2015 Knowledge Sharing Program (Industry &Trade) with : Region

2015 Knowledge Sharing Program (Industry &Trade) with Russia: Sakhalin Region

Project Title Evaluation of Prospective Aquaculture Industry Development in Russia‟s Sakhalin Region

Prepared by Institute of Russian Studies, Hankuk University of Foreign Studies

Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Korea Institute for Industrial Economics and Trade (KIET) Korea Trade-Investment Promotion Agency (KOTRA)

Prepared for The Government of Sakhalin Region, Russia

In cooperation with Ministry of Investment and Foreign Relations of the Sakhalin Region

Program Director Kye Hwan Kim, Director, Industrial Cooperation and Globalization Division, KIET Hakki Kim, Head of International Industry Team, KIET

Senior Advisor Dong-Kyu Shin, Former President of NongHyup Financial Group Inc.

Project Manager Hyun Taek Kim, Professor, Director of Institute of Russian Studies, Hankuk University of Foreign Studies

Authors Chapter 1. Young Jin Jang, Professor Emeritus, Pukyong National University/ Se Ho Jang, HK Research Professor, Hankuk University of Foreign Studies Chapter 2. Han Kyu Im, Professor, Mokpo National University/ Sung Hoon Jeh, Professor, Hankuk University of Foreign Studies.

Program Co-organizer Kimo Yang, Director General, KOTRA Vladivostok Chi Hyun Shin, Manager, KOTRA Vladivostok Sun Young Chang, Manager, KOTRA

Program Officer Dong-Hee Rhee, Research professor, Korea University

Government Publications Registration Number 11-1051000-000737-01 ISBN 978-89-5992-948-1 978-89-5992-943-6 (set) Copyrightⓒ2016 by Ministry of Strategy and Finance, Republic of Korea Knowledge Sharing Program 11-1051000-000737-01

2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

A Policy Study on the Development of the Aquaculture Industry in Sakhalin Region

Preface

The Knowledge Sharing Program (Hereinafter „KSP‟) project to share the accumulated experiences of economic development with the nations which Korea established economic cooperation relationship with began from 2004 under the supervision of the Ministry of Strategy and Finance (The then Ministry of Finance and Economy). The KSP project was meaningful for understanding the local situation through close negotiation with the governmental institutions and experts of the partner country and providing highly practicable research and consultation rather than one-sided deliverance of knowledge and opinion on the experience of the Republic of Korea. The KSP II project providing consultation on various sectors of the partner country including industry, investment, and economic policy has begun from 2014. The purpose of the then KSP II project is not only to help the partner country to develop their economy but also to promote mutual growth of the both countries by establishing the foundation for industrial cooperation between the two sides. KSP project with Russia was first conducted in the Primorsky Territory in 2013, and then the Kamchatka Krai and the Sakhalin Region were included in the project. The Sakhalin Region was first selected as the target region of KSP II project in 2014, and was selected again as the target region in 2015. Surrounded by the sea, the Sakhalin Region is blessed with the optimum natural environment for the development of fisheries. Thus, the development of the mariculture industry is highly meaningful and important for the potential contribution to the economic development in the region and the potential supply of high-quality fishery products to nations in East Asian with high demand for seafood. The report evaluates the current condition and the prospect of the mariculture in the Sakhalin Region from a perspective of the experiences in the mariculture development in the Republic of Korea. Furthermore, the study contains the research data on the technical proposal and political project for the development of the mariculture industry in the Sakhalin Region. For a comprehensive research, both the fisheries scientists and the regional experts were involved in the program. They made their utmost efforts to produce highly practicable results by conducting interviews with the government of the Sakhalin Region, local farmers and companies, field trips to potential mariculture sites and visiting to farms. The results were well documented in this report. In the process, the government of Sakhalin Region and the local experts showed great interest in the program, and the report was prepared with a focus on the farming of scallop and sea cucumber which are considered the most practicable species in terms of the natural condition of the site, marketability, and development potential. It should be noted that the study was conducted through the cooperation between the experts on the region from the Institute of Russian Studies of Hankuk University of Foreign Studies which is the executing organization of the project and the fishery experts from Mokpo National University and Pukyong National University which are major educational institutions on fisheries in the Republic of Korea. The cooperation was aimed to enhance the quality of the report by integrating expertise on the Russian economy and the mariculture which is the specific subject of the project. We would like to thank all the people from KOTRA and the Korea Institute for Industrial Economics and Trade who have fully cooperated for the program, particularly in complex situations of the appointment of new governor and followed personnel changes in the government of the Sakhalin Region. Also we would like to thank the senior advisor Dong-Kyu Shin who provided valuable advice and suggested adequate direction for the project whenever there was a difficulty in the process of the project. Moreover, we would also like to thank the members of the review board who have delicately reviewed and evaluated the report in the middle and the final stage, and the related persons of the local government of the Sakhalin Region and the local experts who have fully supported us for the smooth progress of the project. Lastly, we would like to show our respect to the enthusiasm of the researchers who have did their best day and night for the project and their time for participating in frequent meetings at various locations including Yongin, Busan, and Mokpo. The contents in this report are the opinions of the experts who have participated in the project and are not the official opinion from the Ministry of Strategy and Finance, Korea Institute for Industrial Economics and Trade, KOTRA, Institute of Russian Studies of Hankuk University of Foreign Studies, and related institutions.

June, 2016

Institute of Russian Studies, Hankuk University of Foreign Studies

Director, Hyun-Taek Kim

Contents

Overview ...... 10

2015 KSP (Industry & Trade) With Russia (Sakhalin Region) ...... 17

Chapter 1 Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ...... 24

...... 24

1. Current State of -Pacific Marine Living Resource Market and its Prospect ...... 26 1.1. Estimation and Prospect of World Marine Product Production and the Future of Aquaculture Industry...... 26

1.2. Current State of Asia-Pacific Market for Scallops, Sea Cucumbers, and Abalones ...... 30

2. Background on Sakhalin Region‟s Development of Mariculture and its Current State ...... 36 2.1. Background on Sakhalin Region‟s Development of Mariculture and its Current State .....36

2.2. Present Condition and History of Sakhalin Region Mariculture ...... 38

3. Prospective and Potential Utilization of Marine Biological Resources in Sakhalin Region .... 43 3.1. Current Utilization of Marine Biological Resources and Physical/Natural Characteristics of Sakhalin Region ...... 43

3.2. Mariculture Prospects and Potential in the Sakhalin Region ...... 50

Chapter 2 Policy for the Development of Mariculture Industry in Sakhalin Region ...... 56

...... 56

1. Current Progress and Evaluation of Biotechno Park Construction Project ...... 58 1.1. Current Situations of the Project ...... 58

1.2. Reviewing the Progress of the Project and the Government Support ...... 65

1.3. Problems in implementing the Project ...... 65

2. Lessons from the Mariculture Industry Development in Korea ...... 67 2.1. Development Process of Korean Mariculture Industry ...... 67

2.2. Factors Behind the Development of Aquaculture in Korea...... 71

2.3. Issues for the Mariculture in Korea ...... 74

3. Policies and Technological considerations for the Development of Large Scale Aquaculture Industry in Sakhalin Region...... 76 3.1. The Necessity and the Optimum Sites for Aquaculture Development in Sakhalin Region ..76

3.2. Recommendations for the Sakhalin Region Government ...... 76

3.3. Viability of the Mariculture in Sakhalin ...... 77

3.4. Roadmap for the Successful Aquaculture Along the Coasts of Sakhalin ...... 85

3.5. Establishment/amendment of Relevant Laws for the Development of Aquaculture ...... 92 3.6. Site Selection for aquaculture, Placement of Seedling Cultivation Facilities and Budget Allocation...... 94

References ...... 96

Appendix 1 ...... 102

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ...... 112

1. Scallop (Patinopecten yessoensis) ...... 112 1.1. HISTORY OF SCALLOP AQUACULTURE IN SOUTH KOREA ...... 112

1.2. Species Position ...... 115

1.3. STRENGTH AND WEAKNESS IN DEVELOPMENT OF AQUACULTURE ...... 116

1.4. DEVELOPMENT PROCEDURE OF AQUACULTURE...... 117

1.5. Selection of Suitable Aquaculture Sites ...... 119

1.6. Seedling Production ...... 121

1.7. Development of Scallop Farming ...... 127

1.8. Expected Effectiveness ...... 131

2. Sea Cucumber ...... 132 2.1. Domestic/international Sea Cucumber Production Trend and Current Aquaculture Technology Development ...... 132

2.2. Korean Sea Cucumber Seedling Production Technology ...... 134

2.3. Sea Cucumber Cultivation Methods Applicable to Sakhalin Region ...... 144

Contents| List of Tables

Macro Economic indicator of Russia from 1998 to 2008 ...... 11

Macro Economic Indicator of Russia from 2008 to 2014 ...... 12

Subject confirmation and the demand survey of 2015 KSP (Industry & Trade) ...... 18 Policy advisory group for 2015 KSP(Industry & Trade) with Russian(Sakhalin Region) ...... 20

World Production of Marine Products ...... 27

World Production of Capture Fisheries ...... 28

World Production of Aquaculture Products ...... 28

Businesses or Organizations Using Mariculture Technology in Sakhalin ...... 40

Current Marine Production in Sakhalin ...... 43

Current Fish Production in Sakhalin ...... 43

Current Production of Crustaceans and Ocean Invertebrates in Sakhalin ...... 44

Current Production of Sea Weeds in Sakhalin ...... 45

Commercial Sea Cucumber Collection Scale in Busse Lagoon ...... 47

Aquaculture Environments of Bay and Busse Lagoon ...... 49
Area Available for Commercial Mariculture in the Sakhalin Region and Production ...... 51

Basic Steps and Direction for development of the Sakhalin Region Marine Biotechno Park ...... 60
Candidates for Cultivation in the southern Sakhalin Island, Provisional period for Investment Return, and Related Issues ...... 61

Development Phases of Korean Aquaculture Industry ...... 68
Mariculture Licenses by Product ...... 71

Yearly Scallop Production ...... 102

Scallop Export Sum by Country ...... 102

Revenue from Scallop by Country ...... 103

Scallop Export Sum of China ...... 104

Revenue from Scallop for China ...... 104

Sea Cucumber Production by Country ...... 105

Sea Cucumber Export Sum by Country ...... 105

Revenue from Sea Cucumber by Country ...... 106

Sea Cucumber Export Sum by Continent·Region ...... 106

Revenue from Sea Cucumber by Continent/Region ...... 107

Sea Cucumber Export Sum of China ...... 107

Revenue from Sea Cucumber for China ...... 108

Yearly Abalone Production ...... 108

Abalone Export Sum by Country ...... 109

Revenue from Abalone by Country ...... 109

Abalone Export Sum by Continent/Region ...... 110

Revenue from Abalone by Continent/Region...... 110

Abalone Export Sum of China ...... 111
Revenue from Abalone for China ...... 111

Sea Cucumber Production in Korea (1990∼2014) ...... 132

Habitat Standard for Sea Cucumber Cultivation ...... 145

Contents| List of Figures

Prospects of World Production of Marine Products (Data and Estimate) and Average Annual Growth ...... 30
Changes in Total Resource Amount and Available Catch Amount of Scallop in Aniva Bay ...... 46
Changes in Total Resource Amount and Available Catch Amount of Sea Cucumbers in Busse Lagoon (1969~2003) ...... 47
Natural Habitats of Scallops in the Southern Sea of and Northern Area of the East Sea ...... 49

Distribution of Sea Cucumber Population in the Sakhalin-Kuril Area ...... 50

Prospective Mariculture Resources in Sakhalin Island Coast ...... 52

Prospective Mariculture Resources in Kuril Islands Coast ...... 52
Potential Mariculture Production Levels for Major Sakhalin Region Districts .. 53

Structure of Sakhalin Region's Marine Biotechno Park ...... 59
Production Facility Arrangement for Step 1 of Marine Biotechno Park According to the 2012 plan ...... 63
Production Facility Arrangement for Step 1 of Marine Biotechno Park According to the 2015 Plan ...... 64
The Process of Constructing the Marine Ranching Site to Enhance the Sea Cucumber Population ...... 84

Steps to Developing Aquaculture Industry of Sakhalin ...... 86
Short and Long Term Plans for the Aquaculture Industry Development in Sakhalin ...... 87
IMTA Farms around the World ...... 90

Annual Production of Cultured Scallop in Korea ...... 113

Annual Production of Scallop Seedlings in Korea ...... 114

Shellfish Hatchery and Seedling Production System...... 118

Spat Collectors for the Scallop ...... 121
Facilities for the Natural Spat Collection and Intermediate Culture During Seedling Production of Scallop ...... 123

Seedling Production Process Layout ...... 125

Food Organism Cultivation System for the Cold Waters ...... 126

Scallop Hanging Culture Facility Layout ...... 130

External shape of Female Sea Cucumber ...... 135

Sea Cucumber Spawning ...... 137

Larva Development Process from Auricularia to Pentactula ...... 139

Collector Nets Used for Sea Cucumber Larvae Adhesion ...... 140

Spat Collectors Used for Sea Cucumber Larvae Adhesion ...... 141

Hyun Taek Kim(Director, HUFS Institute of Russian Studies)

1. Overview of Russian Economy

Since the economic crisis in 1998, Russian economy has been continuously showing high average annual growth rate of 7.2% until 2008. From 1999 to 2008, Gross Domestic Product(GDP) increased more than 8 times, and, in 2006, it was finally recovered the GDP of 1991, the year where was dismissed. All economic indicators including industrial production, investment on fixed capital, agricultural production, real income, foreign exchange reserve, and trade showed firm increase. Also, inflation which was so high in the 1990s decreased to the single digit. Significant economic outcomes of Russia in the early and mid 2000s were mostly derived from the high oil price. Traditionally, energy section, including petroleum and natural gas, has been taking approximately 15% of GDP and 50% of the government revenue. Petroleum and gas takes above 20% of the industrial structure. Considering that the gas is also linked to the oil price, the most important variable in the Russian economy is global oil price. Price of Ural oil which was a bit above 10 dollars per barrel in the late 1990s skyrocketed to 50 dollars in 2005 and 94.8 dollars in 2009. Increases in oil price and gas price generated a great surplus in the trade balance, and this played a critical role in turning all economic indicators positive.

010 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Macro Economic indicator of Russia from 1998 to 2008

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

GDP Growth Rate (Compared to previous -5.3 6.4 10.0 5.1 4.7 7.3 7.2 6.4 8.2 8.5 5.2 year, %) Industrial Production Increase Rate (Compared -4.8 8.9 8.7 2.9 3.1 8.9 8.0 5.1 6.3 6.8 0.6 to previous year, %) Investment on Fixed Capital Increase Rate -12.0 5.3 17.4 10.0 2.8 13.7 10.9 10.9 16.7 22.7 9.9 (Compared to previous year, %) Real Income Increase Rate (Compared to -15.9 -12.3 12.0 8.7 11.1 15.0 10.4 12.4 13.5 12.1 2.4 previous year%) Inflation Rate (Compared to previous 84.4 36.5 20.2 18.6 15.1 12.0 11.7 10.9 9.0 11.9 13.3 year, %) Unemployment 11.9 13.0 10.5 9.0 8.0 8.2 7.7 7.1 7.0 6.0 6.2 Rate (%)

Source: Институт комплексных стратегических исследований, “Основные макроэкономические показатели,” http://www.icss.ac.ru/macro

However, the global financial crisis in 2008 hampered rapid economic growth in Russia. Oil price which had exceeded 130 dollars per a barrel fell to under 40 dollars per a barrel at the end of 2008. Accordingly, the Russian economy faced decrease in export profits. This made Russia postpone existing large investing plans. As international investors retrieve money due to the anxiety about the economy of emerging countries including Russia, capital outflow accelerated. On the other hand, instability across the global economy made financing harder. At last, economic growth rate of Russia in 2009 turned negative for the first time in 11 years(-7.8%). Although Russian economic growth rate marked 4.5% thanks to the base effect in 2010, but then it has been decreasing for 5 consecutive years from 2011 to 2015. Even though high oil price made critical influence in the rapid growth in the early and mid 2000s, fall of economic growth rate after 2008 global financial crisis is explained by fundamental causes. Even though the oil price recovered to the previous level by the early half of 2010, Russian economy did not return to the level before 2008 financial crisis. Rather, the growth rate continuously fell to 4.5% in 2010, 4.3% in 2011, 3.4% in 2012, 1.3% in 2013 and 0.6% in 2014. This means that previous energy/mineral-centered growth model which led the rapid growth in the early and mid 2000s is not effective anymore.

Overview ∙ 011

Macro Economic Indicator of Russia from 2008 to 2014

2008 2009 2010 2011 2012 2013 2014 GDP Growth Rate 5.2 -7.8 4.5 4.3 3.4 1.3 0.6 (Compared to previous year, %) Industrial Production Increase Rate 0.6 -9.3 7.3 5.0 3.4 0.4 1.7 (Compared to previous year, %) Investment on Fixed Capital Increase 9.9 -15.7 6.0 10.8 6.6 -0.2 -2.7 Rate (Compared to previous year, %) Real Income Increase Rate 2.4 3.0 5.9 0.5 4.6 4.0 -0.7 (Compared to previous year%) Inflation Rate 13.3 8.8 8.8 6.1 6.6 6.5 11.4 (Compared to previous year, %) Unemployment Rate(%) 6.2 8.2 7.3 6.5 5.5 5.5 5.2

Source: Институт комплексных стратегических исследований, “Основные макроэкономические показатели,” http://www.icss.ac.ru/macro

As the era of low oil price maintained from a sharp drop in December 2014 and the Western countries imposed sanction on Russia after Crimean annexation in March 2014 followed by 'Ukraine Crisis' at the end of 2013, the Russian economy had to find a new breakthrough. Against this backdrop, in December 2014, President Putin emphasized in his annual address that Russia should reduce its external dependence and maximize internal capacity through following measures. First is expanding business activities and improving the environment for investment: e.g., introducing limits in the corporate investigation to remove unfair intervention on business activities; exemption from corporate supervision for 3 years for 3 or more year old small business; maintenance of existing tax system for next 4 years; tax exemption for small manufacturers for 2 years from the registration; entire pardon at the legalization of proxy investment; expansion of subjects for national investment climate ranking survey to all federal subjects; additional fund support on local roads; and, activation of compensation program for expenditure in federal construction of industrial complex. Second, development of core regions: enforcement of Crimean SEZ construction legislation; search for the alternative for the expiring taxation preference in Kaliningrad Region; rapid passing and expansion of legislation regarding advanced socioeconomic development zone for the development of Far East; supporting increase in the federal tax revenue for Far East developing funds; free port status for Vladivostok port; and the complex project for development of North Pole Route. Third, improvement in non-raw material section through rational

income substitution policy: establishment of special control center which practice in

012 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

large projects, distributes orders to the domestic corporations, improves basis for domestic production and research; expansion of participation of domestic corporations in innovations in housing public service, public transportation, and agricultures; expansion of access of small and middle size corporations to supply to national corporation and prescription of obliged annual purchase amount; development of program and system for supporting capital/technology/man power/equipment to non-raw material corporations with the export-import bank/Russia direct investment fund under the lead of Bureau of Strategic Initiative; and, improvement in export of industrial products through activation of export credit insurance support center under the export-import bank, targeting non-raw material corporations. Fourth, utilizing local resources for the economic growth: transformation of savings into investments through enhancement in the bank system; and introduction of project financing mechanism to domestic banks. Fifth, rational financial expenditure: reduction of 5% or more of financial expenditure every year for next 3 years; reduction of construction financial expenditure by 10% to 20% through comprehensive ordering system; development of supervision system for strict national defense budget expenditure under the lead of Ministry of National Defense and Rosfinmonitoring; establishment of comprehensive accounting center which guarantees the transparency/rationality and efficient management of operation of national corporations' money; and introduction of efficiency index in corporations with national stock share of 50% or more and performance-based wage system for corporate executives.

2. Economic Status of the Sakhalin Region

Sakhalin Region, located in the Far East of Russia, has been continuing its growth without great influences from changes in Russian economy. As a result, Sakhalin Region is now one of the socially and economically most developed regions in the Far East. Economic growth of Sakhalin Region was recorded 8% in 2010, 4.3% in 2011, - 2.5% in 2012, 1.4% in 2013, 5.1% in 20014, and 10.1% in 2015. That is, except 2012, economy in Sakhalin Region has been growing continuously since 2010. Fall of economic growth rate in 2012 was due to reduction in oil production in and projects and low activity in construction section. Main factors in the economic growth in Sakhalin Region is the increase in the production of hydrocarbon raw materials such as petroleum.

Overview ∙ 013

In spite of recent entire recession of Russian economy, Gross Regional Domestic Product(GRDP) of Sakhalin Region in 2015 marked 842 billion roubles, which is 10.1% increase compared to that of 2014. What made this possible is the increase in industrial production, which takes more than 2/3 of GRDP. Industrial production marked 738.7 billion roubles, which is 13.8% increase compared to the previous year. The largest part of the industrial production is petroleum/gas section. Production of petroleum in 2015 was 16.7 million tons, which is 14.3% increase compared to the previous year. However, gas production marked only 28.1 billion㎥, which is only 0.3% increase compared to the previous year. Coal production also marked 5.3 million tons, which is 17.6% increase compared to the previous year. Another core industry of Sakhalin Region is fishery. Although fishery production marked 719,700 tons, which is 1% decrease compared to the previous year, total amount of processing marked 516,300 tons, which is 9.2% increase. Also, house construction marked 310,200㎥, which is 1.9% increase compared to the previous year. In contrast, agriculture production marked 11.1 billion roubles, which is 2.9% decrease compared to the previous year, and investment on fixed capital marked only 252.1 billion roubles, which is 0.2% decrease compared to the previous year. Other sections which have shown meaningful increase in 2015 include mineral production (5.1%), construction(17.6%), and transportation and communication(14.9%). In 2015, Sakhalin Region government made efforts to attract advanced socioeconomic development zone, which is a new mechanism federal government prepared in order to facilitate the development in Far East and Baikal region. As a result, in December 2015, decisions regarding formation of advanced socioeconomic development zones of 'Yuzhnaya‟ and „Gorny Vozdukh‟ were made in government sub-committee meeting on socioeconomic development in Far East and Baikal region. And currently, relevant federal institutes are reviewing the draft of the federal government decree on this issue. While recession of Russian economy continues due to the low oil price, Western economic sanction, and limits of growth model based on the development of petroleum and gas section, Sakhalin Region government has been making efforts to attract advanced socioeconomic development zone. This is because of the concern that, considering the similarity between Russian economy and economy in Sakhalin Region, current growth model which leads the economic growth of Sakhalin Region may face its limit soon. So, the government of the Sakhalin Region is establishing and proceeding with various development programs in order to foster new industries, which may secure global competitiveness, such as fishery, agriculture, forestry, tourism, and manufacturing.

014 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

3. Implications and Expected Effects of

2015 KSP (Industry & Trade) in Sakhalin Region, Russia

Subject of 2015 KSP (Industry & Trade) in Sakhalin Region, Russia is study on the current status and evaluation on future prospects of sea farming in Sakhalin Region and technology suggestions and policy tasks for development of aquaculture. Being surrounded by the ocean, Sakhalin Region has advantageous natural condition for development of sea farming. Development of aquaculture fits the will of Sakhalin Region government, which is to develop the economy through utilization of such natural condition. Also, it is an agenda which may contribute to improvement of characteristic of Russian economy and economy of Sakhalin Region, economic structure which excessively depends on energy resources such as petroleum and gas. 2015 KSP (Industry & Trade) in Sakhalin Region, Russia was conducted under the close consultation with local government. In accordance to the additional requests of the local government, focus was also on the selection of strategic species needed for pilot project for development of aquaculture and technology suggestion which is needed for the farming the selected species. Implication and expected effects of this program is as following: First, as the current status and development potential of sea farming in Sakhalin Region, and previous development plans such as the bio-techno park project were evaluated comprehensively, the result of the research may be utilized by Sakhalin Region as the basis for establishing a plan for export-centered aquaculture industry with global competitiveness. Second, in the range of this program, the research team visited for field trip the candidate sites for mariculture in Sakhalin Region, evaluated their environment conditions and suggested practicable Korean aquaculture technology and actual application method. It is therefore possible that the Sakhalin Region may utilize the result of the research as a manual for introduction and self development of aquaculture technology. Third, responding to the request by the Sakhalin Region government to select strategic farming species, the Korean experts reviewed the results of field trip on the candidate sites, documents presented by the local experts and finally selected the scallop and the sea cucumber as farming species in consideration of marketability, profitability and technological feasibility. Relevant technologies for farming those species were also suggested. It is thus expected that the results of this program may greatly contribute to solving technical problems of the bio-techno park project which

Overview ∙ 015

the Sakhalin government proceeds with. Fourth, the results of this program include evaluation of development stage of aquaculture in Sakhalin Region and aquaculture development roadmap which is based on the development experience of Korea and fits for the local conditions and thus they may be utilized broadly as the basis for the establishment and revision of policy for development of aquaculture industry by Sakhalin Region government. Fifth, the research team interviewed representatives of aquaculture corporations in Korea and Sakhalin during the process of this program's activity to find concerns of interest and included the results in their policy and scientific recommendations for the government of Sakhalin Region. Therefore, it is expected that the results may contribute to the policy making by the Sakhalin Region government for facilitation of investment cooperation regarding aquaculture between Korean corporations and Sakhalin corporations.

016 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Dong-Hee Rhee (Research professor in Korea University)

Background

The objective of 2015 KSP (Industry and Trade) with Russia (Sakhalin Region) is mainly to set up the policy on development of aquaculture industry. Sakhalin Region has favorable geographical conditions for the development of the aquaculture industry as it is an island surrounded by ocean. The aquaculture industry development policy will contribute to rebalancing the Russian economy which is highly concentrated on the energy sector and the aquaculture industry is also an appropriate development sector in the context of the will of the government of Sakhalin Region to utilize natural advantages to develop the economy. The subject and the range of 2015 KSP (Industry & Trade) was designed in accordance with the results from the meeting between the two sides held in September, 2015.

1. Acceptance of Demand Survey and Confirmation of Research Subject

(In order to figure out the demand and establish the project plan for the state government of Sakhalin Region, research subject was confirmed by following the procedures to mediate the interests and the matter of concerns of the related government department and the fisheries expert.)

