Ireland’s Marine Sector and the BioEconomy1

(Paper primarily drafted by the Marine Institute)

1 The views expressed in this background paper to not purport to reflect the views of the Minister, the Department of Agriculture, Fisheries and Food or the agency whose activities are discussed

1 1 National and International Context

1.1 Introduction and National Context

Within a competitive world economy, Ireland’s future economic prosperity is dependant on the fundamentals of its geography, physical resources and human capital. In this context Ireland’s unique location and extensive marine resources (10 times our land mass) represent a unique asset supporting a wide spectrum of interlinked activities to advance the knowledge economy. In 2007 the government launched Sea Change – A Marine Knowledge, Research and Innovation Strategy 2007-2013 to address the 2020 vision developed in the National Marine Foresight Exercise undertaken by the Marine Institute. Sea Change aims to bring about a transformation of the marine sector from a traditional one primarily associated with low value added food harvesting activities to one which is high value embracing knowledge intensive, commercial opportunities developed in a sustainable manner. In the context of the bio-economy marine resources can be split into food and non food as follows: Food - inclusive of sea fisheries and aquaculture (finfish and shellfish) and Non Food – Pharmaceuticals, other chemicals and novel materials and a wide range of bio processing. Key factors that will shape future marine sector development include, scientific research capacity and infrastructure, the environment, competitiveness, global demand and the need for all firms to anticipate and become responsive to consumer preferences. Product, process and organisational innovation are highlighted as the means by which the competitiveness of sectors can be improved through the production of value added products and services. 1.2 Global Context / Issues

In the traditional economy, knowledge-creation and application is generally confined to developing technologies that reduce or eliminate costs in manufacturing and distribution processes. In the knowledge economy markets are global, customer or market-led and knowledge enabled; players generate and apply research outputs and technological developments to underpin the creation of new products and services and to grow markets. A major trend in recent years has been the globalisation of R&D and the S&T (science and technology) labour force. Emerging economies have adopted a similar strategic perspective to the developed world and are seeking to build competitive advantage through developing indigenous S&T infrastructure and talent and by attracting foreign investment and experienced people. As the rate of global change continues to increase, so too do the challenges faced by a small open economy as Ireland increase. The new challenges tend not to be scientific and technological ones alone, but social, political, economic and cultural in origin. They are pervasive and appear set to shape the scientific and technological response and include both a national and a global dimension. Key issues that will shape the response of Ireland’s agrifood and marine sectors include;  Competition from low cost regions of the world threaten all sectors attempting to maintain commodity prices;

2  The power of customers (end-user) to influence markets and particularly the development of new products and services;  Regulatory systems, whether EU regulations and quotas, the outcome of GATT negotiations, CAP, CFP, the Marine Strategy and food health regulations;  Rising energy costs;  Food security and access to raw materials on which to base food products and the extent to which political, climate and sustainability issues threaten food sources;  Climate change and the varying degree of impact this is likely to have or is having on us;  A focus on the use of Green Technologies creates new product opportunities and also helps to develop responses to legislators and customers demands for minimal environmental impact resulting from commercial activity  Maintaining bio-diversity and the need for an ecosystems approach.  Ireland’s Science Technology and Innovation Strategy that sets the goal for Ireland to become a knowledge-based economy reflects EU policy.

1.3 EU Context

In 2007, the EU launched an Integrated Maritime Policy for Europe. This was followed in September 2008 by the EU Marine Research Strategy. A clear convergence of the Irish RTDI policy outlook with that of Europe and elsewhere exists. There is both a national and international imperative to enter and compete within the global knowledge based economy. To do so requires a major shift in thinking and a courageous step towards prioritising research for the medium to long term and to support this by ring-fenced funding. The challenges in Ireland are clear to see, they are the same challenges that European RTDI face. The consistency of outlook from Europe concerning marine RTDI priorities represents a major opportunity for Ireland. Already within FP& in 2007-2008 marine researchers have secured 11.4% of the national take from the EU framework programme.

Synergies between national marine research priorities (identified in Sea Change) and those identified by the Commission are:

 Climate change and the oceans  Impact of human activities on coastal and marine ecosystems and their management  Ecosystem approach to resource management and spatial planning  Marine biodiversity and biotechnology  Continental margins and deep sea  Operational oceanography and marine technology (including use of GMES)  Exploitation of marine renewable energy resources

3 1.4 SWOT of the Irish Marine Sector

The SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis presented below looks at Ireland’s marine sector as a whole. Presented in the Appendix of this document a number of individual sub-sector SWOTs.

Strengths Weaknesses

. Ireland’s significant living and non-living ocean . Low level of awareness of the diversity and resources; potential of the sector; . Dedicated agencies (MI & BIM) with expertise and . An under-performing industry, compared to structures supporting the sector other maritime countries; . Established markets for export-oriented . Small SME base with low levels of R&D companies (e.g. seafood, marine services and engagement; marine technology); . Regulatory regime unsuited to significant . Clear national strategies for the development of development of the sector; the marine sector (Sea Change & Cawley) . Opportunities not being recognised by the . National strengths in ICT and life/bio-sciences that Venture Capital Community; are being mobilised for the marine sector; . No champion for marine research . Strong inter-agency collaboration in implementing commercialisation; national marine strategies (e.g. MI, SEI, IDA, EI, . Little recognition of value and importance of BIM, Teagasc, SFI, Udaras) marine tourism & leisure sector. . Solid foundation of research capabilities/infrastructure . Track record in securing EU research funding (EU Framework Programme); . Significant role in influencing EU maritime policy/research agenda; . Recent MNC/development agency engagement in marine sector opportunities.

Opportunities Threats

. Establish Ireland as a maritime nation/ ‘good . Economic Environment; place to conduct marine business’ . Unable to implement national strategies for . Major growth potential in new and emerging areas the development of the sector due to limited – offshore renewable energy, green technology, funding; marine biotechnology etc; . Reactive versus proactive approach to the . Draw into the marine the capacity and capability development of the sector of SFI funded teams, particularly for these new . Degradation of coastal water quality will and emerging sub-sectors; impact on clean/green reputation . Renewed opportunities in traditional marine sub- . Fragmentation of support agencies sectors – fish landings/ aquaculture/ seafood processing, seaweed, water-based tourism & leisure/ cruise, marine transport and commerce; . Exploit marine natural resource for non-food applications e.g. new drugs and materials . Marine Inter-departmental Committee can raise profile of marine in other departments . Potential to leverage Ireland’s success in attracting foreign direct investment (FDI) . Establish Ireland as a global reference site for

4 marine climate change and a key monitoring site for the NE Atlantic.

The nature of the Agrifood and Seafood Sectors

With few exceptions, Ireland’s fish and agri-food sectors are characterised by their small scale (firms tend to be SMEs) and by not being particularly research intensive. Scale factors influence the majority of these firms from generating knowledge through research; and whilst their small size contributes to the firms being flexible and adaptive, few engage in innovation actions to utilise knowledge generated elsewhere. Differences exist between the agrifood sector and the broader fisheries and seafood processing sector in the extent to which each sector is able to add value to raw materials. Value added products account for close to 80% of sales from Ireland’s dairy sector, where the raw material input is milk. The majority of sales from Ireland’s seafood sector result from the sales of minimally processed fish and shellfish – both wild caught and famed. Viewing fish and other marine species as a source of materials on which to base high- value added ingredients, much in the same was as raw milk provides such materials, is a viable development model for the marine food sector. Whilst the Cawley report drew attention to functional foods, realising the potential requires a consistent and committed investment in research as occurred in “mining” milk for high value materials.

