Norwegian Salmon and Trout Farming

ROBERT J. FORD

Introduction strategic and social reasons. Govern­ sion to increase their cage capacity ment officials regard salmon fishing from 5,000 to 8,000 m3 to improve The development of Norway's as one of the most lucrative commer­ their profitability. Atlantic salmon, Sa/rno sa/ar, and cial activities available to residents of Although most Norwegian fish rainbow trout, S. gairdneri, farming many isolated coastal communities. farms are relatively small, a few large in coastal waters is, in the opinion of Modern fish culture methods have ones were in operation before the many observers, the most significant enabled aquaculturists to start with 1973 law restricted net cage capacities. event in the history of European relatively small investments and The largest Norwegian fish farm, aquaculture. Norwegian production gradually expand their operations. operated near Bergen by the Mowi of farmed salmon and trout has in­ The Norwegian Government assists Company3, produces over 500 t of creased dramatically during the past small operators by guaranteeing loans cultured salmon per year. The Mowi decade, from only 500 metric tons (t) through the Regional Development company was founded in 1969 and its in 1971 to an estimated 15,500 t in Fund and the Agricultural Develop­ shares are partly held by the state­ 1983, and production is expected to ment Fund. The Government, owned Norwegian electric power 4 double by 1990. Norway's production however, has restricted salmon farm­ company, Norsk Hydro • Mowi has of farmed salmon and trout, the vast ing investments by large companies, developed techniques for raising majority of which is exported, is in and has also imposed a size restriction Atlantic salmon smolts and transfer­ the forefront of fish farming on salmon farms to limit the industry ring them to saltwater cages in the developments in Europe and has been primarily to small, owner-operated fjords where they are protected and that aquaculture industry's most strik­ farms. In 1973, a law limiting the size fed until reaching marketable size in ing commercial success. of salmon farms to a floating net cage 3-4 years. Mowi exported its first l capacity of 8,000 m3 was enacted . Farms and Methods cultured salmon in 1971 and by the Farms having over 8,000 m3 of cage mid-1970's had expanded its produc­ The success of saltwater aqua­ capacity, but approved before 1973, tion to the point where it could culture has attracted many former were exempted from this law. guarantee regular supplies to its major Norwegian fishermen, disillusioned Norwegian statistics show that 286 customers. with declining fishery catches, to ap­ marine fish farms 2 were operating Production ply for licenses to start a salmon or during 1982. Although the Norwegian trout farm. It is estimated that be­ Government had in effect suspended Two species of fish are extensively tween 20 and 30 percent of the license the issuing of new licenses in 1977, it cultured in Norway: Atlantic salmon holders are former fishermen. Many granted 100 new licenses in October and rainbow trout. In recent years, of these potential salmon or trout 1983 for farms with a maximum net the Atlantic salmon has come to farmers inhabit the isolated com­ cage capacity of 5,000 m3. Farms dominate the industry. munities along the fjords and islands which had been operating continuous­ Atlantic Salmon of the western coast of Norway (Fig. ly for at least 3 years before October 1). The Norwegian Government en­ 1983, are allowed to apply for permis- Norwegian culturing ofthe Atlantic courages fish farming in the sparsely populated coastal regions for both 3Mention of trade names or commercial firms 'It is estimated that a farm with a capacity of does not imply endorsement by the National Robert J. Ford is Foreign Affairs Specialist, 8,000 m3produces about 60 t of salmon annual­ Marine Fisheries Service, NOAA. Western Europe, with the Branch of Foreign ly (Edwards, 1978). 4Norsk Hydro's British subsidiary, Norsk Fisheries Analysis (F/M321), National Marine 'Of this total, 215 farms raised Atlantic salmon Hydro U.K. Ltd., has purchased the U.K. fish­ Fisheries Service, NOAA, Washington, DC and 189 raised rainbow trout. There were 118 farming flfm Golden Sea Produce, Ltd., and its 20235. farms which raised both salmon and trout. subsidiary Scottish Sea Farms, Ltd.

44 Marine Fisheries Review Table 1.-Norway's farmed AUantic salmon and rainbow trout production, 1971-86.'

Production (t) Atlantic Rainbow Year salmon trout Total

1971 98 433 531 1972 146 778 924 1973 171 1,001 1,172 1974 601 1,726 2,327

1975 862 1,655 2,517 1976 1,431 2,045 3,476 1977 2,137 1,795 3,932 1978 3,540 2,105 5,645

1979 4,389 2,988 7,377 1980 4,312 3,688 7,980 1981 8,907 4,485 13,392 1982 10,266 4,690 14,956

1983' 17,500 3,000 20,500 1984' 24,500 3,750 28,250 1985' 35,000 4,500 39,500 1986' 47,500 4,500 52,000

'Sources: FAO Fisheries Statistics Unit, Department of Fisheries (1971­ 80 data). Royal Norwegian Embassy in Washington (1980-86 data). 'Norwegian Fisheries Ministry pro· jections.