2015 KSP (Industry & Trade) With Russia (Sakhalin Region) ∙ 017

Subject confirmation and the demand survey of 2015 KSP (Industry & Trade)

2015 Knowledge Sharing Program (Industry & Trade) with Russia Project name (Sakhalin Region) Kim Hyun- Project Rhee Dong- Overall PM Kim Hak-Ki Floor PM Taek Officer Hee □ As an overall control ministry of KSP, Russia Sakhalin provincial investment and foreign relations has sum up all the demands of policy advisories into an official document and sent to General Consulate in Vladivostok, Russia and handed over to the Ministry of Strategy and Finance. (2015.03.16) □ Along with the fishing business, balneology condition of the waters of Sakhalin and Southern Kuril Islands have good potential for other types of aquatic biological resources - scallops, sea cucumber, shrimp, sea urchin, kelp. To obtain economic effects it is necessary to organize the industrial cultivation of such objects of aquatic biological resources, i.e. create a new industry - mariculture. But today this type of activity is not developed. It is necessary to identify causes and propose solutions to the problem □ Study on the creation in the region of interrelated industries rearing of juveniles, bringing it to the commercial level and subsequent processing of aquatic biological resources (scallops, sea cucumber) was completed in 2012 By order of the Government of the Sakhalin region. The project was named "Biotechnopark". The project is at the Demand initial implementation stage. Acceleration is needed to attract I. Topic Survey investment Candidates Reception and Content Proposals suggested from the Sakhalin Region Proposing Proposals suggested department 1. The present condition and the development prospect of the Sakhalin aquaculture industry - Present condition of aquaculture industry - Marine living resources in Asia-Pacific region(Demand and production market) Sakhalin - Sakhalin mariculture development plan and the Regional office of development prospect. Maritime affairs & 2. Policy task for the development of aquaculture Fisheries industry in Sakhalin Region - Evaluation of the mariculture industry development in Sakhalin Region - Evaluation on the realization of biotechnopark and the present condition of the investment attraction. - Policy task for the establishment of aquaculture

018 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Subject confirmation and the demand survey of 2015 KSP (Industry & Trade)

industry in a large scale.

Additional None demand Topic None Suggestions □ Demand survey and the field research with the state government of Sakhalin Region was taken place in Sep 18, 2015 by 3 participants from the KSP management team of Hankuk University of Foreign studies, including Kim Hyun-Taek, the manager of the Russian research institute. 5 participants from Sakhalin Region were in attendance, including Sergey Ohm, the deputy chief of Sakhalin Regional office of Maritime affairs & Fisheries and Elena Sudakova, the acting secretary of investment department of Sakhalin Region. They also went into a meeting for the final task selection. o legislation for the effective production on the marine product market, along with research and progress for the selected strategic items which were requested by the Sakhalin Region. o Also, the expansion of the investment on Russian Sakhalin Region and institutional cooperation plan were requested o As a result, the general plans were maintained, but the research direction (improvements on legislation and the strategic products selection) was materialized.

II. Final task selection of Sakhalin Region Final task selection and Region Subject Details the progress 1. The present condition and the development prospect of the Sakhalin aquaculture industry - Present condition of aquaculture industry - Marine living resources in Asia-Pacific region (Demand and production market) - Sakhalin mariculture development plan and the development Russian prospect. Sakhalin 2. Policy task for the development of aquaculture industry in Sakahalin Region - Evaluation of the mariculture industry development in Sakhalin Region - Evaluation on the realization of biotechnopark and the present condition of the investment attraction. - Policy task for the establishment of aquaculture industry in a large scale.

2015 KSP (Industry & Trade) With Russia (Sakhalin Region) ∙ 019

2. Research team selection

Kim Hyun-Taek, the manager of Russian research institution of the Hankuk University of Foreign Studies, who was selected through a competitive bid in a subcontract, is now in overall charge for the close cooperation between South Korea and Sakhalin state government, and also carrying forward the highest rank consultation. After confirming the topic as the demand in Sakhalin Region, which has the characteristic of being an island surrounded by oceans, a research team was selected through cooperation with related Korean government departments and academia to include civilian individuals with working experience as well as Korean scholars who have participated in policy advancement process with working experience.

Policy advisory group for 2015 KSP(Industry & Trade) with Russian(Sakhalin Region) (1 PM, 4 Research staffs, 1 business management staff, 1 research assistant)

Name Association and Position Role Prof. of Russian Department in Hankuk University 1 Kim Hyun-Taek PM of Foreign Studies HK Research Prof. of Russian Research Institution 2 Jang Sae-Ho Research staff in Hankuk University of Foreign Studies Honorary professor of Marine Bio- Materials 3 Jang Young-Jin Research staff Science Department in Bu-kyeong University Prof of Marine Fisheries Resources Department in 4 Lim Han-Kyu Research staff National Mok-po University Prof. of Russian Department in Hankuk University 5 Jae Seong-Hoon Research staff of Foreign Studies Research Prof. of History Institution in Korea 6 Rhee Dong-Hee Project Officer University Master of International Regions in Hankuk 7 Jeong Yoo-Jin Research assistant University of Foreign Studies

020 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

3. Project Schedule

(1) Demand Survey and Detailed Condition Examination (16 ~ 19th September, 2015)

After confirming the research task and constituting the research team, in order to figure out and confirm the actual demand from the Sakhalin government and to interview the local experts, a joint meeting took place during September 16~19th. 6 participants including Kim Hyun-Taek PM, the leader of the contingent, Prof. Jang Sae-Ho, Prof. Rhee Dong-Hee, and the head chief of KOTRA Vladivostok, Yang Ki- Mo visited Sakhalin State Government, presumptive biotechnopark construction site, and the Sakhalin National University to conduct for the demand survey and investigation on the actual conditions. The team had a meeting with people in charge of subject related department, and by having an interview with the local expert suggested by each department, they could figure out the research direction.

(2) The expert seminar (Oct. 15th)

On Oct 15th, Kim Hyun-Taek PM, Prof. Jae, Prof. Jang, Prof. Rhee (The Project officer) visited National Mok-Po university, to have a discussion with Prof. Lim, Director Seong Ki-Baek from Echoaquatec, Director Kim Jae-Kyung from Myeongcheon Susan on the ongoing project and the future direction of the research. The barriers for the investment and the present conditions of Sakhalin Marincultural matters were also discussed in the meeting.

(3) The local launch report session and the investigation of the local conditions (November 9~14th 2015)

The local launch report session and the investigation of the local conditions were carried out with the Sakhalin State Government. 5 participants including Kim Hyun- Taek, the Project Manager and Prof. Lim have visited Sakhalin State Government and confirmed the launching report, schedules and the plans. They also learned what were requested by the regional government. By having the meeting with the manager in charge of Biotechnopark project, we could understand the present condition and the progress of the project, interesting task for the Sakhalin State Government as the director in charge has replaced, 2nd local conditions investigation was taken place with the local expert, so that we could figure out the policy in an order of priority.

2015 KSP (Industry & Trade) With Russia (Sakhalin Region) ∙ 021

(4) 2nd examination meeting (November 24th 2015)

On November 24th, Research Staff and the manager invited 2 experts from the National Fisheries Research & Development Institute to Korea Institute for Industrial Economics and Trade located in Sejong-si as participants in the second examination meeting in order to present the interim result based on the interim reports and the interim presentation data.

(5) Russian Sakhalin Interim report conference in preparatory meeting about the sharing economy development experiences in 2015. (2015. 12. 07)

On 7th Dec, 2015, Korean side including 4 participants and Kim Hyun-Taek PM, attended preparatory meeting for 90 minutes on the progress condition of the research and to confirm the future plan, with the Russian side, including 4 participants, who are authorities of the state government and the local expert, and Dimitri, the acting secretary of the department of international cooperation.

(6) Research staff interim meeting (January 6th 2016)

On 6th Jan 2016, 7 participants including Kim Hyun-Taek PM, has decided to include the Honorary Prof. Jang from Bu-kyeong University in the team, also discussed about the mediation of the period and the drawing up the report for 3 hours at the meeting room, Dae-jeon.

(7) Interim report meeting (2016. 03. 10)

On 10th March, 2016, Video conference for the interim report session took place with 9 participants for the Korean side and also 9 participants for the Russian side in meeting room, Jong-no.

(8) High-level policy discussion and the final report briefing

From April 6th until 8th, 2016, Korean side visited Sakhalin Region in order to carry out the final report briefing for high-level personnel from Sakhalin State

Government about the final result of the research through a series of processes.

022 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

2015 Knowledge Sharing Program (Industry & Trade) with Russia (Sakhalin Region)

❮SUMMARY❯ 1. Current State of Asia-Pacific Marine Living Resource Market and its Prospect 2. Background on Sakhalin Region’s Development of Mariculture and its Current State 3. Prospective and Potential Utilization of Marine Biological Resources in Sakhalin Region

Young Jin Chang (Pukyong National University) Se Ho Jang (Hankuk University of Foreign Studies)

The development plant for mariculture in Sakhalin originated from Russian federal government‟s development plan for the Far East and Siberia and its economic restructuring and improvement plans through industrial diversification. The main industries of Sakhalin are based on useful mineral mining such as petroleum and other natural gases. However, they seem to take up way too much of the region‟s total production. And this issue validates the necessity to attempt to strengthen the mariculture industry which serves as the basic foundation with long and rich history in Sakhalin region‟s local economy. Furthermore, the aggressive development of aquaculture in Sakhalin is timely considering the fact that the world‟s mariculture industry is expanding as the natural fishing in Sakhalin is yielding lesser than before. The success of the development plans for Sakhalin‟s mariculture depends heavily on the changes and the direction of the fish market of the world and of the Asia- Pacific. Therefore, there are a few things to consider in the current fish market. First, the fishing industry‟s role in supplying food to the world is increasing and this in turn result in mariculture industry growing and improving in its role and image respectively compared to that of the natural fishing. Second, the world‟s total fish production and the mariculture production are both dominated by Asia, more specifically by China and its neighboring countries. Third, Asia and China

specifically amongst the Asian countries will dominate the world‟s fish production

024 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

and consumption until 2030. Fourth, China‟s import and export of scallops is increasing exponentially while its export is mainly comprised of lower priced scallops and its import is mainly comprised of higher priced scallops. Fifth, the world‟s sea cucumber export is dominated by China and its neighboring countries such as Hong Kong, and Singapore with Hong Kong, Vietnam, and Singapore as market leaders in world‟s export of sea cucumbers. Sixth, the world‟s abalone production and trade mainly take place in Asia, specifically around China and its neighboring countries and the import amount of China and its neighboring countries and of the Southeast Asia have greatly increased as of late. To sum it all up, promoting the development of mariculture industry in Sakhalin seems to be very prospective considering the current state and the outlook of the fish market of the world and of Asia-Pacific. Also, the role of Asia-Pacific region in the world‟s fish market is huge and its role is expected to grow even bigger and this region should be the main target for exporting. It is recommended that Sakhalin exports higher priced scallops to China and its neighboring countries. As for sea cucumbers, Sakhalin should export to countries around China such as Hong Kong, Vietnam, and Singapore in short term but it should consider higher priced sea cucumbers to China in the long run. As for abalones, Sakhalin needs to establish an appropriate exporting strategies as it pays attention to the rapid growth of countries around China and the Southeast Asia. Currently, the mariculture of Sakhalin is mostly limited to salmons. There have been various attempts at commercial mariculture of various sea products since the late 90‟s amongst private enterprises. However, such attempts were futile as there was no interest or support from either federal or state government. Furthermore, the enactment of federal law regarding seaculturing in 2013 sent the culturing along the coasts of Sakhalin region into a recession. But various research centers such as the Sakhalin Fishing Industry/Oceanography Research Center and the Marine Life Research Center in Vladivostok along with numerous private enterprises have been conducting research on the physical and natural environmental conditions of Sakhalin region as well as on developing mariculture technology for certain mariculture products. As a result, it has been proven that the outlook for mariculture in Sakhalin is bright and this was significant in the sense that it will serve as a crucial foundation for the major development of mariculture industry in Sakhalin region in the near future. Looking at various studies from the past, the seas near Sakhalin have an ideal marine environment for mariculture and Aniva Bay and Busse lake seem to be the most ideal candidates for mariculture. Also, it seems wise to culture Maritime scallops, Far Eastern sea cucumbers, kelps, and giant oysters over other Sakhalin-

Kuril region marine species. This is because these 3 species feature strong sedentary

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 025

characteristics along the coastlines and there are readily available techniques for massive culturing for these species which were developed and validated for usage within Sakhalin and Kuril coastlines. Scallops and sea cucumbers especially seem to be the most ideal initial candidates for culturing. The species above reside in coldsea which offer the following three advantages: ① Differentiation from the marine products coming from lower latitude countries, ② Proximity to Northeastern Asian markets which include Korea, China, and , ③ Expectation of fast capital recovery. Therefore, the first step of the „Biotechnopark‟ construction project should involve scallops and sea cucumbers and the abalone farming in the southern Kuril Island coastlines and the coastlines should come into consideration for the long run as this project progresses. The potential for mariculture in Sakhalin-Kuril region will become greater as the seedling production and culturing methods become more diverse and as they get implemented. Also, the legal and administrative support from both the federal and the stage government shown through actions such as revising the mariculture related laws should help as well.

1. Current State of Asia-Pacific Marine Living Resource Market and its Prospect

1.1. Estimation and Prospect of World Marine Product Production and the Future of Aquaculture Industry

It is projected that the successful growth of Sakhalin Region‟s aquaculture industry depends on the global marine living resource production and consumption, especially that of the Asia-Pacific marine living resource market which is geographically the closest.1)

According to 『Fish to 2030』 published by the World Bank, the world population will reach approximately 9 billion by 2050 and securing food is the most important

1) ‘Marine living resources’ is a very wide concept which is open to interpretation but it refers to ‘marine products’ in this study. As this study’s topic of discussion is aquaculture industry development, it specifically refers to mariculture resources.

026 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

task for their survival.2) Agriculture and fishing industry, the two axes of food security, have complementary effects for securing food supply in the future. However, agriculture supply is becoming more and more uncertain due to the devastation of lands and water supplies and global climate change. Therefore, the status and role of the second food supply source, the fishing industry, becomes more important.

However, the fishing industry also faces problems as the unacceptable amount of overfishing and the desolation of habitats has the world concerned about the integrity of fisheries. Naturally, for the safety and preservation of marine living resources, the growth of aquaculture‟s role is becoming more evident.

World Production of Marine Products

(Unit: Thousand Tons) Year 2008 2009 2010 2011 2012 2013 World 143,103 145,885 148,215 155,580 157,788 162,728 Entire Asia 93,527 96,476 101,174 103,696 109,192 113,458 China 47,689 49,867 52,325 54,566 57,438 60,001 South Asia 12,179 12,440 13,339 13,054 14,457 14,831 Southeast Asia 23,204 24,229 25,681 26,594 27,840 29,370 Other Asian 10,455 9,940 9,829 9,481 9,458 9,257 Regions Americas 24,512 23,645 20,198 25,389 21,489 21,947 Europe 15,390 15,875 16,438 16,067 15,930 16,319 Russia 3,499 3,943 4,190 4,384 4,476 4,501 Africa 8,257 8,485 9,004 9,058 9,721 9,606 Oceania 1,417 1,404 1,400 1,371 1,456 1,398

Source: FAO, FISH STAT J Note: seaweeds excluded

2) World Bank, Fish to 2030: Prospects for Fisheries and Aquaculture, 2013, p. vii.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 027

World Production of Capture Fisheries

(Unit: Thousand Tons) Year 2008 2009 2010 2011 2012 2013 World 90,126 90,145 89,114 93,705 91,288 92,504 Entire Asia 46,502 46,917 48,672 48,866 50,217 50.880 China 14,951 15,080 15,584 15,941 16,324 16,447 South Asia 6,996 7,231 7,848 7,424 8,038 7,880 Southeast Asia 15,934 16,529 17,245 17,736 18,237 19,048 Other Asian 8,621 8,077 7,995 7,764 7,617 7,506 Regions Americas 22,010 21,130 17,617 22,621 18,511 18,878 Europe 13,060 13,375 13,894 13,381 13,053 13,538 Russia 3,384 3,826 4,070 4,255 4,331 4.346 Africa 7,314 7,495 7,718 7,662 8,235 7,990 Oceania 1,240 1,228 1,212 1,174 1,272 1,217

Source: FAO, FISH STAT J (http://www.fao.org/figis/servlet/TabSelector?tb_ds=Capture&tb_mode=TABLE&tb_act=SEL ECT&tb_grp=COUNTRY) Note: seaweeds excluded

World Production of Aquaculture Products

(Unit: Thousand Tons) Year 2008 2009 2010 2011 2012 2013 Total 52,978 55,739 59,101 61,876 66,500 70,224 Asia 47,025 49,559 52,502 54,830 58,976 62,578 China 32,740 34,788 36,742 38,627 41,115 43,555 Southeast Asia 7,271 7,700 8,436 8,857 9,602 10,322 South Asia 5,182 5,209 5,492 5,630 6,419 6,951 Other Asian 1,833 1,861 1,832 1,715 1,839 1,749 Regions Americas 2,502 2,515 2,581 2,767 2,978 3,069 Europe 2,330 2,500 2,544 2,686 2,877 2,781 Russia 115 117 120 129 145 155

Africa 943 990 1,286 1,397 1,485 1,616

028 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

World Production of Aquaculture Products

Oceania 177 176 188 196 184 180

Source: FAO, FISH STAT J (http://www.fao.org/figis/servlet/TabSelector?tb_ds=Capture&tb_mode=TABLE&tb_act=SEL ECT&tb_grp=COUNTRY) Note: seaweeds excluded

According to 『Fish to 2030』, the world marine product production has almost doubled since 1984 when it was at 60 million tons to 120 million tons in 2008. The interesting fact is that while the fisheries‟ production didn‟t change for the past 30 years, the aquaculture production has been increasing steadily. This trend is still shown in recent data as well. The world‟s aquaculture production has increased 5.8% in the past 5 years and it is growing steadily as its market share has increased from 12% in 1984 to 43% in 2013. This trend shows that aquaculture industry will play a more important role in the future as a stable source of sea food and lead the growth of the world‟s fisheries.

Along with this, the fact that China is growing rapidly in the world‟s marine product market and as it greatly influences both the market and the trade also stands out. As of 2011, the marine product consumption per person in China was increasing by 6% annually on average from 1990-2010. Asia makes up 88% of the world‟s aquaculture production and China makes up 62% of this production. China produces 35% of the world‟s marine products while it consumes 34% of the world‟s total marine product consumption. It is essentially a major producer (exporter) and a consumer (importer) at the same time.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 029

Prospects of World Production of Marine Products (Data and Estimate) and Average Annual Growth

As shown by , the world‟s marine product supply is projected to increase to 186 million tons in 2030 from the 154 million tons in 2011. Also, the aquaculture industry is projected to continue to catch up to the production level of fisheries and grow steadily to stand on even ground with fisheries by 2030.3) It is expected that the consumption levels of Japan, Latin America, Europe and will drop, whereas China‟s influence in the world‟s marine product market will continue to grow bigger until 2030.The reduction in consumption levels in the other Asian countries would be a comparative decrease as China‟s consumption levels increase. In 2030, it is estimated that China will consume 38% of the world‟s total consumption and produce 37% of the world‟s marine products. It is projected that Asia and Latin America will continue to lead in supplying the world with marine products in the future.

1.2. Current State of Asia-Pacific Market for Scallops, Sea Cucumbers, and Abalones

Sakhalin‟s major marine products are salmons, cods, Alaska Pollock, herrings, king crabs, scallops, sea cucumbers, abalones, sea mustards, and kelps. Among these,

3) Kim Dae Young, Current State of World Fisheries and 2030 Outlook – based on report by World Bank 『marine observation review』 Vol. 1, No. 1, 2014, pp.42-43.

030 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Sakhalin Region‟s major mariculture product is salmon. However, since Sakhalin

Region is planning a multi-phase expansion of variety among mariculture products with scallops, sea cucumbers, and abalones as new products. Therefore, this study will focus on the three products above as it looks into the current state of Asia- Pacific market.4) Also, this study will look at the three products above as it looks into the current state of the Chinese market. This was included with the consideration of the fact that China has a large influence in the marine product market and Asia- Pacific market, with a steadily increasing trend.

1.2.1. Scallop

As shown in , the world‟s production of scallops in 2013 was at 2.62 million tons and it has increased by approximately 5% of the past 5 years. Asia produced the most of these scallops as it produced 2.12 million tons as Americas produced 360,000 tons and Europe produced 100,000 tons. In the total production in the year 2013, China accounted for over 60% of the production and it is noted that it has shown steady increase since 2009 when it produced 52.8% of the world‟s scallops. You can also see China‟s rise in both export and import of scallops as well in the statistics by countries.

shows that as of 2014, China is accountable for 29.5% of the world‟s total scallop exports and you can see the steep increase in the recent years. As for the world‟s scallop importing, shows that the total import was recorded at 1.73 billon USD in 2014 and the average annual increase rate was at 7.7% for the past 5 years. United States recorded the highest amount of import as China and Vietnam‟s imports increased steeply. As for China‟s scallop export and import, it was shown in and that China exported mostly to North America and other geographically close countries. The imports were the highest among Japan (97.86 million USD), North Korea (1.47 million USD), and Peru (560,000 USD). The most interesting fact is that China recorded a very high ratio as its recent scallop importing increased by 62.4%.

In summary, the world‟s scallop production is steadily increasing as Asia‟s

4) This study will be based on the most recently published statistics on marine products from UN FAO,

and the UN COMTRADE to analyze the Asia -Pacific market for scallops, sea cucumbers, and abalones.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 031

production was dominant with China being the leader in production, consumption, and exporting. Also, it should be noted that China‟s importing is low compared to North American and European countries but it‟s been increasing dramatically in the recent years.

1.2.2. Sea Cucumber

As shown in , the world‟s sea cucumber production was at 230,000 tons in 2013 and this was a 10.3% increase from the previous year with 13.3% increase in the past 5 years. Asia produced the most with 215,000 tons with China and its neighboring countries dominating by producing 83.5% of them. Amongst Asian countries, while China and its neighboring countries have been increasing their production, the Southeast Asian and South Asian countries‟ productions were either at a halt or decreasing.

shows that the total exports of sea cucumbers from 2012- 2014 was 451.41 million USD. China and its neighboring countries dominated the export market as China, Hong Kong, and Singapore made 247.8 million USD, 72.35 million USD, and 22.77 million USD each respectively. As for the total imports of 480 million USD around the world for 2012-2014 shown ins , Hong Kong, Vietnam, and Singapore were the leading importers as each imported 299.52 million USD, 779.12 million USD, and 294. 93 million USD respectively.

The export and import of sea cucumbers are dominated by Asia and mostly by China and its neighboring countries and Southeast Asian countries (, ). As for the rate of increase for exports, the exports for the Southeast Asian, American, and Oceanic countries are increasing but their rates of increase were unable to match that of China and its neighboring countries. As for imports, China and its neighboring countries were either at a halt or decreasing while the Southeast Asian countries importing noticeably increased in 2014.

In 2014, China and its neighboring countries recorded 247.8 million USD for exports as shown by and . Hong Kong, Malaysia, and Thailand were the leaders in exports as they recorded exports of 110.6 million USD, 39.52 million USD, and 23.89 million USD respectively. In 2014, China‟s import of sea cucumbers was about half of the previous year‟s at 8.88 million USD as opposed to 18.36 million USD from the previous year. China

imported sea cucumbers mostly from North America and East Asian countries such

032 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

as United States, Canada, South Korea, Japan, and Russia. It should also be noted that while Japan‟s import decreased, the countries near Japan such as South Korea, Russia, and North Korea were importing more.

1.2.3. Abalone

In 2013, the world‟s abalone production was at 132,000 tons and the average annual rate of increase for the past 5 years was at 19%. Asia produced the most amongst all continents with China and its neighboring countries producing the most among them. China produced 59.5% of the abalones worldwide in 2008 and this has increased to 83.5% in 2013 with their production increasing steadily over the years ().

shows the world export level of abalone. As of 2014, the world exports of abalones was recorded at 4.4 billion USD with China, Australia, and Hong Kong in front making 1.48 billion USD, 1.13 billion USD, and 530 million USD each respectively. Also, the increases in exports for China and its neighboring countries (China, Hong Kong, and Taiwan) are noticeable. As for the world imports of abalones shown by , it shows the total imports increasing immensely in 2014 with Hong Kong (176.94 million USD), Vietnam (89.15 million USD), and Japan (79.51 million USD) leading the way in imports.

Looking at and , you can also see that Asia and China along with its neighboring countries having the most transactions in terms of export and import. The world import increased by about 43% compared to that of 2013 in 2014, and this was because China and its neighboring countries along with Southeast Asian countries increasing their importing significantly.

As for the amount of imported abalones, the East Asian countries and Southeast Asian countries such as Hong Kong, Vietnam, and Japan led the way. By continents, Asia, Europe, and Americas imported the most with each importing 12,872 tons, 1,106 tons, and 385 tons respectively. Among them, China and its neighboring countries recorded the highest amount of import with 7,195 tons and the increase in import for the Southeast Asian countries was standing out in 2014.

and shows China‟s abalone export and import. China exported 148.39 million USD and it exported mostly to Thailand (95.53 million USD), Hong Kong (36.10 million USD), and Japan (10.92 million

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 033

USD). As of 2014, China‟s abalone import was at 23.4 million USD and most of it came from Australia (21.92 million USD).

Based on the discussions above, we can come to a few conclusions for the Asia- Pacific marine living resource market‟s current state and prospect.

First, as one of the two major food supply, agriculture‟s future has become bleak, the status and the role of the fishing industry has become more important. Fisheries have been at a halt and aquaculture is essentially the leader in the expansion of fishing industry and its role and status are only going to grow bigger.

Second, the world production of marine products is dominated by Asia and China along with its neighboring countries. This is apparent in aquaculture industry as well.

Third, the world production and consumption of marine products will be dominated by Asia until 2030. China will be responsible for about 1/3 of the world‟s production and consumption of marine products and dominate the market by 2030.

Fourth, the world production of scallops is led by Asia with China and its neighboring countries being the biggest manufacturers. Currently, China‟s scallop exporting and importing is increasing rapidly with low cost scallops being exported the most and high cost scallops being imported the most.

Fifth, the world production of sea cucumbers is dominated by China and other Asian countries. The exporting is done mostly by China, Hong Kong, and Singapore along with other neighboring countries of China and the importing of sea cucumbers is done mostly by Hong Kong, Vietnam, and Singapore.

Sixth, the world abalone production is dominated by Asia and China with its neighboring countries as the production increases rapidly. Most of the transactions occur in Asia and amongst China and its neighboring countries and the importing of China along with its neighboring countries and Southeast Asian countries has increased tremendously in the recent years.

In conclusion, the seeking of full-scale development of the insignificant mariculture industry in Sakhalin Region in Russia is a timely move. The reason behind it is because the mariculture industry‟s proportion in the marine product market is expected to lead the market with its steady growth in the world. Especially, the prime environmental condition in Sakhalin has tremendous potential to satisfy a

034 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

considerate amount of Russia‟s marine product demand.