5 2 Irish Marine Research Infrastructure, Capacity and Activity

Investments in research over the last decade have brought about significant changes in the Irish marine research landscape; providing new and significantly strengthened research capacity, capabilities and infrastructures. Since 2007, national and international commitments to R&D investment in marine research in support of the objectives in Sea Change has amounted to in excess of €100m (€48m of which has been committed under the Marine Research Sub-Programme of the NDP 2007-2013). 2.1 Marine Research Infrastructure

Significantly, and because of dedicated marine STI funding schemes under both the National Development Plans 2000–2006 and 2007-2013, Ireland has established world- class marine research infrastructure. e.g.  The provision of two state-of-the-art specialist/multipurpose marine research vessels, RV Celtic Voyager (1998) and RV Celtic Explorer (2003);  An upgrade of specialist Marine Institute laboratory infrastructure at Oranmore, Co. Galway (2006) and Newport, Co. Mayo (2003);  The availability of a national data asset arising from the National Seabed Survey/INFOMAR funded by government and carried out by the Geological Survey of Ireland and the Marine Institute ;  Establishing and upgrading Ireland’s Ocean and coastal obversoaty system e.g. ocean and inshore data buoy networks and coastal tide gauge networks (2000– 2009);  MI/SEI investments in Renewable Ocean Energy e.g. establishment of ½ scale inshore test site at An Spidéal, Co. Galway (2005) and preparations for the establishment of a full-scale, grid- connected wave energy test site at Bellmullet Co. Mayo (current)  Investment and delivery of specialist marine research equipment e.g. Remotely Operated Vehicle (2008/2009);  Marine Biodiscovery Laboratory (2008-current). In addition, the HEA through the PRTLI, has continued to support and fund marine research infrastructure in the Higher Education Sector e.g.:  Setting up the National Maritime College in Ringaskiddy, Co. Cork (2005); and  Continued investment in facilities in e.g. National University of Ireland, Galway and University College Cork and Galway Mayo Institute of Technology.

2.2 Marine Research Capacity and Capability

In parallel, marine RTDI funding has both strengthened and created new research capacity and competencies. Research capacity has been strengthened particularly in the traditional areas of fisheries, aquaculture and marine environmental research, monitoring and assessment. The improved skill base is focused on addressing industry problems (e.g. fish stock assessments and recovery plans, harmful algal blooms). These

6 researchers have a critically important role in addressing new challenges including the implementation of the ecosystem approach to marine resource management (EU Marine Strategy), the EU Water Framework Directive (WFD) and the Convention on Biological Diversity (CBD). Ireland has also developed a world-leading reputation for seabed mapping. We now have the methodologies, human capacity, know-how and physical infrastructure to expand this activity. It was accomplished through the successful implementation of the Irish National Seabed Survey (INSS) /INFOMAR. Over the last 3-5 years significant new research capacity has been developed to focus on identified priority research areas which lacked the physical capacity e.g in the areas of:  renewable ocean energy;  biodiscovery and biotechnology;  Advanced marine technologies; and  Marine socio-economics. In tandem, Sea Change also identified the need to target and attract researchers from other disciplines to apply their skills to marine sector i.e. leveraging the national investment committed by SFI in the areas of ICT and Biotech. The Marine Institute is actively engaging with SFI and researchers to capture the expertise established and direct it towards the opportunities that exist in the marine area.

2.3 Irish Researcher Success in European Research Programmes

Investments in the past in marine research were targeted at developing research competencies and research facilities have improved Ireland’s position as a desirable partner in international marine R&D projects. From 2007 to date, Irish marine researchers from Higher Education and other public institutions secured a total in excess of €18m in grant-aid (of this MI secured €2.7m). This compares with a total of €23.1m awarded from the same sources during the entire duration of the previous cycle (2000-2006). The investment is spread across 37 projects that fall within ten of the 15 Sea Change Research Programmes. The marine research community has secured 11.4% of the national take in FP7 to date and has performed particularly strongly in the Energy, Environment and Space programmes.

7 Snap-Shot of Irish Marine Research Capacity In preparation for Sea Change, the Marine Institute carried out the first detailed identification of marine research capacity in the third-level sector in Ireland. The study identified ~ 500 researches in 56 research groups/teams in 16 HEIs either active, or recently involved in, marine-related research. This includes groups that are entirely focused on marine research and also teams that are involved in marine research projects but whose research interests are wider. In addition to the significant expertise in the HE sector, a number of public sector agencies are involved in some aspect of marine-related research in Ireland. In many instances staff engage in research, alongside other duties (e.g. monitoring, enforcement.) E.g.: The Marine Institute is the state’s marine research agency; engaging in a wide range of marine research and development activities (e.g in the areas of fish health, climate change, oceanography, knowledge and information management, fisheries, environmental, catchment management). Through the NDP it also provides funds to stimulate research in the higher education and private sectors. In addition to providing development supports to the seafood industry, BIM also participate in research that is linked closely to industry needs in the fishing, seaweed and aquaculture sectors. Teagasc carries out marine research at Moorepark and Ashtown Food Research Centres (related to seafood safety and processing of under- utilised fish species). In addition, researchers in Teagasc (Rural Economy Research Centre in Athenry) are involved in socio-economic research related to the marine sector. Since the launch of Sea Change, new funding (national and international) has created new research positions. An estimated 170 new research positions (PIs and Post-Docs) and 176 new PhD scholarships were created. These positions have been created from a variety of national and international funding sources.

8 The following diagram provides an overview of the spread and intensity of marine research activity and funding (national and international) since 2007 (under Sea Change)

31 Industry 6 Industry Associates 9 University 8 Institutes of Technology 13 Public Sector 1 NGO

9 3 Sustaining the Marine Environment

3.1 The Marine Environment

Current priorities for Marine Environment and Food Safety research in Ireland are as set out in SeaChange – a marine knowledge, research and innovation strategy for Ireland 2007-2013. These are broadly based on requirements that arise from European legislation and the opportunities that arise for Irish Marine sector as a consequence. As a productive and sustainable marine based food sector depends on waters with a high environmental status there is a close relationship between Food Safety, Aquaculture and Marine Environment research topics and programmes. The Marine Strategy Framework Directive (2008) will continue to drive this agenda into the future as it encompasses other existing directives and will integrate with and be supported by EU policy such as a revised Common Fisheries Policy.

Sea Change outlines the following vision for the year 2020 with regard to the Marine Environment research programme.

By 2020, Ireland will have healthy marine ecosystems that sustain and support a dynamic maritime economy. As part of its commitment to generating and applying knowledge for social and economic benefit, Ireland will have in place an integrated policy and regulatory system to ensure the sustainability of marine ecosystems while allowing for the rational use of marine resources.

National marine policy will be driven by an overarching goal to have healthy marine ecosystems that sustain indigenous biodiversity and provide for existing and new uses of marine and coastal resources.

Ireland will be fully compliant with the requirements of EU marine legislation and international conventions to which it is a contracting party, and will be able to demonstrate, through the compilation and regular publication of a suite of appropriate environmental assessments, the maintenance of a high quality marine environment.

Ireland will have developed a marine brand identity, with a high quality environment and robust economy. This brand will form part of a marketing programme for the seafood, tourism and other marine sectors.

The marine food industry in Ireland is primarily focused towards the export market. Research geared towards a viable marine food sector in 2020 must therefore be focused towards maintaining consumer confidence in Irish product while enhancing its reputation as being environmentally sustainable. Continuing to support the marine food sector includes the following:

 Implementing Current and New Environmental Legislation Impetus for the development of novel mechanisms to manage the marine environment and the activities that take place in it based on sound scientific information will continue with the implementation of the Marine Strategy Framework Directive. This will require greater integration between existing monitoring programmes for the food production sector such as stock assessment with environmental protection policy. The

10 implementation of the directive is likely to strengthen the legislative status of the OSPAR Convention for EU member states. In order to achieve this, Ireland will need to continue to mobilise marine research capabilities to inform legislative and policy choices.

