue from increased production; - rates of return on specified assets; can be important for evaluating alternative uses of particular assets, (e.g. land, water, feed, labour, management, etc) if these are limited; - productivity of individual components; can be used for comparative efficiency assessments, e.g. tonnes production per person employed, annual output per unit holding volume, fry output per spawner, production per tonne of food, etc. - utilisation efficiency; similar to the above, can be used to define the percentage of actual or theoretical capacity the plant or other resource is used in the course of production. - combined utilisation; it may be useful to consider the project in relation to a company's other activities, and assess whether existing assets can be more effectively used. - cost-benefit analysis; may be used where project returns are not explicitly defined as income; there are many techniques; normally some value is assigned to specific benefits of the project-e.g. employment opportunities, income stability, provision of education, etc, and related to the cost of providing these. - foreign exchange assessments; certain projects may be particularly preferred because of their potential for foreign exchange earnings. Here it is common to separate local from foreign currency indicators; return of foreign currency on local assets, while minimising input of imported resources, becomes an important criterion. Where exchange rates are controlled, projects may become particularly sensitive to political factors. - supply security assessments; these apply both within the project, i.e. assessing the security of supply of essential inputs, the results (under- capacity poor efficiency, etc) of supply shortage, the possible need to improve security, and outside the projects, in the sense that the project may be important in securing supplies of its product in the country or region concerned. - multi-stage operations; e.g. in ‘vertically integrated’ projects, in which several different production stages are linked together, such as hatchery, fingerling production, ongrowing, processing, distribution and sales, feed production, etc. Here each sub-project can be analysed separately, particularly if their products can be supplied on the open market Alternatively, the whole project can be assessed as a single unity. An important point is that of transfer prices, the prices, the prices set for the product as it passes from one sub- projects to another, if set too low the profitability of the first sub-project will reduce, while subsequent projects will increase, and vice-versa. This can be problematic if there is no equivalent open market price. - assessing effects of inflation; in many cases, it is convenient to set inflation at zero over the lifetime of the project, on the assumption that input rises will be equally offset by sales price rises. Where this is thought to be improbable (e.g. due to supply/demand changes - see next), or because certain price trends can be defined, it may be necessary to adjust cashflow, etc accordingly. - supply/demand assessments; for smaller projects he assumption is usually made that project output is unlikely to affect total supply, and that prices will thus not be affected. A basic test is the expected market share of he project's output; if less than 5% direct effect on price is unlikely. For greater market shares, where e.g. other producers will be changing total supply, or where income or demographic changes, etc may be expected to affect demand, it may however be necessary to assess more clearly the relationship between supply and demand. Thus the various elasticity (e.g. % change in price per % change in supply) can be estimated, or with e.g. time-series analysis, various trends and econometric relationships can be assessed (e.g. regression analyses of price vs supply, average income, price of alternatives, etc) 8 Risk analysis Risk identification; is usually an important process for any project evaluation. Risks are sometimes classified as, e.g.; - technical risks, including risks of project performance, stock performance, equipment failure, environmental problems; - economic risks, including changes in interest rates, markets, price and consumption trends, etc; - political risks, including legislative changes, problems of supply or markets due to political reasons, security of assets and staff, etc; All of these risks should be examined, and where possible classified according to likelihood, possible consequences in the project, and possible means of limiting negative effect. Following from the above, is useful for attempting to quantify some of these risks. The simplest approach is that of sensitivity analysis (see earlier) in which the consequences of varying performance to project profitability or other indicators, are defined, e.g. as percentage profit change per percentage change of specific input factors. A more complete approach is to use methods based on probability, by assigning specific probability values for particular conditions, to obtain a ‘mean’ sensitivity. Rectangular concrete block-walled tank costs

Fully raised earth pond costs

Cost of butyl rubber, double-tube collared cages

AQUACULTURE INSURANCE AND RISK MANAGEMENT C.M. KENNEDY Scotland 1 - INTRODUCTION Often it is not until a loss situation arises that the true worth of insurance can be appreciated. If attention has been given to identifying a projects needs for insurance, if a suitable policy has been negotiated and the attached terms and conditions adhered to, the value of insurance in a catastrophic situation can mean the difference between the condition, or the termination of a project. The role of insurance is that vital. Marine Insurance has long been recognised as a high risk area. Aquaculture by its very nature combines the worst elements of marine insurance (the unpredictability and savageness of the elements), and more. Losses are frequent, often costly and sometimes catastrophic. To further complicate things, the aquaculture industry is one of rapid change. Technology is constantly changing, new experiment is continually appearing (some good some bad), cage designs come go, research leads to unfamiliar species being farmed, sites vary, environmental conditions change, people more than any one thing vary in experience and ability. The risks are a moving target and by necessity, Insurers in this market have had to actively involve Risk Management in order to continuously identify, assess and quantity the changing risks. Without such an approach, the viability of aquaculture insurance would be questionable and its availability to people such as yourselves involved in project development, limited. By taking the initiative and employing full time risk management consultants, companies such as Sunderland marine mutual insurance Company Ltd., can confidently investigate wide ranging types of aquaculture and species the world over, to assess and establish realistic, economically viable terms of cover. Table I. illustrates the range of species presently insured with Sunderland Marine, Table 2 the types of installations covered.

Table 1 Species Insured with Sunderland Marine September 199 Salmon Lobsters Trout Oysters Halibut Mussels Turbot Scallop Coarse Fish Abalone Bass and Bream At least two of the above species could be termed experimental culture projects. Halibut in particular are retained in various installations around Scotland for research purposes, from which it is hoped commercial industry will develop. The Abalone, insured in Ireland, is part of a pilot scheme also with many unknowns. Insurers may choose to become involved in such projects, where the risks appear reasonable, on the assumption that they will learn from the involvement acquiring valuable experience for potential application to the insurance of what eventually may be important commercial markets. Table 2 : Types of Installations Insured with Sunderland Marine, September 1992 Marine Farms : Inshore and offshore with cage units ranging in size from 700 to 30,000 cubic metres. Made of wood, plastic, steel and rubber. Pump Ashore : Tanks and raceways. Marine Installations Freshwater : Tanks, raceways, floating cages (in lakes) and ponds. Intensive Farms production mostly. Longlines, : Cultivation of shellfish. Rafts and Trestles Coarse : Extensive, managed fisheries throughout England utilised by leisure Fisheries interests. Recirculating : Freshwater generally. Systems Transports : Live fish movements in well boats, by helicopter and by road. In this session today I intend the term Aquaculture insurance to fresh to the insurance of fish stock and equipment used for the farming of that stock, (holding units and ancillary items such as boats, rafts, grading machines etc.), and will restrict most of my discussion to this particular area. Rather than point to any one Insurer or type of policy and say “this is the best”, I intend more to discuss the type of options available, terms and conditions that might be encountered and that should be understood before an insurance contract is agreed on, and hopefully assist the understanding of this sometimes costly input to project operations. I have titled the sessions Aquaculture Insurance and Risk Management, because to talk about one without the other, would be to deal with only half the subject. Avoiding and where possible minimising losses is not only vital to the overall success of a project, but will in the long-term reduce the cost of insurance and maximise its return on the unpredictable and uncontrollable situations, that can inevitably arise in this business. 2- THE ROLE OF INSURANCE Aquaculture projects vary considerably in design and purpose as do their respective insurance needs. Whilst a shellfish operation involved in processing and marketing might require product liabilities cover, an operation producing juvenile bream or bass for sale to ongrowers, is unlikely to find this necessary. Before approaching an Insurance Agent, a Broker or an Underwriter directly, it is an important exercise to identify possible areas in which Insurance will be required and to ascertain the extent to which cover might be deemed necessary. Insurance is an investment against the risk of loss and must be made in conjunction with other such investments. I must be made in conjunction with other such investments. I met one manager in Portugal who firmly believed the $30,000 annual premium being asked against stock loss, would be better spent on improving his backup and security systems; and in that farms particular case it possible he was right. In five years they had experienced no significant losses. Stock insurance is undoubtedly the most expensive and the most difficult requirement to assess and as I have said the area which I will deal mostly with in this session. First however, it may be useful to run briefly through the various other types of cover relevant to aquaculture business. (Table 3) Table 3 : General Insurance 1- Fire and Special Perils Insurance - Applicable to land based assets including buildings and associated equipment and stock therein. 2- Loss of profits Insurance - Applicable to loss of gross profit arising from loss of or damage to any land based physical asset covered by specified insured perils. Not applicable to loss of profit arising from stock mortality. 3- Employers Liability - Land and water operations. Cover provided for legal liability to Employees arising out of an accident arising in connecting with the business. Normally unlimited in amount of indemnity. May exclude diving and is usually subject in correct observation of certain safety precautions. 4- Public/Products Liability - Land water operations. Public liability covers liability to third parties other than employees in respect of properly owned or used. Products liability covers the liability to customers in respect of damage or injury caused as a result of the use of the products manufactured or sold, (e.g. . food poisoning). 5- Marine Insurance Transit Cover - Covers the movement of live stock by road, sea or air. 6- Export Credit Insurance 7- Vehicle Insurance 8- Engineering Cover - Generally for the repair of essential production or processing equipment. 9- Boat Insurance - Usually on an all risks basis including additional equipment such as outboard motors, radios, etc., and may also include third party liability. Certain conditions regarding safety equipment, boat conditions etc., may be applied. 10- Personnel Non-Negligence Insurance - Personnel cover especially for accidents that occur where the company may not be held liable, (driving a company vehicle or diving in cages for example)-