As for conclusion, development strategy on mariculture industry in Sakhalin Region is only plausible if it takes Asia-Pacific marine product market‟s current state and prospect along with that of rest of the world. Furthermore, the fact that Asia(Pacific) region is playing a significant role in the world marine product market with its role set to grow bigger in the coming years, Sakhalin Region should set its eyes on this region for exporting for its mariculture products in the coming years. As for what kinds of products to export, it seems wise to export high cost scallops to China and its neighboring countries. For sea cucumbers, Sakhalin Region should look to export to Hong Kong, Vietnam, Singapore, and other neighboring countries of China for the short term but look to export high cost sea cucumbers to China in the long run. As for abalones, Sakhalin Region needs to pay attention to the rapid growth of China and its neighboring countries and Southeast Asian countries to establish its exporting strategies.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 035

2. Background on Sakhalin Region’s Development of Mariculture and its Current State

2.1. Background on Sakhalin Region‟s Development of Mariculture and its Current State

Sakhalin Region is aggressively developing the mariculture industry because of the Russian federal government‟s plans to develop the Far East and Siberia with economic restructuring and improvement through industrial diversification. The Russian federal government announced „The Socio-Economic Development of the Far East and Baikal Region until 2025‟ in 2013 and it has established state-operated enterprises, provided tax exemption for businesses, demanding legal responsibility to establish a mining and processing cluster when developing resources, and building traffic and energy provision infrastructures to aid its cause.

Sakhalin Region has opted for „Socio-Economic Development of Sakhalin Region until 2025‟ and this strategy is aiming to develop the economy of Sakhalin Region as it elevates its social standards. This plan is being promoted through establishing an ideal environment for economic development, human resource development, governmental operation efficiency improvement, budget restructuring, infrastructure improvement, and economic diversification along with securing competitiveness, net income increase, and living standard improvement. Also, the state has opted for “Development of Sakhalin region's investment potential in 2011-2018” to reinforce its energy industry‟s competitiveness by establishing a joint system between the government and the people, and improving its landscape for potential investment.

However, Sakhalin Region was not included in the development zone designated by the Russian federal government in 2014. But the state itself made plans to promote several projects such as the „Sakhalin West Coast Fuel-Energy Industrial Complex‟, „Gorny Vozduh Sports Complex‟, „Ocean Biotechnology Park‟, and „Forest Development Project‟. Also, Sakhalin Region government had interest in establishing its own agricultural complex to replace imported foods and has already started to operate a few of its own. The main interest of Sakhalin Region government is to develop agriculture, forestry, and sports tourism industries to ensure that the

local economy does not lean too much on its petroleum industry.

036 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

In other words, Sakhalin Region has established various development plans and strategies to satisfy the federal government policies for the development of the Far East and industry diversification, but the focus has been in the energy/resource sector. The Sakhalin government has since attempted to widen the focus into agriculture, forestry, and sports. Especially, the development of the mariculture sector, which has a comparative advantage, has been hindered by the federal law “regarding mariculture” enacted in 2013. This has led to a self-contradicting situation which prevented any major advances in mariculture.

Currently, the core industry of Sakhalin Region is mining industry that focuses on petroleum oil and gas, and other useful minerals. And as of 2013, it boasts 61% of Sakhalin Region‟s GRDP. This number shows that Sakhalin Region‟s economy relies heavily on mining industry even though Sakhalin Region is the most dynamically developing region amongst all of Far East.

Sakhalin Region has abundant supply of marine resources and the waters around Sakhalin-Kuril Islands region boast the biggest fishery in all of Russia. Naturally, Sakhalin Region‟s fishing industry is the very foundation of its state economy which has considerable amount of influence as it ranks second to petroleum oil and gas in export income. The major fishes caught around Sakhalin Region are Alaska Pollock, cods, herrings, salmons, and crabs and 40% of them are exported while the other 60% are reprocessed to be distributed in Russia. Also, Sakhalin Region has been developing artificial propagation of salmons to boost its abundance in marine resources and it has been dominating the artificial propagation of salmons in Russia as well (80%). Currently, there are 41 salmon hatcheries total in Sakhalin Region along with the 25 private salmon hatcheries.

However, the fishing industry‟s share in GRDP is low compared to its potential and considering the current state of Asia-Pacific marine product market and its growth in the future, Sakhalin Region is aggressively promoting its fishing industry, specifically the aquaculture industry. Currently, Sakhalin Region is focusing on the issue of developing its mariculture industry to develop its fishing industry. It is particularly focused on salmon hatcheries to increase economic efficiency of the aquaculture industry as it expands on to scallops, sea cucumbers, sea urchins, and kelps.

The development of mariculture within Sakhalin Region was also affected by the steady decrease in its local marine resources. Sakhalin Region government has been assigning fishing quotas to fisheries in the past. However, there was no plan to

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 037

supplement the marine resources once they were harvested and the change in fishing environment along with overfishing has started to deplete marine resources. As a result, the catch has decreased dramatically and it became impossible to rely on steady production of marine products. Therefore, Sakhalin Region government has been looking into developing a large scale mariculture industry to make up for the lack of catch.

In summary, Sakhalin Region is positively reacting to the development plans for the Far East and Siberia as well as the industrial diversification in the designated areas that are being promoted by the Russian federal government. It is also looking for ways to utilize its advantage of marine resource abundance through developing mariculture industry and this strategy is indeed the most ideal strategy given the situation.

2.2. Present Condition and History of Sakhalin Region Mariculture

The mariculture of Sakhalin Region started in the 1970's with the launching of salmon farm, and is currently limited to this area (salmon farming). In the Sakhalin Region, 41 artificial salmon reproduction enterprises are currently active, with 860,000,000 salmon fries being set free annually. The regression of the salmon fries set free is 2.6% on average, and a part of the salmon group, 'Chum Salmon', show maximum regression rate of 5%. The success of salmon farming sector paradoxically put attention for the other coastal varieties secondary.5) However, it doesn't mean that Sakhalin Region's interest for farming other breeds was completely non-existent. After the collapse of the Soviet Union, private enterprises have showed consistent and periodic interest for the expansion of mariculture.

The interest for the aquaculture of other coastal breeds other than salmon was first raised in the late 90's. 'Astarta'(Co) (Астарта), 'Soyuzokean'(Co) (СОЮЗОКЕАН),

5 ) Currently, Sakhalin’s salmon cultivation mainly consists of producing salmon seedlings and cultivating them for a certain period of time to release them into the water. This method of course was devised with the environment and the ecosystem in mind but there have been new developments and applications of new salmon cultivation techniques around the world. Therefore, Sakhalin should be able to become anmariculture powerhouse shouldit implement these new techniques for salmon cultivation to suit the needs of the designated region or research and develop new ways for salmon cultivation.

038 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

and „Trud‟(Co) (Труд) started scallop, and Kamchatka crab seedling experiments, along with attempted construction of scallop aquaculture facilities. Also, along with commercial aquaculture attempts from private companies in 2000‟s, Akbakultura, a private aquaculture society, was formed to develop the aquaculture business.

In 2000's a form of private aquaculture association named 'Akbakultura' was established. The founding purpose of this group was to support the development of aquaculture industry by tying entrepreneurs who wanted to start in aquaculture. Moreover, a famous company at the time named 'Tinar'(Co) formed a subsidiary company named 'Tinar-bio', which administered a prototype sea urchin farming facility construction project in the region.

Afterwards, the relatively low interest in aquaculture sector increased between 2003~2005. Companies such as Tiranai(Co)6), Soyuzokean(Co), Kompas Plus(Co), and individual businesses such as Lipin went through various preliminary operations to establish aquaculture facilities for scallop seedling production. The various results collected from these operations satisfied anticipated results, production levels, etc. required to install industrial facilities for scallop aquaculture, and received very positive evaluations. Motivated by these results, Tiranai (Co) freed 8,500,000 scallop spats in its 'fishery area'(in Russia, an individual or company is given a specific area to operate) in 2006.

In the (о. Монерон) coastal areas, Friboy (Co) had interesting results regarding scallop spats. According to the data in 2006, the 'spat'(the very early stages of scallops) had very different implantation density ranging from 729~138 depending on the type of basket used. According to the actual acquired data, the growth rate of the spat was very fast, similar to scallops in northern Kuril archipelagos and Busse lagoon(潟湖) (лагуна Буссе). This led to the conclusion that coastal areas of Moneron island (о. Монерон) has sufficient potential to establish a profitable aquaculture industry. In other words, the positive results regarding scallop seedling collection and implantation physically proved the potential for large-scale mariculture industries in the Moneron island's coastal areas.

6) This business unit visited the company on its 2nd business trip to Yuzhno-Sakhalinsk to inspect various facilities, and the representative, along with principal staff, have listened to the mariculture industrialization attempts at the time. The representative from the firm explained the various tests related to scallop farming in detail with the on-site aquaculture specialist, and were confident that the Sakhalin Region had a strong possibility for commercial success. Tiranai (Co) used its own

‘fishing area’ (промысловый участок: Russia assigns special areas for business activities for each person or business.) to release 8.5 million scallop spats.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 039

In addition, in 2004, experts from Soyuzokean(Co) worked with 'BPPR island fish invest' jointly on Kunashir(о. Кунашир) island in a project to apply scallop seedling(spat) collection technology. From the first experiment, the economical feasibility of scallop harvest on Kunashir island was confirmed. A high implantation density of spats was observed, and a high growth rate was observed for the first month.7) Other than the corporations mentioned above, other companies that engaged in scallop farming include Kompas Plus(Co). However, this company did not record its own performances which make it difficult to confirm the details of its progress. In 2006, Vladmirovo(Co) and Mirashi(Co) participated in scallop and herring farming business, but like Kompas Plus(Co), the performance of these corporations cannot be confirmed.

As discussed above, a series of fishery corporations expressed their desire to develop the mariculture industry in many areas in the Sakhalin Region. The fact that these desires and efforts did not receive active attention and support from the federal government or the Sakhalin Region government was a serious limitation. Also, after the federal laws "regarding mariculture" were enacted in 2013, the stagnation of coastal mariculture in the Sakhalin Region is an undeniable reality. Despite these facts, the interests and efforts put in by private corporations enabled tests for aquaculture technology regarding scallops and sea cucumber to take place, and the confirmation of the fact that bright mariculture industrial development opportunities in Sakhalin Region exists with hard evidence holds significant meaning.

Businesses or Organizations Using Mariculture Technology in Sakhalin

Company Name Species Waters Notes Documentation complete*, 1 Tiranai Scallop Aniva bay Testing cultures Documentation complete, 2 Friboy-Trade Scallop Aniva bay Testing cultures Testing cultures with Pacific 3 Kompas Scallop Aniva bay Research Fisheries Center Documentation complete, 4 Binom Scallop Aniva bay Testing cultures

7) The implantation density of spats ranged from 50~836 depending on the type of basket used. Widths of scallops that were grown for 5 months were 26.3mm on average, and 63.3% of scallops were over 25mm in width.

040 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Businesses or Organizations Using Mariculture Technology in Sakhalin

Company Name Species Waters Notes Scallop Aniva bay Documentation complete 5 Raki-Treining Sea Cucumber Aniva bay Documentation complete 6 Vladmirovo Scallop Terpeniya bay Documentation complete Documentation complete, 7 SAKHKOH Sea Cucumber Busse lagoon Testing cultures, building culture farms Documentation complete, 8 Sakhalinskii Ribak-2 Sea Cucumber Busse lagoon Testing cultures Sea Cucumber Aniva bay Documentation complete 9 Nautilus Sea Urchin Aniva bay Documentation complete 10 Prilib Sea Cucumber Kunashir island Documentation complete Operating plant, acquires Preobrazhenskaya 11 Sea Cucumber Coastal province seedlings artificially and Baza Flota disperses them in habitats Aniva bay, Testing mariculture technology 12 SakhNIRO Various species Terpeniya bay, Kuril applications islands

* „Documentation complete‟ means that the required legal and administrative documentations have been completed in order to begin mariculture businesses in the area.

As discussed above, many private corporations, Sakhalin Research Institute of Fisheries and Oceanography, The Institute of marine biology FEB RAS, and other research facilities conducted various experiments regarding coastal mariculture of scallops, sea cucumbers, sea urchin, etc.

Russia has showed a lot of interest in the mariculture experiences in , Japan for their mariculture technology development.8) For scallops, most private corporations file basic papers (documents) for commercial aquaculture, then install attachers to acquire seedlings and apply/experiment aquaculture technology in a natural environment.

8) Currently, there are 5 government programs in place for increase population and proliferation of halibut, herring, square hairy crab, spiked crab, Kamchatka crab, scallop, sea urchin, sea cucumber, blowfish, etc. in Hokkaido. Also, there are more than 10 research institutions that research aquaculture in various directions in the area. Their research led to the development of mariculture

technology for herrings, sea urchins, scallops, and blowfish, and fishermen's union lead activities in restoration of marine biology resources in the entire Hokkaido region.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 041

Even for sea cucumbers, the mariculture technology experiments and application involve basic seedlings that are used in sea cucumber aquaculture in Japan and China being raised and planted in a natural environment. In addition, there are several methods that expand surface area by using rocks to create artificial structures in attempt to increase sea cucumber habitation and density.9)

Hence, Russia falls far behind in industrial mariculture size and technology compared to its aquaculturally developed neighbors, but is thought to be acquiring basic technology and experience for the mariculture of scallops, sea cucumbers and other few varieties. Especially, Sakhalin Research Institute of Fisheries and Oceanography and The Institute of marine biology FEB RAS have done a variety of research in physical/natural environments of Sakhalin and Kuril coastal area, and steadily researched aquaculture technology required for the mariculture of several breeds. Therefore, these accumulated research data will become an important base for the future mariculture development in the Sakhalin Region.

9) Aquaculture of sea cucumbers started in Japan in 1930's, and they are widely in place the coastal areas of Japan and China. Especially in China, millions of tons of sea cucumber seedlings are produced annually. Chinese fishing industry academy's 'HuanHai' fishery research institute, Shandong Regional Research Institute of Aquatic Organism Aquaculture, and Liaoning Regional Research Institute of Marine Resources, have gotten superb results in sea cucumber aquaculture.

042 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

3. Prospective and Potential Utilization of

Marine Biological Resources in Sakhalin Region

3.1. Current Utilization of Marine Biological Resources and Physical/Natural Characteristics of Sakhalin Region

Current Marine Production in Sakhalin

(Unit: Tons) Type 2010 2011 2012 2013 2014 Fish 526,761.29 706,598.83 696,738.68 760,058.56 528,699.72 Crustaceans, Ocean 30,019.49 34,337.81 39,058.13 46,413.94 50,850.79 invertebrates Seaweeds 2,131.50 4,830.69 2,769.05 1,730.38 2,300.68

Source: Russian Federation Federal State Statistics Service Sakhalin Branch Table published on 6/22/2015 http://sakhalinstat.gks.ru/wps/wcm/connect/rosstat_ts/sakhalinstat/ru/statistics/enter prises/fisheries/

Current Fish Production in Sakhalin

(Unit: Tons) Type 2010 2011 2012 2013 2014 Salmonids 128,899.90 103,750.04 99,377.10 150,881.30 66,387.26 Live Fish Other Fishes 256,340.62 374,943.68 423,188.66 342,680.93 337,339.62 Chum salmon 17,946.66 10,890.59 6,173.60 15,416.61 12,632.66 Pink salmon 47,241.85 88,255.96 33,642.23 71,811.39 29,550.77 Chinook salmon 3.00 - 4.40 5.82 3.4

Fresh Cherry salmon - 0.40 - - - Fish/Frozen Sockeye salmon 320.80 - 722.60 945.28 745.23 Fish Coho salmon 3.00 35.32 66.10 91.50 119.15 Other salmons 19.10 8.50 10.00 2.00 11.2 Saury 639.00 24,693.69 15,593.51 14,605.80 4,028.68

Cod 3,501.80 10,848.13 8060.78 9,335.33 13,856.19

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 043

Current Fish Production in Sakhalin

Haddock - - 600.23 - - Pollack 58,495.25 69,972.97 70,752.32 112,120.24 49,928.83 Navaga 4,283.54 4,907.37 8,660.94 10,842.69 4262.47 Other Codfishes - 748.26 - - - Halibut 15.10 989.21 189.71 170.78 540.44 Flounder 3,009.75 1,757.11 5,426.07 3,419.92 5,150.81 Smelt 174.50 71.70 200.36 129.72 147.82 Capelin 110.00 30.03 43.84 65.71 299.9 Gobies 267.40 568.97 486.51 1011.45 340.47 Greenling 4,221.42 6,672.99 6,816.96 7,581.82 3,079.32 Seabass 5.10 - 428.87 - - Other Scorpion 3.50 - - - 89.65 Fishes Herrings 220.00 7,371.89 14,347.17 18,314.52 43.8 Other fishes 1,020.00 82.02 1,896.11 625.75 125.25

Source: Russian Federation Federal State Statistics Service Sakhalin Branch Table published on 6/22/2015

Current Production of Crustaceans and Ocean Invertebrates in Sakhalin

(Unit: Tons) Type 2010 2011 2012 2013 2014 Crabs 920.55 2,702.91 3,130.74 6,393.18 8,246.7 Shrimps 4,712.36 4,368.66 4,103.83 2,018.52 1,313.79 Oysters - 6.30 49.90 21.00 13.2 Scallops 7,441.57 4,523.52 3,797.21 3,563.29 8,716.59 Octopus 292.79 20.08 6.55 26.92 50 Squid 641.46 1,382.99 3,226.74 6,907.09 6,017.6 Sea Urchins 3,017.48 4,617.57 5,170.99 6,135.50 3,708.99 Sea Cucumbers 310.00 1,061.97 816.18 1,276.24 744.77 Others 489.99 2,023.84 2,869.16 1,081.58 1,007.07

Source: Russian Federation Federal State Statistics Service Sakhalin Branch Table published on 6/22/2015

044 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Current Production of Sea Weeds in Sakhalin

(Unit: Tons) Type 2010 2011 2012 2013 2014 Kelp 2,131.50 4,830.69 2,769.05 1,730.38 2,300.68

Source: Russian Federation Federal State Statistics Service Sakhalin Branch Table published on 6/22/2015

As shown by

,
,
,
, the main competitive marine products in the Sakhalin Region are cold water fish, including Pollack, cod, herring, halibut, salmon for the fish sector and sea cucumbers, scallops, sea urchins, king grab, snow crab, shrimps for the invertebrates sector, and kelp in the marine plants sector.

The marine products produced in the Sakhalin region is focused on fish, but the fish production levels have peaked in 2013, and started on a declining trend starting in 2014. However, the production of crustaceans and marine invertebrates has been increasing steadily since 2010. The main categories of fish produced in 2014 include Pollack, cod, humpback salmon, and chum salmon. Pollack production peaked in 2013 and decreased dramatically in 2014. Cods have shown an increasing trend for the most part after 2010. Salmons such as humpback salmons and chum salmons have large fluctuations in production which make it difficult to find a consistent trend, but they show a gradually decreasing trend in general.

The crustacean and marine invertebrate production in 2014 is mainly composed of scallops, crabs, and sea urchins. Looking at the production levels for the past 5 years, scallops have been decreasing in production slightly starting in 2010 but had a large rebound in 2014. Crabs have shown a consistent increasing trend since 2010, and sea urchins peaked at 2013 and decreased dramatically in 2014.

For seaweed production, kelp production for the past 5 years showed a peak at 2011 and went on a decreasing trend. In 2014, kelp production showed a slight rebound.

Currently, due excessive collecting activities in the Sakhalin and Kuril coastal areas, the size of natural marine life resources that are economically valuable is greatly reduced. Therefore, the task remains to be strictly prohibiting excessive collection of marine life resources, while developing the mariculture industry to increase marine life resources.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 045

For example, industrial collection of scallops started in 1961. Afterwards, excessive overfishing led to a dramatic drop in population in 1966, and collection was prohibited in 1967. In 1976~1984, collection was reinstated but the quantity was limited. In 1985 the population of scallops dropped again, which resulted in another prohibition. As scallop research resumed in 1999, collection under government supervision was allowed, leading up to today. However, the population circumstances have not had any significant improvement in the recent years. In Aniva, a generation of scallops with large yields occurs once every 4~6 years, but due to widespread illegal collection the scallop population has not been able to recover.

Changes in Total Resource Amount and Available Catch Amount of Scallop in Aniva Bay

* Grey: Total amount, * Black: available catch amount (Unit: Tons)

046 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

A variety of texts have confirmed that the collection of cucumbers has significant history. However, there is a lack of consistency in the sea cucumber distribution, population, and yield data which makes exact numbers difficult to confirm. In the Busse lagoon, it is generally shown that large scale sea cucumber harvests have taken place from 1978 to 1988. In this period, there was excessive collection the years between 1981~1983 and 1979. The dramatic reduction in sea cucumber population and yields is due to the overfishing, and sea cucumber harvesting of the coastal areas was restricted from 1988. Afterwards, sea cucumber collection occurred between 1993~2001 under strict regulations, and one fishery corporation had exclusive official sea cucumber collection rights. Similar to scallops, sea cucumber population in Busse lagoon and Aniva bay is on a decreasing trend, and since 2002, collection is prohibited unless it is for scientific research.

Commercial Sea Cucumber Collection Scale in Busse Lagoon

Year 1978 1979 1980 1981 1982 1983 1984 1985 1986~1988 Tons 28 105 95 123 120 160 65 50 30

Changes in Total Resource Amount and Available Catch Amount of Sea Cucumbers in Busse Lagoon (1969~2003)

■: Total amount, ▲: Total amount available for collection(Unit: Tons)

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 047

In these circumstances, research institutes such as the Sakhalin Research Institute of Fisheries and Oceanography(Сахалинский научно-исследовательский институт рыбного хозяйства и океанографии (СахНИРО)) and The Institute of marine biology FEB RAS (Институтбиологииморя ДВО РАН) conducted research on the physical/natural characteristics of Sakhalin and Kuril coastal areas. Along with this research, they also conducted examinations of products that can be used in large- scale aquaculture production to replenish the reduced harvest of marine life resources. According to the findings of these research institutions, the coastal areas have good marine environment for maricultural development, and Aniva bay and Busse lagoon in the southern part of the Sakhalin Region are considered ideal since they have the necessary infrastructure required for mariculture industries such as electricity and roads.

Examining the data gathered by these research institutions, Aniva bay and Busse lagoon have the ideal marine environment(

) and infrastructure. These two areas are natural habitats for sea cucumbers, scallops, kelp and other rooted marine life, and as a producer of these products, the data supports that these areas can be the base where mariculture industry of the Sakhalin Region can be propelled forward.

For the basic environmental sources for Aniva bay and Busse lagoon, including topography, water temperature, salinity, freezing temperature, ocean currents, soil, etc. used the following papers for reference. Шелегова Е. К. Гидрологические условия зимой и ранней весной1955г. В южной половине Татарского проливаивзаливе Анива. отчѐт, архив СахНИРО, 1955 - С. 9 - 11; Пищальник В.М., Бобков А.О. Океанографический атласшельфовой зоны острова Сахалин // В.М. Пищальник, А.О Бобков // Южно-Сахалинск: СахГУ. – 2000. – Ч. II. C. 108; Поезжалова О.С., Шевченко Г.В. Вариации среднегоуровня Охотского моря// Цунами и сопутствующие явления. - Южно-Сахалинск, 1997.- С. 131 - 144; Бровко П.Ф. Развитие прибрежных лагун / Бровко П.Ф. // Владивосток: ДВГУ. –1990. C. 147. With these sources, our research team requested examination opinions from Professor S. Maslennikov from Sakhalin Research Institute of Fisheries and Oceanography and Professor D. Galanin from The Institute of marine biology FEB RAS for the mariculture industry development for marine organisms in Aniva bay and Busse lagoon. The following territorial suitability of Aniva bay and Busse lagoon mentioned in this report are from comprehensive examination results from their reports.

048 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Aquaculture Environments of Aniva Bay and Busse Lagoon

Environments Aniva bay Busse lagoon Remarks Waters area 9,368 km2 43 km2 Waters type Open bay Closed lagoon Depth(average) 0〜105 m (63 m) 0〜6.5 m (3〜5 m) Tidal range 0.7〜0.9 m 1.3 m A little range Tidal speed 2〜3 cm/sec None Low speed Water temperature -1.5〜17℃ -1.5〜24℃ Lower in winter Salinity 31.2〜32.3psu 27.2〜31.0psu Bottom quality Mainly sand and silt Mainly sand and silt Gravel, pebble

Ice-locked period December to February December to February No culture activity

Dominant species Sea cucumber, Kelp, Sea cucumber, Kelp, Ahnfelts seaweed, Scallop Scallop Sea grass

Source: Gallanin and Prohosova, summary of partial contents in 2015 report

Natural Habitats of Scallops in the Southern and Northern Area of the East Sea

*Stars indicate scallop habitats. Size of the stars corresponds with the size of the scallop population. Source: Galanin D.A., Prohorova N. Y. (2015), Prospects of Aquaculture Industry in the Sakhalin Region, Yuzhno-Sakhalinsk.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 049

Distribution of Sea Cucumber Population in the Sakhalin-Kuril Area

Source: Galanin D.A., Prohorova N. Y. (2015), Prospects of Aquaculture Industry in the Sakhalin Region, Yuzhno-Sakhalinsk

3.2. Mariculture Prospects and Potential in the Sakhalin Region

Currently, it is difficult to measure the exact mariculture potential of the Sakhalin Region. This is because the predicted production varies depending on the product and production method. There have been some research about this topic, but there is a lack of comprehensive/professional evaluation data to accurately grasp the mariculture potential of the coastal areas in the Sakhalin Region, which makes it difficult to reach a conclusive answer.

Even so, the possibility of developing the mariculture industry has definitely grown over the past 10 years. Technologies that allow artificial mariculture(spat) of various products in international coasts, the open sea, and the ocean have been developed and are currently being further developed. The progress of these technologies is a significant opportunity factor for the mariculture development of the Sakhalin Region.

However, not all of the technologies are applicable to the Sakhalin Region due to

050 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

objective or subjective conditions, therefore the foreseeable mariculture potential should not be overstated. Hence the mariculture potential of the Sakhalin Region should be based on conditions that allow verified mariculture technologies that can be applied to the area without significant cost.

This report considers many objective and subjective limitations within the experiment, and uses evaluation data for mariculture potential from The Institute of marine biology FEB RAS in the Sakhalin and Kuril Islands area. The evaluation involves application of hybrid aquaculture technology in mollusks and crustaceans.

According to the findings, the coastal area available for commercial mariculture within the Sakhalin Region is approximately 1.35 million hectares, and 85% of this area is within the Sakhalin coast, while the Kuril Islands coast comprises 15%. The estimated production from this area is expected to be around 2 million tons (

). Especially, this level of harvest has a comparative advantage over the mariculture potential in the Russian Far East maritime provinces or .