 Sustainable (Sectoral) Development An increased consumer focus on sustainability, together with increased adherence to environmental legislation such as the habitats directive will reaffirm the requirement for mutually supportive policies to achieve a balance between society, economy and environment. Within this context, the ecosystems approach has emerged as a fundamental delivery mechanism for achieving sustainable development, based on maintaining fully functioning ecosystems. Progress will require more coherence and better integration of management and regulatory systems across all sectors. Although there are existing measures in place to reduce and control pressures and threats on the marine environment, e.g. relevant EU Directives and OSPAR strategies, they have typically been developed and implemented on a sector-by-sector basis. Most sectoral policies address diverse uses, pressures, impacts, and major ecosystem components (fish, seabirds, water quality and habitat features) separately. However, there is growing acceptance of the need to consider interactions and cumulative effects arising out of multiple uses of the marine eco system and to address these through policy instruments that adopt a more integrated and holistic approach. Within Europe, the Ecosystems Approach features prominently within the reformed Common Fisheries Policy, OSPAR and the new EU Marine Strategy. Although guidance will be provided through these mechanisms, ongoing research will be required at member state level to determine the specific objectives, approaches and indicators.

 Environmental Understanding Ireland needs to invest further in research to provide an adequate baseline of the characteristics of the marine and coastal environment. Examples include a programme of research in physical, chemical and biological systems and processes, a baseline assessment of resources (e.g. seabed resources through the INFOMAR programme); and the development of appropriate models. Such data sets and models would provide the scientific input needed for the assessment and governance of the marine sector. They would also allow appropriate environmental indicators to be developed and used in determining trends, e.g. impacts of climate change and ocean acidification due to ocean absorption of anthropogenic atmospheric CO2. The challenge posed by climate change are dealt with in the next section.

 Environmental Quality and Protection In accordance with international conventions to which Ireland is a party (e.g. OSPAR Convention, 1992), Ireland is expected to carry out regular assessments of the quality of the marine environment including water, sediments and biota. Ireland is also obliged under the Water Framework Directive to achieve good ecological and chemical status in its coastal and transitional waters by 2015 with similar requirements towards 2020 in the Marine Strategy Framework Directive.

 Protecting Marine Biodiversity The maintenance of biodiversity in Irish waters demands effective regulation backed by coherent programmes of scientific research. The richness of our marine biodiversity can be measured by the range of habitats, the number of species and their genetic variety. In accordance with the National Biodiversity Action Plan, as well as other UN and EU

11 legislation, Ireland needs to implement a prioritized programme of marine species and habitat mapping and surveying. Based on this programme, Ireland will adopt specific provisions in our spatial planning and resource management for the conservation of marine biodiversity. The maintenance of biodiversity also provides a potential resource for biodiscovery and marine eco-tourism, and conserves Ireland’s marine heritage for future generations.

 Enhanced Monitoring Capability Ireland can build on the investment made in marine research infrastructure, e.g. research vessels, laboratories and communications technology, to achieve a more efficient and effective marine monitoring system. Ireland has already built expertise in microelectronics, sensors and data management, which provides further opportunities to develop automated systems for environmental quality monitoring in freshwater catchments and marine and coastal areas. In addition, there is the requirement, as listed above, for monitoring and management of the marine environment.

 Integrated Management and Advice The availability and reliability of marine environmental data is critical to assessing and managing the marine environment and promoting sustainable development. Existing and new data sets on key marine environmental variables need to be integrated, made accessible, and presented in formats that can be readily understood by all stakeholders. The review and analysis of such marine data sets will enable us to assess spatial and temporal changes at national and regional levels and to develop further insights into, and understanding of, marine ecosystems. These insights can form the basis for better policy advice and for management of marine resources.

12 3.2 Climate Change and Oceanography

This section outlines the status of marine climate change and oceanography research, the key research challenges and opportunities for 2020 to underpin a viable marine food sector

The Sea Change strategy for Marine R&D identified Marine Climate Change as a key gap area in the nation’s knowledge, both in terms of assessing changes that have already taken place in the ocean around Ireland and in terms of predicting future changes based on varying greenhouse gas emissions. In 2007, the NDP supported the establishment of a marine climate change research programme to look at various available oceanographic, plankton, chemistry and fisheries data sets and to build capacity in future scenario modelling with a particular focus on the marine ecosystems responsible for sustaining food production in the ocean. The programme has also focussed on downscaled statistical modelling of future scenarios and on CO2 fluxes and ocean acidification that also impact upon the marine food sector.

Key research challenges and opportunities to underpin a viable marine food sector:

 Large scale ocean circulation: Many questions remain unanswered in terms of how the wider Atlantic Ocean processes influences the living resources within the sea and Ireland’s weather and climate. The gyres and current systems of the Atlantic influence recruitment and distribution of key fisheries (eg. Blue Whiting, migratory species). Sea surface temperature influences our weather systems impacting both marine and land-based activities such as agriculture. The precise mechanisms that bind the ocean currents, marine ecosystems and weather patterns are not fully understood. Investing in such basic research will enhance predictability of future states that may aid planning the harvesting of marine food.

 Coastal circulation: Elaborate coastal currents operate in our waters and transport a variety of materials around the Irish coastline and in to key bays. Fish larvae, harmful phytoplankton, persistent chemicals and pollutants can be moved around our waters in these currents yet little is known about the variability these currents exhibit on different time scales. A key challenge is to quantify this variability so that accurate predictions of pollution events, oil spills, algal blooms and fisheries recruitment can be provided. Infrastructure deployed in our coastal oceans to date provides weather and sea state information to the fishing vessels and commercial and leisure users that ply our seas. Tide gauges at our coast assist in forewarning imminent storm surge and flooding events that effect coastal communities and livelihoods. Maintaining this critical infrastructure represents a challenge, primarily form a fiscal and human resourcing perspective.

13  Climate change Recent evidence suggests wide scale changes to the fisheries ecosystem around Ireland in recent years. These have tentatively been linked to warmer waters and changes in prey availability for key commercial species. Warmer waters may influence the viability of finfish aquaculture as temperatures exceed the optimum values for fish growth. There is also evidence to suggest that Harmful Algal Blooms affecting both finfish and shellfish aquaculture are on the increase in European waters. Understanding the precise linkages and feedbacks between the physical, chemical and biological processes occurring in our waters lies at the heart of a viable marine food sector. With a strong understanding of how the system works and how it is likely to be perturbed under different future climate scenarios we can adapt activity (eg. Fisheries targeted, finfish and shellfish species to produce, modification to structures at sea) as required to face the challenges that a changing climate will present to Ireland.

 Impacts of Ocean Acidification on Fisheries Resources It is widely recognised that marine microbes and micro-plankton species provide great benefit to human society through ecological services and maintenance of ecosystem health. These microbes maintain the productivity of the oceans through the generation of oxygen, nutrient cycling and nitrogen fixation. Increased absorption by the oceans of CO2 from greenhouse gases will increase acidification and directly impacts the physiological processes, reproduction and survival of all marine organisms including commercial important fish stocks.

Ocean acidification will potentially alter the stability and functioning of the ecosystems which in turn will affect the recovery and rebuilding strategies for fish stocks and the sustainable utilisation of fisheries resources. Addressing ocean acidification adaptation will be linked into the implementation of the ecosystem approach to fisheries management which will include greater research and monitoring of fish stocks, trophic interactions and socio-economics analysis on its effects on sea food productivity, the fishing industry and coastal communities.