NORWAY I Il salmon began around 1970 and in­ .J creased rapidly, from only about 100 t in 1971 to an estimated 17,500 t in } 1983 (Table 1). At first, Norwegian salmon farmers had difficulties marketing their product. It was more expensive to farm salmon than to catch it in the wild, and many customers believed that cultured salmon was of inferior quality. Con­ sumers, however, have found over the years that the quality of cultured salmon is the same, or better, than that of wild salmon. The controlled conditions under which salmon can be Figure 1. - The coast of Norway. cultured and harvested enable fishermen to produce a high quality, uniform product. The average weight of farmed salmon is 4 kg, whereas the weight of wild salmon fluctuates from 1 to 9 kg. The high quality, uniform size and weight, and year-round availability of cultured salmon ac­ counts for much of its marketing ap­ peal. The Atlantic salmon is the most im­ portant species cultured in Norway; its 1982 harvest represented about 70 percent of the total Norwegian rently being done on fish fanning in salmon with its 1981 harvest account­ farmed fish production. Salmon Norway involves salmon. This effort ing for nearly 90 percent of the world farming has proven to be a very prof­ has made Norway by far the world's total (Table 2). Furthermore, itable industry and most research cur- leading producer of farmed Atlantic Norwegian officials expect that their

46(3) 45 farmed Atlantic salmon production salmon marketing in 1974. As a result Table 2.-World produclion of farmed could reach nearly 50,000 t by 1986. of the expanding salmon farming in­ salmon and Iroul, 1981. dustry, the NMMB began providing Production (t) Rainbow trout loans and marketing services. Most of Rainbow Atlantic Country The production of rainbow trout, the salmon farmers dealing with the trout salmon Denmark 19,000 Salmo gairdneri, is not expected to in­ NMMB are small producers. Finland 7,000 crease significantly because its export France 21,000 Exports Germany (FRG) 12,000 possibilities are poor. Less than half Italy 21,000 of the trout harvested is exported, and Farmed Atlantic salmon has Japan 20,000 Norway 4,000 8,900 the home market is limited because become an important Norwegian Sweden 2,000 rainbow trout is not indigenous to fishery export. In 1982, Norway ex­ United Kingdom 5,200 1,000 United States 20,000 Norwegian waters and is not well ported 9,400 t of cultured salmon, or Total 131,200 9,900 known to Norwegian consumers (Ed­ over 90 percent of its total farmed Source: Cedrins (1983). wards, 1978). Also, broodstock for salmon production (Tables 1, 3). their rainbow trout must be taken France was the main market, buying from captive stocks because the 2,700 t, or 30 percent of Norway's ex­ species does not spawn naturally in ported salmon that year. The Federal Table 3.-Norwegian exports of farmed Norway (Edwards, 1978). Republic of Germany (FRG) and Atlanlic salmon and rainbow Iroul, 1982. Although production of rainbow Denmark also bought large quantities Exports (t) trout increased from 400 t in 1971 to of the Norwegian salmon. Exports to Country Salmon Trout Total