In some countries many of the insurance as described in Table 3, are a compulsory requirement and require little decision making. Fire, (Building and contents) Insurance, Employees Liability, Vehicle Insurance etc., are mostly standard and can be arranged through an agent who may deal with one or more general insurance companies. Stock and marine equipment Insurance has traditionally been a more specialist area, an area in which Sunderland Marine Mutual Insurance, have been active for more than 100 years. As underwriters they deal with boats, fish farming equipment and fish stock only and as I have suggested already, of these fish stock Insurance is likely to be the most expensive. It is also likely to be the most frequently used and the most important cover purchased. In this respect there are a range of choices including, (Table 4). Table 4 : Stock Insurance Options 1- Full Cover-Including consequential loss so that in the event of a serious loss of stock or plant the financial position of a farm would be unchanged. Expensive if available, to my knowledge most UK Insurers will not offer consequential loss on stock. 2- Reasonable Cover at Reasonable Values - The receipt of claim for a loss would allow the business to continue with minimal interruption. Profit might be lost but production targets may be kept intact. Especially where “stock replacement” can be achieved. Usually an “All Risks” policy. 3- Minimal Cover at Low Values - “Disaster Cover”. A large percentage of the loss is carried by the operator (as much as 50%). Some perils (disease for example), may be excluded. 4- No Cover or Self-Insured - Insurance is after all only one of many investments that can be made against risk. Operations free of investment liabilities and low in risk, operations involving multiple sites when the loss of one unit would not be a serious blow to the finances of a whole business, may opt for self insurance. Adapted from Marsham “Are You Sure You're Covered” Fish Farmer January/February 1990.

Most aquaculture operations will tend to insure along the lines of option 2. Low risk operations (generally extensive) and operations where stock value is low, tend to options 3 and 4. The choice of “what” and “how much” stock insurance is a management decision and will depend on other factors, some already mentioned, pertaining to specific projects. In practical terms investing £30,000 for example in a second water source and improved backup systems could be of greater long term value than an “all risks stocks mortality policy”. Like everything priorities have to be assigned and decisions made accordingly. If the decision is to assign a major role to stock insurance then an understanding of policies; the various terms, conditions and the options available, could be helpful. 3. SELECTING THE RIGHT INSURANCE PACKAGE 3.1 Terms and Definitions Words such as “Premium”, “Deductible” and “Indemnity Value” may be familiar to many of you, although the interpretation of such terms can vary and give rise to misunderstandings so it might be useful if we were to run quickly through some of these. Certainly between policies the definitions of words such as “Disease”, “Site”, “Loss” etc., can vary and it is important to establish exactly what definitions apply to a particular policy. Definitions should be listed in the policy schedule. (A worked example illustrating the calculation of premiums and application of deductibles is attached to the end of this paper). Table 5 : Policy Terms Premium - The cost of a policy. Gross premium is calculated against the “maximum” sum to be insured during the policy term. Net premium is the discounted rate, intended to reflect the “average” stock value over the policy term, (usually 65 to 70% of he gross premium), and is the sum paid to the Insurers. Excess (Deductible) - The proportion of value at risk that must be exceeded before a claim arises (generally between 10 an 30%). The claim will be settled for the value at risk above the deductible. Franchise - Similar to a deductible. A franchise must be exceeded before a claim arises, there after the deductible is used in the calculation of the claim settlement. Indemnity Value - The value of the Insured stock. Usually a scale of indemnities representing value at different stages of production, is attached to the policy. Disease Limitation Period - With disease Insurers liability is limited to a defined period of time (up to about 60 days). Variations on this exist, some better than others (see discussion). Monthly Stock Declaration - Declarations required to be made on a monthly basis, as to the value of stock. Normal Trade Mortality - Average mortality rate for the stock as specified in the schedule. Stock Replacement Clause - Some Insurers include the option of replacing stock (with the agreement of the Insured) rather than settling at indemnity. Exclusions - List of what a policy does not cover (such as inexplicable disappearance, trade mortalities, loss due to war, invasion, riot, etc). Warranties and Conditions - List of warranties and conditions that must be met for a policy to remain valid (such as not exceeding specified stocking densities, notifying Insurers of material changes, fitting and maintaining approved alarm systems etc.)

3–2 Variations in Policies Policies offer varying extents of cover depending on: 1. If they are “All Risks” or “Named Perils” 2. How deductibles are applied. 3. How disease limitations are applied. 4. What warranties and exclusions are listed. Selecting the right package will depend largely on achieving the best combination of the above. In addition its well worth considering the claims settlement reputation of a company. Sometimes the way in which a policy is constructed can benefit this a aspect, in particular where indemnity scales are used. 3–3 All Risks or Named Perils For full cover an “All Risks” policy is preferable. As its title suggests, a “Named Perils” policy offers cover limited to perils listed in the schedule only. The more risks covered, the more expensive the policy. Occasions can arise where such a policy can be a bad choice. For example last year we were involved in a 2 million pound loss off the Island of Skye, in Scotland. Despite extensive water sampling during and after the loss, nothing was found to which the loss could be attributable. Laboratory analysis eventually isolated a toxin (that couldn't be identified), from gill and kidney tissue. Although we concluded the loss to be plankton, and settled accordingly (it was an “All Risk” policy), under a “Named Risks” policy the claim could have been thrown out because the cause of loss was never unequivocally identified. It might have been a pollution incident. From time to time new problems arise, unpredictably so where a cause has yet to be identified. Because Insurance is principally aimed at the unpredictable, “Named Peril” policies can be extremely limiting. It is also important to realise that aquaculture stock insurance policies (“All Risks” or “Named Perils”), will tend only to cover against mortality or explainable loss, (Theft or predation for example). Loss of stock condition, loss of profit or consequential loss, are almost never and option. Consequential loss was discussed earlier this year at a meeting of Insurers, which concluded:- “Neither the Fish Farming nor insurance industries are ready to take aboard consequential loss insurance in its pure form. At current market prices Insured 's can not afford it, on the industries profit records and claims experience to date, insurers are not ready to offer it. Furthermore the inclusion of this form of insurance can only add to the complication of an already complex class of business.” Extensions to include “Loss of Sale”, generally for juvenile production units or for broodstock units, which become infected with a notifiable disease and are forced to destroy stock, are sometimes available. This cover is generally expensive and applies only to diseases specified in the schedule (e.g. Furunculosis, IPN .,BKD, etc). 3–4 Application of Deductibles Deductibles provide Insurance Companies with essential protection against small losses that are common enough in aquaculture. With different application they are also used to protect against predictable losses, which an Issuance Company will not wish to cover. For the fish farmer deductibles represent the proportion of risk they must be prepared to take. Their inclusion in policies has been found necessary to ensure affordable insurance can be offered Variations in the ways in which deductibles can be applied include:- 1. Split deductibles. High against higher risk perils (for example 20% against a named disease), and low against other risks (such as 10–15% for all other risks). 2. A deductible can be applied to varying portions of risk including : a) Each generation or year class. b) Each site (or group of cages). c) Each cage. Unless a cage is extremely large, but even then only in rare cases, 2(c) above will almost never be an option acceptable to an Insurer. Deductibles will be tended by Insurer with his quotes and will depend on a claims history of a site where it exists, and a Risk Surveyors report. The preferable option here is to ensure that a deductible applies separately to each generation at each site. Grower stock is more valuable than juvenile stock, which can preclude a claim on the latter if the total value of the juvenile stock is less than the site deductible. 3.5 Disease Limitation Periods When is a disease, when does it start and when does it finish? Simple questions with a range of answers. Generally Insurers will accept the report of a Veterinarian or a recognised diagnostic laboratory, as prove of disease being responsible for a loss. The question of “start” and “finish” is relevant where disease limitation periods are included in a policy. Various “start” points have been suggested but generally Insurers seem to agree that a useful start point is from when mortalities exceed trade mortalities (and for which reason the latter should be established and listed in the policy schedule when contracted). Obviously its never so clear cut but in our experience this very rarely causes much argument or conflict and common-sense usually prevails when establishing starting points. Regarding disease limitation periods, some are better than others, offering more value. Points to note include:- 1. The length of the limitation period, (usually 30 to 60 days). The longer the better. 2. It there one or more specific periods. With one period it can either be from the starting point or floating. The latter is established after the loss and can be set to cover the worst mortalities. 3. With more than one period, subsequent periods will be dealt with as an entirely separate claim, subject to a separate deductible and based on the value at risk at the beginning of each period. This is the most common arrangement we deal with. 4. RISK MANAGEMENT Throughout this session I have stressed the need to match Insurance requirements to risk, to make certain a project will still remain viable should unforeseen problems arise which lead to major stock or equipment losses. Insurance is essentially for unpredictable and uncontrollable situations. When problems being to repeat themselves regularly, where losses occur for which economic solutions exist, there is a need to revise methods, technology and management. Insurance isn't and will never be a prop for poor aquaculture practices. On one hand Insurance companies practice. Risk Management to gather relevant information that is necessary to allow them to provide economically viable, well balanced cover. They also, through people like myself and other specialists, actively encourage a Risk Management approach at all levels, intended to minimise loss and maximise profits. Profits for the fish farmer as well as the Insurer. Insurers will rarely ever profit from unprofitable business. 4.1 The Risk Survey Risk Management can be defined as: 1. The identification of risk. 2. The measurement of risk. 3. The control of risk. Risk Managers (or Surveyors) like myself, are employed to advise Insurance companies of (1) and (2), and where possible to contribute to (3), the control of risk. In assessing risk, some of the things we take into account include (Table 6).