14 4 The Marine – A Source of Novel Materials

Marine environments are diverse, and organisms that occupy the many ocean niches are exposed to various extremes of pressure, temperature, salinity and available nutrients. Because of this diversity and that most of the marine environment is yet to be explored, the marine sector offers far more scope for discovery and associated breakthrough technologies compared to the agri sector. Until quite recently, terrestrial microorganisms were the most widely used in industrial processes. The search process for novelty has expanded; target habitats spreading from soil, desert sand and the rumen of cattle and other ruminants, to the marine. By exploring and harnessing marine materials, entirely new uses in areas far from the marine are likely to be found. Already there are successful marine origin pharmaceuticals, novel industrial enzymes, food ingredients, biosensors, drug delivery systems and novel chemical compounds. As more of the marine is explored, the number of novel marine materials is set to increase offering great scope for commercial applications.

Marine Biotechnology Biotechnology is the process by which biological systems are controlled, manipulated or modified to enable the production of value–added products. The impact of biotechnology is already seen in traditional industries such as food and beverages, where it is bringing about changes in how products are produced and influencing the kind of products that can be produced. It is also driving the development and application of entirely new production systems to support the industrial scale production of pharmaceuticals, other chemicals, and food and novel materials with a wide range of applications as well as providing novel approaches for the processing of waste materials. It is likely, as a result of advances in biotechnology, that entirely new business sectors will emerge as efforts to maximize biological diversity intensify. The largely under utilized and unexplored marine resource is a source of greater biological diversity than anywhere else and is likely to lead to intensified activity with benefits across all indusial sectors. There is an established “bio-economy” in Europe. It includes all productive sectors that utilise or exploit a biological resource (e.g. agriculture, food, forestry, fisheries and other bio- based industries). Estimates of the European bio-economy indicate a market size of over market size of over €1.5 trillion and employing more than 22 million people. Marine biotechnology is a knowledge generation and conversion process: it unlocks access to biological compounds and provides novel uses for them. Many examples of the tangible benefits of using outputs from marine biotechnology research in the food, health, energy and industrial materials sectors exist; an awareness promotion initiative can be built around these. These successes highlight the potential and strengthen the overall attractiveness of marine biotechnology to businesses outside the marine sector.

Marine Biotechnology and the Food Sector To realise the vision of Ireland as a knowledge-based economy in which the agri-food and marine foods sectors progress within an innovation driven culture demands support from the state to encourage and expand research activity. The known structural weaknesses in the marine foods sector are being partly reinforced through investments made under the current NDP. Compared with the agri-food sector, which developed on the back of a dedicated stream of research funds from the early 1990’s, the marine

15 foods sector lags behind on all fronts. The future mapped out for the agri-food sector, is based on achieving long-term sustainable competitiveness by the creation and use of scientific knowledge. Very much as farming is the first link in the food chain, so to is the capture or production of fish and shellfish. Maintaining a healthly marine environment is every bit as important to the country as a whole, as are sustainable farming systems. The greatest impact on Ireland’s farmland remains the Atlantic Ocean; and separating farming from the impact of the marine environment is impossible. Much as the agri sector respects the physical environment, promotes biodiversity and maintains a healthy countryside, the same focus is required on the marine environment. Through state support and drawing from European funds Ireland built up considerable research capability in bio technology and life sciences and in information and communications technologies all of which contribute to the agri sector and to making inroads in the marine sector. Just as there is a clear need to be able to tailor animals and plants to meet customer requirements, to eliminate variability and ensure stock can endure environmental changes, so too is there a need to achieve the same impacts in marine foods. The “omics” revolution is well underway and Ireland through investments in biosciences research has a foundation on which to continue to build and deploy capabilities to understand and exploit the deep understanding of the physiology, cellular biology and biochemistry. As with the agri-sector, the ability of the marine foods sector to understand and exploit knowledge at the cellular and molecular level is essential. Across the agri and marine sectors new knowledge and relevant technological developments are required to assess and harness developments associated with animals, plants and micro-organisms and to monitor and protect the environments in which they exist.

Next generation bio-based products Next generation products and the processes required to unlock the anticipated valuable materials of these sectors, will rely heavily on biotechnology processes. Biotechnology draws from a wide range of biological disciplines including botany, marine sciences, animal sciences, microbiology, systems biology, bioinformatics, pharmacology, toxicology, genetics, molecular biology, biochemistry and cell biology. The agri sector plans to diversify into crops for non-food use, where the potential to generate novel products rests on biotechnology. The marine is diverse not only in terms of the biodiversity which exists within it, but also in respect of the scientific skills required to understand, harness and develop enterprise opportunities. It offers untold opportunities for “discovery science” at all levels. The potential impact of biotechnology on the marine sector will totally over shadow that of the terrestrial agri sector. Though little of the marine biosphere has been sampled, European and other discovery-oriented research in deep waters identified novel micro-organisms, viruses, bio molecules and bacteria. These marine materials provide components for new healthcare, environmental and industrial products. As well as new materials, marine biotechnology is also the basis of new tools and processes of relevance to many industry sectors.

Non-food applications Harvesting high value bio-actives from the marine for applications in animal and human health, including pharmaceuticals, nutraceuticals and functional foods is underway. The

16 agri sector has a considerable international ranked reputation for identifying useful bioactive from milk. This expertise is currently helping to identifying bioactive in an array of marine organisms. Having identified a bioactive, a further scientific challenge is to develop the capability to tailor marine species to produce higher and purer amounts of specific bioactive. Issues of reliability and extraction efficiencies, stability and even enhancing the bioactivity of specific molecules demand expertise is developed in systems biology and bioinformatics. Biofuels Until recently, the focus of the agri-sector was the production of food. Increases in world energy prices and an associated increase in demand for bio-fuels, has stimulated interest in growing energy crops. European interest in exploring the possibility of the marine to yield bio fuels stimulated some pilot research projects. Two EU funded marine bio fuel projects include an Irish participation. One project will investigate macroalgae (seaweeds) and microalgae (single-celled plants) for their potential to provide sustainable fuel and also study the environmental, social and economic impacts of using marine bio fuel. The second project will review the global state-of-the-art in the extraction of bio fuel products from algae with a focus on species, methodologies, yield and culture methods for algal feedstock. In 2008, Sustainable Energy Ireland commissioned a report to investigate the potential of marine algae as a source of bio fuel in Ireland. A key conclusion from this report is that the large-scale exploitation of wild seaweed stocks necessary to support bio fuel production in Ireland appears unlikely in light of its role in supporting marine biodiversity and that the most likely contribution of marine algae could be seaweed produced by aquaculture.

Marine Biotechnology Research Initiatives supported under Sea Change The Marine Functional Foods Research Initiative (NutraMara project) provides seed capital to develop this emerging area of marine origin functional foods and create a sustainable network of researchers dedicated to high-class innovative research in this area. The MFFRI is focussing on three main marine sources. These are; (i) fish processing waste streams or rest raw materials, (ii) underutilised species of fish and seaweed including macro and microalgae, and (iii) the development of value-added products from aquaculture—both finfish and shellfish.

NutraMara was launched in April 2008 and is led by Teagasc Ashtown Food Research Centre (Teagasc AFRC) under the direction of Declan Troy (Head of AFRC). The initiative consortium members include Teagasc Moorepark Food Research Centre (Teagasc MFRC), University Colleges Cork (UCC), University College Dublin (UCD), NUI Galway (NUIG), University of Limerick (UL), and the University of Ulster Coleraine (UUC).

NutraMara consists of up to 30 individual scientists (research officers and postgraduate students) working on the development of marine based functional foods.