4,700 t in 1982, its annual harvest is the United States were 762 t in 1982, France 2,710 260 2,970 expected to stabilize at around 5,000 or about 8 percent of Norway's total Germany (FRG) 1,850 350 2,200 Denmark 1,240 280 1,520 t. Trout farming, however, is still im­ salmon exports. Sweden 590 580 1,170 portant because new fish farmers Exports of Norwegian farmed trout United Kingdom 930 110 1,040 United States 762 243 1,005 generally begin culturing trout, which in 1982 amounted to 2,200 t, around Switzerland 350 140 490 are easier to rear than Atlantic 45 percent of the total trout produc­ Belgium 370 90 460 Spain 270 40 310 salmon, before turning to the more tion that year. Sweden, which im­ Finland 140 40 180 Netherlands 120 60 180 profitable salmon culture. ported 580 t of trout, was the largest Japan 40 40 single market. Other major markets Other 40 5 45 ---- were France, FRG, and Denmark Total 9,412 2,198 11,610 Trade Associations (Table 3). Sou rce: Fisheries Attache, Royal Nor· Norwegian aquaculturists have The success of Norwegian Atlantic wegian Embassy, Washington, D.C., pers. three organizations. The largest is the salmon exports is due to several fac­ commun., 1984. Norwegian Fish Farmers Association tors. The salmon is of very high quali­ (NFFA) which was organized in 1970 ty and is mostly shipped fresh by the and represents 70 percent of Norway's Scandinavian Airlines System. petition for U.S. fishermen in both fish farmers. It lobbies the Norwegian Because the fish are farmed and not domestic and foreign markets. The Government and also deals with caught in the wild, fresh shipments excellent quality, freshness, and year­ domestic and foreign buyers. NFFA can be guaranteed at any time of the round availability of the Norwegian represents almost all of the large pro­ year, and are especially valued at farmed salmon makes it a highly­ ducers. NFFA has its own magazine, those times when the catch of wild valued commodity among demanding the National Fish Farmer, which pro­ salmon is down. The high quality and consumers. vides the largest information on fish­ year-round availability of Norway's Norwegian companies have farming techniques and on new farmed salmon makes it particularly targeted the United States as a markets. valuable to such specialized customers primary market for their farmed The Norwegian Trout Organization as restaurants, hotels, gourmet stores, salmon. Although the United States is (NTO) was established in 1965. etc. a major salmon producing country, Representing over 50 percent of the Norwegian export companies believe Impact on rainbow trout farmers, the NTO buys that they can successfully market the United States trout from the smaller farms and sells substantially increased amounts of it to processors, thereby giving the U.S. salmon fishermen are con­ fresh Atlantic salmon in the United 5 smaller producers a greater leverage in cerned about the impact which States • In 1982, according to deciding market prices. The NTO also developments in Norway will have on provides financial assistance to its their industry. The rapidly expanding members when necessary. production of Norwegian farmed 'The Norwegian salmon is generally shipped in Styrofoam containers, each fish individually The Norwegian Meat Marketing salmon, the vast majority of which is wrapped in cellophane, by SAS to Kennedy Air­ Board (NMMB) became involved in exported, will mean increased com- port in New York,

46 Marine Fisheries Review Norwegian statistIcs, U.S. firms Oncorhynchus spp., in 1982 com­ tion in Norway are very good, and in­ bought 7(fJ t of farmed salmon from pared with about 9,000 t of Atlantic dustry expansion, primarily salmon Norway, compared with only about salmon for Norway; U.S. commercial production, is expected to continue. 21 t purchased in 1981. These exports fishermen catch almost no Atlantic The Norwegian Ministry of Fisheries, accelerated rapidly in 1983 and to­ salmon) and supplies most of the which is investing large amounts of talled 2,300 t valued at $16.8 million. salmon for the domestic U.S. market, time and money into the research and Norwegian officials believe that the it faces strong competition from the development of farmed fish in Nor­ United States eventually will replace Norwegians for "top-of-the-line" way, is very optimistic. The Ministry France (which imported 2,700 t of salmon. Since the U.S.-produced is, however, concerned that too rapid Norwegian farmed salmon in 1982) as Pacific salmon is caught in the sum­ an expansion of salmon farms could Norway's major market for this com­ mer, it is available fresh for only a lead to a decline in prices obtained by modity. limited time, and most U.S. salmon is salmon aquacuiturists. Norwegian salmon exporters also produced in frozen or canned form. As a result, the Ministry is attempt­ have well-established markets in The Norwegian product, on the other ing to encourage fish farmers to also Western Europe and are expanding hand, can be shipped fresh year­ begin working with other equally their sales in other parts of the world. round and is exported to the United cost-beneficial species (i.e., cod). The France, FRG, and Denmark each States and other countries mainly in decline of the once flourishing bought over 1,000 t of Norwegian the winter and spring. The Norwegian Norwegian cod fishery in recent years salmon in 1982, and seven other product, furthermore, is the Atlantic has led many scientists to experiment European countries purchased signifi­ salmon which many consumers value with cod farming. Early results of cant quantities (Table 3). The more highly than the Pacific salmon. these experiments have been good, Norwegians have also decided to try Thus, Norway is able to compete ef­ and Ministry officials hope that a to increase exports to the Far East fectively with the U.S. for "top-of­ lucrative farmed cod industry can one (despite the fact that Japan bought the-line" salmon. The export potential day help supplement dwindling only 40 t of the farmed salmon in of Norway's Atlantic salmon is natural resources. 1982) because of their success in ship­ evidenced by the fact that it has even ping fresh salmon to the United been sold in Seattle, Wash., one of States. The SAS airline is interested in the centers of the U.S. Pacific salmon Literature Cited planning marketing campaigns to industry. establish new markets for fresh Cedrins, R. 1983. Aquaculture in Scandinavia. salmon shipments. In Proceeding of the International Seafood Future of Trade Conference, p. 191-206. Alaska Sea Although the United States exports Norwegian Aquaculture Grant Rep. 83-2. much more salmon than Norway Edwards, D. J. 1978. Salmon and trout farming in Norway. Fish. News Books, Ltd., Farn­ (about 135,000 t of Pacific salmon Prospects for farmed fish produc- ham, Surrey, Engl., 195 p.

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