Table 6 : Risk Assessment 1- General Aspects a) Environmental Conditions : Features of water quality in the area, natural parameters and fluctuations. History of plankton problems. b) General Health Situation : Problems specific to the species being farmed, problems common to that area. c) Human Activities : Physical (urbanisation, industry and pollution risks) and Social (objection to fish farming, vandalism, etc). d) Species Suitability : To what extent has the farming technology developed if at all. Is there a history of farming in the area. e) Support Services Available : Veterinary, Government etc. General infrastructure features that help make specific units a success.

2. Specific Site Aspects a) Backup Systems b) Design of the unit : equipment specifications, maintenance requirements, suitability. c) Financial Status and Viability : a well financed operations is usually a better risk than a company with financial problems. d) Health Status and stock condition e) management and Staff, Experience and Qualifications f) Monitoring and Security Arrangements g) Records and Site History, Where It Exists h) Site Accessibility in an Emergency i) Suitability of the Specific Site for the Species j) Water Quality Controls : monitoring and ability to control quality - temperature, pH, filtration, etc.

The job of a Risk Surveyor is a very active role requiring a considerable number of site visits each year. While some information about operations looking to obtain insurance cover is acquired by the use of questionnaires and proposal forms, we also rely on an actual site visit to obtain a first hand impression, the subjective assessment. This is the opinion we form when attending a site, examine equipment, inspect stock and observe staff at work. We rely very much on our personal experience in aquaculture and as time goes by, our ever increasing experience in dealing with a wide range of loss causing situations. With a site survey, time restraints will only allow a cursory inspection in the first instance and will usually consist of meeting the site manager, “walking through” the system, looking at stock and equipment, inspecting records, backup facilities and where appropriate, alarm systems. A visit will take from one hour to two or three hours depending on the size of the facility, its complexity and accessibility. Often we follow up a visit with a discussion and a written request for further information if we wish to query some aspect. An aquaculture operation can Involve a wide range of technology, requiring a diversity of skill that no single Risk Surveyor can possibly have. At time therefore we may also employ a specialist to follow up on an aspect that concerns us. Often in this respect we make use of Marine Surveyors and Engineers, contracting their services to assess the viability of certain equipment in use at the site in question. In the past we have had wave model studies, cage analysis, water analysis and food analysis carried out. A site survey and risk assessment report provides us and the Insurers with a point of reference from which to develop an ongoing relationship. Visits subsequent to an initial survey help develop the impression of how the risk on a site is changing. Where changes for the worse become evident, discussion with the insured may improve the situation before a loss and a claim occurs. It is not always possible to rely on a site visit to assist in the risk assessment process. This is particularly the case with new and developing operations in which change can be so rapid as to make in the beginning, meaningful risk control visits impractical. What we are finding however is that loss follows a pattern for most of the time and that once we understand a project or operation, we can predict in which areas problems might arise. Whilst a site visit is essential to obtain perspective on a project, and to assess management and staff in practice, there is a great deal that can also be contributed in the planning stage to minimise potential problems and reduce areas of risk, before they arise. 4.2 Claims Data - Identifying Risk Claims history information can provide a useful indication of the scale of problems and associated, probable scale of risk attached to specific perils. It may be useful at this point to look briefly at the claims data for 1988 – 1991, that constitutes the main period of Sunderland Marine's involvement in aquaculture insurance. Data presented here must be qualified for the following reasons :- 1. This represents the claims experience of one Insurance company only (Sunderland Marine), mostly with Salmonid production in the UK and Ireland, although is based on more than 300 claims over four years, from some 400 or more aquaculture policies. 2. The data is claims data (and doesn't include losses that fall short of claims). This also creates problems for critical analysis of losses between years - deductibles for example have increased on average by 50% between 1988 and 1991. A 15% loss due to furunculosis in 1988 might have constituted a claim equal to 5% of he stock value against a 10% deductible. In 1991 it is unlikely to have resulted in a claim at all as most deductibles against furunculosis now exceed 15%). 3. The 1991 data (included) is provisional.

Figure 1 Claims in the UK and Ireland 88–91 Figure 1 illustrates the general pattern for the years 1988 to 1991 (“year” refers to policy year). The term “others” refers to losses from situations that include:- predation, transit, pollution, water quality, vandalism, flooding, etc. Clearly disease, equipment problems and plankton are the major areas of risk within the UK and Ireland, and I intend shortly to discuss these in more detail. I have only limited information on losses in the Mediterranean, but from the information available the problems in this region also look likely to fit into the same categories. (Figure 2).

Figure 2 Claims in the Mediterranean and Black Sea 4.3 Disease Losses and Control At present in the Mediterranean, disease doesn't appear to be a major contributor to loss. When salmon farming in the UK began some fifteen years ago the situation was similar. As aquaculture develops in this region however, disease will undoubtedly become a more significant peril. In respect of this there are lessons that could be learnt from the salmon farming industry. In Table 6 I referred to the “general health situation of an area”. It is our experience that disease problems between areas will differ and that area problems will inevitably have a bearing on individual risks within that area. By way of illustration I have compared here our Irish claim data for disease losses on marine sites, to our British claims data for the same. These are all salmon farms with claims over the years 1988 to 1991, (Figure 3).

Figure 3 Disease claims UK and Ireland 88–91 Contrasting situations are illustrated. In Ireland p.D., is the major cause of loss, in the UK until now at least, Furunculosis has been the major cause of loss. Whilst the nature of the disease differs, common underlying features can be identified which have a bearing on assessment and control of disease. These include (Table 7). Table 7 : Disease Risk Assessment and Control 1. stress : Stressful situations lead to stressed stock opening the door to escalating disease problems and acute losses. Stress arises from poor husbandry, had diets and over feeding, poor equipment, overstocking, handling of stock, poor environmental conditions, etc. 2. Presence of a Pathogen : If Juvenile stock have been screened, usually horizontal transmission from grower stock in close proximity either on the same site or from nearby farms. Proximate carrier stock leads to re-infection and drug resistance developing. 3. Ability of an Operator to React : To identify the problem (monitoring), process samples and identify a solution (veterinary and diagnostic support). Experience in administering treatment. 4. Industry Solutions Available : Antibiotics and other therapeutic agents. Vaccines and relative success.

To date this year Sunderland Marine has not had a single furunculosis claim. P.D., problems in Ireland are still bad but losses are less than what was experienced 2 to 3 years ago. Both the UK and Ireland have worked very hard at reducing stress on their farms. Improved technology has helped (passive graders, non maturing stock, improved net antifoulants), but so has experience. Stocking levels today are considerably less (10 to 15kg per cubic metre maximum, compared to 25 to 30kg practised a few years ago). In our view one of the most important general controls that is helping to reduce disease related problems (in the UK at least), is the advent of Inter-Management Schemes (we call them Loch Management Schemes). These are agreements that range from detailed and comprehensive programmes which might include introducing stress tested juvenile stock only, into an area in agreed years, linked to an agreed fallow period when all stock are effectively cleared from that area for a number of months; to a simple exchange of information on what problems are encountered and when, antibiotic sensitivity patterns and treatments, stock movements and other facts of relevance to one another. Referring again to Table 7; our experience suggests successful control of disease problems can be achieved by:- 1. The management of stress. Particularly low stocking densities, maintaining a good environment, passive husbandry where stock handling is minimised etc. 2. By precluding a pathogen or at least by removing carrier populations by limiting mixing of generations. 3. Having in place a monitoring system and contingency plans to deal with an outbreak. (Who does the sampling, which lab to go to, source of drugs, methods and ability to treat). 4. The correct use of antibiotics and other therapeutic agents in association with vaccines. The successful containment in the UK of furunculosis (and other diseases), appears to have come about by a combination of these four control measures. The Irish with their P.D., situation are not so fortunate as the P.D., causing agent has yet to be isolated and described; for now there is no obvious cure. However, research is closing the gap, partial vaccination has been achieved and improved husbandry, loch management schemes, attention to diet and feeding patterns are combining to contain the problem. Three years ago losses of 65 to 70% were occurring on sites that today experience less than 20 to 30% losses in a bad outbreak. 4.4 Losses Due to Equipment Failure and Their Control Rather than deal with every form of loss due to equipment failure, I intend here to highlight the main problems only and suggest general approaches to minimise the risk of such losses. The majority of the equipment failures we deal with occur at sea. Onshore operations with equipment failure related claims invariably suffer loss from interruption to water supplies. Such problems are less common today with modern units generally incorporating well designed safety and backup features. A rule of thumb we follow is to make sure everything essential has a backup, (intakes, pumps, power, ensure alarms have an independent power supply and sometimes dual transmission capability - radio and telephone for example). Staff must be practised in handling emergency drills, (pump replacement, which divers, engineers, electricians etc., to contact). Finally backup systems are only as good as they are reliable and must be maintained, checked with checks logged, on a regular basis. Offshore, (floating cage installations), equipment failure problems fall into three categories : cage structural failure, net failure and mooring failure. A summary of our claims data for the UK and Ireland illustrates to what extent each of these problems contributes to loss. (Figure 4).