Area Available for Commercial Mariculture in the Sakhalin Region and Production

Area Proportion Production Waters (Unit: Thousand (Unit: %) (Unit: Thousand Tons) Hectare) Sakhalin Island Coastal 1,152 85.1 1,920 Waters Kuril Islands Coastal 201 14.9 335 Waters Total 1,353 100 2,255

Source: Maslennikov S.I. (2015), Prospects and Current Status of Aquaculture Industry in the Sakhalin Region. Vladivostok.

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 051

Prospective Mariculture Resources in Sakhalin Island Coast

Source: Maslennikov S.I. Marine Biological Resources in the Far Eastern Coast: Their Rational Use from Ecological and Economic Viewpoints// Energy and environment in Slavic Eurasia: toward the establishment of the network of environmental studies in the Pan-Okhotsk region. Sapporo: Slavik Research Center, Hokkaido University, 2008. P. 89-125.

Prospective Mariculture Resources in Kuril Islands Coast

Source: Maslennikov S.I. Marine Biological Resources in the Far Eastern Coast: Their Rational Use from Ecological and Economic Viewpoints// Energy and environment in Slavic Eurasia: toward the establishment of the network of environmental studies in the Pan-Okhotsk region. Sapporo: Slavik Research Center, Hokkaido University, 2008. P. 89-125.

Barnaby R. Growing Seafood in the Open Ocean. Offshore Aquaculture in the

United States. New Hampshire Sea Grant. Technical Report NH. Sea Grant Publication UNHMP-TR-SG-06-22, 2006, p. 18.

052 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Potential Mariculture Production Levels for Major Sakhalin Region Districts

Unit: Thousand Tons

Source: Maslennikov S.I. Marine Biological Resources in the Far Eastern Coast: Their Rational Use from Ecological and Economic Viewpoints// Energy and environment in Slavic Eurasia: toward the establishment of the network of environmental studies in the Pan-Okhotsk region. Sapporo: Slavik Research Center, Hokkaido University, 2008. P. 89-125.

,
and
show the potential mariculture production in the coastal waters of the Sakhalin Region and the southern Kuril Islands. These predictions are assume very favorable circumstances, since they don't consider problems fishery corporations may face in certain areas of the Sakhalin Region or Kuril Islands such as a lack of infrastructure. Hence, to have a realistic prediction, a definitive decision on type of product, area, and mariculture system development issues should also be considered in addition to technological problems.

Concluding the content mentioned above, our research team proposes these policies. Of the main marine life resources in the Sakhalin-Kuril area, marine products that have a clear competitiveness primarily include cold sea fish such as salmon, Pollack, cod, and other products such as sea cucumber, scallop, sea urchin, king crab, snow crab, shrimp, kelp and sea weed. Plentiful amounts of these products can be produced here, and they are actively supplied in Russian markets and other markets in the area. Fish that can be focused for mariculture development include salmon and cod, but these products already have significant partial development or cyclical so the business impact is unclear. Also, king crabs, snow crabs, and other crustaceans are highly mobile and the baby crab production technologies are not well-developed.

Considering these points, scallop (приморский гребешок), Cucumber (дальневосточный трепанг), kelp (япон ская ламинария), large oysters (гигантская

Chapter 1_Evaluation of the Current State of Sakhalin Region’s Mariculture and its Development Prospect ∙ 053

устрица), etc. are the realistic products that should be strategically prioritized.

In reality, scallop and oysters have the potential to enter the top 10 list of mollusk mariculture in the Asia-pacific. Cucumbers and abalone are high value products that are the most expensive of the invertebrates. Also, sea weed and kelp are considered as marine plants with the highest productivity in the Sakhalin-Kuril area.

Of these products, scallops and sea cucumbers have strong adhesiveness to the coast, have increased mariculture technology development, and have verified/secure mariculture technology in the Sakhalin and Kuril coast, which make them the ideal products for initial mariculture development. These two breeds are cold sea organisms that can be differentiated from low altitude countries' marine products, and Asian markets such as South Korea, China, Japan, etc. are nearby, making them ideal export products. Moreover, these two breeds are expected to yield the fastest capital recovery rate compared to all of the other mariculture corporations. Hence, the first step of Biotechnopark Propulsion Project's first step should be to target scallops and sea cucumbers for their business.

From the mid-long run perspective, abalone (морскоеушко) mariculture could be considered for promotion focusing on the Kuril Islands coasts and Tartar Straits. Consequently, separate research of its viability should be conducted for this venture. Depending on the fulfillment of certain circumstances, mariculture of marine plants such as kelp or sea weed and brown shrimp (Pandaluslatirostris) also guarantee high profitability. Sea urchins will attract attention for medicinal uses depending on introduction of necessary manufacturing technologies.

The potential mariculture production in the Sakhalin-Kuril area can be increased through introduction/application of new mariculture technologies such as seedling (spat) production and cultivation methods. If laws regarding maintenance of increased mariculture were supported by federal/regional governments with proper legal/administrative support, the potential could be grown even more. More details on these topics will be covered in the 2nd chapter.

Biotechnopark Project is a kind of a demonstration project for large-scale mariculture industry developments in Sakhalin. It is not an official project in a government scale, but it is indirectly supported by the state government, with the mariculture experts and private businesses forming the core. It will be a demonstration project with a cluster formation and is being pushed forward. The

details of this project will be discussed in Chapter 2.

054 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

2015 Knowledge Sharing Program (Industry & Trade) with Russia (Sakhalin Region)

❮SUMMARY❯ 1. Current Progress and Evaluation of Biotechno Park Construction Project 2. Lessons from the Mariculture Industry Development in Korea 3. Policies and Technological considerations for the Development of Large Scale Aquaculture Industry in Sakhalin Region

Han Kyu Im (Mokpo National University) Sung Hoon Jeh (Hankuk University of Foreign Studies)

At the present, Sakhalin Region is trying to accelerate the mariculture development by constructing the biotech park. According to the plan, biotechnopark will be composed in a cluster form. Cluster's fundamental production facility is formed with three production-technical center, first, coast cultivation facility complex to gain the seeds and seedlings of invertebrates, second, marine ranching, coast cultivation and aquaculture related service center to increase the merchantable quality of mariculture targets and nurture the mariculture lives, third, processing center for hybrid machining. However, though plans like these are already prepared, private enterprise securing the land and construction, and the state government of Sakhalin Region subsidizing the investigation of technical and economical validity in 2012 with the local government budgets are overall investment made so far for the relevant project. Therefore, in order to accelerate the project, a road map based on Korean aquaculture development experiences should be given to examine the validity of aquaculture and the development direction. Korean sea farming industry has started to develop and grow rapidly since 1960s, innovative farming technology, expansion of fisheries, establishment of sea farming production market, and related government policy have contributed to the development mentioned. Especially, farming technology and the development of aquaculture feeds production line, vaccine development for the prevention of aquatic

diseases, red tide prevention technology development for the protection of

056 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

aquaculture farms and related facilities supported by the government. Also, Korea has enacted the legislations which became the basis of sea farming, such as fisheries act, fish farming development act, and fishing ground management act and reformed these legislations following the varying environment.

The following results are drawn after examining the validity of local mariculture and the development direction. First, Aniva bay and Busse lagoon are judged suitable for the scallop and sea cucumber farming. Second, considering relatively low local population, those species reducing transportation cost, but costs relatively high when exported such as scallop and dried sea cucumber should be nurtured intensively. Third, as expert labor forces and ensuring organization are lacking in local, cooperation project with the foreign countries should be accomplished in order to adopt the farming technology and the farming technology development infrastructure at the same time. Fourth, considering the local nature environment, it is possible to collect seeds and seedlings, but for the sustainable development, infrastructure supplying the seeds and seedlings in a large amount is needed. Fifth, sea weed and marine algae from the nature can be used as feeds for the sea farming, but for the mass production, stable supply and storage system of the cheaper prized feeds are needed. Sixth, as the sea farming experiences and the degree of technology accumulation are yet low, cooperation development of the fisheries with the capitalist with plentiful overseas experiences is needed in the early stage like the present, but the government should also support the investment on farming technology development and the examination on the industrialization. The followings are the road map of the Sakhalin mariculture development. First, Ecosystem Approach to Aquaculture, EAA, should be chosen, such as polyculture and integrated Multitrophic Aquaculture, IMTA. Second, pushing ahead the short- term development plan and the long-term development plan side by side is more effective. In a short term, transfering the sea farming technology, establishing the seeds and seedlings production infrastructure, training related professional experts, and the development of the strategic item for the sea farming is needed, where else, in a long term, establishment of sea farming research center, development of new sea farming breed and fishery, forwarding the polyculture and Integrated Multitrophic Aquaculture, forming the resources construction bases, constructing the sea farming products processing facilities are needed. Furthermore, in order to establish the foundation for aquaculture becomes the industry, with the instigation of the state government, aquaculture industry related legislations and amendments forming the foundation of the sea farming industry, setting the sea area for the sea farming, placement of the seeds and seedlings cultivation center and the business budget supports are requested.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 057

1. Current Progress and Evaluation of Biotechno Park Construction Project

This chapter will look at the current progress of the Biotechno Park construction project, which is the pilot project for the development of large-scale mariculture industry in the Sakhalin Region, and identify problems which arose during the progress.

1.1. Current Situations of the Project

1.1.1. Basic Design

Considering geographical conditions of Sakhalin Region, mariculture can be an important and promising area for economic development. Hence, Sakhalin Region seeks to accelerate mariculture development by constructing the Marine Biotechno Park in the Region.

According to the basic design, the Marine Biotechno Park will be a cluster of related industries that perform various functions. The cluster will be composed of 3 production/technology centers

; The first center for coastal hatchery complex for invertebrates seed production, the second for support service for marine ranching and coastal aquaculture for enhancing product value of marine farm species and cultivating marine organisms, and the third for complex fishery processing.

058 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Structure of Sakhalin Region's Marine Biotechno Park

The components in the structure are connected with each other by function or system. The coastal hatchery complex supplies seedlings to marine ranching sites that aquaculture companies have leased. The coastal service center monitors the environment, supports for the design and development of marine ranch and determines carrying capacity to preserve the ecosystem. The processing center uses state-of-the-art biotechnology to process the fishery products harvested from farms without producing wastes. The lower infrastructure will provide services to the resident businesses and work to minimize business risks that occur from the mariculture. It is important to guarantee organic cooperation between the different structural components.

The basic steps and direction of the Marine Biotechno Park designed by the Sakhalin Region is shown below.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 059

Basic Steps and Direction for development of the Sakhalin Region Marine Biotechno Park

Development Step Basic Task Introduced Species Socioeconomic Effect Direction - Construct basic Increase the marketability Scallops, Sea - Job creation structural units of Marine of marine invertebrates Cucumbers, Japanese - Increased revenue for Biotechno Park Geoduck regional and federal - Create mutual government 1 cooperation blueprint - Improvement in fishery suitable for structural complex system units management - Develop methods to return the investment -Expand target products Increase the marketability Abalone. Oyster, Mussel - Increase local production and increase production of marine invertebrates - Reduce imports by introducing new - Supply feed to local products aquaculture and - Increase capacity for agriculture farmers 2 processing Produce feed using - Induce influx of wastes from processing population into the the target invertebrates Sakhalin Region and fish Artificial reproduction of Kamchatka crab, Flatfish, Provide fresh, high-quality fish and invertebrates Japanese Geoduck foods to Sakhalin market - Increase reproduction Increase the marketability Cold current fish, Provide fresh high-quality scope and proliferation of marine invertebrates Anadara, sp., Ruditapes products to Sakhalin area and fish sp., Shrimp (Pandalus market - Develop all useful water latirostris) areas for cultivation - Establish conditions to 3 build a trade market in the Sakhalin Region - Fattening high-value Artificial reproduction of Crabs (hairy crab, snow Secure resources for marine species fish and invertebrates crab, spiny king crab), sustainable development Coonstriped fish of coastal fisheries and processing

Source: Marine Biotechno Park Project document, Rut, 2009

1.1.2. Selecting aquaculture species and the criteria

Environmental and climate conditions of the southern Sakhalin Island and Kuril Islands favor the cultivation of high-priced marine species. There is comparatively less need to change the coastal waters, which enables the production of high-quality

fishery products. The most well-known among the aquatic organisms which naturally

060 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

reproduce in the waters off Sakhalin and the Kuril Islands are scallops, pacific oysters, sea urchins, abalones, crabs, shrimps(Pandaluslatirostris), porphyra, etc.

However, not all of the species mentioned above have economic viability considering marketability and long cultivation period

. Sea cucumber and scallop are considered feasible as they guarantee a quick return of investment. It is also highly feasible to aquaculture abalones in the coast of Kuril Islands and south of the Tartary strait. However, separate research would be needed for abalone aquaculture. In addition, porphyra can also produce good profits when certain conditions are met. Also sea urchin, a source for medicine, can be profitable if deep processing is possible.

Candidates for Cultivation in the southern Sakhalin Island, Provisional period for Investment Return, and Related Issues

Candidate Growing time to market size Issues Scallops 2~3 years Need to expand sales market Porphyra 1 year Marketability unknown Sea Cucumber 2~3 years Unknown Limited market(Japan) and relatively Sea Urchin 3~4 years low price Additional research is required to Abalone 3~4 years select farming site Horsehair Crab(Erimacrus Over 10 years Sowing culture method isenbeckii) Kamchatca Crab Over 15 years Long cultivation period Hokkai Shrimp(Pandalus Seedling production technology is 6~7 years latirostris) needed t Mussel 2~3 years Marketability unknown

Source: Marine Biotechno Park Project document, Rut, 2009 The following criteria are generally used to select marine aquaculture species. Those criteria include (1) fast growth, (2) high survival in each of various growth stages, (3) advanced aquaculture technologies, (4) good price and good quality as food, and (5)high market demand. In the Sakhalin Region, sea cucumbers and scallops are considered to meet all of these criteria, and thus selected as the basic species to be adopted in the step 1 of the Marine Techno Park construction project.

According to Galina Shukina who led the Marine Techno Park construction project, shrimp and grey sea urchins were also regarded as promising. Shrimp is also

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 061

sold at high prices so aquaculture companies showed interests in introducing technologies for shrimp farming. However, due to lack of accurate data, it was difficult to accurately calculate the productivity. Sea urchin was also regarded as feasible as it can be sold as medical ingredient if deep processing is possible, however it was removed from the list due to low market price. If market prices recover to the levels in the 1990's, sea urchin might be considered feasible. The Japanese geoduck is also highly valuable with being sold at $50 per kilogram in Hong Kong and other cities. Once culturing methods like hanging or bottom culture are developed, the species will emerge as promising. Species with long growth period like crab require financial supports from the government to develop hatchery production and releasing to be farmed.

1.1.3. Plans for Step 1

Based on the analysis of the economic conditions, market demand and natural environment, the Sakhalin Region selected the sea cucumber and scallop as the most profitable mariculture species and designed step 1 of the Marine Biotechno Park construction project accordingly.

Technically saying, the mariculture is largely divided into two phages: (1) seedling production, and (2)grow-out to adults of market size. Seedlings are obtained in two different ways. First is ahe artificial seedling production where a limited amount of seedlings is produced under controlled conditions. Second is wild seedling collection, which involves using collectors placed under shallow waters to collect wild larvae. If wild seed collection is not sufficient, artificial seedling production should be used and it is most reasonable to combine the two methods. In the first step of the Marine Biotechno Park construction project, they would like to use hatchery production to secure seedlings of sea cucumber while collect wild larvae using lantern nets to obtain seedlings of scallops.

Two plans were prepared for the completion of step 1 in the project. The first plan was made in 2012, when the exchange rate for the Russian Ruble was 32.82 Ruble per Dollar. The calculated production based on this exchange rate was 800 tons (96 tons frozen) of scallops and 960 tons(48 tons dried) of sea cucumber. The required investment for this project at the time was 45,234,000 dollars, with net present value(NTV) of 15,581,000 dollars. The profitability index(PI) was 271%, and the internal rate of return(IRR) was 17%, with a payback period of 6 years and 1 month with no discount, and 7 years and 10 months with discount.

062 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

These calculations were made under the assumption that all productions facilities will be newly constructed, with the coastal facility for invertebrate seedling production located in Pravda village, and the marine ranching and coastal service center located in the eastern coast of Aniva bay for Sakhalin Island, and in Ismena bay for Kunashir island.

Production Facility Arrangement for Step 1 of Marine Biotechno Park According to the 2012 plan

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 063

Second plan was established in February of 2015 when the exchange rate of the Russian Ruble rose to 57 Rubles per Dollar. There were a few situational changes, such as dramatic increase in the exchange rate and the land acquisition by Rut 2009, the proposer and undertaker of the project, for the construction of Marine Biotechno Park. Production volume was reduced from the first plan, and scallop was excluded from the volume. The sea cucumber production was also reduced to 600 tons (33tons dry). The reduction was made to cope with the situational changes by saving as much cost as possible. To this end, the original plan for new facility was replaced by a new plan for remodeling existing buildings on the land. Accordingly, the required investment shrank to 22,930,000 Dollars, with 14,316,000 Dollars (62%) for CAPEX (Capital expenditures) and 8,614,000 Dollars (38%) for OPEX (Operating Expenditure). The net present value (NTV) is 18,719,000 Dollars, profitability index (PI) is 182%, and the internal rate of return (IRR) was 20%. The payback period was calculated to be 6 years with no discount, and 7 years 3 months with discount.

As for the arrangement of the production facilities, the coastal center for invertebrate seedling production was located as in the 2012 plan, but the marine ranching and coastal service center was limited to one located at the eastern coast of Aniva Bay of Sakhalin Island.

Production Facility Arrangement for Step 1 of Marine Biotechno Park According to the 2015 Plan

064 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

1.2. Reviewing the Progress of the Project and the Government Support

The investment in this project has so far been made by Rut 2009 corporation which acquired land with structures on it and the Sakhalin government which financed the technological and economic feasibility research in 2012. The land and structures acquired by Rut 2009 is described below:

First, The land covers 2.46ha in the coast of the Pravda village (Strait of Tartary) in the ' town area' on Sakhalin Island.

Second, The buildings and structures of 'Vondarnitsekh (log shop)' standing on the land will be renovated as a 6,000 cubic meter production modules to culture juvenile sea cucumbers as well as of production modules and auxiliary facilities(storage, administration office).

Third, the land houses a small port which seems useful for vessels (up to 150 tons).

1.3. Problems in implementing the Project

The problems can be generally divided into objective and subjective issues. The objective issues include environmental, technical, and socioeconomic issues, and the subjective issues include legal and organizational issues. The environmental issues come from lack of curves on the coastline. In the Sakhalin Island, there are some bays on the coastline. In the Kuril Islands, the areas of bays are comparatively small. Second, there is a lack of experts to conduct research on juveniles of various marine organisms.

Organizational and administrative problems lie in the government's lack of understanding on mariculture, especially in the Far East.

As for legal issues, it is legally banned to construct mariculture farms in the majority of the coastal areas in the Sakhalin Island and Kuril Islands. The current law allows the use of the ocean area for fishery or mariculture, but this only makes use of the coastal area less effective. This problem is serious particularly in Sakhalin

Region, of which coastal waters are actually utilized by salmon fishing companies.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 065

Second, rules for the fishing area delineation were established according to Russian Federal Government Decree 1183 (November 11, 2014). Under this law, the delineation rights were governed by both the federal and municipal government. If a fishing area is adjacent to the land, the federal authority has jurisdiction over the delineation. If a fishing area is not near, the jurisdiction belongs to a local branch of the federal fishery office. Third, the article 10 of Russian Federal Government Decree 1183 enacted on November 11, 2014 clearly states that "A fishing area is allowed to exceed 300ha based on affirmative decision by the Ministry of Agriculture of the Russian Federation", but this area is subjective. This may weaken the competitiveness in producing fisheries.

The technological issues include the frequent power outages. This is one of the key issues in the Sakhalin Region.

The social problems include theft. This is also one of the serious issues in the region.

066 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

2. Lessons from the Mariculture Industry

Development in Korea

This section will analyze the development process of the Korean mariculture industry and related legal and regulatory support for the mariculture industry to suggest implications for the mariculture development in the Sakhalin Region with a focus on the Marine Techno Park project.

2.1. Development Process of Korean Mariculture Industry

Aquaculture is defined as economic activities to cultivate seaweed, shellfish, and fish for commercial purposes. South Korea had experienced social disorder for nearly 10 years after the independence from the Japanese colonial rule in 1945, and the fish cultivation production and foreign export was generally poor during those years. This situation continued until the end of 1950's. Starting from the 1960's the aquaculture production exceeded 10,000 tons, and in the mid 1960's the annual average reached 80,000 tons, marking a turning point in its aquaculture history. This was mainly due to the strong investment from the Korean government‟s 5-year economic development plan starting in 1962.

Korean aquaculture industry had rapid growth in production after the 1960's with remarkable changes in the structure of the industry. Until the 60's laver and oyster were the main cultivation products. The culture species were then added by seaweed in the 1970's. In the 1980's, more species such as kelp, ark shells, sea-squirt, mussel, abalone, etc. were also tried, contributing to the diversification. From the beginning of the 1990's, fish cultivation became important, making another marked increase in the aquaculture production. Against this backdrop, the aquaculture industry now consisted of 4 major sectors of seaweed, shellfish, fish and other invertebrates. Technologies were also greatly enhanced. Generally speaking, the production made a leap turning the 1960‟s and afterward continued the strong growth into the 2000's. This indicates that the industry effectively grew with innovative technology, expanded farm area, development of fishery market, government policies which properly worked at each development stage.

Generally, the 5 factors including farms, technicians, farming technology, product

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 067

market and policy are considered the core factors in developing the aquaculture industry. Those factors worked effective at each stage of aquaculture development in Korea.

Development Phases of Korean Aquaculture Industry

Phase Developments Period Background Cultivation land investigation and Investigation of farming sites development of candidate products while 1 Before 1945 and target species opening ports and going through the colonial era Korean war(1950-1953) after the Development of shallow water independence in 1945, development 2 tidal land and traditional 1946~1970 policies of shallow water tidal land until cultivation the 1960's Innovation in technological development Development and distribution of 3 1971~1990 and mass production system from the new farming technologies 70's Development of fish cultivation Decline of shellfish cultivation, increase 4 and progress in offshore 1991~Current in seaweed cultivation, growth of fish farming cultivation, the industry restructured.

Note: The phases were divided in consideration of the 5 main factors: farms, technicians, farming technology, product market and policy Source : Choi (2012)

Based on the 5 factors mentioned above, the long history of aquaculture industry in Korea can be divided into 4 phases as shown

. The first phase is the Investigation of farming sites and target species. This period stretches for about 50 years before the independence in 1945. This phase covers a long period of time including the 36 years of Japanese occupation. Modern fishery administrative system was also established during this phase.

The second phase is a transitional step from traditional cultivation to modern cultivation. It stretches for 25 years starting from independence before the 1970's. The innovative changes in cultivation technology in this period included the development and application of the longline hanging culture for oysters and the wood pole system for laver. The third phase is characterized by the development and distribution of new

technologies. The period lasts for 20 years ranging 1971~1990. During this period, newly advanced technologies were applied for the shellfish and seaweed cultivation

068 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

and those technologies were widely distributed across the country. In addition, farmers started to be interested in fish farming. The fourth phase is defined as the reorganization of the aquaculture industry. It refers to a period starting from 1991 up to today. This period showed a gradual decline in the traditional farming product of shellfish and highly commercial species like abalone emerged as new farming species to increase profits.

2.1.1. Abalones (Haliotis discus hannai)

Abalones have long been considered one of the finest shellfish. The research on abalone farming started in the mid 1960‟s mainly by the National Fisheries Research and Development Institute(NFRDI) in South Korea. NFRDI continued the studies in the 1970s and finally succeeded in developing artificial seedling production technology in 1975. With establishment of industrial hatchery production in 1976, full-cycled abalone aquaculture commenced in the early 1980‟s, stimulating growth in the development. Helped by the technological development along with the adoption of the license system for sea cage farming in 2001(Amended Enforcement Decree of Fisheries Act, Feb 3, 2001), the abalone production rapidly increased from ~100 tons in the 1990s to ~1,000 tons in 2001 and more recently reached 5,146 tons in 2008.

There are various culture methods for abalones such as sowing, submerging, hanging, cage, indoor tank methods, etc. The sowing method was primarily used in its early years. The submerging and hanging methods were not developed well due to low productivity. Recently, sea-cages were proven to be more effective for abalone culture than other methods and thus the government promoted this method. By amending the Fisheries Act in August, 2001 to add „Cage shellfish culture‟ in the list of traditional farming methods, the government permitted licenses to cage farms to produce abalones. The government also amended the 「Regulations on Fishery License Management, etc.」 on January 31st, 2004 to regulate cage construction for abalone culture. Standard size of one cage is 5m*5m*2.5m and the cage coverage on the licensed water is 5% in minimum to 20% in maximum.

2.1.2. Scallops (Patinopecten yessoensis)

Patinopecten yessoensis is the most commonly farmed scallop species in Korea. More recently other species like Argopecten irradians and Chlamys farreri are also farmed in the coast off Tongyeong in southern Korea. The first research on scallop

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 069

farming was conducted in 1971 and based on successful experiments involving hanging methods, the commercial culture began in the mid 1980‟s. Currently, the scallop farming has become one of the most important sectors in the shellfish industry in the eastern coast ranging from the Gangwondo Province to the northern Gyeongsangbukdo Province. There are various culture methods such as sowing, lantern nets, ear hanging, etc. The most advanced method among them is the lantern nets hanging method. However, the production has recently decreased after peaking at 2,300 tons in the year 2000 and it stood at 421 tons as of 2008. As of 2009, there are 101 licenses permitted covering 920ha of surface area but the frequent massive mortalities increased instability among the scallop farms. 95% of the farmed scallops are produced in Northeast Asian countries including China, Japan, Russia and Korea. Due to massive mortalities, farms in China and Japan rely on bottom culture for 60- 70% of their production. It is thus advised that Russia should also focus their efforts on developing bottom culture technology.

2.1.3. Sea Cucumbers (Stichopus japonicus)

Sea cucumbers have long been considered very fine seafood in China and Korea for its nutritional and medical values. Among the various species of sea cucumbers, Stichopus japonicus is the most common in Korea and they are named as red, black and green sea cucumber depending on their skin color. The red sea cucumbers are mainly distributed in waters off Jeju Island and the other types of sea cucumbers are widely found around the mainland. Hatchery seed production became successful for red and green sea cucumbers, respectively in the late 1980‟s and early 1990‟s. The license system for sea cucumber culture was adopted in 10 years of the culture practice. In 1995, a total of 14 licenses were permitted to farm on the surface area of 116 ha. However, the sea cucumber culture was dormant for most of the time, except in 1993 when the production reached 318 tons, until the 2000‟s when the production rose to 2,000-3,000 tons.