17 5 The Marine Sector’s Dependency on Technology Development

As the marine sector continues its development and new opportunities are identified, it must adopt technologies and participate in scientific discovery to remain competitive. The majority of marine foods are exported; hence energy shortages and efforts to reduce CO2 emissions may result in both economic and environmental penalties that impact competitiveness. The use of other technologies to support production systems may offer scope to compensate and retain overall competitiveness. Such challenges are not confined to the marine and indeed the marine, through continuing to focus on maximising ocean energy, could make a contribution to reducing the agri-sectors dependency on fossil fuels. Other areas of technology already contribute to advancing the competitiveness of the marine sector. Information and communications technologies underpin the diverse monitoring and communications systems on which the entire marine sector relies for its survival and day to day operation. This support marine safety, enable fish stock assessment, help guide fishermen to fishing grounds, monitor landings and boat movements. Networks of marine buoys collect and transmit various data on which national and international weather forecasting is based.

The impact of information and communications technologies An opportunity to maximise emerging technologies in the marine is to strengthen links between the marine sector and the Ireland’s successful and increasingly indigenous information and communications technologies sector (ICT). With the growing awareness of climate change attention is now turning to the development of solutions to mitigate the threat of natural water-related disasters and improve the management of water as a valuable resource. Opportunities exist for indigenous Irish companies to work with research teams to develop and roll out niche sensing and communications technologies capable of remote sampling and analysis over extended periods, essentially developing the building blocks of an environmental nervous system comprised of many distributed sensing devices that share their data in real time over the web. The market for real time met ocean systems in the renewable energy sector (wind, wave and tidal) is also expected to increase rapidly as this industry develops around the globe. Additional commercial applications will evolve as technologies are deployed, for example, gas pipeline and port security. Real time monitoring of the marine environment surrounding food production area, as in shellfish and finfish aquaculture in open water, offers scope to enhance product traceability and assure product quality and can be enabled by novel sensing systems linked into communications networks. Remote sensing using satellites is well established in the agri sector. Ireland’s farmland is monitored to assess compliance with EC regulations on “set-aside” and can also be used to assess form stocking density. The role of ICT is well established at farm levels also, where it supports auto-piloting of combine harvester, on-farm automated milking and feeding systems. In the marine area, remote sensing systems combined with oceanographic modelling capabilities enhance our ability to identify and respond to algal blooms that can sometimes threaten the aquaculture, tourism and fisheries. Harnessing developments in ICT for marine applications is well proven. Advanced algorithms support meteorological forecasting; ROVs control systems have been

18 improved and enhanced image processing leading to better visualisation, all result from the application of ICT. Identifying potential marine applications demands an intimate knowledge of the marine and of the potential of ICTs. As greater demands for data that informs and assures customers of the provenance of marine foods are placed on the marine sector, solutions the importance of ICT will increase. The development of marine ICT applications will impact policy and governance issues relating to the marine area. The value of Ireland’s marine territories is substantial as a source of novel organisms, mineral and energy reserves and food. Developing solutions to monitor Ireland’s expanding territories will be through the application of ICT research. Advanced engineering systems that result from the interaction of ICT, biological sciences, a raft of engineering disciplines provide scope to further develop the marine sector. Already underwater vehicles are able to replace human intervention in deep water, offering safer and less costly maintenance of marine structures. The likelihood of large scale off shore aquaculture will be realised only thought intense collaboration and interaction of engineers, marine biologists and other disciplines. Operating such systems in the ever hostile Atlantic Ocean, will of necessity demand the deployment of high level robotics, control systems and remote management to ensure feeding regimes are maintained and that stocks can be harvested. Technologies developed outside the marine sector will continue to be adapted and applied for marine applications. For the marine sector to realise its potential, it must become as the agri-sector, a major contributor to technology development and able to adopt ideas created elsewhere. The marine sector, as other areas of Ireland’s productive sector faces constant change. Advances in science and technology will enhance the sector’s ability to respond to the anticipated rapid rates of change.

The impact of nanotechnology Nanotechnology is the ability to structure and organise single atoms or molecules to create new materials and devices. This rapidly emerging science will impact on marine as it will on other economic sectors. It will enable the development of novel devices and materials with specific characteristics and customised to particular applications. Nanoparticles already have a role in sensors and with the promise to interact with individual microbes, there is a real possibility that novel sensor able to monitor disease states, act as diagnostic aids and the presence of pathogens, will provide the aquaculture sector for example, with early warning systems. Similarly, nanotechnology will enable new control systems to be developed, such that nutrients, pharmaceuticals and other substances can be realised to provide immediate response to some external response. It is essential, for the marine and agri-sectors to acquire the ability to translate the results of nanotechnology research into specific applications in order to remain competitive.

19 6 Sea Fisheries Resource

The Irish Seafood industry is a vital indigenous industry making a significant contribution to the economy in terms of output, employment, balanced regional development and exports. Key to the industry is a strong and sustainable resource base (fish).

In order for the industry to be sustainable, profitable, competitive and market focused and to contribute maximum long-term economic and social benefits to coastal communities, and Ireland as a whole, the resource base (fish stocks) must be:

 restored to sustainable levels in the context of a healthy and diverse marine environment; and  managed under a fisheries management regime (comprising both a Quota Management System and a Fleet Management and Licensing policy) that is equitable and transparent, incorporates effective control and enforcement mechanisms and maintains biologically sustainable stocks. Steering A New Course: Strategy for a Restructured, Sustainable and Profitable Irish Seafood Industry Strategy Review Group Report, 2006.

This is consistent with the 2020 vision for European Fisheries under the Common Fisheries Policy.

For this vision to be a reality national commitment from all stakeholders is needed. A key element of this is a commitment is outlined under the fisheries research programme of Sea Change which stresses the need for high-quality, impartial research that will ensure:  Greater understanding of the life history, ecology, socio economics, dynamics and ecosystem role of fish stocks.  The conservation and restoration of fish stocks and their habitats to meet international obligations and maintain overall biodiversity targets.  Improved stock assessment methodology for offshore, migratory and inshore fisheries  Improved scientific advice with increased transparency—through increased stakeholder interaction and participation and use of fishing industry knowledge  New fisheries management frameworks that incorporate ecosystem and socio- economic considerations  Integrated knowledge products that provide a broader range of advisory options for fisheries and ocean management.

Ireland now needs to develop and implement an ecosystem approach to managing it’s fisheries in order to rebuild its fish stocks and ensure their future sustainability. This is clearly recognised in Sea Change where it states “ It is now accepted that all aspects of the ocean are inter-related and should be treated as an integrated system. In order to achieve a more rational management of resources and thus improve the quality of the marine ecosystem, Ireland must adopt an integrated and co-ordinated approach to fisheries management and development planning”.

20 An ecosystem based management strategy is now being developed for Irish fisheries through the “Beaufort Ecosystem Approach to Fisheries Management” project funded through the “Sea Change programme”. This €1.0 million project over seven years consists of consortium of research scientists from the Marine Institute, University College Cork and Queen University Belfast. It will address key objectives of the Sea Change strategy for 2013 and National Strategy for the Seafood Industry (Cawley Report) to rebuild depleted fish stocks which includes aims to: a) improve quality and increase the transparency of scientific advice through increased participation and interaction with stakeholders including industry; b) increase our understanding of the life history, ecology, socio-economics, dynamics and ecosystem role of fish stocks and c) build integrated capacity and knowledge management.