Figure 4 - Equipment failure losses cages sites UK and Ireland Equipment failure mostly occurs when extreme weather conditions develop and generally Insurers cite “storm” as the cause of loss. However, whilst storm conditions might trigger a loss Risk Surveyors tend to take a harder line and look for the weak link that actually fails first, allowing the storm to create the loss. Net Failures : These type of failures tend to be the most expensive and the most frequent. When a net fails most of the enclosed stock will be lost. WHen a cage breaks it doesn't always result in nets failing and stock loss. Often cage structural damage will appear gradually allowing for temporary repair and in some cases salvage of the stock. At an Aquacultural Engineering meeting in Glasgow two years ago it was very obvious that the least researched the least developed and the weakest link in most floating cage units is the net. On a practical front we sometimes observe that it is also the most abused and least maintained piece of equipment. Net weaknesses have become more apparent as sites have moved further offshore and cage sizes have increased. The biggest cage we presently insure is a 30,000 cubic meter Bridgestone in Ireland holding 100,000 salmon. At its maximum predicted stocking capacity some 300 tonne of salmon could be enclosed at a value close on one million pounds. Early failures in the nets on the big flexible cages prompted studies into design and involved contributions from the fish farmer, net manufacturers and Insurance companies. Design features to improve net integrity include the introduction of shock absorber panels, rub panels (to protect against chaffing) and generally much heavier specifications of rope, stitching and mesh material. Nets get damaged and lead to losses for a variety of reasons, including (Table 8A).

Table 8A : Reasons for Net Failures 1. Badly designed, constructed or poorly fitted to the cages so that stanchions and cage collars, weights etc., will contribute to the damage. 2. Underspecified. Exposed sites with strong currents require nets with tremendous strength and resilience. 3. Predation and debris. 4. Improperly maintained and handled badly. Well kept nets will better resist damage from (3) above than weak nets will.

Maintenance and handling is up to the operational staff. We recommend a number of ways to protect a net from damage and extend its life expectancy, including (Table 8B).

Table 8B : Net Maintenance and Handling 1. Store out of the sunlight when not in use to avoid UV damage. 2. Don't leave nets fouled up as decomposing weed etc., can generate heat and damage the fibre of the net. 3. Don't drag nets across the shore or over cage structures. 4. Repair torn panels promptly. 5. Ensure tie off points nominated by the suppliers are utilised fully and effectively. 6. Ensure comprehensive records are kept of nets age and usage. 7. Return test panels for examination. 8. Maintain a regular inspection procedure of nets in sites.

In planning and designing a floating marine installation never attempt to cost cut on nets (or cages and moorings). Cheap nets represent false economy and increase the risk of loss. Cage Structural Failures : Rather than try and describe every type of cage structure failure an operator is likely to encounter, I think it would be more use here to suggest general guidelines for ensuring the equipment selected for a site is going to present minimal problems. There are a great variety of cages available and more designs appearing all the time. Cage manufacturers and suppliers are in the business of making and selling such equipment and will invariably work towards the goal to the exclusion of all else. In most cases the advantages and good points of a cage will be stressed, the bad points glossed over. For this reason when looking towards a potential design it is well worth investing in an independent marine survey - to be carried out by a consultant experienced with cage structural failures. I have to say that from my knowledge of the Aqua Systems barge loss in Ceuta Bay; it was an incident that would not have arisen if an independent survey report produced by a Glasgow surveyor, had been heeded. I believe that some ten months prior to the sinking of this barge Lloyds were advised not to Insure it. Cages are designed for specific conditions. Another for loss occurs when these specification (wave height, water current, wind speed, mooring design, maintenance and applications), are not complied with. It is essential to ascertain from a designer or manufacturer the exact range of working conditions under which a cage has been designed for and to match those specifications with the extreme possible conditions likely to occur at a site. “Average” conditions are no measure at all. A site could be suitable 364 days a year with conditions on the 365th day causing a breakage. There is always a major gap between the theoretical and practical. The only measure of success is operational experience. We would always advocate that project design makes the best use of tried and tested equipment whenever possible with consideration for after sales service and support. We believe the onus should be on developers of new cage equipment to carry the risks attached to experimental designs, that the development of new equipment must include, practical operation in sites that if anything, will exceed specifications. Usually it is not until a unit fails that we can identify its weakness. Whilst Insures are presently prepared to insure new projects and aquaculture developments, our attitude to new cage design is through experience one of caution. Attempts to redress this attitude have been made. In particular with proposals for the classification of equipment. Lloyds in may this year produced a set of provisional rules and regulations for the classification of fish farms. This report deals with :- 1. Regulations. 2. Design Aspects. 3. Structural and Mooring Aspects. It is a complex report with formidable objectives and at present considered by many to be unworkable. It is likely implementation of the rules would be extremely costly and would still rely on the ability of surveyors, whose task to survey equipment at sea is neither easy nor lends itself to consistency. However, the ideas are sound in principle and if cage manufacturers are prepared to try and meet the standards proposed, this sort of move will undoubtedly lead in time to more reliable cage structures becoming available. Moorings : This is an area that is increasingly less likely to contribute to equipment failure losses. there are many more specialist companies around today capable of advising on and installing moorings for virtually any form of marine structure and who will also often provide some form of guarantee for their work. There are two general points I would still like to make here:- 1. It is essential that the mooring design is compatible with the cage equipment and that the design has been approved by the cage manufacturer. We witness many plastic cage failures from lack of attention to this point, with poorly designed “do it yourself” moorings actually causing cage kinks and breakage. Likewise steel cages problems can be exacerbated by unsuitable mooring designs. 2. Ensure moorings are maintained regularly. Regular and visual diving inspections are necessary with records made of the various components so that can be compared with previous inspection and the rate of corrosion assessed. We recommend moorings are lifted every second year with complete replacement of shackles and (subject to wear and tear) ropes. 4.5 Plankton The last risk I would like to discuss in any detail, is that of loss due to plankton. Undoubtedly this is a significant risk. Claims are relatively infrequently infrequent but when they occur can be costly. Until the end of the 1990 Sunderland Marine's cumulative losses due to plankton in the UK and Ireland, came to no more than 2%. One incident in Skye last year caused this to jump to 11%. The data I presented before for the Mediterranean region (Figure 2), included losses due to plankton totalling 4 million pounds, all stemming from one incident in Tunisia involving an algae bloom of Gymnodinium. In Norway where the problem has been equally bad at one point about two years ago Insurance Companies were questioning their ability to insure against this peril. Algal blooms are a feature of primary production on which the entire marine food chain depends. In some instance their general occurrence is predictable (site history records, hydrographic survey reports, meteorological data). Where circumstances permit and predictable situation are likely to arise it is possible to implement control measures that will at least mitigate a loss. We insure a number of fish farms in the South of Ireland, in the Bantry Bay area, an area consistently experiencing dinoflagellate blooms in spite of which we have had very few claims here (due to losses directly resulting form plankton). One of the reasons for this is that these farmers are acutely aware of the danger from this risk. They constantly monitor plankton levels and have also developed techniques for minimising losses when blooms do occur. The Irish farmers (and those in high risk areas in Norway), incorporate deep nets on the cages (20m) to allow salmon to dive below the high concentrations of dinoflagellates (down to 5m). They stop feeding the stock during bloom periods and run air lift pumps driven off compressors mounted on rafts, that brings uncontaminated water up through the cages considerably diluting plankton concentrations. The ability of the Irish to avert disaster is linked to a high level of knowledge about the nature of he plankton they are dealing with, and a good infrastructure designed to predict the bloom incident. Prediction however is not always possible. Our loss in Skye has still not been linked to any organism. One theory suggested by D.A.F.S., is that toxin produced by a bloom could exist long after the dinoflagellates have gone, moving around in a “cloud” undetected. A better substantiated but equally unpredictable circumstance was described in Nature recently. The algae, also a dinoflagellate, is capable of changing from toxic to non toxic form, encysting and settling out within hours of coming into contact with fish. The algae ability to change swiftly from a poisonous to a benign form has been suggested as one reason why its link with mass fish deaths has never before been uncovered. Trends and information are being investigated mare as time goes on. The International Committee for Exploration of the Seas is very active in compiling much of this data. Increasing our knowledge will lead to improved monitoring in turn to more effective control measures. For now in many cases and particularly in the more open sites the exact time and place of arrival of a bloom is likely to remain relatively unpredictable, a situation which many framers would argue is a “raison de plus”, for having insurance in the first place. 5. CLAIMS AND LOSS ADJUSTMENT I began this session by stressing the need to appraise insurance requirements within the context of a loss, to assess a policy's value in terms of the return to a project in the event of a claim. Everyone hopes a claim will never happen, inevitably it will. If it didn't there wouldn't be insurance and I wouldn't be here today. It is important therefore to have some idea of what is involved in a claim, how to react, how the Insurer will deal with it and how the final figure for settlement will be arrived. First and foremost is the need to Notify Insurers of a problem when it arises. Obviously it is not always possible to tell when a problem will become a claim, it cost nothing however to assume that it will and report it just the same. Most policy schedules stipulate that the Insurers or their representatives are notified within 48 hours of a problem being identified. Evidence of a loss (mortalities, equipment), must also be preserved wherever possible until a claims assessor has visited, or unless the Insurance company agrees to disposal before hand. Loss adjustment can be a nightmare in the absence of accurate record keeping, including stock numbers, stock movements, harvests, mortality etc. Where a policy requires stock returns to be made it is essential these have been kept up to date so that a claim can be processed unequivocally. A loss adjuster may also wish to inspect maintenance schedules, diving reports and so forth. Making sure this information is on site and available a claim is investigated help this process move along quicker. The role of the claims adjuster is to establish exactly what has happened. He, or she must find out the approximate numbers of fish stocks affected, whether mortalities are continuing, whether there is any risk of remaining stocks being affected by the same event and ensure that the farmer has done and is doing everything that can be done to prevent or minimise the loss. I have already mentioned about the need to keep Insurers informed of change and to comply with policy warranties and conditions. It is important and management changes, are reported to the Insurers as soon as possible in order that a claim is not jeopardised. A key to ensuring as smooth claims settlement is to establish and maintain at all times, good communications with the Insurer either directly or through the brooking agent. Often claims are complex, involving one or more factors, storm damage giving way to disease, pollution leading to disease etc. It is the claims adjusters job to identify the proximate cause of a loss wherever possible. I mentioned earlier about “split deductibles”. Obviously where losses arise where one or more cases might be responsible, a fair settlement will depend on an accurate interpretation of the loss. At the time of a loss therefore it is essential to gather as much information as possible that might contribute to this interpretation. We advocate where appropriate, taking:- 1. Water Samples 2. Food Samples. 3. Stock samples for veterinary analysis and pathology 4. Making a detailed description of the events before and during the incident. If it is possible a third party is involved (pollution incidents especially), water samples and professional independent analysis may be essential to any recovery proceedings against that party. Claims and loss assessment requires communication, information and co-operation. POLICY TERMS 1. Premium Calculations (Stock Insurance) Example a) Maximum Stock Value £ 1,000,000 b) Rate quoted by Insurers 4% c) Expected average monthly value 75%