The culture methods for sea cucumbers include bottom culture using thrown stones, cofferdam and cage culture. More recently, researches show that full-cycled farming and mass production can take place in land-based facility. Considering an increasing demand for restocking and marine ranching of sea cucumber, the species may play an important role in boosting the economy by improving the income of individual farmers as well as the community as a whole.

070 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

2.2. Factors Behind the Development of Aquaculture in Korea

2.2.1 Aquaculture farms

The 5 factors in the development of aquaculture include farms, farm technicians, technologies, market, and government policy.

Mariculture Licenses by Product

(Unit : Cases, ha) Seaweed Shellfish Fish Others Total Year Number Area Number Area Number Area Number Area Number Area 1960 34,022 1963 50,197 1965 55,667 Data included in 1980 1,955 28,584 4,159 49,530 151 308 6,218 78,583 the fish group Data included in 1983 2,597 43,578 3,986 44,191 177 696 6,760 89,557 the fish group 1985 2,850 51,547 3,977 43,471 477 216 〃 1,651 7,304 96,885 1988 2,913 68,045 4,210 40,931 366 586 616 2,870 8,105 112,432 1990 2,779 68,428 4,292 40,071 562 921 672 3,267 8,305 112,687 1993 2,684 66,091 4,239 38,753 989 1,348 571 2,843 8,483 109,035 1995 2,467 61,858 4,397 39,494 1,335 2,222 571 3,337 8,770 106,912 1997 2,293 61,144 4,620 43,213 663 2,254 471 2,543 8,047 109,154 2000 2,331 71,543 4,592 44,819 653 2,216 526 3,395 8,462 121,973 2003 2,209 68,092 5,245 47,381 602 2,136 773 4,274 8,839 121,853 2005 2,194 69,503 5,510 48,193 570 1,822 836 5,150 9,110 124,668 2009 2,653 81,601 5,637 49,538 616 2,530 803 6,203 9,709 139,871 2014 2,809 85,597 5,710 51,252 1,388 7,699 79 1,805 9,907 144,547

Source : Korea Fisheries Association, Korean Fisheries Yearbook, Fisheries Information Service note : 1) Data is not available before 1980. 2) The number of licenses and area granted for “Others” in 1980~1985 are included in “Fish” category. 3) The licensed area for aquaculture fishery is used as synonym of the area of farms on the shallow water.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 071

2.2.2. Technology

Fishery seeds refer to seeds of aquatic flora and fauna which are produced and supplied to aquaculture farms and for restocking for stock enhancement in the coastal waters. Seedling production technique is imperative to aquaculture.

Until the late 1950‟s, Korea‟s main aquaculture products were laver and oysters. There were also small number of activities to manage and nurture marine shellfishes such as Manila clam, ark shell, and orient clam and the seaweeds such as sea mustard and gelidiaceae in the shallow water for propagation and harvest.

Hatcher seed production technology started to be developed in the 1960‟s. The first success comes for oyster when larvae were successfully collected using artificial collectors. In the porphyra culture, techniques to cultivate conchoelis was achieved in the early 1970‟s, which hatchery production followed. Therefore, the first innovations in the shallow sea culture were the hanging method for oysters and the net hanging method for lavers and techniques for other profitable species like pearl oyster, sea mustard, and kelp were also developed over time and this helped the growth of aquaculture in Korea.

In the late 80‟s, the industrial hatchery seed production technologies for fishes such as olive flounder, sea bass and rockfish came close to completion.

2.2.3. Feed Production Technology

As the fish culture developed, the need for feed production became urgent in the 1980‟s. Therefore, the fish seedling department of the National Fisheries Research and Development Institute(NFRDI) conducted experiments from 1980 to 1983 on industrial culture of chlorella for cultivating rotifer, a food organism for fish ichthyoplanktons and succeeded in mass cultivation. From 1990, NFRDI tried to develop formulated feed to contribute to the stable supply of aquafeed. They studied on feed formulation for marine fishes like olive flounder and rockfish and also on the feed efficacy. They could identify the effect of sardine meal as well as the effects of added soybean meal in the MP for yellowtail fish. Dry feed was also developed and distributed among farmers for easy and extended storage in shellfish hatchery. Even though live fish feed production increased along with the growth of fish culture, the production of formulated feed is growing every year due to their benefits for

environment and stock conservation.

072 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

2.2.4. Contingency Plans Against Fish Diseases

Growing aquaculture activities polluted marine environment and frequently caused disease outbreaks in the farms. The fish antibiotic was first approved in 1974 and in 1980‟s, OTC, AMPC, AMOX, OA, NA, and PA antibiotics were added. And afterward, the number of fish drugs increased to about 80 in 1990‟s and by 2009, there were 317 approved drugs in the market. Meanwhile, in 2010, the National Fisheries Research and Development Institute(NFRID) developed 3 combination vaccine against 2 type of of streptococcus, and 1 type of Edwardsiella and acquired “green technology” certification from the government. Recently, NFRDI succeeded in developing a vaccine against viral hemorrhagic septicemia(VHS), which causes mass mortality in olive flounder farms during cold water season and is reported to obtain a patent for mass production.

2.2.5. Red Tide Control Technology

As fish culture developed, the damage by red tide also became serious. Red tides rapidly increase the oxygen consumption in the fish farms, causing shortness of breath and ultimately mass mortalities. About 43 species are known to cause red tide. The biggest threat among all of them is a type of flagella called Cochlodinium which is known to secrete an abundance of sticky mucilage. Red clay spray is utilized as the only way to control red tide. The method utilizes the biological characteristic of Cochlodinium to control. Red clay works by attaching to the secreted sticky mucilage and weakening red tide. The causes of the red tides are ① Increase in water temperature due to incoming solar radiation, ② Increase in nutrient salts in the water, and ③ Lack of seawater mixing. Among them, increased nutrients seems to be the most frequent reason behind the red tides in Korea.

In 2002, efforts were made to develop other red tide control techniques such as the biological control techniques utilizing the natural enemies of the red tide and the algicidal microorganisms and the chemical techniques utilizing „sephrema‟ and lime removal chemicals. However, it was shown that all of these techniques were less effective and sometimes even harmful for farmed organisms. Thus, no more research was conducted afterward. In 2004, there were trials to install shields to protect farmed animals from red tides but this experiment ended as a failure as the shields also contributed to rapid increase in the ammonia level from accumulated wastes from farmed animals. The hiked level of ammonia threatened survival of the animals,

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 073

so it was concluded that this method does not suit for farms. Therefore, the Ministry of Maritime Affairs and Fisheries and the National Institute of Fisheries Science (NIFS) concluded that the red clay spray is the most effective control at present and decided to focus their efforts on enhancing the effects by red clay spaying and developing advanced techniques like automatic red clay grinding and speed spraying. It is also important to prepare for institutional measures for emergency transport of farmed animals and facility in heavy red tides.

2.3. Issues for the Mariculture in Korea

The time period for the analysis of the fishing ground system which helped aquaculture grow in South Korea will be from Korea‟s independence from Japan in 1945 and to the 38th amendment of Fisheries Act on January 25th, 2012. The current laws in effect pertaining to aquaculture are the ① Fisheries Act (1953), ② Fishing Ground Management Act (2001), ③ Fish Farming Development Act (2001), and ④ Fishery License Management and Regulations (1985). Both Fishing Ground Management Act and Fish Farming Development Act were enacted in the 2000‟s and the former was inenacted on January 14th, 2002 and consists of 3 sections which are (1) development plans for fish farming development, (2)fisheries resources enhancement and (3)fish disease control.

Currently, the basic system for aquaculture according to the Fisheries Act is basically made up of the 4th, 8th, 13th, 14th, and 15th articles. The others are just basic regulations that are pertaining to the 「Fish Farming Development Act」 and the 「Fishing Ground Management Act. Therefore, it can be said that South Korea needs to establish a more comprehensive system for aquaculture, or an independent legal system for aquaculture itself considering its advancement in cultivation techniques, variety in products, and the introduction of new markets. This new system should include all the regulations from the Fisheries Act and the content from the other laws pertaining to aquaculture along with the regulations pertaining to the production and the distribution of the aquaculture feeds to serve as an independent legislation for aquaculture.

The idea that such a systematic and consistent system should support aquaculture policies is the logic behind enacting an independent legislation for aquaculture and such measure is very realistic. If not possible to enact such legislation, the current

「Fish Farming Development Act」 should be amended and reorganized to include

074 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

provisions pertaining to farm license system in order to keep the current trend in the aquaculture industry and to continue to promote its growth.

Aquaculture itself needs to be recognized as an independent industry and gain its ground as an independent industry. It is important to establish a comprehensive aquaculture legislation to ensure the environment protection, clean water and safe aquaculture products and ultimately to develop further the industry.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 075

3. Policies and Technological considerations for the Development of Large Scale Aquaculture Industry in Sakhalin Region

3.1. The Necessity and the Optimum Sites for Aquaculture Development in Sakhalin Region

Sakhalin government previously assigned fishing quotas to fishing companies to catch fisheries. But there was no plan for recover the reduced fisheries. Other issues like the environmental changes and overexploitation also contributed to stock depletion and reduced fisheries production, making it difficult to maintain sustainable fisheries.

According to the report “Prospects of Aquaculture Industry in Sakhalin Region(D. A. Galanin and N. Yu. Prokhorova, 2015)” the Sakhalin government reviewed potential aquaculture species for large scale aquaculture to make up for the reduced stock and explored candidate sites near port cities with access to electricity and roads, and as s result it selected Aniva bay and Busse lagoon, south of the state capital Yuzhno-Sakhalinsk as the optimum sites for aquaculture. Considering that the both sites have plenty of sedentary species such as scallops, sea cucumbers, and kelps on the beds and exhibit the most favorable environmental conditions for aquaculture, the government is promoting a “Biotech Park” project based on those two species. In summary, the Sakhalin government plans to build an aquaculture complex for scallops and sea cucumbers near the Port of Korsakov which is located at the center on the coast of Aniva Bay and also close to the state capital.

3.2. Recommendations for the Sakhalin Region Government

We would like to make the following advices with an aim to share Korea‟s experiences to help tto develop aquaculture technologies to wild stocks in the warn water area of the Aniva Bay.

076 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Migratory fishes such as salmons and cods and and highly mobile species like king crabs and snow crabs should be excluded as they are considered less profitable due to lack of hatchery production technology and their migratory behavior. It is thus considered reasonable to recommend sedentary species like scallop and sea cucumber with the aquaculture technology being developed to a certain extent. Being cold water species, the sea cucumber and the scallop can be differentiated from warm water species in the low latitude areas and suit for export as big international markets such as South Korea, China, and Japan are nearby.

For scallops, seedling production and grow-out technologies will be considered. Seedling production will be conducted in two ways of natural and artificial spat collection. As for aquaculture technology, (1) designating the scallop bank for wild stock enhancement and (2)seed releasing will be considered and the bottom culture and hanging culture methods will be employed.

3.3. Viability of the Mariculture in Sakhalin

The natural environment in Russia's Sakhalin area is ideal for cultivating cold water organisms and thus has great potentials to develop the mariculture industry. Sakhalin's aquaculture industry is still in its early stages, and the Sakhalin government is making many efforts to improve the industry. However, there were no major farming species with visible performance except for hatchery production and seed releasing and recapture of salmons. Natural resources such as king scallops (Patinopecten yessoensis) and sea cucumbers (Stichopus japonicus) were abundant in the past, but overfishing and illegal fishing is quickly dwindling the stocks. Aquaculture for those species is still in early development because of a lack of research data, cultivation technology, feed, equipment, etc.

The expansion of the mariculture in the region will contribute to food production and job and income creation and thus promoting economic development in the local fishing communities. Development of the aquaculture industry is affected by various factors such as environment, society, economy, policy, etc. Especially influential factors include a stable market, suitable natural environment for aquaculture, infrastructure to support the industry, technological and scientific support system, technological capability, investments, policies, etc. To successfully develop and improve the aquaculture industry, relevant factors should be examined before determining target species and proper developmental directions. The development should be technologically viable, economically profitable, socially acceptable and sustainable.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 077

3.3.1. Oceanic Environment

Sakhalin Region has a long coastline, which is advantageous for the mariculture of cold water species. However, in winter, the water freezes and the temperature is very low for farming activities.

As we didn‟t conduct a complete survey of the coasts in the region, we cannot say for sure the optimum farming sites. However from the comprehensive review of the data provided from the Sakhalin government, we consider Aniva Bay and Busse lagoon as the optimum sites.

Aniva Bay's total coast length stretches over 230km, and the coastal areas with 50m depth contour amount to 1157.5 km². This area accounts for about 20% of Aniva Bay, and this area is the candidate for sea cucumber cultivation. The bay's maximum depth is 105m, and the average depth is 63m. Aniva Bay is located on the border between the warm east sea currents and cold currents from the sea of Okhotsk, and its hydrological characteristics depends on whether it is more affected by the cold current or the warm current. Though with a comparatively shallow depth with a strong tidal current, the Aniva Bay exhibits a clear layer of seawater(Sallegova 1955). The water temperatures of the narrow coastal water in the Aniva bay depends on the anticyclonic circulation in the bay. Large increases in the water temperature is only observed in the shallow areas and the average temperature is 9.8℃.

Aniva bay has lower temperatures and higher salinities in waters deeper than 30m. Salinities on the water surface are not that high ranging 31.2~32.25 psu on average (Fishalisk, 2000). The salinities tend to drop in the water depths between 20-30m in from April to December and drop to the lowest levels twice a year at the end of May and mid August. The first minimum point is caused by the snow that flows into the ocean, and the salinity drops to its minimum in the early May. The second minimum is caused by mixture with heavy rains during the typhoon season. The low salinity in the northwest area of the bay is caused by the river inflow of low salinity.

Aniva bay freezes in December, starting from the waters with lowest salinity. The center of Aniva bay gets covered in ice around mid January, and the ice thickness can locally reach 15-30cm.

The bay primarily has sandy substrates. Generally, the substrates consist of clean fine sand with silt (sediment finer than sand but thicker than mud) being occasionally

found. In the Morge promontory, large round rocks that are up to 2-2.5m in size can

078 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

be found on the sea bed. The subtidal zone (depth 0-10m) of the coast ranging fromTambovka river to Tiranai village is dominated by sandstone and gravel sediments. The sand layers in Tiranai river becomes more mixed with pebbles/gravel layers, and small rocks also become mixed in as the river approaches Kirilovo village. The coastal line is often severed due to the rivers and brooks emptying into the ocean. The largest rivers are the Tiranai river and Uryum river, and the sea water at the mouths of those rivers is diluted with the fresh water.

Busse lagoon is located in the western part of Sakhalin's Tonino-Aniva peninsula, and it is a circular lagoon with an area of 43 km². It is connected to Aniva bay by a narrow channel of about 80m width, and this channel is divided into a few branches to form dunes as it flows into the lagoon. 7 small rivers flow into the lagoon, and they widen at the mouth. The lagoon shows a daily tidal gap of 1.3m with a teacup shaped ocean floor, and the depth progressively deepens towards the center of the lagoon. The maximum depth at the center is approximately 6.5m. Most areas of the lagoon have depths between 3-5m. Because the depth is not low enough, the water temperature greatly fluctuates daily as well as seasonally. However, strong tidal currents and winds stir the water so that thermocline layers do not form often. Busse lagoon exhibits higher rate of increase or decrease in water temperature compared to Aniva bay, and its highest temperature in the summer is higher than Aniva bay. The average water temperature in September is 16.9℃, and near the ocean floor, it is around 16.7℃. The temperature reaches the highest in August and September in a range of 18∼24℃. Salinity is 27.2 psu at the surface, and 31 psu at the ocean floor. The oxygen saturation in the lagoon is 66.2~101.6%, with pH ranging in 7.69∼8.60. The lagoon characteristically has a complex wildlife system, and the teacup shaped lagoon floor gives rise to a variety of soil components, plant populations and distribution. Busse lagoon has no hardened soil, and sea cucumbers are the most concentrated on the land of life origin. The organic matter content increases in the deposited soil, but sea cucumbers mainly thrive in areas where there are a lot of seagrass and oyster shells that serve as substrate forr the sea cucumbers.

Aniva bay is a wide area and the water conditions(water temperature, salinity, floor, etc.) vary depending on the area, so different types of organisms can be cultivated in different areas. But for Busse lagoon with its abundant sea grass populations, is the most ideal for sea cucumbers. The coastal water temperature and salinity is also appropriate for cultivating aquatic organisms. Busse lagoon is the main habitat for sea cucumbers in Sakhalin, and the species had been the most dominant aquatic organism within the lagoon in the past. Hence, Busse lagoon is the most ideal area for sea cucumber cultivation. Also, the lagoon has good access to

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 079

village, transportation and infrastructure. The lagoon is also were protected from storms and small ships can be used within the lagoon.

3.3.2. Market

As one of the important factors for the development of the cultivation industry, there must be demand for the cultivated product that will be sold at a high price in the traditional market. However, the population of the Sakhalin is only approximately 490,000. Aquatic products that are sold for a comparatively high price in Sakhalin include scallop s, king crabs, sea cucumbers and salmons. Of these products, the cultivation of salmon has a long history with sufficient technological know-how, so there is less need for new technology. However, salmons are very vulnerable to climate change, and much research is required to combat climate changes. Other sea foods require a lot of facility and maintenance and require feed that are high in protein, all of which mean high production costs. This will make the product not profitable if they are locally sold at the market price. Countries with developed tourism industry such as the southeast Asian countries can sell expensive seafood to tourists, but Sakhalin Region doesn't have an active tourist industry. This will reduce projected sales, and the demand will be limited to the tourist seasons.

To develop the cultivation industry and export the product, the production yield should be large enough. Sakhalin Region's natural environment is suitable for cultivating some of invertebrates, but there is a lack of institutional system for mass production, so it is not suitable to install mass cultivation facilities on the coast. To export to countries that consume cultivated products at a high price such as Hong Kong, Japan, South Korea, China, Singapore, and other Asian markets will cost significantly in shipping fees, so it will be difficult to compete with products from the Southeast Asian countries. Hence, in terms of promoting to overseas markets, species like dried sea cucumbers, scallop s and abalones can be considered as their transportation costs low, enhancing competitiveness in the export market.

3.3.3. Cultivation Technology

To develop a cultivation industry that is economically viable, the cultivation facility, seedling production, cultivation, feed, etc. should be maintained by technicians who have accumulated knowledge, skills and development capabilities.

However, there is not enough professional workforce as well as leading organization

080 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

to educate potential technicians on cultivation technologies. Therefore, it is necessary to develop proper directions and to establish a government organization to study on technologies, train technicians and distribute knowledge to farmers.

We could find research data on the distributions and habitat of the sea cucumbers in Sakhalin, which was found to be not trustable. In areas with a long history of fishing sea cucumber, we could fine some books on sea cucumber biology. For example, in the Sakhalin area, a number of books have been published on sea cucumbers living in the Aniva bay and Busse lagoon. (Kulikova 1973, Duvlovski, Sergeyenko 2002, Sergeyenko 2002). In Aniva bay, the research on sea cucumber habitat was launched in 1995, and then the stock assessment followed. In Busse lagoon, studies on the biological characteristics, distribution, and stock assessment of the sea cucumber started to be conducted from 1992.

Development of a new cultivation species is initiated by various domestic needs. It takes a significant amount of time to develop farming technology for a new species. In the process, we should face trials and errors and experience successes and failures. Also, unlike in other industries, cultivation technology is based on the unique marine environments in each country. In this regard, advanced experiences from other countries which are of course very helpful, cannot be sometimes properly applied in certain area. Therefore it is important to accumulate its own technological capability one the one hand, while conducting joint program with other country on the other hand.

3.3.4. Seed

In the Sakhalin area, there is no technology to product seedlings other than salmons. Seedlings are considered as raw material for aquaculture , and thus stable supply of seeds is essential for the development of the industry. In Sakhalin, seedling production research is being conducted for scallops and other few products, but there is no technology or facilities for the industrial-scale hatchery production. Therefore, all seedlings are currently collected from the wild in Sakhalin. However, natural collection reduced the wild stock. The supply is also variable depending on the environmental conditions. To increase productivity of the cultivation, seedlings should be supplied in mass quantities. As the wild collection cannot satisfy the demand, the hatchery production technology should be first developed in order to develop the aquaculture industry.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 081

3.3.5. Feed

Seaweed and shellfish do not require feed for farming, but fish and crustacean cultivation requires feed. Herbivores animals such as abalones can eat seaweeds and plants in nature, but to cultivate high-value species like crustaceans and sea cucumbers, it is required to secure stable feed supply and storage system. Considering that increasing popularity for fish these days boosted fish prices in general, it is difficult to use fish as feed for farmed fish. It is also thought that importing commercial feed from other countries is not economically feasible. Another requirement for aquaculture is safe transportation and storage of the fish or formulated feed. Those feeds should be transported by air or shipped in a specially designed chilling or freeing facility. These will increase production costs and reduce profitability, which makes it a difficult choice to cultivate fish.

3.3.6. Capital and Investment

Aquaculture industry in Sakhalin is in its early stages without stable infra for aquaculture as well as accumulated experiences and knowledge. To develop the aquaculture industry, various things like land, facilities, equipment, etc. should be prepared, which will require a lot of initial investment. Even with available investments, risks should be considered due to uncertainty of success. It is thought that local people who are involved in the coastal fishery may have easy access to aquaculture, but they mostly do not have sufficient financial resources. Therefore, a desirable approach to aquaculture development at this stage would be a joint project with foreign investor with abundant experiences.

Initial investment is key element to establish the foundation for the development of the aquaculture. Therefore, the state government should finance the R&D research on aquaculture technologies and the industrialization. The government should also strive to secure international supports as well.

3.3.7. Institutional System

The Sakhalin Region currently has a regulation system already in place pertaining to aquaculture. But the current system is not enough to help the industry to grow. Institutional system is key in developing and managing the industry. In the past,

aquaculture development was mostly mass -production oriented, thus carrying

082 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

significant environmental costs. In this regard, the Sakhalin Region should not repeat the previous experiences by other countries by pursing eco-friendly way of aquaculture and conserving their clean marine environment. In order to maintain its natural environmental conditions while developing the aquaculture industry, establishing a regulation system for an eco-friendly aquaculture industry is crucial. Also, aquaculture industry aims for economic profit and this means that the regulation system should also guarantee profits to investors and farmers alike.

3.3.8. Plan for Promotion of Sea Cucumber Cultivating in Sakhalin

The natural conditions of Sakhalin seem ideal for sea cucumber cultivation. Busse lagoon especially seems like an ideal location for sea cucumber cultivation and it is thought that resource enhancement-based cultivation would be more appropriate than intensive farming method in this region. The most crucial environmental factors for sea cucumber cultivation are water temperature and salinity and according to the standards for selecting the ideal farming location shown in

, the environmental conditions of parts of Aniva Bay and Busse lagoon seem to meet the standards.

There is not much concrete data as to stocks of the sea cucumber in the Aniva bay or Busse lagoon but the studies so far indicate that both locations show decrease in sea cucumber population. Therefore, the most efficient cultivation method for these two areas would be to utilize the natural environment as much as possible and boosting the number of natural living resources through resource management at the same time. South Korea has been promoting the marine ranching project to enhance the wild stocks. The main purpose of this project is to restore the reduced stocks of natural marine living resources through seed releasing and actively managing the released seeds. If a similar marine ranching project is carried in Busse lagoon to increase the number of sea cucumbers, it is projected that the productivity level will be much higher compared to South Korea given its idealistic conditions as shown in

. First, it is important to make Busse lagoon an ideal environment for sea cucumber cultivation. This means removing any organisms that either prey on or compete with the sea cucumbers and providing shelters for the sea cucumbers such as rocks, boulders, and artificial reefs. Second, a hatchery should be established on land to supply a certain amount of juvenile sea cucumbers annually. To do this, a technology for massive production of juvenile should be secured. Third, it is necessary to monitor and manage the environment and the stocks in the marine

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 083

ranching sites. Aquaculture is sustainable activities. Therefore, it is necessary to continuously manage and monitor the ranch and its organisms.

The Process of Constructing the Marine Ranching Site to Enhance the Sea Cucumber Population

A: Installing artificial shelters in the marine ranching site, B: Releasing of the seedlings under the shelters, C: Deployment of artificial shelters, D: Detailed view of the shelters

084 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

3.4. Roadmap for the Successful Aquaculture Along the Coasts of Sakhalin

3.4.1. The Direction and the Stages for Aquaculture in Sakhalin

The process of developing the aquaculture industry will vary greatly depending on the direction in terms of the utilization of the environment and technological development. Therefore, any unreasonable aspects discovered during the process of promoting this initial directive should be altered accordingly but it will be very difficult due to the difficulty in adjusting to the changing natural environment, facilities, society, economy, and regulatory conditions. There are many cases of miscues and failures during the process even in countries with advanced aquaculture industry and they are still tirelessly pouring their resources and effort to redevelop the current conditions in an eco-friendly way. In order not to repeat their previous mistakes and to continuously grow, Sakhalin‟s directive should be established after taking the environmental, socio-economical, and industrial factors into consideration to ensure a sustainable development.

The fish farming(salmon) is already being promoted on an industrial scale in Sakhalin, so this will not be discussed in this report. However, it is necessary to evaluate the economic efficiency of farming the cold water fishes for future. Normally, fish culture requires expensive feeds that contains a lot of protein. Therefore, to sustain fishing farming, it is important to have great market demand at a considerable price. Also, farming fishes mean that there needs to be a production and a management system for all the raw feeds or the formulated feeds which would in turn cost a lot. Even more important, the feeds for these fishes have negative effect on the environment. Recently, some countries have implemented the integrated aquaculture where feeding fish and detritus-feeding seaweed and shellfish are co- culture to keep clean the farming environment. Therefore, the aquaculture industry in Sakhalin should not be oriented for the mass production of a single species but adopt EAA(Ecosystem Approach to Agriculture) such as polyculture and IMTA(Integrated Multi tropic Aquaculture).

The development of aquaculture was not achieved in a short time even in countries with advanced aquaculture industry. They experienced trials and errors to adjust to their given natural conditions before achieving the industrial production. However, the environmental conditions weren‟t taken into consideration in the past and they are now paying massive environmental costs and trying to restore the polluted

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 085

environment. The aquaculture came late to Sakhalin but this means that there is the advantage of being able to maintain the current natural environment. Therefore, Sakhalin should learn from the mistakes of the other countries and look for ways to develop its aquaculture industry without harming its environment. The development of aquaculture industry in Sakhalin should proceed after establishing the most reasonable and sustainable directive for development with its environmental, socio- economical, and industrial factors being taken into consideration and this resulting directive should get some feedback to re-establish the future directives for the future stages. The following stages are recommended for the development of the aquaculture industry based on on-site investigation.