Other Projects funded under the NDP Marine Research Sub-Programme include: a) 4 major 7 year projects funded since 2007: 1. Beaufort Ecosystems Approach to Fisheries Management – PI in place and large FP7 bid (NEMO) submitted; 2. Beaufort Fish Population Genetics – PI in place, substantial funding leveraged; 3. Rebuilding depleted fish stocks – post doc in place since Jan 09 – candidate of a high calibre: top modeller 4. Data Integration – PostDoc researcher in place since Sept 08. The candidate appointed is of very high calibre, and brings with them a very great amount of experience from the private sector. The project has yielded some very promising results in a short timeframe. b) Fisheries PhD projects: Signal detection, Herring, Nephrops, Black Scabbard, Climate Change, Discards – all up and running c) Tacit Knowledge The project aims to integrate the tacit knowledge in the fishing industry for use in the scientific assessment, advisory and fisheries management process. Progress to date has been positive: 2 case studies selected – Celtic Sea Cod / Galway & Aran Prawn Fisheries (2 PhDs in place). Researchers seem to have gained good buy-in from industry.

21 Aquaculture (Finfish & Shellfish)

This section provides an overview of the Status of the Aquaculture Research and key research challenges and opportunities for 2020 to underpin a viable marine food sector

Sea Change – the National Marine Research Strategy for Ireland (2007-2013) and the associated marine foresight exercise, sets out a series of opportunities and challenges for the Irish Aquaculture sector and these are expressed in terms of a 2020 scenario together with the identified prerequisites to achieving the objectives as set out.

The 2020 scenarios in Sea Change set for aquaculture can be summarised as follows:

 A production of 45,000 tonnes of finfish by 2015  A production of a modest 5,000 tonnes of cod / gadoids as part of this tonnage.  Growing to a production of 60,000 tonnes by 2020, providing the challenges relating to offshore are overcome.  A significant proportion of the production to be organic with much of the remainder to be superior quality certified stock for niche markets supported by quality labeling.  Shellfish production to be diversified with four main species (mussels, oysters, abalone and urchins) with a combined volume of 96,000 tones at a value of €135m.  Shellfish production to aim for quality produce, with value added processing, backed by science based management and enjoying a high reputation for food safety.

These scenarios are still valid today and can become a reality if the prerequisites are realized. The prerequisites identified by the Sea Change foresight exercise can be summarized as follows:

 Building public understanding and support for the aquaculture sector.  Policy support for integration of management, monitoring and regulation.  Market research and Brand Development,  Appropriate consolidation of the sector.  Policy support for new species development.  Networks of experts, researchers and business interests to underpin and drive R&D.

The increases in production envisaged are modest and incremental. The current licensed production in the fin-fish industry for example is 35,000 tonnes. The development of the industry is predicated on the development of a diverse range of high quality products aimed at identified niche markets rather than high volume production of product for the commodity market. R&D initiatives currently underway are focused on supporting and underpinning this strategy

Key Research Challenges and Opportunities Since the publication of Sea Change significant progress has been made towards addressing the RTDI priorities identified.

22  New Species Development There is an extensive R & D programme in place to develop cod culture and it is progressing well and results to date indicate with that Ireland has a significant advantage in terms of specific growth rate of cod over our competitors in Europe and Canada. Marine NDP funded breeding and brood stock programme EIRCOD is in the process of establishing a secure and high quality source of eggs and juveniles for cod culture of known pedigree and performance characteristics. This programme has developed strong international links with similar programmes in Canada and Norway.

In addition, there are R & D initiatives underway for both Abalone and urchins which would support further commercialization of these species in line with the stated objectives in the 2020 scenario.

 Offshore Aquaculture There are a number of initiatives in place to address offshore production issues for both fin-fish and shellfish. These include both international co-operative projects addressing the technical issues related to offshore aquaculture and the deployment of a network of data-gathering offshore buoys in both Galway and Kenmare bays to obtain ground truth data on offshore conditions and in particular extreme events. These data are critical to developing the appropriate design criteria for offshore installations and service equipment.

 Organic Seafood Products There is already a considerable (& growing) proportion of Irish production certified as organic and the vast majority of salmon production is certified as superior under a range of quality schemes earning a premium price at market. This has enabled Irish producers to obtain a price premium for there products in niche markets rather than competing in the commodity end of the generic seafood market.

 Fish Health & Food Safety Other key research areas currently being addressed in order to underpin a viable aquaculture food production sector into the future include initiatives on fish health management and environmental interactions. The industry in partnership with the Marine Institute and health professionals are engaged in both international and national programmes aimed at improving the health of stocks through both enhanced management and husbandry practices and improved mitigation and treatment technologies for disease and parasite control in both fin fish and shellfish.

Food Safety Issues The key challenges for the finfish sector are fish health management and environmental monitoring to ensure that the seabed and water quality are sensibly managed. Ireland has a rigorous programme of aquaculture protocols that need to be regularly updated in the light of scientific advancements. The national surveillance of residues in farmed fish will become increasingly important for the production of organic fish. Many persistent contaminants, such as dioxins and emerging substances, accumulate in the marine food chain and assessment of seafood quality is essential to protect consumers and also to protect the sector from food scares and provide reassurance and competitive advantage to the export market.

23 The shellfish sector will continue to face the challenge of maintaining product quality and safety, arising from factors such as harmful algal blooms and water quality in shellfish growing areas.

The sector has an opportunity to build on the ‘green’ image that Irish seafood currently enjoys and through the process of diversification, will provide many opportunities for developers and investors. With such diversification however will be a requirement for increased understanding and mitigation strategies for new pathogens.

Fish and Shellfish Health Issues The health of the aquaculture animals which produce this wealth is crucial. Ireland had the highest health status possible under Council Directive 2006/88/EC but ongoing investment is required to ensure the diagnostic and screening tests which are used to underpin this health status are fit for purpose, and constantly updated.

 Single Bay Management The management of aquaculture businesses in the most appropriate and sustainable manner is being advanced through a range of initiatives including both specific targeted projects and CLAMS (co-coordinated local aquaculture management systems) CLAMS is a community based initiative involving industry stakeholders developing co-ordinated development and management plans for aquaculture production. The programme is supported and advised by state agencies including BIM and the Marine Institute. These initiatives are set to position Ireland at the fore-foront of the development of an environmentally friendly and sustainable aquaculture industry in Europe, supporting coastal communities to meet their social, cultural, environmental and economic objectives into the future.

24 Aquaculture Research Addressing Industry Needs Under the Marine NDP 2007-2013, a number of industry-defined fish health projects of particular interest to the future viability and expansion of the marine based food sector were supported:  ASTOX II : Under certain conditions shellfish may produce toxins harmful to human health. Ireland has a successful and comprehensive monitoring programme to ensure toxic produce does not enter the human food chain. This study is concerned with the Azaspirascids toxin group, and includes a toxilogical evaluation, development of enhanced test methods and the identification of the source organism. This project is funded under the Marine Institute managed Marine NPD measure.  GILPAT : An investigation into gill pathologies in marine reared finfish in Ireland. Sea Change project 2008 – 2011. Gill pathologies are a significant management issue for fin fish aquaculture. This study aims to identify the causative agents and identify mitigation techniques. This project is funded under the Marine Institute managed Marine NPD measure.  AQUAPLAN: This aim of this project is to provide a national strategic plan for the management of fish health issues in Ireland. In addition to producing an overarching strategic plan for future management, the project will fund training and information dissemination aimed at farmers, biologist and veterinarians; it will produce Contingency Plans for new and emerging diseases; it will produce hydrodynamic modeling data which will underpin disease control efforts and it will assist industry in producing a Code of Practice to deal with outbreaks of non-listed diseases. This project is funded under the Marine Institute managed Marine NPD measure.

In addition, a project funded under the EPA managed STRIVE programme also addresses fish health issues:  Norovirus (NoV) is the leading cause of gastroenteritis in the general population. NoV contamination of shellfisheries presents a significant public health risk. This study will compare NoV survival during sewage treatment and in seawater alongside indicator organisms. The impact of sewage discharges on NoV contamination in shellfisheries will be assessed while in-situ studies will investigate NoV levels in influent and effluent from a waste water treatment plant (WWTP). The relative impact of storm overflows and continuous treated sewage discharges will be investigated. Laboratory studies will investigate the survival of NoV in seawater.