Gross premium = 4% × max.value = £ 40,000

Deposit (net) premium = 75% × Gross Premium = £ 30,000 Payable generally in twelve equal payments, by bankers order, Monthly returns must be submitted declaring numbers, weight and value of stock. This provides the basis for adjustment of claims and where appropriate, adjustment of the deposit premium where stock average value has varied from the predicted. If average stock value had actually been about 55% of the predicted maximum stock value in this example, the Insured might be eligible for a refund of £8,000. (If a claim occurs at any time during the policy term however, the deposit will always be retained in full). 2. Deductible Application (Stock Insurance) Example a) Stock Value at time of loss £100,00 b) Deductible 20% c) Actual value of stock loss £60,000 Claim Calculation i) Value of stock lost less (Deductible × stock value at time of loss). ii) 60,000 less (20% × £100,000). iii) Claim Settlement = £ 40,000 If the loss bad been £20,000 or less then the deductible would not have been exceeded and there would be no claim. When a franchise is included in a policy, claims are not initiated until the franchise is exceeded, thereafter the deductible applies:- e.g. Franchise = 40% Deductible = 20% In the above example a claim would only arise if the loss is greater than £40,000. If the loss had been £35,000 for example, despite exceeding the deductible the franchise has not been exceeded and a claim on the policy is not possible. Once a claim situation is valid however, the deductible (in this case 20%) would be applied to the claim calculation. In the £60,000 loss example on the preceding page, the settlement outcome would still be £40,000. BROODSTOCK Locations BGI to BG6

FFr 295.00 per kilogram

HATCHERY Location RW 1 to RW 11

1 up to 2g FFr 11.00 per fish 2 up to 4g FFr 13.00 per fish 4 up to 6g FFr 14.00 per fish 6 up to 8g FFr 15.00 per fish 8 up to 10g FFr 16.00 per fish

NURSERY Location B1 to B12

10g up to 20g FFr 17.00 per fish 20g up to 50g FFr 19.00 per fish 50g up to 75g FFr 23.00 per fish 75g up to 100g FFr 25.00 per fish 100g up to 125g FFr 27.00 per fish 125g up to 150g FFr 28.00 per fish

ONGROWING TANKS Location 1 – 32 (outside)

150g up to 200g FFr 29.00 per fish 200g up to 250g FFr 32.00 per fish 250g up to 350g FFr 35.00 per fish 350g up to 450g FFr 41.00 per fish 450g up to 550g FFr 47.00 per fish 550g up to 650g FFr 53.00 per fish 650g up to 750g FFr 56.00 per fish 750g up to 900g FFr 60.00 per fish 900g up to 1000g FFr 60.00 per fish

Thereafter FFr 75.00 per kg.

(Pounds Sterling)