Steps to Developing Aquaculture Industry of Sakhalin

Source: Made by the Author ∙Stage 1: Securing professional manpower for mariculture research ∙Stage 2: Construction of marine hatchery (Experimental hatchery) for development of mariculture technology, Development and distribution of hatchery technology for mariculture ∙Stage 3: Execution of pilot project for commercial mariculture and establishment of technology ∙Stage 4: Distribution of mariculture technology and commercialization ∙Stage 5: Stabilization of the mariculture technology and development of sustainable mariculture techniques

086 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

3.4.2. Short/Long Term Plan for Mariculture Development

It will be most effective to simultaneously execute both the short term and the long term plans as shown in

to develop the mariculture industry in Sakhalin.

Short and Long Term Plans for the Aquaculture Industry Development in Sakhalin

Drawn by the author

3.4.2.1. Short Term Plan

3.4.2.1.1. Transfer of Mariculture Techniques

One of the fastest ways to learn aquaculture techniques is to learn them through mutual research or cooperation with other countries where aquaculture technology is established. Sakhalin‟s prospective marine products such as scallops, abalones, and sea cucumbers are already in mass production in nearby countries such as South Korea, Japan, and China. Therefore, it would be effective to establish a cooperative

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 087

relationship with those countries and develop a joint project to exchange techniques and skills as a short-term strategy to obtain the necessary techniques. Exchange programs of researchers and students would also be useful for learning the techniques. Direct investments from overseas farming companies is another effective way to transfer the techniques in a short period.

3.4.2.1.2. Establishing the foundation for hatchery production

For most of the invertebrate aquaculture, seedlings are supplied from the wild. Natural seed collection has negative effect on the stable and consistent aquaculture production. In this regard, it is needed to develop hatchery production for the sustainable aquaculture. The development of hatchery production requires skilled technicians and facilities. Currently, there are some ongoing researches to develop hatchery production at Sakhalin State University but there is little available knowledge and facilities. Reliable system for hatchery production and supply is crucial to the aquaculture industry. Considering that the wild seed collection will result in depletion in the stocks, it is important to construct hatchery facilities with supports from the government as well as the private sector. Reliable system for hatchery production and supply is the first step for developing the aquaculture industry.

3.4.2.1.3. Training Professional Manpower for Aquaculture

Considerable time and effort is required to develop the techniques appropriate to their environmental condition. Especially, efforts to train professionals are critical. There needs to be a both short term and a long term plan for training these professionals. Aquaculture techniques could vary by country depending on their environmental conditions and each country has its own unique method and approach. Therefore, the transfer of the Korean technology may be at first helpful for the development of aquaculture industry in Sakhalin but there needs to be a technology that is suitable for Sakhalin‟s environmental conditions in the long run and thus it is very important to train local professionals and technicians.

3.4.2.1.4. Developing Target Species for Aquaculture

Being highly demanded and paid in the international market, invertebrate species such as scallops, sea cucumbers, and abalones are selected as potential farming

species in the Sakhalin Region. With its biological remediation in the benthic

088 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

ecosystem, sea cucumbers are considered an important member of the ecosystem.

Numerous studies are being conducted around the world in an aim to include the species into IMTA. Also, the sea cucumber does not compete with other species for food, so poly culture is possible. Sea cucumbers are also more resistant to diseases than other species. Therefore, it is believed that sea cucumbers will be effectively cultured in marine ranching method utilizing natural conditions of the region.

3.4.2.2. Long Term Plan

3.4.2.2.1. Establishment of an Aquaculture Research Center

It is imperative that Sakhalin obtains the necessary technology for aquaculture as it is in its early stages of the development. In the early stage, aquaculture development in the sea requires a lot of basic knowledge and capital investment as well as carries considerable risks compared to the agriculture on land. Therefore, it is difficult to expect the coastal fishers who mostly lack in the scientific knowledge and the capital to make investment in the aquaculture. In general, it is said that it takes 30-50 years until the aquaculture industry is stabilized. In addition, even countries with the advanced aquaculture industry are currently faced with numerous problems caused by mass production.

Sakhalin has a natural environment that is not polluted and it is efficient to manage as it is an island separated from the mainland. The aquaculture industry would generate more jobs and incomes for the community. However, if the development is wrongly directed and has negative impact on the environment, the cost would be huge. Therefore, it is recommended that Sakhalin should establish an aquaculture research center that is operated by the Sakhalin Region government to develop and implement its initial techniques for sustainability.

3.4.2.2.2. Development of New Aquaculture Species and Farms

It is recommended to build and expand farms on the underutilized water surface to create more jobs and incomes for the local community. There are numerous aquaculture products that are in high demand and expensive in the global market. Therefore, there must be continuous efforts to cultivate those species and develop farms and equipment. Invertebrates such as seaweeds and shellfishes especially are useful for farming as they remediate the waters unlike the fed fish and crustacean farming pollutes the waters. They can purify the benthic ecosystem of the shallow

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 089

sea near the coast and also be utilized as high demanded food product to increase the income for fishing households.

3.4.2.2.3. Polyculture/IMTA

The aquaculture industry in most countries aimed for mass production and intensive culture was the means to do so. However, this method has harmed the environment to the point of complete destruction and resulted in serious decline in the production. Therefore, there have been efforts to restore the environment and the ecosystem to minimize the organic waste from aquaculture by adopting poly culture and IMTA as shown in

. Sakhalin has favorable natural environment which can allow the aquaculture industry to develop through integrated aquaculture to minimize the negative effect on the environment and the ecosystem and to preserve the environment which will serve as the foundation for the eco-tourism industry in the future. The IMTA technique which includes fishes, crustacean, sea cucumbers, shellfishes, and seaweeds can be utilized to effectively manage the environment and to maximize the harvest.

IMTA Farms around the World

090 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

3.4.2.2.4. Establishing the Foundation for Stock Enhancement

As the world population increased dramatically, the consumption of marine products has increased significantly as well and this in turn resulted in decrease in the coastal marine resources. Sakhalin utilizes its coastal resources heavily as well and there is need to establish a way to recover its marine resources to a healthy level. Currently, various seed releasing projects are undergoing in many countries. However, few are successful around the world. For successful seedling release, techniques for seedling production should be first developed and then the standard to select optimum species not for farming but for resource enhancement should be established. Then management policies should be developed to manage these produced seedlings. There are a lot of steps in this process and this makes the process very difficult in reality which is why there are so few successful cases around the world. However, the demand for marine living resources near the coast continues to increase as fishing ships and fishing equipment become more capable, and this causes the stocks to decrease. To make up for this lack of supply, releasing of artificially produced seedlings is a must in order to increase stocks of natural marine living resources. Efforts to build the foundation should commence now in order to increase the wild resources in the future.

In order to begin this process, it is necessary to develop marine hatchery facilities that can produce seedlings and develop the necessary technology to produce seedlings in mass quantity. And even if seedling production becomes possible, there must be plans for producing seedlings for release into the ocean and managing the natural marine living resources along with preventing disease and disasters considering that premature release will most likely have a negative result. Therefore, Sakhalin must develop seedling production technology at the current stage and train the manpower necessary for aquaculture. Also, a stock assessment should be carried out in order to prevent further decrease in population density from overfishing and it is necessary to designate a sanctuary area in order to regulate the fisheries.

3.4.2.2.5. Establishment of Aquaculture Product Processing Facilities

Because fishery product is hard to handle and easily spoiled, there is a strong need for fast transportation and advanced storage, processing, and packaging facilities. In Sakhalin, there is a lot of physical distance between production facilities and consumers, and there is a time delay between the supply and demand. This makes processing facilities more important as aquaculture technology improves. There is a strong need for specialized processing techniques and facilities that will keep

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 091

scallops and sea cucumbers fresh, extend shelf life, minimize bacterial growth, retain nutrients, and increase product value.

Scallops are also largely consumed in Sakhalin, and the main edible part is the adductor muscle. Therefore, there seems to be little problems with regards to distributing, storing, or processing technologies for scallops. However, sea cucumbers are different from scallops. Sea cucumbers are hardly consumed in the Sakhalin area, and the largest consumption is in China. In addition, due to its characteristics, it is not easy to process the products. Hence, the processing technologies for these two species should be developed along with establishment of processing facilities and mass aquaculture production systems.

3.5. Establishment/amendment of Relevant Laws for the Development of Aquaculture

Capital investments and technological development is necessary for the advancement of the aquaculture industry in Sakhalin, but one of the factors that should come first is legal and institutional support. Unlike South Korea, Sakhalin would not require a variety of laws to develop its aquaculture industry, but there is a need for laws that will form the basement for the development of aquaculture. Hence, laws should be established using the laws proposed below as a model to develop the Sakhalin aquaculture industry.

3.5.1. Establishment/amendment of the Fisheries Act

To develop the fishery industry, the fishery act which comprehensively deals with fishing and aquaculture is needed in the Sakhalin Region. The newly established/amended fishery act should not contradict with the existing laws and promote the aquaculture industry as a whole.

3.5.2. Establishment/amendment of the Fishing Ground Management Act

Sakhalin government should amend the laws to add additional items in the

management of fishing grounds in the North Pacific waters of Russia. The fishing

092 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

grounds mentioned here includes waters that are used for both fishing and aquaculture activities.

3.5.3. Establishment of the Fish Farming Act

A new law needs to be established to remove excessive regulations which hamper the development of aquaculture in Sakhalin.

3.5.4. Rules on Natural Resource Management and Aquaculture License

Appropriate rules should be established to create ideal management of aquaculture-related licenses.

3.5.5. Establishment/amendment of the Ordinance for Resource Conservation

Administrative ordinances should be established or amended to create aquatic resources in addition to the fish farming act.

3.5.6. Establishment of the Special Act for Aquaculture Industry

Because the aquaculture industry is an industry that is being newly developed, it would require special law like in South Korea. Aquaculture can be more effectively developed when private companies are competing with each other to develop the technology. In this regard, the act should allow for individuals to cultivate seedlings and aquaculture. There is a possibility of poachers within the aquaculture complex as aquaculture is developed, hence there should be articles to prevent poaching.

3.5.7. Establishment of Aquatic Environment Preservation and Pollution Prevention Laws Within Industry Waters

Aquaculture productivity can drop from sewage dumping into the aquaculture waters as the population and density increases from the development of aquaculture industry. Therefore, laws should be established to regulate the installment of sewage

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 093

disposal facilities. Articles should in included to prevent water pollution that occurs in long-term aquaculture business.

When aquaculture production increases, by-products such as intestines and shells that are created from cleaning and processing will need to be disposed and purified. Hence, laws regulating the reduction of pollution and pollution prevention should be established.

3.5.8. Establishment of Measures for Natural Disasters

Because of the cold waters, the possibilities of natural disasters seem lower compared to countries like South Korea, but disaster countermeasures should be established to compensate for facilities and aquaculture products against summer typhoons and red tides.

3.6. Site Selection for aquaculture, Placement of Seedling Cultivation Facilities and Budget Allocation

In order for an industry to develop, it needs institutional support from the government, as well as budget (financial) support. Institutional support from the government should include selection and protection of aquaculture territory, and construction of seedling cultivation facilities for research and technological research. Also, a budget should be supported so that the aquaculture industry in Sakhalin can be developed.

3.6.1. Site Selection

3.6.1.1. Conduct an investigation on larvae to select a site for seed collection

3.6.1.2. Determine broodstock protection areas by tracing the migration route of the larvae

094 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

3.6.1.3. Select an optimum site for hatchery production for artificial

seed production

3.6.1.4. Select an optimum site for seed releasing

3.6.1.5. Select an optimum site for bottom culture and hanging culture

3.6.2. Budget Allocation

3.6.2.1. Appropriate budget for equipment costs, management expense and labor cost for each site

3.6.2.2. Appropriate budget for the construction of seedling cultivation facilities.

3.6.2.3. Appropriate budget for ships and various equipment, cultivation facility equipment, along with management expense and labor costs.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 095

Kang, G. H., Beak, K. K., Jang, Y. J., Yu, S. K. (1996), Comparing the effects on spawning inducement in Patinopecten yessoensis of various inducing methods. Journal of Korea Shellfish Society 12(2), pp. 99-104. Kang, S. J., Kang, S. W., Kang, J. H., Jeong, W. C., Jin, S. D., Choi, B. D., Han, J. C. (2012), Advanced Aquaculture Technology of the Sea Cucumber. Aqua Info Co., Seoul, 426p. National Fisheries Research & Development Institute (2001), The Record of 80 Year History of the National Fisheries Research & Development Institute, 257p. Kim, D. Y. (2014), The Current Status and the 2030 Prospects of World Fisheries- Centered by a World Bank report, “Fisheries Review” 1(1), pp. 42-43. Kim, J. W. (1993), Dictionary of Greek and Roman Mythology. Beomwoo Publication. Seoul, pp. 239-243. Biology Monitoring Center (2015), Precise Survey and Evaluation for Optimum Releasing of Juvenile Sea cucumbers, 2014 Research Report on Effects of Releasing Fish Seeds. Korea Fisheries Resources Agency, 95p. Oh, B. S., Lee, J. Y., Park, S. K., Lee, J., Jo, K. T. (2008), Research on Hatchery Seed Production and Intermediate Rearing of Attached Juveniles of Patinopecten yessoensis. Journal of Korea Shellfish Society 24(2), pp. 153-159. Chang, Y. J.(1997), Aquaculture of the Scallop -Theory and practice-. Material Book of Aquaculture Biology of the Scallop, Institute of Fishing and Agrarian in Kangwon Province, pp. 1-32. Chang, Y. J.(2015), Overview of physio-aquaculture. Aqua Info Co., Seoul. 290p. Choi, S. (1963), Research on the Sea Cucumber. Heamoon Publication. Tokyo, pp. 25-35. Choi, J. Y. (2012), Studies on Historical Changes in Utilization of Fishing Grounds for Farms. Institute of Fishery Economy in Seoul. Lee, B. H., Jang, S. I. (1977), Studies on Scallop Farming (1). Natural Seed Collection and Test of Hanging Culture. Research Report by National Fisheries Research & Development Institute 16, pp. 165-178. Chang, Y. J.(1986), Physio-ecological studies on the scallop, Patinopecten yessoensis (Jay) in off-sea sowing cultures, especially on the histochemical changes of cells and tissues in their organs related to reproduction. Doctoral Dissertation, Tohoku Univ., Japan, 218p.

Chang, Y. J.(1991), Seasonal variations of digestive diverticula in the scallop,

096 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Patinopecten yessoensis. J. Aquaculture 4, pp. 19-30.

Chang, Y. J.(1993), Identification of blood cells and their physiological functions in the scallop, Patinopecten yessoensis. J. Aquaculture 6, pp. 1-12.

Chang, Y. J., H. K. Lim and Y. J. Park(1997), Reproductive cycle of the cultured scallop, Patinopecten yessoensis in eastern waters of Korea. J. Aquaculture 10, pp. 133-141.

Ganno, H. (1984), Nurture the Sea to Be Reich. PHP Institute. Kyoto. 40 p.

Hugi, A. (1987), Assessment and Management of the Scallop Stocks in the Sea of Okhotsk. The Japanese Association of Fisheries Conservation, pp. 1-40.

Hamada, S. (1974), Predatory Behavior of CUVIER Octopus vulgaris on Shellfish. Venus 33, pp. 138-143.

Mori, K. (1989), Maturation, Development and Growth of Shellfish and the Regulation. Fisheries Reproduction. Ed. by Takashimahu and Hanuisao. Midorishovo, pp. 325-363.

Mori, K., Osanai, K., Sato, R. (1977), Histological Studies on Periodic Gonad Variations of Farmed Scallops in the Bay of Dangdan, Iwate Prefecture. Journal of Japanese Fisheries Society 43, pp. 1-8.

Nomura, T. (1994), Research on Production Technology of Oysters, Scallops and Abalones. Selected Paper of Professor Nomura Tadashi to Commemorate the Retirement. Tokyo, pp. 1-267.

Nakagawa, Y., Maru, K., Sizkawa, S. (1974), Seasonal Variations in Fatness of the Soft Part and Glycogen of a Farmed Scallop from Lake Saroma. Weekly of Fisheries Experimental Station in Hokkaido 31(10), pp. 13-21.

Kamamata, K. (1983), Reproductive Cycle of the Bottom-cultured Scallops in the Bay of Hunka. Report of Fisheries Experimental Station in Hokkaido 25, pp. 15-20.

Aoyama, H. (1981), Experiment on Secretion and Vitality of Byssus in the Scallop. Overview of Fisheries Enhancement Project 10, pp. 84-85.

Maru, K. (1976), Studies on the Reproduction of the Scallop. Reproductive Cycle of the Farmed Scallop. Report of Fisheries Experimental Station in Hokkaido 18, pp. 9-26.

Xu, S. (1985), Aquaculture of Sea Cucumber, Beijing Agriculture Publication.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 097

Barnaby R.(2006), Growing Seafood in the Open Ocean. Offshore Aquaculture in the United States. New Hampshire Sea Grant. Technical Report NH. Sea Grant Publication UNHMP-TR-SG-06-22, p. 18.

Chang, Y. J.(1991), Seasonal variations of digestive diverticula in the scallop, Patinopecten yessoensis. J. Aquaculture 4, pp. 19-30.

Chang, Y. J.(1993), Identification of blood cells and their physiological functions in the scallop, Patinopecten yessoensis. J. Aquaculture 6, pp. 1-12.

Chang, Y. J.(1997), Aquaculture of scallop -Theory and practice-. Material Book of Management Techniques in Agriculture and Fisheries 7, Institute of Fishing and Agrarian in Kangwon Province, 127p.

Chang, Y. J.(2015), Overview of physio-aquaculture. Aqua Info Co., Seoul, 290p.

Chang, Y. J.(1986), Physio-ecological studies on the scallop, Patinopecten yessoensis (Jay) in off-sea sowing cultures, especially on the histochemical changes of cells and tissues in their organs related to reproduction. Doctoral Dissertation, Tohoku Univ., Japan, 218p.

Chang, Y. J., H. K. Lim and Y. J. Park(1997), Reproductive cycle of the cultured scallop, Patinopecten yessoensis in eastern waters of Korea. J. Aquaculture 10, pp. 133-141.

Chang, Y. J., K. Mori and T. Nomura(1985), Studies on the scallop, Patinopecten yessoensis, in sowing cultures in Abashiri waters -Reproductive periodicity. Tohoku J. Agr. Res. 35, pp. 91-105.

Hardy, D.(1991), Scallop Farming. Fishing News Books, Oxford, 237 p.

Jamieson, G. S., H. Stone and M. Etter(1982), Predation of sea scallops(Placopecten magellanicus) by lobsters(Homarus americanus) and rock crabs(Cancer irroratus) in underwater cage enclosures. Can. J. Fish. Aquat. Sci. 39, pp. 499-505.

Maslennikov S. I.(2008), “Marine Biological Resources in the Far Eastern Coast: Their Rational Use from Ecological and Economic Viewpoints.” Energy and environment in Slavic Eurasia: toward the establishment of the network of environmental studies in the Pan-Okhotsk region. Sapporo: Slavik Research Center, Hokkaido University, pp. 89-125.

Jo, Q, S.K. Kim, C.S. Lee, J.H. Lee, M.S. Park and T.S. Moon(2010) Effect of the hatchery larval sieving on the larval growth, scuticociliate occurrence, and

ensuing spat growth of Patinopecten yessoensis. J. Fish Pathol. 23(3), 303-311.

098 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Jo, Q., C. Lee, B.S. Oh, J.D. Bang, Y. Kim, I.K. Jeon and M.M. Ahn(2007) Batch-

specific quality of the on reproductive outputs and nursery acclimation in the seed production of Patinopecten yessoensis - case study on Korean coasts of the East Sea. J. Aquaculture 20(2), 81-84.

Jo, Q., S.K. Kim, C. Lee, M.M. Rahman, C.S. Lee and B.S. Oh(2009) A Report on the mass mortality of the farmed Japanese scallop, Patinopecten yessoensis on the Korean coasts of the East Sea. Kor. J. Malacol. 25(2), 93-96.

Kang, K.H., K.K. Baik, Y.J. Chang and S.K. Yoo(1996) Spawning induction according to stimulating treatment and spat rearing of scallop, Patinopecten yessoensis. Kor. J. Malacol. 12, 99-104.

Mori, K.(1975), Seasonal variation in physiological activity of scallop under culture in the coastal waters of Sanriku district, Japan, and a physiological approach of a possible cause of their mass mortality. Bull. Mar. Biol. Stat. Asamushi 15, pp. 59-79.

Nam, M. M., J. C. Park, M. S. Park and C. Lee(2012), Development of replacement diets for improved growth and survival rate of scallop juvenile Patinopecten yessoensis. Korean J. Malacol. 28(2), pp. 137-143.

Oh, B. S., C. K. Jung, M. G. Kwon and J. S. Lee(2010), The effect of yellow soil on mortality of Korean scallops, Patinopecten yessoensis at indoor tank. Korean J. Malacol. 26(3), pp. 179-183.

Oh, B. S., J. Y. Lee, S. K. Park, C. Lee and Q. Jo(2008), A study on the production of artificial seed and intermediate culture for attached spats of the Chinese stock of a scallop, Patinopecten yessoensis. Kor. J. Malacol. 24(2), pp. 153-159.

Oh, B. S., Q, Jo, J. Y. Lee, M. G. Kwon and C. Lee(2011), A study on the mortality of Korean scallop, Patinopecten yessoensis affected critical changed water temperature at indoor tanks. Korean J. Malacol. 27(3), pp. 193-198.

Park, Y. J., J. Y. Lee, W. K. Kim and C. S. Lee(2001a), Egg development and larva growth of the scallop, Patinopecten yessoensis. Kor. J. Malacol. 17(2), pp. 79-84.

Park, Y. J., S. Rho and C. S. Lee(2001b), Growth of the scallop, Patinopecten yessoensis in suspended culture in the east coast of Korea. J. Aquaculture 14(3), pp. 181-195.

Park, Y. J., S. Rho and J. Y. Lee(2000), Intermediate culture of the scallop, Patinopecten yessoensis in the east coast of Korea. J. Aquaculture 13(4), pp. 339-351.

Chapter 2_Policy for the Development of Mariculture Industry in Sakhalin Region ∙ 099

Shin, H. and D. Kim(1996), A study on offshore longline type aquaculture facilities, Part 1 : 3-D nonlinear static analysis of cable-buoy-weight mooring system. J. Ocean Eng. Tech. 10(1), pp. 92-99.

Shumway, S. E.(1991) Scallop: Biology, Ecology and Aquaculture. Ed. by Shumway, Elsevier, Amsterdam, 1095 p.

Tanaka, Y.(1958). Seasonal changes occurring in the gonad of Stichopus japonicus. Bulletin of the faculty of Fisheries Hokkaido University 9(1), pp. 29-36.

World Bank(2013), Fish to 2030: Prospects for Fisheries and Aquaculture, p. vii.

Shelegova E. K. (1955), Hydrological Conditions of Spring and Autumn in the Bay of Aniva and Tatar Strait. SakhNIRO, pp.9-11.

Pishalnik V. M., Bobkov A.O. (2000) Oceanic Map of Shoals in waters off Sakhalin Island. Sakhalin National University II, Yuzhno-Sakhalinsk, P. 108

Poezhalova O.S., Shevchnko G.V. (1997), Average Variations in the Sea of Okhotsk, Tsunami and Accompanied Phenomenon. Yuzhno-Sakhalinsk, pp. 131-144.

Brovko P.F. (1990), Formation of Coastal Lagoons. Far East University, Vladivostok, 147 p.

Galanin D.A., Prohorova N. Y. (2015), Prospects of Aquaculture Industry in the Sakhalin Region, Yuzhno-Sakhalinsk.

Maslennikov S.I. (2015), Prospects and Current Status of Aquaculture Industry in the Sakhalin Region. Vladivostok.