25 7 Seaweed

Seaweed is a natural and renewable resource, the potential of which remains to be fully realised in Ireland. The level of interest in the commercial potential of Ireland’s seaweed resource is rising and with it an awareness to manage the wild resource sustainably. It is unlikely that the future demand for seaweed can be met from wild stock alone and interest in seaweed aquaculture is increasing. Ireland’s emerging seaweed industry reflects the broad and increasing sophisticated use of seaweed by firms in delivering a wide array of new seaweed based products. Irish seaweed firms are beginning to exploit market niches though the application and generation of knowledge and well established links with the higher education sector exist. This approach creates opportunities for new research and new products. Achieving economic growth on the back of research and innovation is a national priority; harnessing and utilising the necessary scientific resource appears to be the only way Ireland’s seaweed sector can flourish. Scenarios created under the Sea Change strategy, as well as describing the sector in 2020, enabled the development of clear industry driven research objectives. Identifying the seaweed value chain from access to raw materials to application and exploitation helped to target research effort towards medium to long-term commercial opportunities. Funds to support the research effort come primarily from the NDP marine research sub- programme. And whilst these funds enable dedicated seaweed research aligned to the specific objectives, the Marine Functional Foods Research Initiative and the Beaufort Biodiscovery Programme each support more application specific seaweed research. An Enterprise Ireland industry led research initiative is the source of funds required to provide industry with knowledge of the nutritional, biochemical and chemical analysis of key commercial seaweed species.

REVIEW OF Sea Change Seaweed SCENARIOS

 Sustainable, scientifically based harvesting of kelp, Ascophyllum nodosum, fucoids and maërl;

Developing viable seaweed sector demands knowledge of the key commercial species including details of the availability of the stock; how natural stocks should be managed and maintained; and the provision of clarity on licences to access and use wild stock. With the exception of the focus on Ascophyllum nodosum and Lithothamnion corallioides (maërl) the species of kelp and fucoids lacked definition. In developing the ILRP research agenda, industry targeted nine species: Ascophyllum nodosum; Laminaria digitata; Laminaria hyperborean; Palmaria palmate; Chondrus crispus; Himanthalia elongate; Fucus serratus; Lithothamnion corallioides; and Ulva lactuca. Industry provided more insight to the commercially relevant species of kelp - Laminaria digitata; Laminaria hyperborean and confirmed the importance of Ascophyllum nodosum, Fucus serratus and Lithothamnion corallioides. Developing a methodology for the quantitative assessment of the inshore kelp resource, in the long-term will facilitate the development of appropriate management plans and sustainable harvesting practices. However, it is unlikely that this methodology will be able to assess the biomass of other species and therefore separate studies of species in the inter-tidal zone may be required. There will also be a need to initiate selective

26 mechanical harvesting trails to assess the impact harvesting at specific sites, re-growth and impact on other marine species.

 Seaweed from aquaculture production forming the basis for downstream processing of value-added biopharma and nutraceutical products

According to the FAO, in 2004 world aquaculture production of aquatic plants was 13.9 million tonnes, worth US$ 6.8 billion, of which China produced 10.7 million tonnes, valued US$ 5.1 billion European, including Irish, seaweed farming has yet to start commercial scale operations2.

The use of seaweed in high value added products is set to increase. This trend is reflected in the small Irish seaweed sector, where firms are intent on maximizing the use of seaweed derived bioactive materials in human and animal food and health products, agriculture and pharmaceutical products. The key to meeting the needs of firms involved in these areas is a constant and reliable availability of raw materials. Some wild stock such as Ascophyllum face challenges in light of the reduced levels of activity of traditional harvesting and this may limit supply. Limits placed on other wild stock as a result of stock basement and harvesting trials could impact on the availability of other wild species. Where food or pharmaceutical GMP demands full product traceability, aquaculture may be the only viable source of materials.

Aquaculture trials commenced with Palmaria palmate, Laminaria digitata and Porphyra sp and this activity builds on earlier works involving Irish researchers and growers that made inroads to the cultivation of Alaria esculenta, Ulva spp, Porphyra linearis, Chrondus crispus and Asparagopsis armata. Justification for engaging in this work continues to be reflected in priorities of Ireland’s seaweed firms who also highlight the need for on-going support to develop aquaculture capabilities for high value, strain specific species.

 Regular use of seaweed in biotechnology Interest in and focus on marine biotechnology has gradually been growing and gaining momentum in Europe. This largely stems from the need to meet growing demands for novel materials that cannot be satisfied from terrestrial sources alone, and the recognition that the marine environment, accounting for over 90% of the biosphere, hosts immense biodiversity, in great part due to extreme environmental conditions that have required marine organisms to adapt their physiology in unique ways. The key to unlocking the potential of seaweed is exploiting Ireland’s competences in biotechnology. Biobased production and biotechnology are high on the policy agenda of Europe, with marine oriented biotechnology earmarked for rapid development. Considerable commercialisation potential existsl. Despite a uniquely unpolluted and abundant natural resource, the Irish seaweed industry faces major challenges due to the lack of comprehensive scientific and technical data on which to base the development of new products. The sector wants to assess and profile the composition of key seaweed species and understand how best to extract their valuable ingredients. Next generation products and the processes required to unlock the anticipated valuable materials will rely heavily on biotechnology processes. Biotechnology draws from a wide range of biological disciplines including botany, marine

2 http://www.fao.org/fi/website/FIRetrieveAction.do?dom=topic&fid=3459

27 sciences, microbiology, systems biology, bioinformatics, pharmacology, toxicology, genetics, molecular biology, biochemistry and cell biology. The potential of Ireland’s seaweed resource as a source of novel materials is reflected in a number of public good research projects that seek to use biotechnology to identify, isolate and extract compounds from seaweed and other projects that seek to generate new knowledge about the bioavailability of compounds from different seaweed species. In addition to the algal strands in the Marine Functional Foods Initiative and in the Beaufort Biodiscovery research programme, other work that demands biotechnology expertise includes SEAFEED: Unlocking Bioactive Potential of Seaweed for Novel Animal Health Applications; BIA-SLAN: Bioactive Ingredients from Algal Sources - novel Antimicrobial tools to limit Campylobacter infection of poultry; Pre-commercialisation Evaluation of Algal Derived Prebiotic Poly and Oligosaccharides using Phenotype Microarray Technology; and Novel Functional beverages based on Polysaccharide additives of algal origin.

28 Appendix: SWOTs

SWOT Environment & Food Safety

Strengths Weaknesses

. Strong National Monitoring . Food industry research agenda with programmes with time series over a terrestrial focus, marine a relatively number of years small sector . Integrated environmental monitoring . In cohesive approach to marine policy, and food safety programmes with e.g. marine spatial planning experienced staff (Marine Institute) with . Major gaps in implementation of a view across topics. marine environmental legislation such . Small but Cohesive state agencies that as transitional and coastal monitoring can develop integrated programmes. under WFD

Opportunities Threats

. Good legislative basis for existing work, . Research agendas being set by likely to be reinforced by future and research agencies from larger EU developing EU legislation. countries with more research funding . Open Data Policies (Generally) in state . Lack of multi-year planning and sector proving good data sets for future adequate funding research . SMARTBay platform will provide a world class differentiator in competing for international funds.