Ova, per Thousand £4.00 Fry, per Thousand £12.00 Fingerlings, 5 – 10 cm. per kg. £5.00 Growers, 10 – 18cm., per kg. £2.50 Young Stock, 60 – 300 gm., per kg. £1.20 Fish, 300 – 1 kg., per Kg. £1.40 Fish, over 1 kg., per kg. £1.80 Broodstock, per kg. £2.00 LES ORGANISATINS DE PRODUCTEURS ET LA COOPERATION REGIONALE par François. Van. Obregen. France INTRODUCTION L'aquaculture est une science économique. Le but de l'aquaculture est accessoirement de fabriquer des poissons et principalement de fabriquer du profit. Dans nos sociétés capitalistes s'exercent les lois du marché et de la concurrence, il ne s'agit pas seulemnt produire mais aussi de vendre et de vendre avec profit. Les entreprises sont ainsi amenées à les meilleures et à se battre entres elles sur le marché. A l'avantage de tous, il est pourtant nécessaire d'établir un certain nombre de règles, par exemple, pour éviter des concurrences déloyales, pour financer les actions visant à étendre le marché total d'un produit (de telle manière qu'en augmentant la demande le maché accepte des quantités offertes plus importantes ou par la pression de la demande maintenir les prix à un niveau ré munéérateur). LES O.P. Par exception à la règle générale, et dans le cadre de la Politique Européenne des Produits de la Mer l'entente entre producteurs est légale, pour peu qu'elle s'exerce dans le cadre réglementaire prévu des Organisations de Producteurs. C'est une facilité, mais dont les aquaculteurs n'ont pas encore vraiment pris la mesure. Alors que de nombreuses O.P. existent pour la pêche. L'O.P. permet aux producteurs de définir des normes de poids, qualité, conditionnement, étiquettage, etc… qu'ils ont ensuite à respecter, de surcroît dans la mesure où l'O.P. est suffisamment représentative les producteurs non adhérents à l'O.P peuvent avoir l'obligation d'en suivre les règles. Pour aider ou démarrage des O.P.l' Etat, la Communauté en financent les frais de gesion pendant plusieurs années, et de manière dégressive. Par convention avec l'O.P, des prix de retrait peuvent être établis, qui garantissent aux producteurs un prix minimum pour des produits spécifiques quand les prix de vente descendent sous ce seuil. UNE COOPERATION EUROPEENNE… Les aquaculteurs via leurs syndicats nationaux, en France, en Italie, en Espagne et en Grèce, principaux pays producteurs de loups et de dorades ont tenté et continuent de tenter la constitution d'une Fédération Européenne de l'Aquaculture des poissons marins (salmonidés exclus qui sont d'ailleurs déjà regroupés en une fédération européenne) première étape vers la constitution d'une O.P. à l'échelle européenne. En effet une O.P. à l'échelle nationale ou régionale dans le Marché Unique n'aurait aucune signification puisque les marchandises voyagent librement sans droit de douane. Aucune O.P. européenne de ce type n'a encore vu le jour, mais il faudra bien tendre à y arriver. Les Salmoniculteurs qui depuis 1989 ont traversé une crise effroyable (des dizaines d'entreprises ont déposé le bilan Norvège, et toutes sont sont malades) ne sont pas arrivés à s'organiser lorsque les profits étaient importants, rares, ceux qui en ont alors ressenti le besoin. Maintenant que les prix sont au plus bas on commence seulement à parler d'O.P. Irlande, en Ecosse… Un peu tard. Malheureusement, je pense que ni les pisciculteurs de loups e daurades ni les conchyliculteurs n'aient appris quoi que ce soit de la débacle de la salmoniculture et que nous ne commencerons sérieusement à parler d'une large O.P. que le jour où un nombre certain de producteurs de loups et de daurades auront d'éposé le bilan, et que tous nous serons malades. Ce discours n'est pas neuf et au moins a-t-on commencé à répertorier les sujets d'intérêt commun dans le cadre national puis à Bruxelles, notamment lors de la réunion EURAQUA 92 dont je vous recommande vivement la lecture des actes (le document vient de paraître cf références ci-dessous). ETENDUE A LA MEDITERRANEE Lors de cette réunion de Bruxelles, Lazaro, Rosa et moi-même avons fait la proposition que les pays du Bassin Méditerranéen soient associès depuis le départ à la ré flexion et plus généralement aux travaux et aux décisions. En effet, par exception aux règles du G.A.T.T., et en vertu d'accords bilatéraux avec la C.E.E un certain nombre de pays du Sud de la Méditerranné, entrent déjà leurs produits de la mer en franchise de droits de douane dans la C.E.E. De ce point de vue ils font donc déjà partie du Marché Unique. SUJETS D'ENTENTE : Exemple DENOMINATION DES POISSONS Ainsi les poissons devraient-ils avoir des dénominations identiques pour chaque espèce spécifique non pas par pays mais par langue. On éviterait ainsi toute confusion. En novembre 1991 la nomenclature des poissons a été revue en France et proposée à Bruxelles (voir annexe № 1). Ainsi le Dicantrarchus labrax, notre loup va-t-il s'appeler loup, et lui seul va s'appelre loup. Ce que l'on vends au Champs Elysées sous le nom de loup dans des menus à 49,50 F e qui est une espèce d'horrible poisson venant de Norvège n'ayant rien avoir avec le loup, devra-t-il dorénavant s'appeler dragon. Il en va de même pour les multiples variétés de sparidés, ou le denté qui s'appelai6t couramment dorade, devra désormais s'appeler denté. Seule la dorade royale-Sparus auata pourra s'appeler dorade royale. Je ne vais faire l'inventaire des autres domaines ou une coopération, une entente serait très sou-haitable, en notant toutefois, qu'il serait préférable pour chacun d'y arriver entre producteurs plutôt que de se voir imposer des règles par voies légales. Je suggère par conséquent que les producteurs des bassins méditerranéen dans les plus brefs délais se retrouvent et se concertent déjà sur des thèmes essentiels sur lesquels tous ont intérêt à s'entendre. La coopération commence à l'échelle locale, à l'échelle régionale, à l'échelle nationale. L'entre-aide entre voisins plus ou moins proche est un premier pas naturel, circuits des commercialisations communs, OUMA (Coopérative d'Utilisation de Matériels Agricoles en Commun), SAVU (Service d'Assistance Vétérinaire d'Urgence) tel qu'il existe maintenant en France depuis 4 ans, entre dix-huit producteurs, à l'initiative du Comité Inter-Professionnel National que j'ai encore l'honneur de présider. C'est seulement lorsque ces premières actions de coopération auront pu réussir sur un plan local, régional, national que l'on pourra penser à des coopérations plus larges. Avant tout une question d'état d'esprit. Le MEDRAP en prenant l'initiative de la rencontre d'aujourd'hui, qui pour la première fois regroupe des producteurs de tout le Bassin Méditerranéen, crée l'occasion pour ceux-ci de contacts qui je l'espère conduiront à une réelle coopération entre producteurs. ANNEX I PRODUCER'S ORGANISATION OVERVIEW ON AQUACULTURE DEVELOPMENT IN PORTUGAL by Paulo Serra lopes Portugal 1. INTRODUCTION Aquaculture, in its most extensive production systems has been used for decades along the coastal areas of Portugal and most of the countries of the Mediterranean region. This extensive methods were developed mostly in estuaries and in salt ponds. The productions obtained were naturally low and the activity was run without direct costs except the one of the fisheries, usually every two years. No feeds were given to the fish in culture and any special technique was used except the water renewal needed to the main activity usually salt production. In the sixties and seventies shellfish production started to have increasing importance with the oyster (Crassostrea angulata) exported mainly to French markets and also little neck clam Ruditapes decussata) that has been under aquaculture production since the beginning of the century. In the late seventies several inland freshwater farms started using species as the trout (salmo gairdneri). Those were probably the first intensive cultures to start in Portugal. In the beginning of the eighties several research institutes and the Fisheries Ministry gave special attention to our coastal area, and the potentially good environmental conditions to produce several species as gillthead seabream (Sparus aurata) seabass (Dicentrarchus labrax), sole (Solea sp.), eel (Anguilla anguilla) and several other less important species. Several extensive polycultures started by this time and the activity grows fast. After 1986 and with the financial support of European Community the importance of aquaculture can be evaluated by the increase in total projects presented and the areas involved in the activity. This figures are in 1992 the following : - 218 marine fishfarms authorised occupying an area of 2.083 hectares - 1.600 shellfish productions (mainly clam) representing 2% of the total Portuguese production of fish in weight and about 8% in value, according to official data very recently presented. The investment in the sector of aquaculture represented about 19% of the total investment in the fisheries since 1986 until 1991 and amounted to US$ 65 million dollars. Funds for this investment, which was done on 121 projects approved both by the European Community and the Portuguese Government, were partially granted (about 60%) and partially invested by the producers themselves. Most of the development in this area in the last five years was due to the financial support from EC policies and should also be followed by a correct marketing support and a co-ordination between EC country members and neighbour countries in order to develop a correct approach to the markets and a better general management of price fluctuations. This is more or less one of the most interesting points of MEDRAP II intentions and should have the full support of all the country members as well as the European Community commitment to co-ordinated policies. 2. PRODUCTION OVERVIEW Concerning the marine species under production in Portugal, the most important are: 2.1. Fish - Gilthead sea-bream (Sparus aurata); - Sea-bass (Dicentrarchus labrax); - Sole (Solea sp.); - Eel (Anguilla anguilla); - Mullet (several species). 2.2. Crustaceans - Shrimp (Penaeus japonicus) 2.3. Bivalves - Clam (Ruditapes decussata); - Oysters (Crassostrea angulata and Ostrea edulis); - Mussel (Mytillus galloprovincialis) - Cockle (Cerastoderma edule). The official figures of production for 1991 are roughly: - Bivalves 3.600 tons - Fishes 320 tons - Crustaceans 22 tons This figures have been obtained by the Fisheries Department in several enquiries to the producers, and represent hardly the right figures for production in Portugal. Due to several reasons, like : - Relative small control of the real production; - Tax evasion, mainly from the less organised producers; - Difficult co-ordination of the sector which exports most of the products as coming from fisheries and not from aquaculture. There is a notion that the real productions values can be far higher than the presented by fisheries statistics. Producers are staring to realise that future grants and financial supports to their activity will be dependent on the production figures they present to the Government authorities. The more the real production are hidden by the producers less efficiency is attributed to the financial aid brought by the EC and the Government and less funds will be available in the future. This is now a major constraint to the evaluation of the aquaculture sector which can be producing twice of what is presented officially. The closer answer to real production figures could probably he given by the fish exports by species which is known but usually not related to aquaculture *. In one case because the catch in the wild becomes smaller every year and in the other case because it is a non-indigenous species, and almost impossible to catch in the natural environment. Every effort should be recognised to the Government in order to update the production figures, however, and due to inadequate control procedures and small connection with producer's organisations, these values are still far apart from reality which is regrettable and more efforts should be made to correct them in the near future. * For instance in the case of seabream and kurume shrimp (P. japonicus) almost all the exported fish comes from aquaculture activities. 3. PRODUCER'S ORGANISATIONS IN PORTUGAL There are two Producer's Organisation in Portugal: - A.P.A.A.- Algarvian Aquaculture Producers Association; - A.P.P.A.