FAO, FISH STAT J

UN COMTRADE

Report by Sakhalin Office of Federal State Statistical Service, Russian Federation (June 22, 2015), http://sakhalinstat.gks.ru/wps/wcm/connect/rosstat_ts/ sakhalinstat/ru/statistics/enterprises/fisheries

National Statistical Portal, 2015, http://kosis.kr

Fisheries Paper, Korea Fisheries Association, http://www.korfish.or.kr/_sub/?s=3&ss=2&code=tbl_bbs_07061371

Documents from Rut 2009 on its Marine Biotechno Park Construction Project

Documents on Annual Seed Production and Aquaculture Production of the Scallop,

Pan East Sea Headquarters of Gangwon Province

100 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia (Sakhalin Region)

Appendix

Yearly Scallop Production

(Unit: Tons) Year 2009 2010 2011 2012 2013 Total 2,400,118 2,569,102 2,378,698 2,401,951 2,617,497 Asia 1,871,212 1,987,819 1,759,538 1,937,304 2,145,112 China Region 1,292,139 1,438,422 1,336,251 1,435,027 1,625,524 Southeast Asia 2,142 2,072 1,200 1,738 1,113 America 441,390 476,621 508,087 359,777 361,910 Europe 78,539 96,052 103,212 100,320 102,920 Russia 4,640 6,243 5,588 3,909 6,199 Oceania 8,977 8,610 7,861 4,550 7,555 Africa 0 0 0 0 0

Source : FAO, FISH STAT J

Scallop Export Sum by Country

(Unit: 1,000 USD) Year 2008 2009 2010 2011 2012 2013 2014 World 947 950 1,174 1,461 1,135 1,358 1,504 China 82 90 186 262 230 354 444

Canada 105 91 97 120 113 152 184

102 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Scallop Export Sum by Country

USA 131 135 152 207 210 177 174 UK 109 127 137 160 138 146 151 Peru 49 63 120 136 76 159 132 Hong Kong 12 12 16 18 27 39 73 Belgium 34 32 52 76 42 54 46 France 34 28 33 30 27 37 45 Netherlands 21 30 43 51 36 27 32 Denmark 12 11 14 18 18 18 17 Japan 144 153 117 142 37 27 16 Taiwan 13 14 11 6 1 4 6

Source: UN COMTRADE Note: Total sum from 2012HS 030721(Scallops, including queen scallops, shelled or not live fresh or chilled), 030729(Scallops, incl queen scallops, shelld or not, frozen, drid, saltd o in brine)

Revenue from Scallop by Country

(Unit: 1,000 USD) Year 2001 2005 2010 2011 2012 2013 2014 World 557,758 980,998 1,319,737 1,565,164 1,382,011 1,617,792 1,731,398 USA 131,413 230,917 233,080 294,000 220,413 366,103 389,237 France 142,951 242,406 348,819 428,989 322,827 312,298 282,708 Hong Kong 102,365 130,706 201,960 174,315 208,222 240,399 254,197 China 4,052 10,197 20,590 18,510 51,494 77,497 101,420 Canada 24,480 49,879 54,145 82,201 84,060 83,485 90,334 Belgium 12,592 51,121 62,469 90,876 64,553 73,681 70,935 Vietnam 177 4,999 3,844 7,199 8,137 7,632 61,869 Netherlands 8,850 17,124 36,079 42,850 31,367 38,147 47,768 Italy 17,035 35,848 44,680 50,286 47,197 46,520 46,474 Spain 21,648 45,664 61,837 53,078 39,311 43,309 43,278

Source: UN COMTRADE

Appendix 1 ∙ 103

Scallop Export Sum of China

(Unit: 1,000 USD) Year 2001 2005 2010 2011 2012 2013 2014 World 47,362 75,148 186,438 261,730 229,739 354,313 443,559 USA 19,878 40,096 94,411 85,417 55,172 102,181 132,430 Hong Kong 8,048 1,961 16,498 30,378 32,795 101,648 99,234 Taiwan 348 667 16,725 19,089 20,368 37,212 45,587 Singapore 144 442 3,363 8,266 12,529 20,600 42,602 Australia 2,817 11,131 15,657 21,539 26,511 23,242 33,062 Korea 2,456 4,631 22,753 53,692 25,605 16,178 24,464 Canada 1,788 3,788 8,401 12,736 19,140 14,681 17,230 Russia 5 0 1,478 3,599 7,279 7,589 13,351 Japan 11,295 6,146 3,900 13,297 9,664 7,134 10,481 Mexico 0 0 25 1,559 3,219 3,560 7,508

Source: UN COMTRADE

Revenue from Scallop for China

(Unit: 1,000 USD) Year 2001 2005 2010 2011 2012 2013 2014 World 4,052 10,197 20,590 18,510 51,494 77,497 101,420 Japan 192 934 18,455 13,360 46,173 75,286 97,863 N. Korea 78 322 536 3,287 3,216 509 1,473 Peru 0 0 0 0 269 0 560 Thailand 66 2 0 0 0 0 398 Canada 1,424 4,368 216 232 255 890 374 Russia 20 334 0 0 0 0 249 USA 836 3,994 881 1,244 1,410 257 153 Greenland 0 0 0 0 0 0 148 Australia 1,183 100 33 11 16 100 59 Norway 11 5 15 20 21 45 94

Source: UN COMTRADE

104 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Sea Cucumber Production by Country

(Unit: ton) Year 2008 2009 2010 2011 2012 2013 Total 124,413 140,720 167,316 180,425 210,293 231,987 Asia 113,759 126,585 153,384 164,128 194,207 215,453 China 92,567 102,159 130,303 137,754 170,830 193,705 Southeast Asia 4,679 7,424 6,430 6,911 7,776 5,328 South Asia 4,482 4,049 4,877 3,620 3,480 3,570 America 6,404 9,541 9,235 11,129 12,434 11,131 Africa 1,264 1,464 1,465 1,697 1,478 3,163 Europe 1,054 1,174 2,259 2,770 1,525 1,548 Russia 0 2 10 112 110 136 Oceania 1,932 1,956 973 701 649 692

Source: FAO, FISH STAT J

Sea Cucumber Export Sum by Country

(Unit: 1,000 USD) Year 2012 2013 2014 World 215,488 350,726 451,414 China 39,239 158,279 204,789 Hong Kong 44,932 50,364 72,351 Singapore 18,825 16,979 22,775 USA 32,494 38,922 22,200 Japan 29,520 29,540 21,460 Mexico 582 1,353 18,640 Fiji 726 1,621 12,397 Canada 17.387 12,619 11,138 Australia 3,686 3,671 9,395 Taiwan 0 549 6,324 Nicaragua 1,274 2,436 6,189 Korea 4,512 3,049 4,833

Source: UN COMTRADE

Appendix 1 ∙ 105

Revenue from Sea Cucumber by Country

(Unit: 1,000 USD) Year 2012 2013 2014 Total 423,128 461,643 480,758 Hong Kong 351,528 353,047 299,526 Vietnam 102 35 77,912 Singapore 24,354 23,544 29,493 USA 22,347 40,370 24,690 Taiwan 0 1,145 14,151 China 11,628 18,403 8,974 Canada 6,341 4,246 5,389 Thailand 159 4,822 3,804 Macao 1,128 0 3,081 Malaysia 0 2,400 2,518 Australia 536 2,480 2,252

Source: UN COMTRADE

Sea Cucumber Export Sum by Continent·Region

(Unit: 1,000 USD) Year 2012 2013 2014 World 215,488 350,726 451,414 Asia 141,093 272,165 348,065 China Region 84,171 209,192 284,266 Southeast Asia 21,726 28,275 33,888 South Asia 657 778 501 America 58,685 60,895 64,265 Oceania 6,333 5,835 30,371 Europe 6,219 8,878 7,120 Africa 2,242 2,888 1,593

Source: UN COMTRADE

106 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Revenue from Sea Cucumber by Continent/Region

(Unit: 1,000 USD) Year 2012 2013 2014 Total 423,104 460,145 480,758 Asia 390,402 404,553 440,628 China Region 364,284 372,595 325,732 Southeast Asia 24,615 30,834 113,808 South Asia 24 168 244 America 28,689 44,813 30,170 Europe 3,256 8,024 7,020 Oceania 744 2,732 2,893 Africa 13 23 47

Source: UN COMTRADE

Sea Cucumber Export Sum of China

(Unit: 1,000 USD) Year 2012 2013 2014 World 39,239 158,279 204,789 Hong Kong 31,189 89,185 101,065 Malaysia 2,431 29,062 39,527 Thailand 0 11,651 23,893 Taiwan 5,378 15,668 19,629 Singapore 21 11,560 16,675 Japan 0 0 3,144 Philippines 0 0 836 Korea 0 5 20 Brunei 43 0 0 Vietnam 0 770 0 USA 177 376 0 Namibia 0 1 1

Source: UN COMTRADE

Appendix 1 ∙ 107

Revenue from Sea Cucumber for China

(Unit: 1,000 USD) Year 2012 2013 2014 Total 11,553 18,369 8,882 USA 2,404 1,689 2,379 Korea 547 8,755 2,373 Canada 2,261 2,400 1,931 Iceland 1,248 1,087 1,240 Japan 2,869 3,949 583 Russia 194 206 239 Mexico 1,291 135 59 N. Korea 0 35 50 Fiji 11 9 32 Australia 237 49 22

Source: UN COMTRADE

Yearly Abalone Production

(Unit: ton) Year 2008 2009 2010 2011 2012 2013 Total 55,455 64,416 80,941 98,173 111,750 132,042 Asia 40,640 51,091 64,965 85,592 99,193 119,950 China 33,010 42,373 56,511 76,786 90,694 110,380 Taiwan 348 218 171 87 79 147 Southeast Asia 277 212 359 367 363 320 Oceania 6,266 6,629 7,706 6,309 6,060 6,152 America 7,416 5,748 7,069 5,007 5,183 4,620 Africa 1,102 918 1,148 1,205 1,267 1,271 Europe 31 30 53 60 47 49 Russia 0 0 0 0 0 0

Source: FAO, FISH STAT J

108 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Abalone Export Sum by Country

(Unit: 1,000 USD) Year 2012 2013 2014 Total 370,325 374,122 448,948 China 88,029 90,836 148,399 Australia 139,738 125,851 113,333 Hong Kong 7,566 29,295 53,517 Korea 58,087 52,390 45,136 South Africa 36,518 34,987 39,456 Thailand 264 1,509 10,452 Japan 10,320 14,329 10,232 Namibia 43 0 7,833 Chile 8,618 5,695 5,242 Bulgaria 3,996 4,290 3,610

Source: UN COMTRADE

Revenue from Abalone by Country (Unit: 1,000 USD) Year 2012 2013 2014 Total 292,558 306,892 427,306 Hong Kong 150,763 170,889 176,944 Vietnam 0 30 80,151 Japan 91,832 82,671 79,515 Taiwan 0 1,102 29,975 China 26,443 23,633 23,401 Thailand 375 1,491 10,548 USA 7,557 8,973 9,438 Canada 3,560 4,511 4,828 Singapore 3,112 3,632 3,981 Spain 164 1,539 3,706 Macao 1,797 0 2,090

Source: UN COMTRADE

Appendix 1 ∙ 109

Abalone Export Sum by Continent/Region

(Unit: 1,000 USD) Year 2012 2013 2014 Total 370,325 374,122 448,948 Asia 170,031 192,229 271,937 China Region 95,620 120,400 203,817 Southeast Asia 2,206 3,079 12,430 South Asia 0 0 0 Oceania 146,348 127,946 115,488 Africa 36,561 34,988 47,301 America 12,199 13,170 9,528 Europe 4,924 5,674 4,694

Source: UN COMTRADE

Revenue from Abalone by Continent/Region

(Unit: 1,000 USD) Year 2012 2013 2014 Asia 274,798 284,660 407,138 China Region 179,003 195,624 232,410 Southeast Asia 3,487 5,453 94,853 South Asia 0 4 8 America 11,166 13,582 14,428 Europe 1,424 2,353 4,614 Oceania 4,165 1,321 1,007 Africa 1,005 16 119

Source: UN COMTRADE

110 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Abalone Export Sum of China

(Unit: 1,000 USD) Year 2012 2013 2014 Total 88,029 90,836 148,399 Taiwan 38,784 51,062 95,529 Hong Kong 38,429 27,850 36,102 Japan 5,885 7,037 10,929 Macao 4,151 3,291 3,774 Singapore 0 562 899 Canada 0 330 788 USA 0 0 193 Korea 0 259 168 Malaysia 778 446 17

Source: UN COMTRADE

Revenue from Abalone for China

(Unit: 1,000 USD) Year 2012 2013 2014 Total 26,443 23,633 23,401 Australia 24,477 22,557 21,915 Peru 342 31 414 South Africa 674 394 583 New Zealand 317 287 488 Taiwan 0 0 2 N. Korea 6 0 0 Korea 1 35 0 Chile 443 0 0 Japan 7 309 0 Malaysia 61 20 0

Source: UN COMTRADE

Appendix 1 ∙ 111

1. Scallop (Patinopecten yessoensis)

1.1. HISTORY OF SCALLOP AQUACULTURE IN SOUTH KOREA

The first records on scallops living in Northeast Asia were found in a report on the Far East exploration by an American fleet. In Japan, wild spat collection was started around 1963 in an aim to develop aquaculture. Recently industrial-scaled aquaculture farms of Japanese scallops can be found in the Sea of Okhotsk in the coast of Hokkaido, in the Funka bay and its adjacent areas and in the Mutsu bay of Aomori and juveniles and intermediate-reared juveniles produced in those major production sites are being transplanted to Iwate and Miyagi prefectures, south Japan.

In South Korea, scallop farming was started in 1973 when wild seed collection and rearing was first tested in the Yeongil bay in the east coast of Korea. The subsequent technological development for industrialization was promoted around the mid 1980‟s. The technological development was particularly stimulated with the “Project for Scallop Aquaculture Development in the East Coast of Korea” proposed by a Japanese company in 1988 and the first successful production of 60,000 seedlings through natural spat collection. Afterward, in 1994, the commercial aquaculture production reached 605 tons which were both domestically consumed and exported overseas and in 1996, the production skyrocketed to 1,531 tons. Farms are distributed

from the coast of Gangwon-do to the coast of northern Gyeongsangbuk-do. Various

112 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

grow-out methods including bottom ranching, lantern net suspension, ear-hanging and bottom cage were tried, but the lantern net suspension culture is most commonly used. In 1997 and 2001, farms were hit by mass mortalities, which were mainly caused by high water temperature, overexploited wild broodstock and being preyed upon by starfish. As a result, the production plummeted to only 58 tons in 2002. The production was then somewhat recovered and maintained at 200-500 tons until 2014

.

Annual Production of Cultured Scallop in Korea

Source: Adapted from from Kangwon-do Hwandonghae Headquarters, 2015

Successful farming of scallops depends on successful wild seed collection. Wild seed collection was not economically efficient in 1991 with only 6 million collected (167.2 larvae per collector). In 1992, however, larvae attachment dramatically improved to 65 million (450 larvae per collector), making the farming economically feasible. In 1993, the number rose to 87 million and then soared to 259 million in 1996. However, due to lack of intermediate rearing facilities, 70% of them died. In 1999, high water temperatures and lack of food organism during the seed collection caused larval underdevelopment and death which resulted in only 3.5 million spats being collected. This led to the lack of seedlings to be supplied for grow-out farms in the coming year. Meanwhile, the scallop stocks in the east coast, the main source for wild seeds, started to decline starting 2000s. Against this backdrop, attempts for hatchery seed production were tried from 2002 to make up for the declining wild seeds. Annual hatchery production was limited ranging from 5-12 million larvae

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 113

depending the facility size. By 2005, the wild spat collection was all replaced by hatchery production and from 2011, 40-80 million seedlings were imported from the Gulf of Pohai, China every year to be supplied to grow-our farms in Korea

. Depletion in wild spats might be caused by environmental changes such as higher water temperature but it is judged that the biggest reason is the depletion of wild broodstocks to provide wild spats. It is fortunate that small amounts of scallops are currently fished in the Yeongil bay, which means that wild spat collection is still possible. It is thought that by sharing Korea‟s experiences, Sakhalin may not repeat the mistakes that we made and promote development of scallop aquaculture industry by carefully and systematically designing the development plans.

Annual Production of Scallop Seedlings in Korea

Source: Adapted from Kangwon-do Hwandonghae Headquarters, 2015

114 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

1.2. Species Position

1.2.1. Classification

The scallop is named as приморскийгребешок in Russian and ホタテガイin Japanese. The scallops belong to the family Pectinidae which consists of 32 genera under 10 subfamilies and it is known that 360 scallop species are found across the world. The taxonomic position of Patinopecten yessoensis is as below: Mollusca - Bivalvia - Filibranchia - Pectinidae – Patinopecten – Patinopecten yessoensis.

1.2.2. Distribution and Habitat

Scallops inhabit the waters of Northeast Asia that is above the latitude of 34°30´and they are widely spread from the coasts of the Kuril Islands and Sakhalin and Primorsky Krai of Russia to the coast of north Japan and the northeastern coast of Korea and to the Gulf of Pohai, China. They are found on subtidal sand flats at a water depth of 70m (mostly 10-30m). In Japan, their distribution is limited north of the Tokyo bay in the Pacific Ocean of the east coast of Honshu and north of the Tomiyama bay on the west. In Korea, scallops are distributed in limited areas north of the Yeongil bay on the east coast and classified as cold water species.

1.2.3. Life history

In the wild, the critical temperature threshold for spawning is 8-9℃ and the spawning occurs when the the water temperature rises above the threshold.

∙ Early development stage: Once fertilized with released sperms in the seawater, the fertilized eggs immediately commence development. Around 1 week after the fertilization, they become veligers or D-larvae to enter the planktonic stage. ∙ Planktonic larval stage: 15~16 days after fertilization, a veliger approximately 120 ㎛ in shell length develops umbones. Reaching 200 ㎛ in shell length, the larvae grow umbomes into asymmetric shells and remain pelagic. At 240 ㎛ in shell length, eye spot in 5 ㎛ in diameter appears and foots are well developed.

∙ Settled larval stage: When the larva grows around 300 ㎛ in shell length, it

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 115

becomes ready to attach itself to a substrate as a metamorphic larva or a full grown larva. Most larvae settle when they are around 300~350 ㎛ in shell length. It takes about 30~40 days after fertilization to settle, which seems longer that in other shellfish species. ∙ Settled juvenile stage: After settling, the juvenile shells rapidly produce thin and transparent shells around the protoconch to form a marginal shell. So the shell length at settlement can be calculated by measuring the protoconch. The settled juveniles continue to grow to be about 6~10 mm in shell length and then they leave the substrate and settle down on the sea floor. ∙ Benthic life stage: 2~3 months after settlement, the juveniles give up their foot thread and settle down on the sea floor. At this time, the juveniles have grown 1 cm in shell length. After a year, they reach around 5~7 cm in shell length and after 2 years they would reach somewhere around 10 cm in shell length to become adults. They grow to a maximum shell length of 21 cm and start to reproduce when matured. The lifespan of a scallop is known to be approximately 8 years.

1.3. STRENGTH AND WEAKNESS IN DEVELOPMENT OF AQUACULTURE

1.3.1. Strength

The scallop is cold water species with limited harvest areas across the world. Thus it is highly competitive in the global market.

- The size is much bigger compared to those from Japan and Korea. - The waters can be more effectively utilized and the species is highly sedentary. - The initial investment in the facilities is much less than for the land-based tank and cage culture. - The edible part of the product can be processed into various products which can enhance its added value. - Its shell can be utilized for display and industrial purposes and its byproducts such as the gonad and organs can be used as fertilizers.

116 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

- Other wastes can be utilized to prevent pollution on both land and sea. - There is no need for feed as the species relies on the natural feed in the ecosystem for growth.

1.3.2. Weakness

- There is a cost for setup and maintenance for the hatchery and for artificial spat collection. - The survival rate of the juvenile is lower with long period of larval rearing. - It is difficult to cultivate the phytoplankton (feed organism) due to the fact that it is being farmed in the cold sea and heating facility is also required. - The cold sea means that the duration of the appropriate water temperature for growth is shorter and this makes it take longer for the shells to mature.

1.4. DEVELOPMENT PROCEDURE OF AQUACULTURE

∙ Stage 1: This is a preparatory stage. Adult scallops are monthly collected for a year to produce the seedlings. Gonad Index (GI) and histological observation are used to determine the exact timing of spawning. The optimal seedling ground must be determined based on the larva observation conducted close to the spawning season. The water temperature and salinity must be recorded by the water layer every month and the density and composition of the phytoplankton should be monitored as well. The ocean current, the drift, and the tidal gap should all be monitored. Also, the particle-size composition of the bottom must be analyzed to determine the appropriate location for the protection zone for resource enhancement and sites for seed releasing, bottom culture and hanging culture should be selected. The hatchery facility should also start to be constructed at this stage to ensure that seeds are properly supplied to grow out farms.

∙ Stage 2: The spat collection can be done artificially at the marine hatchery but this would not only require costs for facility construction and maintenance but also highly advanced rearing techniques. Therefore, the natural spat collection is

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 117

recommended and the collected seeds are grown out by bottom culture which does not require a facility.

∙ Stage 3: Once the marine hatchery is successfully built and its test run is successful, a massive larval releasing should be conducted in order to boost the count of wild living resources in the sea

. The larvae fed by food organisms are collected for grow-out and these seedlings are grown out in intensive hanging culture system.

Shellfish Hatchery and Seedling Production System

South Sea Aquaculture Center of National Institute of Fisheries Science, Photograph by the author

∙ Stage 4: Once the skills obtained at stages 2 and 3 are stabilized, the next objective should be to increase the production of scallops through collecting more seedlings by both natural and artificial spat collection and through growing-out by both sowing and hanging methods. The minimum timetable to reach stage 4 would be 4 years and the first harvesting of the scallops through this method will take another 3 years. Therefore, it is estimated that profits will turn in about 10 years with all the preparation and implementation of the system.

118 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

1.5. Selection of Suitable Aquaculture Sites

1.5.1. Site Selection for Seedling Production

1.5.1.1. Natural Spat Collection

- Area where the natural scallop‟s distribution density is the highest (If there are no past data, select the location after investigating for a year) - Area where the density for the settling larva is the highest (The larval observation is conducted during their spawning season) - Curved area on the coast where a gentle whirlpool could form according to the tidal movement - A lagoon that natural scallops can inhabit with free flow of the seawater - A location protected from storms and with appropriate depths and substrates for facility construction

1.5.1.2. Artificial Spat Collection

Seedling production occurs in the marine hatchery and therefore, it depends on the location of the hatchery.

1.5.2. Suitable Locations for Resource Cultivation and Aquaculture

1.5.2.1. Mother shells sanctuary (Scallop Bank)

Natural scallops are being depleted due to overfishing in Sakhalin and it is also known that the large sized shells are caught for marketability. Naturally, it is difficult to expect the weak, smaller mother scallops to release large amounts of healthy eggs for natural spat collection. Therefore, a certain amount of area be legally closed off as a mother shells sanctuary or a scallop bank to increase the stock of the natural scallops. This zone will indefinitely release large amounts of larva annually which in turn would make natural spat collection a much more stable process. Also, this would help Sakhalin protect its premium natural scallops and therefore, establishing such a zone is very important.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 119

If and when the appropriateness for the Busse lagoon located northeast of Aniva bay is confirmed, we recommend it to be selected as the scallop bank. The aging of natural mother shells and decrease in its number will presumably make natural spat collection more difficult and therefore, the fast growing and superior specimen of scallops from the sowing culture farm should be relocated to the scallop bank. The establishment of a scallop bank is crucial to securing superior mother shells for artificial spat collection as well.

1.5.2.2. Larval Releasing

The larval releasing should be conducted in a pond near the marine hatchery where the drifting of the current only occur within the designated waters to ensure that the released larvae won‟t disperse to offshore waters.

1.5.2.3. Bottom Culture

- The waters that natural scallops inhabit - Coastal floor 30m or less deep with the bottom covered in sandy mud or sand or fine gravel and with 10 cm velocity - A location where the phytoplankton and detritus are abundant for food - An area where the low water temperature appropriate for scallop growth could be maintained for a prolonged period - An area with less predators such as crabs and star fish

1.5.2.4. Hanging Culture

- An area that natural scallops inhabit - An area where phytoplankton are abundant in every water layer - An area where the water temperature appropriate for scallop growth can be maintained for a prolonged period throughout all the water layers - An area with depth between 10~20 meters and appropriate for setting up hanging equipment and anchors - An area that is well protected from storms or without any strong tidal currents that will twist and tangle the hanging culture farms

120 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

1.6. Seedling Production

To farm scallops, seedlings which serve as the raw materials for the product must be secured in large quantity. There are two methods for seedling production: the natural spat collection which involves investigating the larva originating from a natural mother shell for the appropriate time by placing a collector under water for juvenile attachment and the artificial spat collection which involves artificially fertilizing the large quantities of eggs and sperms from the mother shells in the marine hatchery to raise larvae for the production of juveniles

1.6.1. Natural Spat Collection

1.6.1.1. Natural Spat Collection Process

Spat Collectors for the Scallop

Photo by the author

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 121

Preparation of Spat Forecasting Spat → Larval Investigation → → Placing Collectors Collecting Materials Settling

Investigating Settled Change of Size Grading of → → Intermediate Culture → Spats Protective Nets Seedlings

1.6.1.2. Facilities and Materials Required

A ship, buoy, anchor, collector, larval sampling plankton net, microscope, protecting nets, beaker, and a scale would be required.

1.6.1.3. Procedure

- A scallop bank needs to be established for a stable larva spawning of a massive scale. - Prepare a spat collector for natural spat collection and a facility for setting up the spat collector as show in

. - Use nylon nets or a 100~150 grams of P.E. net inside onion bags for attaching the spat collector. - Spat collecting facility should be set up at the optimal location when the larval investigation begins as shown in
. - Sail on a ship near the optimal location and conduct larval investigation every day from the day that the spawning season begins. - Larval investigation should start with collecting the larvae (Eggs and larvae) collected from various marine animals through the plankton net. The collected eggs and larvae will be stabilized in formalin and inserted in a scale and collected at the center with a spuit. Then use a microscope to count each larva and determine its development stage.

122 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Facilities for the Natural Spat Collection and

Intermediate Culture During Seedling Production of Scallop

Source: 菅野 (Kanno), 1984.

- Make a chart on all the larvae‟s spawning by its development stage and predict the period where the most mature larvae occur to forecast the spat collecting day through the media. - Set up spat collectors at the water layer in the depth between 10~25 meters where the larvae population density is the highest at an area where the depth ranges between 25~40 meters. - The time to plunge the spat collector should be when more than half of the floating larvae boast shell lengths over 200 ㎛. This is to insert the spat collectors approximately a week before the optimal settlement period and it should be noted that the settling larvae are mostly located in the middle and the lower layers. - Evaluate the spat collecting results prior to intermediate culture. If the settled juvenile shell count is below 200 per spat collector, this would mean that the economic efficiency of the seedling production is low. If this is the case, do not proceed to intermediate culture and terminate the spat collecting for that year immediately. - Set up the intermediate culture facility shown in

when the spat collecting results are determined to be economically efficient.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 123

- Monitor the water temperature, salinity, and the quantity of phytoplankton during the intermediate culture, and measure the maturity level and the survivability of the juvenile shells to serve as the sample data for both sowing and hanging methods. - Grade and separate the juvenile shells into lanterns and grow them.

1.6.2. Artificial Spat Collection

1.6.2.1. Artificial Spat Collection Process

Selection of Spawning Hatching → → → Larval Rearing Adult Inducement Management

Collectors Intermediate Size Grading of → Spats Rearing → → Plunging Culturing Seedlings

1.6.2.2. Facilities and Materials Required

A marine hatchery, water lift pump, various water tanks, mother shells, food organisms, ultraviolet ray water apparatus, emergency generator, air compressor, PVC pipe, water temperature controller, microscope, beaker, scale, spat collector, protecting nets, and sieve are needed.

1.6.2.3. Procedure

- Prepare as shown in

for the seedling production.

124 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Seedling Production Process Layout

Drawn by the author

Mass ultivate the Isochrysisgalbana, Chaetoceroscalcitrans, Pavlova lutheriwhich as the feed. Then maintain appropriate temperature for a cold sea environment and place them in the food organism water tank as shown in

.

- Collect mother shells that display GSI above 20%. - After cleaning the mother shells, place them in the flow-through tank. - Induce spawning through air exposure and UV stimulation. - Select quality eggs and sperms to fertilize and to manage.

- D-shaped Larvae should be filtered through 30 ㎛ Muller gauze to be placed in the larvae rearing tank with slight aeration.

- Provide food organism 3 times a day and filter the water with 80~100 ㎛ Muller gauze to keep it clean. - Maintain water temperature between 8∼10℃ to shorten the larvae rearing period.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 125

- Monitor the development, health, and survivability regularly to forecast the appropriate time for spat collection and quantity. - Drop in the onion bags with PE net around the time when the eye spot starts to form which is when the shell lengths reach between 230~250 ㎛.

- The ideal rearing period for settled juveniles depends on food availability and therefore, they will be raised in 10, 30, and 60 day periods to be graded according to their intermediate culture results. - When the settled juvenile shells are being released into the ocean, they must go through an adjustment process for the seawater temperature due to the fact that the water temperatures differ from the hatchery and the sea. They will hang in the intermediate culture facility on a fine day with weak tide and current. - Monitor the water temperature, salinity, and number of phytoplankton during intermediate culture to evaluate the growth rate and survivability rate. This will serve as the preliminary data for future sowing and hanging culture.