29 SWOT Analysis Oceanography and Climate Change

Strengths Weaknesses

. Ireland is uniquely positioned . Limited long-term strategy and planning for geographically to monitor the key current oceanography and climate related pathways and water masses of the North activities, funding to date has been highly Atlantic Ocean opportunistic . The RV Celtic Explorer allows invaluable . Inability to retain and nurture key staff to Irish research access to Irish waters build a long-standing capacity in these . Ireland is a small enough country to ensure areas that both oceanographic and marine . Limited cross-agency support for climate research can be conducted in a oceanography and climate related activity joined up national programme, though this . Low current budgets to maintain key should always be considered in a wider observing infrastructure international context . Ireland has invested in an ocean observing system since 2000 which is on a par with countries of a comparable size

Opportunities Threats

. Investment in oceanography and climate . Inflexible structure for the recruitment and activity could establish Ireland as a key retention of key staff with the requisite sentinel climate monitoring site. expertise . Refining predictions of ocean currents, . Lack of multi-year planning and adequate water masses, storm surges and wave funding conditions will lead to savings and efficiencies in many marine and land based industries including marine fisheries, agriculture, aquaculture, coastal protection and shipping . Well qualified and experienced oceanographers and climate scientists are trained at Irish institutions. Retaining these skills could place Ireland at the heart of the global knowledge economy. . Ireland has one of the best wave and wind climates in the world. The wave and wind energy companies can develop from Ireland if key scientific personnel are avail able to them to assess and predict the available energy resource . Ireland is directly adjacent to the Atlantic Ocean. Climate science developed in Ireland can contribute to the global understanding of climate change for the IPCC.

30 31 Strengths Weaknesses Opportunities Threats l Markets and Product Development l Markets and Product Development l Markets and Product Development l Markets and Product Development .High tech approach to valued added .Global competition is high and increasing due to .Global demand exceeds available supply .Cheaper synthetic substitutes for certain l seaweed products l their access to resources l Biorefining for high value products & energy l products Strong historical global demand Market for products not well established, leading .Growth in demand for natural products l Emotive market sentiment re biodiversity Rising global costs of substitute products .to revenue uncertainty (risk) l Potential for Irish nutraceuticals & functional food .vs. controlled growth and harvesting .(e.g., cereals) is creating demand and l Little understanding of & links to global markets .products l Foreign competition strong and growing l opportunities for seaweed products l Little consumer awareness of Irish seaweed l Existing high and wide-ranging value added l EU opposition to quality Irish products .Seaweed components being used in many . R&D and Application of R&D .product opportunities . R&D and Application of R&D l food, drink & functional applications l Large scale growth and harvesting l Global awareness of the value of seaweed l Lack of scientific support for anecdotal Seaweed & aquaculture business worth .approaches/technologies are not applied products high; export demand is strong .health and nutrition claims US$6bn: is a growth sector l Lack of research/data on: .Value of seaweed as a substitute increasing l Lack of cooperation & links between R&D and Application of R&D l Distribution and biomass to match with market l rapidly as traditional energy & food prices rise industry & 3rd Level, research community . rd l Strong indigenous science base at 3 Level .demand (species, volumes, seasonality issues) l Micro/macroalgae provide terrestrial and . Government/Legislative Support Good academic partners exist in Ireland l Harvesting: effects on sustainability & biodiversity .aquaculture bioremediation platforms l Poor regulatory framework, management Government/Legislative Support Seasonality for key bioactives l Ability to absorb CO2 elevating value & availability l strategy and licensing approach .Strong support for development of the .Seaweed and its applications (e.g., efficacy) l R&D and Application of R&D .No progress on development of standards industry from government/local agencies l Research not readily available to industry .Provide product traceability to industry l for the industry Features of Industry in Ireland -l Lack of hands-on knowledge about harvesting & l Develop Marine Centre of Excellence l No long-term vision for the industry .Long history of seaweed activities in industry l cultivation techniques and technologies l Good links between industry & 3rd level l Lack of stakeholder involvement in l Island nation with maritime tradition -l Lack of mechanical harvesting in any form .Mechanised harvesting to increase yields .exploitation discussions .A long tradition of various seaweed uses - Government/Legislative Support l New harvesting approaches applied internationally l Current access problems due to l Established companies, mostly BMW region - Fragmented approach to development l can be applied in Ireland l ineffectiveness of legal position Spirit of enterprise & entrepreneurship strong .Poor promotion of opportunities in seaweed .Develop cost effective integrated aquaculture . Features of Industry in Ireland New Intellectual Property outputs are being l Little applied research support and activities l systems l Harvesters (250) aging and retiring; low .generated by industry .Lack of funding for innovation, R&D l Develop new national Irish brand l rate of new worker enlistings l Wide availability of experienced and skilled l No quality standards (especially health & labeling) . Government/Legislative Support .Potential threat of Arramara becoming business managers .No organic certification strategy .Develop consumer awareness (media/Bord Bia) l foreign-owned Resource/Infrastructure in Ireland Lack of indigenous venture capital for R&D and l Seaweed resource targeted as development .Inadequate species selection approach to .Abundant, essentially untapped resource .operations development (marketing, production) .priority by state bodies l current harvesting activities l 500+ species of micro/macro algaes l Lack of long term management plan/framework l Provide funding while sector growing, particularly l Resource/Infrastructure in Ireland Seaweed absorbs and converts CO2, and also .Access to natural resources is very difficult .for small companies .On-going conflict between harvesting and uptakes heavy metals l Forthcoming EU legislation likely to impose l Develop wild harvest and/or organic standards and l conservation issues in designated areas .‘Clean’ western seaboard ideal for .restrictions on certain applications & species use l play leading role in their development l Environmental drivers, constraints l harvesting/integrated aquaculture l Features of Industry in Ireland . Features of Industry in Ireland l Global warming is impacting biodiversity .Readily accessible coastal/bay access points .Fragmented industrial organisation l Shared interests and opportunities between most .Coastal water pollution a threat to quality l Winter growth rate of certain species is l Not fully developed, most activities are localized l Irish seaweed firms l seaweed and organic status .strong (e.g. Alaria, Laminaria) .Companies are not working/coming together . Resource/Infrastructure in Ireland l Threat of ecological disasters (oil spills) l l Skilled labour force demands high salaries l Infrastructure of existing aquaculture operations .Epiphytic organisms & poorly selected . .High relative costs of production (labour) .provide seaweed foundation l harvest sites a combined on-going threat l . l l . . . l . l l l . . l l . . . l l . l . . l l . . . . l l l . . . . l l l l . . . l l l l . . . l l l Seaweed Sector SWOT summary Source – seaweed industry SWOT Analysis Finfish Aquaculture

Strengths Weaknesses

. Long indented coastline . Regulation and licensing issues . High quality coastal marine environment . Need to refine codes of best practice . Established aquaculture industry . Lack of investment in the industry . 35,000 tonnes of licensed capacity for salmonids . Environmental monitoring and forecasting . Good R & D Support infrastructure – agencies, 3rd capabilities level institutes . Commercialisation of hatchery technology and . Modern and efficient fish health support services juvenile production . Established markets for both reared and wild finfish . Requirement for new species brood stock . Access to experienced work force programmes / selective breeding programmes . Wide range of training programmes . Requirement for carrying capacity models . Strong links with aquaculture industry worldwide . Offshore site identification / characterisation . Strong food technology sector . Physical and biological modelling . Cage design for use at offshore sites . Market research and brand development

Opportunities Threats

. Post recession – renewed focus on indigenous . Lack of investment capital industries . Public perception issues . Job creation in remote rural areas . Environmental and food safety concerns . Increased capacity in third level –Beaufort Fish . Climate change impacts – increasing winter Population Genetics & Functional Food Programmes temperatures, greater intensity of storms . Increased awareness of need for a functional . Outbreaks of diseases and parasites genomic approach to stock selection . Resistance to medical treatments for disease and . Success of EIRCOD programme to date parasites