- Portuguese Aquaculture Producers Association. The first is restricted to the south of the country, the Algarve region, and to bivalve producers. Due to the low educational background and small organisation level of the bivalve producers, this Organisation, who could represent more than 90% of the activity in Portugal, scarcely attains 10% of its potential “target”. The second organisation has members among producers of all the areas of the country and in all the species grown under aquaculture. Among the fish and crustaceans productions this Association represents more than 50% of the producers under current production. It is important to stress that from the 218 fishfarms authorised by the Government (excluding the 1.600 clam production units) only half of them it is in activity and just half of these are on real production. This low productivity is partially due to the fact that most of the other production units authorised are either under works or waiting official authorisations and EC approvals to start their projects. Bureaucracy is still one of the main complaints among producers and the delay to start production from the initial acquisition or lease of a land should take at least two to three years, not including obviously the first cycle time which in some cases brings the time to the first production sale up to four to five years. Even with the traditionally good R.O.I. of the investment in this activity it is discouraging for an investor to start something new from the beginning, with such a low efficiency and enormous bureaucratic procedure for every step of the productions official authorisation needs. The freshwater fishfarms, mainly for trout, exist since the last twenty years and usually do not want to be involved in producers organisation schemes, being traditionally run by very conservative owners who established their markets and don't feel threatened by the internal production, but from the neighbourhood production like Spain who has one of the highest trout productions in all Europe. Most of these producers are not associated with any organisation. The main role of the producer's organisation in Portugal has been the defence of the associates interests in several ways like : - Relations of the producers with the official authorities (Fisheries Ministry, Environment Ministry Municipalities, etc.); - Advising Technical expertise services for the associates; - Developing agreements with banks and financial institutions to the financial support of the associates projects; - Promoting aquaculture congress and seminars to debate the activity; - Promoting the knowledge of aquaculture, representing and defending the producers associates in every way possible. 4. THE FUTURE OF AQUACULTURE IN PORTUGAL Aquaculture is now starting to give the first results from the 1986–1991 policy of financial support by the EC and Portuguese authorities. These supports are already guaranteed for the next four years, until 1996. The sector is now characterised by: - Low technological production; - Extensive methods still predominant; - Small diversity in species under culture; - Severe restraints to the use of wide areas due to over-protectionist policies. In the future it is expected a wide expansion of the available area for aquaculture both in coastal areas or in offshore production. This expansion will be possible with the following orientations: - Increase in production based on the application of adequate technology and training programmes; - Experience and development of new species cultures; - Intensifying current productions; - Establishing for each culture the exact environmental protection needed, avoiding the severe and unfair accusations made today to the activity by environmentalists usually with little knowledge neither of the activity itself nor of the environment which they claim to be protecting. Aquaculture is still a drop in the ocean of fisheries but it is forecasted by several experts that its increased importance should go as high as 40–50% of the total value of fisheries in the world around he year 2020. Portugal is prepared to have also an increase of the aquaculture importance in the fisheries sector and it is possible and desirable to double the quantity and value of the present production on aquaculture, within ten years. ANNEX II STATUS OF THE PRODUCTION ASSOCIATION IN MEDRAP COUNTRIES TURKEY There are presently two associations in the field of aquaculture in Turkey. one of them is situated in Izmir on the Aegean coast and gathers mostly the scholars dealing with this subject. The other one is the“Association of the Aqua-product Breeders of the Aegean Region” which is situated in Bodrum again on the Aegean coast and gathers mostly the on-growers of sea-bass and sea-bream. Besides, salmon farmers of the Black sea region and trout farmers are also planning to establish associations. The mentioned association in Bodrum, which presently comprises of the real breeders was founded in 1988. It has a membership of 56 individuals who represent 25 companies. Among those, one company is running a hatchery and two are conducting trial operations at their newly constructed hatcheries. Other than them, three more members are planning to establish hatcheries. Aims of the mentioned Association are : to assist in solution of the problems encountered by the establishments which produce aqua-products in marine environment and inland waters and to conduct necessary activities to develop and expand aquaculture on the country scale. for that aim; 1) to assist in providing high quality equipment, materiel, feed medicine, on grown fish, fry and eggs for the farmers. 2) to conduct activities for he solution of the problems encountered by the farmers in marketing their products. 3) to organise at home and abroad educational activities, seminars, courses and trips to enhance the level of knowledge and experience of the farmers. It can not be said that this recently-formed association has totally fulfilled its aims. But the fast development of the aquaculture sector helps to increase the influence of the Association. The most important problems of the Association at present are : a) a problem of providing fry : collecting of fry from the nature is a problem which is negotiated with the Ministerial authorities every year to reach a solution and this process of annual negotiations has gained a continuous character; b) speculative accusations by the tourism sector of polluting the environment. Delivery to us of the FAO studies in this field would be mostly helpful for us. c) Occasional inadequacy of legislation due to the youngness of the sector. ALGERIE L'aquaculture en Algérie est composée par : A- Un secteur public représenté par l'ONDPA (Office National de Développement et de Production Aquacole) qui est une entreprise publique économique autonome depuis 1991 et qui dispose de 2 unités de production : • unité aquacole qui pratique la pisciculture extensive au niveau des plans d'eau, suite aux opérations de repeuplement de ces derniers par des alevins de carpes chinoises en 1985 et 1986. Les résultats obtenus sont satisfaisants aussi bien du point de vue croissance du cheptel que de la commercialisation où le produit est apprécié par le consommateur; • unité aquacole d'Elkala : qui exploite les plans d'eau naturels lac Mellah (eau saumâtre), lac Oubeira (eau douce) et pratique la conchyliculture; • les projets de l'ONDPA : Au niveau du lac Mellah une écloserie pour la production du loup et la daurade et la mise en place des tables conchylicoles sont en cours d'études à savoir : - la réalisation d'une ferme marine à cap Ojmet; - la réalisation de 2 fermes pour l'élevage de poisson d'eau douce; - la marinisation de l'unité Mazafran. B- Un secteur privé où malgré le grand intérêt manifesté par des promoteurs pour lancer des projets aquacoles, seul un privé est opérationnel effectivement et son projet porte sur la myticulture en mer ouverte. Beaucoup de demandes parviennent à l'administration concernée en l'occurrence l'ANDP (Agence Nationale de Développement des Pêches) pour solliciter des autorisations et malgré l'accord qui a été accordé pour certains, vu les contraintes administratives (concessions des terrains) et financières leurs projets sont restés au stade de départ. Associations et coopératives : Actuellement il n'existe pas d'associations et de coopératives opérationnelles. Cependant, un projet de mise en place d'une association des aquaculteurs est en vue dont la première réunion est prévue au courant du mois d'Ocrobre 1992. Il y a lieu de noter que dans le cadre de la mise en place des sous réseaux initiés par MEDRAP II au cours de l'année 1992, des réunions se sont déroulées et ont regroupé les parties concernées où des leaders ont été désignés, dont l'ONDPA retenu pour le sousréseau production. Nous souhaiterions renforcer ces sous-réseaux dans le cadre de la mise en place de l'association des aquaculteurs qui pourra jouer un rôle dans la mise en place d'un plan directeur de développement de l'aquaculture en Algérie et surtout dans la coopération entre les pays de la sous-règion du Maghreb. MALTA Production Network Producers' Association Aquaculture in Malta started in 1989 with emphasis being placed on exposed site installations. All activities are co-ordinated by the National Aquaculture Centre established by the government in 1988. In 1992 at total of around 370 tonnes of sea bass and sea bream will be produced exclusively for export. Because of the small number of units the opportunity to form an association of producers has not yet arisen. Although, the need to co-ordinate certain activities is already being felt. It is hoped that with the increase in the number of units a national body or federation will be set up in the near future. CROATIA Annual production of freshwater fish in Croatia is about 12.000 t, mainly common carp and other carp species. Governmental and private companies existed, but all of them going to be private this year. Association of the producers existed before the war, and now is on the way to be organised again. Production of marine fish was in 1992, 650t, mainly sea bass and only of sea bream. Two main producing companies, “Cenmar” (Zadar) and “Marimirna” (Povky) produce about 80% of total Croatian production. They were in public sector, as a part of self- management system. Now they operate without any governmental contribution, and they are going to be private till the end of 1992. Few small private companies produced about 35t of sea bass. They are few private programs to be developed; Animal fingerling production was in 1992, only 3 millions, because of war situation. Usually production is more than 5 millions. Two big hatcheries exist (Cenmar-Zadar and “Marimirna” - Poviry) and one in the research institution (IOM - Split), without significant production (about 100.000 fingerlings). Croatia produce 1500t of mussels. The biggest producers (Marimirna and Dalmacijabilye) will be privatised till the end of 1992. the same companies produce about 300t oyster per year. Lot of private small companies exist in the mussels production. Producers of the marine organisms in Croatia are not organised, but some initiatives were done this year. ALBANIA Albania has intensive production of about 950 t of freshwater fishes: 600 t of different carp species and 350 t of trout. Semi-intensive production was in 1990 about 800 t of different carp species. Most of the companies are in governmental propriety, but some of them are going to be privatised. Some joint-venture project with Italian, and Greek companies for cage culture and fingerling production of sea bream and for crustacean are in preparing. Association of the fresh water producers does not exist. On the coast line extensive production of the marine fishes in the lagoons is 800 T: in the private co-operatives. Production of the mussels varied from 2000 – 4500 t in the last few year in the BUTRINT lagoon. (south Albania). Association of the producers does not exist. CYPRUS Cyprus has developed aquaculture in the fish recent years in fresh and marine waters. fresh water for trout and koi-carp and marine for sea bream and sea bass. The development of aquaculture is carried out by the private sector. The Fisheries department, which comes under the Ministry of Agriculture and National Research is the infrastructure of aquaculture in our country. Last year fish farmers and personnel of the farms come together and decided that it was necessary to get organised and have a voice in our economy. Due to conflicts of interest on some issues it was decided to established two organisations; 1. PANCYPRIAN AQUACULTURE SOCIETY 2. CYPRUS AQUACULTURE SOCIETY. Members of the association will be the investors in aquaculture while members of the society will be the personnel of fish farms scientists and anybody who is interested in aquaculture. Both organisations will work side by side for mutual benefit, to solve problems and promote aquaculture image in co-operation with the Cyprus government. We hope that soon the legal formation of both organisations will be finalised. For the time being both organisations are presented by temporary representatives in the National Committee for Aquaculture Development. Annex III ALLOCUTION DE MONSIEUR LE MINISTRE DES PECHES MARITIMES ET DE LA MARINE MARCHANDE A L'OCCASION DE LA TENUE DU SEMINAIRE SUR LA CREATION DU RESEAU DE PRODUCTION DES PAYS MEITERRANEENS MEMBERS DU PROJET MEDRAP II - Monsieur le Gouverneur de SAMALESTE sur la Province de Nador, - Monsieur le Coordinateur Régional du Projet MEDRAP, - MEsdames et Messieurs les participants, C'est avec un réel plaisir et un intérêt tout ;particulier que je préside aujourd'hui la cérémonie d'ou verture du séminaire sur la création d'un réseau de production organisé par le projet MEDRAP II de la F.A.O. Je voudrais vous dire tonte ma satisfaction de constater que cette importante manifestation regroupe pour la première fois les professionnels de l'aquaculture des pays méditerranéens membres du MEDRAP II de qui est en soi un facteur indéniable de succès. Il me plaît cette agréble occasion de souhaiter aux participants ici présents la bienvenue parmi nous et un agréable séjour dans cette attrayante cité où ils trouveront sans nul doute le cadre le plus fonctionnel pour leurs travaux. Comme vous le savez, la ville de Nador de par sa situation, en bordure d'une lagune de 114 km2 reliée à la mer méditerranée, constitue un site privilègié dont les potentialités aquacoles comptent parmi les plus importantes du Royaume. Grâce à spécificité toute naturelle, la ville de Nador, joue sur le plan national un rôle de pionnier dans le domaine de l'aquaculture moderne et constitue une ville pilote dans ce sous-secteur d'avenir, nous entendons renforcer cette position pour que l'expérience acquise dans cette zone puisse rayonner tant sur le littoral Méditerranéen qu'Atlantique dans le cadre de la coopération régionale paticulièrement Maghrébine et Africaine. Excellences, Mesdames, Messieurs, Je perçois dans l'organisation de ce colloque l'oeuvre combien efficace de Monsieur Hassan AKROUT, Coordinateur du Projet MEDRAP II, qui ne ménage aucun effort pour la promotion et le développement de l'aquaculture dans le bassins méditerranéen. Qu'il reçoive ici et à travers sa personne et tout le staff du MEDRAP, l'expression de mes vifs et sincéres remerciements. Je saisis cette occasion pour vous rappeler l'action efficace et fort utile du Projet MEDRAP l qui avait contribué en collaboration avec organismes marocains chargés de ce secteur, à l'étude et à j'évaluation des potentialités aquacoles de la lagune de Nador. C'est ainsi que ce programme de coopération avait permis d'initier et de lancer le projet intégré à capitaux privés MAROST, réalisé sur la lagune de NAdor, et qui a franchi actuellement d'importantes étapes aux de la production, de la technologie et de la réalisation d'infrastructures de recherche et d'accueil. Le projet MEDRAP II qui est venu prendre la relève du MEDRAP I, suit aux demande insistantes des pays membres dont notamment le Maroc, ne manquera pas d'oeuvrer pour la promotion et le renforcement des projets aquacoles similaires dans les multiples sites naturels de la Méditerranée. Comme vous pouvez le constater, le MEDRAP a toujours trouvé en notre pays le partenaire sûr et ouvert à coopération sous toutes ses formes ainsi qu'une disponibilité à oeuvrer en vue de faire progresser le développement de l'aquaculture dans notre région méditerranéenne. Excellences, Medames Messieurs, La production mondiale d'espèces halieutiques avoisine actuellement les 100 millions de tonnes et a tendance à plafonner, car la quasi totalité des stocks mondiaux sont pleinement exploités, voire sur-exploités pour un certain nombre d'entre eux. Certes! cette production constitue un apport considérable en termes de protéines d'origine marine contribuant à la satisfaction des besoins alimentaires de la population mondiale, mais il n'en demeure pas moins que la demande continue d'être largement supérieure aux disponibilités en produits de la pêche. Les captures halieutiques provenant de systèmes classiques de pêche s'avèrent donc de moins en moins à même de réduire le déséquilibre entre l'offre et la demande. Aussi, se tourne-t-on vers l'appelée à jouer un rôle supplétif de plus important pour le bénéfice de l'équilibre nutritionnel de l'homme. L'aquaculture qui contribue déjà de manière significative dans certaines régions du globe à la production halieutique, représente sans aucun doute, une des grandes chances de nourrir d'une manière satisfaisante les générations de demain et de créer le maximum d'emploi. Par ailleurs, et contrairement à la pêche qui se contente de prélever sur une ressource, l'aquaculture a pour but d'accroître la productivité naturelle du milieu pour la production d'espèces animales et végétales. Aujourd'hui, l'aquaculture fournit chaque année 14 millions de tonnes de produits alimentaires à la planète, soit une somme totale de 130 milliards de Frances français l'écrasante majorité vient d'Asie avec 80% de la production mondiale, spécialement d'élevage, d'algues, de carpes et de milkfish. L'aquaculture européenne sèst quant à elle spécialisés dans une production haut de gramme (saumon, truite bar, daurade etc…). L'élevage des mollusques (huîtres et moules) y constitue une activité ancienne mais toujours florissante. Pour ce qui est de notre région méditerranéenne, le développement de l'aquaculture connaît actuellement un essor important. Rien que pour la production du bar, cette année, elle dépassera 3.000 tonnes et presque autant pour la daurade, dont notamment, environ 500 tonnes pour la production nationale de ces deux espèce. Le secteur de l'aquaculture constitue donc une étape fondamentale et complémentaire à l'activité de la pêche proprement dite en ce qu'il permet à l'homme de mieux maîtriser les paramètres de reproduction et de réguler la production du poisson. Au niveau de bassin méditerranéen les activités liées à l'aquaculture représentent un domaine privilégié de coopération régionale centres les Etats riverains. Vous en conviendrez avec moi, l'organisation de ce colloque est assurément une heureuse initiative, en ce sens que les thèmes qui y seront débattus s'inscrivent dans l'axe de nos préoccupations. Je suis convaincu que la mise en place de ce réseau de producteurs du bassin méditerranéen, qui constitue l'objectif même de cette rencontre, permettra non seulement, de développer et de renforcer la coopération entre les différents opérateurs de l'aquaculture de la région méditerranéenne, mais aussi de mettre en place une stratégie régionale commune à même de garantir les intérêts de la profession, de défendre le label du produit méditerranéen et de permetre un développement harmonieux et équilibré de ce secteur d'avenir. Pour ma part, je demeure convaincu que nos pays respectifs sauront judicieusement mettre à profit ce créneau de coopération et de relever au plus vite ce défit, aidé en cela par la soutien combien précieux du projet MEDRAP II. Dans cette perspective, on ne saurait occulter les effets néfastes de la pollution qui menace constamment cette mer et qui nous incite à faire preuve de plus de vigilance et à nous mobiliser davantage pour faire face à un environnement marin dont l'état est déjà fort inquiétant. La nécessité d'une protection de l'environnement est d'autant prioritaire que la plupart des sites aquacoles potentiels tels que les milieux lagunaires, les zones humides littorales, les zones basses et les zones d'estuaire constituent des milieux fragiles et écologiquement instables qu'il est urgent de préserver contre toutes les sources de pollution. Il s'avère également nécessaire de contrôler et de maîtriser la pollution résultant de l'aquaculture elle même afin de maintenir l'équilibre des bassins et des zones d'élevage. En effet, la forte dépendance du milieu naturel et la machine technique encore imparfaite font que le fonctionnement d'une entreprise aquacole est fortement influencée par les notions de risque, d'incertitude, d'innovation technique, d'irréversibilité et par la prise en compte de facteurs difficilement quantifiables comme les comportements individuels, la notion de qualité du produit, les rapports avec l'environnement littoral et la valeur du patrimoine côtier. Excellences, Mesdames et Messieurs les participants, Au Maroc, le secteur de l'aquaculture jouit d'un intérêt de plus en plus important dans le cadre des plans de développement des activités de la pêche conformément aux Hautes Orientations de notre Auguste Souverain SA MAJESTE LE ROI HASSAN II, qui Dieu le Glorifie. Erigée en axe prioritaire, l'aquaculture compte parmi les secteurs éligibles aux avantages du Code des Investissements Maritimes qui prévoit en sa faveur des allégements fiscaux voire des exonérations totales dans certains cas tels, notamment le droit d'importation et la taxe sur les biens d'équipement, outillages et matériels importés. Grâce à ce dispositif incitatif, et aux possibilités offertes sur le plan financier par le Crédit Maritime mis en place par la Caisse Nationale du Crédit Agricole, dont je salue ici la contribution positive et efficace au développement aquacole de notre pays, un pas déterminant et plein de promesses a été franchi par l'aquaculture marocaine. Actuellement, le littoral méditerranéen marocain abrite deux importants projets aquacoles à savoir: - Le projet intégré MAROST que nous avons déjà évoqué et qui exploite le milieu lagunaire de Nador, - La Société Aquacole de la Moulouya située sur les zones basses de l'estuaire de la Moulouya et dont les installations basées entièrement à terre s'avèrent judicieusement adaptées à la configuration du site, Ces deux réalisations qui mettent en oeuvre les techniques le plus modernes en matière d'aquaculture comptent parmi les plus importantes du bassin méditerranéen. D'autres projets qui sont soit au stade de l'étude de faisabilité, soit au stade du montage financier verront bientôt le jour et contribueront j'en suis certain, à la mise en valeur des autres sites potentiels de notre pays, tels que: la baie de Cela Iris, les estuaires des oueds Tahadart et Loukkos, la lagune de Moulay Bousselham, les salines d'Asilah et Sidi Moussa, la baie de Dakhla, etc…. - Excellence, - Mesdames et Messieurs, Le thème de ce séminaire fait partie de notre préoccupation d'aller de l'avant et d'approfondir encore la réflexion sur les moyens et mesures à même d'assurer la mise en place d'un réseau de production qui soit efficient et opérationnel. En effet, comme toute industrie, l'aquaculture doit pour se développer, être capable de fournir une offre concurrentielle en terme de quantité, de qualité et de prix. Pour atteindre cet objectif, des choix se posent en matière de dimensionnement de l'entreprise, de niveau d'intégration de diversification et d'organisation de la production. Une telle préoccupation place au centre de nos objectifs la nécessité d'un échange d'informations d'ordre technique, économique et commercial à l'instar des projets qui ont été réalisés par la F.A.O pour la promotion du commerce du poisson dans les pays en développement afin d'y optimiser l'utilisation des ressources halieutiques. II s'agit par exemple, du projet INFOPECHE destiné au continent africain et INFOSAMAK pour le monde arabe. De même qu'il est nécessaire d'assurer une formation qualitativement efficiente, permettant de réunir la qualification et les expertises combien indispensables pour réussir nos programmes de promotion de l'aquaculture. En effet, l'aquaculture c'est déjà aujourd'hui, mais c'est beaucoup demain. C'est pourquoi, à notre niveau, elle constitue un secteur prioritaire au développement duquel nous portons toute notre attention. Aussi, je formule le vif souhait de voir se renouveler l'organisation de manifestations de ce genre à la réussite desquelles le Maroc apportera tout son appui. - Monsieur le Gouverneur de SA MAJESTE sur la Province de Nador, - Monsieur le Coordinateur Régional du Projet MEDRAP, - Mesdames et Messieurs les participants, Avant de conclure, je voudrais exprimer mes vifs remerciements aux organisateurs de ce séminaire, en particulier le projet MEDRAP II pour lequel nous souhaitons plein succès dans sa mission de développement de l'aquaculture en Méditerranée. Je voudrais saisir cette occasion, pour dire toute notre considération à la F.A.O. qui a permis la création de ce bel instrument qu'est le MEDRAP II. Mes vifs et chaleureux remerciements vont également à l'adresse des Autorités Locales de la ville de Nador et à leur tête Monsieur le Gouverneur, ainsi que les responsables de la société MAROST pour leur contribution combien précieuse en vue de l'organisation de ce colloque et les féliciter pour les efforts entrepris et la persévérance constante dont ils font preuve pour relever le défi du développement de l'aquaculture. Enfin, il me plaît de saluer l'ensemble des participants ici présents qui sont venus des pays méditerranéens apporter leur contribution professionnelle combien nécessaire pour la réussite de cette manifestation. Je suis convaincu que l'apport précieux des conférenciers conjugué à l'échange fructueux de nos expériences respectives fassent que ce séminaire se déroute à la satisfaction de tous et aboutisse aux objectifs escomptés. Je vous remercie de votre attention.