Food Organism Cultivation System for the Cold Waters

Source: Photo taken by the author

126 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

1.7. Development of Scallop Farming

To cultivate scallops, there are three methods which are the larval releasing to boost the count of natural resources, the sowing method which involves sowing the seedling with the natural scallops at the bottom, and the hanging method which involves trapping the seedlings in the lantern and hanging nets in water. There are 3 farming methods: First, combination of selling and farming spats being collected from the wild as well as from hatchery. Second, growing out all of the collected spats in farms. Third, purchasing spats for farming (no spat collection). The second method seems to be most suitable for the Sakhalin Region. However, if the legal system permits individuals to cultivate scallops with a license, all three methods could be viable options. In this scenario, there might be a company that specializes solely in seedling production. Such business would not only provide seedlings to Sakhalin but may also export them to South Korea, Japan, and other countries.

1.7.1. Larval Releasing

1.7.1.1. Larval Releasing Process

Selection of Spawning Hatching Distributing D- → → → Adult Inducement Management shaped larvae

1.7.1.2. Facilities and Materials Required (Artificial Spat Collection)

A marine hatchery, water lift pump, various water tanks, mother shells, food organisms, ultraviolet ray water apparatus, emergency generator, air compressor, PVC pipe, water temperature controller, microscope, beaker, scale, and sieve are needed.

1.7.1.3. Procedure

Release the D-shaped larvae at selected sites.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 127

1.7.2. Bottom Culture

Natural scallops tend to be under a light layer of sand and does not move but when in danger, it opens its shell and performs jet water shooting to escape. Scallops have their tentacles planted with some space to make sure they do not come in contact with each other and they only feel stable when their bodies are brined underneath the sand. This type of habitat can be provided in the bottom culture.

There are various advantages in bottom method. The cost is low as no facilities are needed. The survival rate is high when there is little predation. The product quality is good as the animals can freely move and eat. There are also disadvantages. It is difficult to manage the farmed animals. The animals can be preyed by natural predators such as starfish. It is also hard to predict the harvest quantity and survival rate. Also, if the juvenile shells move into other areas, the harvest efficiency will decrease and result in economic deficiency. Therefore, the selection of appropriate site for sowing is very crucial to success.

1.7.2.1. Bottom Culture Process

Removal of Seedlings Investigation of Crop Rotation & → → → Predators Releasing Growth&Survival Harvest

1.7.2.2. Facilities and Materials Required

A ship, tag buoy, rope, anchor, container for seedling transportation, plankton net, microscope, marine thermometer, dredge net for scallop harvest, and harvesting crane are needed.

1.7.2.3. Procedure

- Move the reared seeds at about 3~5 cm in shell length from intermediate culture for grow-out on the sea bottom. - Monitor the water temperature and salinity on a daily basis after releasing the seedlings and monthly observe the composition and the density of the phytoplankton in the waters to collect data for development factor analysis. Also, collect scallops with a dredge net to evaluate its growth rate and survival rate to

forecast the economic efficiency and harvest period.

128 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

- Seedlings can be harvested after 2~3 years so they should be cultivated under a 4

crop rotation system. The hatchery should be divided into four sectors (A~D). The seedlings should be released in sector A in spring and harvested 3 years later. Then the seedlings should be released in sector B next year and then into sector C the next year and so forth to utilize all sectors in 4 years to produce scallops. - On the fourth year after the scallops have been harvested (The year before seedling release) from sector A, bottom cleaning should be conducted in the site. Cleaning involves the removal of harmful organisms such as starfish and sea urchins and the removal of dead scallops using dredge nets. Other natural predators such as the octopus, crabs, lobsters, and polydoras should be removed in an ecologically and environmentally safe way from the hatchery site.

When natural predators such as starfish approach, scallops may attempt to run away from its predator. However, a young scallop would not be able to escape its predator easily and therefore, it is recommended that only the mature scallops that have the capability to escape its predators should be released into the ocean bottom. As for the starfish, they may be captured in dredge nets when harvesting the scallops or right before when the seedlings are released to the bottom. In Japan, they developed a starfish capturing device made of tetron fiber and tested its capabilities at the depth of 500 meters.

As a result, 24~41 starfish were captured and recorded 28.6~46.8% removal rate. This method has proven to reduce the population density of starfish and increase the survival rate of the scallops. In the fifth year, the population density of scallops in sector A should be controlled for juvenile shells to develop properly. Sectors B~D should also be cleaned out after harvest.

After releasing the seedlings on the bottom of the sea at a depth of 25 meters and observing them for over 1.5 years, it turns out that more than 80% of the scallops were found within 200 meters of the initial location. The 4 crop rotation system should be established in four sectors with a distance of 200 meters each other to improve the efficiency.

1.7.3. Hanging Culture

Hanging culture includes lantern net method, pocket net method, and ear hanging method but the lantern nets are most commonly used

.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 129

Hanging method utilizes all water layers intensively to cultivate scallops in high density. Therefore, it does not use the ocean bottom like in the bottom method and the scallops cannot possibly live in the same conditions as the natural scallops. Scallops may be highly stressed living in the nets. Therefore, there is the disadvantage of scallops dying easily due to the lack of physiological activity.

Also, if there are too many scallops within a single lantern or if the lantern is cleaned out and handled too often, the scallops may also get stressed and this will hinder their development process. Therefore, it is necessary to maintain a limited number of scallops within a lantern and also manage the periods between regular cleaning and maintenance of the lanterns.

It is projected that even a storm within the Aniva bay itself would have a tremendous effect on the farm and this would mean that the hanging culture farms should utilize materials that are resistant enough to withstand the tide and maintain enough space between each other to not get tangled up with each other.

1.7.3.1. Hanging Culture Process

Scallop Hanging Culture Facility Layout

Source: Compiled from Young Jae Park, Seom Noh, Chae Sung Lee, 2001

130 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Lantern nets Lantern nets Investigation of → → → Harvest all at once hanging facilities management growth & survival

1.7.3.2. Facilities and Materials Required

A ship, buoy, rope, anchor, lantern, spat collector, larva collecting plankton net, microscope, beaker, scale, tag buoy, container for seedling transportation, marine thermometer, salinometer, and harvesting crane are needed.

1.7.3.3. Procedure

After the seedlings reach about 3~5 cm in shell length through the intermediate culture from April to June, hang the lanterns down with the seedlings inside them in the hanging culture farm set up previously.

Monitor the water temperature and salinity on a daily basis after hanging the lanterns and observe the composition of phytoplankton and its number in the waters monthly to utilize the data for development factor analysis. Also, collect scallops with a dredge net to evaluate its growth rate and survivability to forecast the economic efficiency and harvest period.

Refer to the ideal living conditions for the scallop growth and survival and lower the population density within the lantern if necessary to prevent massive casualties from overpopulation. If the lantern net is sealed off by the barnacles, sea urchins, seaweeds, or mud, it would suffocate the scallops and interfere with their feeding. Therefore, a change of net at an appropriate period is necessary. The mesh size of the lantern net should be larger than a scallop.

1.8. Expected Effectiveness

If the aquaculture development becomes successful in the Aniva bay of Sakhalin, more jobs can be created across the production chain. Also, the natural scallop population will increase along with the artificial population and the income for the fisheries will increase due to the boost in catch for both natural scallops and

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 131

cultivated scallops. A scallop eating culture will develop and scallops will become a tourist menu in Sakhalin. Also, the reputation of cold sea scallops will be enhanced in the international market and the success in the scallop will lead to attempts at other marine species. Furthermore, the success of this business would mean that the distribution, financial, and other related industries will expand accordingly.

2. Sea Cucumber

2.1. Domestic/international Sea Cucumber Production Trend and Current Aquaculture Technology Development

2.1.1. Korea

Korean sea cucumber production shrank from 2,491 tons(6,500,000,000Won) in 1990 to 1,892 tons in 1995, 900 tons in 2001, and 833 tons in 2002

. Production showed a slight increasing trend from then onwards, and after artificial seedling production technology was developed in mid 2000, sea cucumber resources dispersion was consistently attempted. As a result, 1,136 tons of sea cucumber was produced in 2005, 2,936 tons in 2007, 2,687 tons in 2010, and 2,139 tons in 2014. The production costs for sea cucumber have also gradually risen along with the production.

Sea Cucumber Production in Korea (1990∼2014)

Category 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Production 2,491 1,892 1,419 900 833 1,281 1,154 1,136 1,614 2,936 2,256 2,789 2,687 2,259 1,935 2,112 2,139 (tons)

Sales (100,000,00 65 140 102 83 80 111 114 115 158 276 207 268 333 333 243 285 275 0 Won)

Source : Statistics from Korean Statistical Information Service, 2015

Korean sea cucumbers have been gathered in village fisheries, and only natural sea cucumbers have been gathered by women divers and diving fisheries. The production

for the sea cucumbers reached 2,491 tons in 1990, but problems such as coastal

132 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

fishery pollution and coastal reclamation resulted in habitat loss which led to reduction in production. In 2003, National Fisheries Research & Development Institute and Incheon Regional Oceans & Fisheries Administration pushed for a comprehensive research on sea cucumber farming technology and formed a base for farming technology. In 2010, National Fisheries Research & Development institute and Jeonnam Ocean & Fisheries Research Institute each launched core technology development research for the industrialization of sea cucumber farming and a pilot project for commercialization of sea cucumber farms, but it is inadequate for mariculture industrialization.

2.1.2. China

China has had the most advanced technologies in artificial seedling production, cultivation and dispersal aquaculture since mid 1980's, and also in other various industries such as aquaculture and fish cultivation. Their annual consumption is close to 1,200,000, and a giant industry is in place with bases in sea cucumber mariculture such as cultivation apparatus, feed, medicine, processing and distribution. The yield of natural sea cucumber was 3,875 tons in 2010, while aquaculture yield in 2010 was 270,000 tons, and over 20 billion artificial seedlings are produced every year. China's consumption of sea cucumbers was 1,200,000 tons greater than the supply in 2011, and it looks to find substitute fishing grounds in Russia, Japan and Korea. China has also recently had attempted sea cucumber mariculture in Korean waters as well. China's sea cucumber production have grown by 8.8 times in the recent years(2004∼2010), but its demand rises every year, which widens the gap between demand and supply. The supply falls short of demand because the area usable for mariculture is limited, and China transitioned from exporting sea cucumbers to importing them. China's sea cucumber mariculture industry is classified into seedling production companies, mid-size seedling production companies, and cultivating companies.

2.1.3. Japan

Japan's artificial seedling production technology is in its settling stages, with focus on resource preparation through seed dispersal. Recently, it has pushed for research on aquaculture methods on land using a filtration pond. On the other hand, Japan has seen increased demand in dried sea cucumber like China, which made its average price for sea cucumber rise over 4 times, and is increasing sea cucumber production

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 133

by linking fishery villages with large marine product companies. Production in 1993 was 5,996 tons, but it was increased to 13,470 tons in 2011. Corporations release seedlings in fishery villages and collect the produced sea cucumbers to process and export them.

2.1.4. Russia

Russia has restricted natural sea cucumber collection in 1978 due to reduction in the stock. It is developing mariculture technology to recover its natural resources by working with Chinese corporations through private corporations. Its production in 2011 was 112 tons, and the production is increasing every year.

2.2. Korean Sea Cucumber Seedling Production Technology

2.2.1. Securing Female Sea Cucumbers

Seedling production is largely divided into two type depending on timing. The first is to produce seeds around 3 months ahead of the natural breeding season. The second is to produce seeds simultaneously with the natural breeding season. When attempting an early seedling production, the female sea cucumbers should be purchased before its natural breeding period and should be put through maturity process. October ~ November is the ideal period to purchase the female sea cucumbers, and the accumulated temperature should be calculated based on the fertilized egg production period. The cultivation water temperature should be maintained around 15~18℃. The basic temperature should be set at 8℃, and the temperatures above the basic level should be added in accumulation. When increasing the cultivating temperature, the temperature should be raised by 0.5∼1.0℃ daily. For reference, China uses 800℃ as the accumulated water temperature. Japan calculates the accumulated water temperature around October when the digestive organs begin to form to set 1,800℃∼2,000℃ as the accumulated water temperature peaks at breeding time.

134 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

External shape of Female Sea Cucumber

A: a healthy female sea cucumber with a bloated abdomen B: A good female sea cucumber should have a bloated abdomen when looking down from above. AB: abdomen, AN: anus

Source: Seok Joong Kang·Seung Wan Kang·Jeong Ha Kang·Woo Chul Jeong·Sang Dae Jin·Byeong Dae Choi·Jong Chul Han, 2012.

The ideal size for a female sea cucumber for breeding is over 200g per sea cucumber

. Smaller specimens also spawn and breed but the amount and quality of eggs are low. The accommodation density for female sea cucumbers should be 500~1,000g per ton. On average, about 300 female sea cucumbers weighing above 200g are housed in a 45 ton water tank, with at least 10~12 males among them.

Dissolved oxygen should be maintained above 7 mg/L and the illumination should be maintained below 600 Lux to prevent the sea cucumbers from getting stressed by the light. Formulated feed should be equal to 3∼7% of their weight. The feed should consist of seaweed powder, fish meal, and other protein meals, dirt (mud powder) for a base, and polysaccarides, yeast, spirulina, and bacillus drugs should be used as additive agents. It is not required to add sand equal to around half of the feed's weight, but it improves the digestion rate. If the tank is cleaned daily, excreted sand from the sea cucumbers are found, and it is safe to reuse the sand in the feed. The commercial food should consist of 30% formulated feed, 35% mud powder, and 25% seaweed powder. The food should be boiled to around 70℃ then cooled to 30℃. Around 5% of fish yeast, immune polysaccharides, yeast polysaccharides, and compound vitamins should be added. The mixture should be fermented for about 6 hours, then given out as feed. If the base of the feed is difficult to acquire, the base can be adjusted accordingly.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 135

Size and accommodation density for natural seedling production is the same as the requirements for early seedling production. The best female sea cucumbers are the specimens that are purchased directly from the collected haul to be managed directly. Sea cucumbers easily excrete gonads and intestines even with minimal stress. Natural sea cucumbers caught from most of Korea's diving fisheries are exposed to sunlight or stored in high density in containers, which may stress the sea cucumbers.

2.2.2. Broodstock Conditioning Tank

Fertilization and rearing of planktonic larvae take place in a same tank. The tank should be well aerated and equipped with filtering devices for easier management. To conduct cleaning, selection and cultivation more easily, it is better to have space in the drain and draining hole to catch sea cucumbers. The wall and floor of the tank should be disinfected with sodium hypochlorite and completely washed with freshwater to eliminate possible toxic residues. It is advantageous to have enough water to exchange the water in the cultivation tank once a day. The cultivation tank should be sealed so that external substances, copepods, etc. cannot get inside. Sea cucumbers that arrive in the cultivation facility in a live-fish truck should be moved to a tank with the same water temperature as in the live-fish truck. The water temperature should be gradually changed by adding the same water in the live-fish truck tank in the new tank. After transporting, there are some specimens that excrete intestines and gonads, so these organs should be removed before stocking them into the cultivation tank. Before stimulating spawning for seedling production, the wastes of the sea cucumbers should be removed for 2~3 days. If spawning is directly stimulated without removing the wastes, they are mixed with released eggs. In that case, efforts are needed to retrieve the fertilized eggs and the hatching rate goes down.

2.2.3. Spawning and Larvae Cultivation

2.2.3.1. Stimulating Spawning

Female sea cucumbers that are being stimulated for spawning should be cultivated in densities of 300 sea cucumbers weighing over 200g in a 45ton water tank. At least 10-20 mature males should be inserted into the same tank. Mature sea cucumbers that are purchased at a time approaching spawning sometimes spawn without stimulation. When spawning and fertilization is nearing completion, the fertilized eggs should be

removed with a muller gauze and moved into a new water tank. However, if the female sea cucumber is transported in low water temperature, and then moved to a

136 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

water tank that is 3-4℃ lower than the area in which the sea cucumbers were caught, the ovulation period can be delayed. Sea cucumbers that were naturally collected excrete excrements steadily for 3-4 days, and the sea cucumbers should be allowed to completely get rid of all excrement before stimulating spawning, as mentioned above. The following method should be used to stimulate spawning to produce fertilized eggs. The general method is water temperature stimulation, and if the rate of sexual maturity is low, low-tide stimulation, surface stimulation, sperm suspension, etc. can be used for additional stimulation. Basic spawning stimulation proceeds in the following order, and fully mature specimens can be sufficiently stimulated to spawn only with water temperature stimulation

.

Sea Cucumber Spawning

A: Male sea cucumber spawning sperm (the white matter indicated by the arrow is the sperm) B: Female sea cucumbers spawning eggs (the arrow indicates the released eggs)

Source: Seok Joong Kang·Seung Wan Kang·Jeong Ha Kang·Woo Chul Jeong·Sang Dae Jin·Byeong Dae Choi·Jong Chul Han, 2012.

- low-tide stimulation: the female sea cucumber cultivation tank is drained completely to expose the sea cucumbers to open room temperature air for about 40 minutes. - surface stimulation: the female sea cucumbers that are exposed to room temperature air is sprinkled with water for about 20 minutes using water pressure from 1/3 HP underwater pump. - water temperature stimulation: After surface stimulation is complete, the tank should be filled with water than is 3~5℃ (45 tons of effective water) higher than the final cultivation water temperature, and this temperature should be maintained until spawning is over. temperature difference for stimulating ovulation is between 3∼5℃ average but mature specimens can ovulate at 1℃ difference

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 137

- dispersing suspended sperm: Mature male sea cucumber sperm in tanks with female sea cucumbers are filtered out with filter paper, and squeezed out into filtered seawater. The diluted suspended sperm is dispersed in cultivation tanks that contain the female sea cucumbers.

2.2.3.2. Maintenance of Spawning Tank

Spawning eggs typically starts after males‟ spawning sperm. Spermatozoa have a long lifespan in the seawater, and if a light milky color appears in the tank, the cultivator should remove the ejaculating males. Too many spermazoa destroy the egg membrane of fertilized eggs and make it difficult to retrieve female sea cucumbers by blocking vision. If the required numbers of fertilized eggs are produced, the female sea cucumbers are removed from the tank. The fertilized eggs slowly sink to the bottom. If fertilized eggs build up in the bottom, oxygen cannot get to the eggs and reduces the hatch rate. To prevent this, flat 50cm x 25cm sheets made from PVC materials should be used to surface the fertilized eggs after a period of time (usually 1 hour intervals) until hatching. Also, to prevent sinking of fertilized eggs, a weak supply of air should be added to the tank.

2.2.4. Larva Maintenance

2.2.4.1. Supplying Live Food

This is the most important and most difficult period in the sea cucumber seedling production. This is because the total sea cucumber seedling production depends on the maintenance of the larva. Maintaining an appropriate level for the water and food in the larval stage will result in smooth metamorphosis, and lead to increased survivability after landing. The ideal water temperature for larvae is 22∼24℃. The larvae go through metamorphosis and land in the shortest time in this temperature. The intestinal status should be consistently observed to decide the time to give feed and the amount of feed. The feed should be given when the auricularia develop interconnected mouths and intestines and the stomach starts to exercise. This happens after approximately 40~48 hours in water temperature of 22℃

Live feed is supplied by cultivating phytoplankton or by using concentrates, and at least 3 types of food should be supplied to fir the nutritional balance. Circumstances constantly change depending on the environment, so there is no way to plan a

schedule for the feed. To ensure good larvae maintenance, microscopic observation

138 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

should be used to check the food content in the intestines and the shape of the intestines. The live feed should be given when approximately 70% of the feed is digested. If it is difficult to observe the contents, the feed should be given once a day for the 1st and 2nd days, twice a day for the 3rd~5th day, and 3 times a day onwards after the auricularia metamorphosis.

Larva Development Process from Auricularia to Pentactula

Source: Seok Joong Kang·Seung Wan Kang·Jeong Ha Kang·Woo Chul Jeong·Sang Dae Jin·Byeong Dae Choi·Jong Chul Han, 2012.

2.2.4.2. Adding Tanks and Managing Cultivation Density

The cultivation density of larva should be maintained at 0.1∼0.2specimens/mL in late doliolaria stages as the larvae approach settling phase. Water exchange should be maintained over 100% daily (maintain over 50% at least) to prevent water pollution, and if oversupply of food results in pollution in the tank, the entire larvae population should be removed with a muller gauze and moved to a new tank. It is important to

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 139

maintain a stable larvae density considering the facility conditions and technology to ensure the production of good larvae. Hence, expansion (adding the water tank) is necessary to maintain ideal larvae density. The water tank to be used for expansion should be disinfected with sodium hypochlorite.

To maintain larvae density, auricularia larvae should be divided into several tanks immediately after metamorphosis and the water tank should be expanded to a water tank that is more than twice the size of the previous tank. In high density cultivation or illness infection due to reduced disease tolerance from polluted waters, intestines and the physical bodies change. To combat this, the cultivation density should be reduced and antibiotics should be administered. Commonly used antibiotics are tetra- cycline related or penicillin antibiotics should be used together in concentrations of 1∼5 ppm. The use of antibiotics is the same for young sea cucumbers and sea cucumbers in mid-cultivation.

Collector Nets Used for Sea Cucumber Larvae Adhesion

Source: Seok Joong Kang·Seung Wan Kang·Jeong Ha Kang·Woo Chul Jeong·Sang Dae Jin·Byeong Dae Choi·Jong Chul Han, 2012.

140 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

2.2.5. Maintenance of Attached Larvae

2.2.5.1. Preparing collectors

Collector nets for larval settlement should be made of vinyl chloride nets (50cm length by 30cm width), and 18 sheets sets of the nets should be bound to make a collector net

that is deployed horizontally. 13 collector nets (length 30cm by width 30cm, mesh size of 220 ㎛) should be bound into one set of collector frame
that are attached to a fixed rope stretching horizontally at the top of the tank to collect the larvae. the length of the collector frame can vary depending on the water tank's effective depth, which affects the length of the frame and the number of collector nets.

Spat Collectors Used for Sea Cucumber Larvae Adhesion

A: adhesive device using nets, B: adhesive device using onion nets

The collector nets should be sterilized before using. Plates and nets that will be used to collect sea cucumber seedlings should be submerged in a fresh-water tank with sodium hydroxide (NaOH, 98%) dissolved in a concentration of 50ppm for 48 hours to eliminate the greasy substance that is applied on the nets during production. The nets should then be thoroughly washed and used to collect the larvae.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 141

2.2.5.2. Determining timing for Collection and Implementing the Collection

Larvae settle in the late doliolaria stage, and plates or nets should be deployed when 30% of the larvae have gone through the doliolaria metamorphosis. Hence, the metamorphosis process of the sea cucumber larvae should be closely observed on a regular basis. Generally, larvae cultivated in water temperature of 22℃ start to develop into doliolaria larvae 8~9 days after hatching, and this is when the larvae should be observed closely. If the density is high or the water temperature is low, the metamorphosis may be delayed. When the collection period is decided, the nets should be deployed. Ideal density for each plate is around 1,000~2,000 larvae per plate.

2.2.5.3. Cultivation Tank Maintenance and Feed Supply

The pentactula larvae mostly complete attachment. Over 50% of the water should be exchanged daily to prevent water pollution. The larvae completely morph from doliolia to pentactula within one day, so the collection period should not be missed. In between the late doliolia stage and early pentactula stages, there are larvae that are floating and settling, so the live feed and formulated feed should be supplied simultaneously. The amount of formulated feed should be determined in consideration of the feed left inside the collector net. Feed should be supplied in 3~10g per 1 ton of water volume everyday depending on situations. The formulated feed should be supplied with live feed for about 1 week, and when the larvae collection is complete, live feed supply should be stopped. Periodical observations through microscopes should be conducted, and if there are problems within the larvae, antibiotic baths should be initiated, and if there are too many protozoa such as copepods, parasticides should be used to eliminate them.

2.2.6. Maintenance of Young Sea Cucumbers

After the young sea cucumbers have settled, the formulated feed should be administered. The formulated feed should be prepared and supplied in the following manner. The amount of feed should be decided depending on the remaining feed in the nets. After about 2 months after attachment, seedlings should reach the size of 1 cm. Until the sea cucumbers are 1cm in size, they should not be cleaned or moved.

Instead complete water exchange should be conducted every day. However, the

142 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

water exchange volume should increase depending on the conditions to best aid growth. After supplying feed, the water exchange should be halted and air should be supplied so that the sea cucumber feed is not drained and is available for consumption. If possible, the feed should be given in the late afternoon, and the water exchange should resume in the early morning of the following day.

2.2.7. Selection and Harvest

Selected seedlings can be taken out and continued through intermediate cultivation, or shipped to another farmer for intermediate cultivation. As for collection for harvest, plates attached by spats are moved into a 2 m circular FRP tank where the spats are detached from the plate by 1/3 HP water spray and remaining ones are separated using a brush. Young sea cucumbers that are stuck on the collector nets should be separated by shaking the net and drop the sea cucumbers into the tank. Young sea cucumbers that are stuck on the tank floor or walls should be collected by using a collector net made from 279 ㎛ muller gauze to collect the sea cucumbers through the drainage pipe. Young sea cucumbers that are attached to the collector nets should be submerged into the tank and shaken left to right to separate from the net, and a siphon should be used to drain the water, and use the collector nets made from 279㎛ muller gauze to collect the sea cucumbers from the drainage. Before shipping, the selected seedlings should fast for about 2 days and should be given an antibiotic bath before packaging. The bath should be given with an antibiotic concentration (100% titer) of 5 ppm for about 30 minutes. After the bath is complete, ice boxes filled with ice packs or ice should be prepared to keep the sea cucumbers refrigerated, and the sea cucumber seedlings should be packaged in plastic bags without moisture. Newspaper or packaging materials should be used to make sure the sea cucumber does not directly touch the ice pack or ice. Shipped sea cucumbers should be given another antibiotic bath before being placed in a tank, and the feed should be given 2~3 days after being placed in a tank. This method may vary depending on the shipping distance.

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 143

2.3. Sea Cucumber Cultivation Methods Applicable to Sakhalin Region

2.3.1. Bottom Culture (Sowing seeds)

2.3.1.1. Site selection

Investigations for site selection should be conducted before sawing seeds. In South Korea, discussions on habitat standards for seed dispersal are undergoing but the current habitat standard is shown on

. Optimum water environment should have temperatures between 0∼28℃, salinity between 24∼34psu, nutrient salts such as phosphate should be lower than 0.03 mg/L, nitrogen levels below 0.3 mg/L, and dissolved oxygen levels over 7.5 mg/L, and pH level between 7.8∼8.3. These requirements make the 1st class ocean water environment standards. Sediment environment that are rich in seaweed is optimum, with sediment types of quicksand, gravel and rocks. The COD of sediment environment should be below 20 mg O2/g· dry, and acid-volatile sulfide below 0.2 mg O2/g· dry. In terms of biological life, the habitat should have little harmful organisms such as starfish, crabs, etc. The tidal currents should be smooth, and the waters should have little influence from pollutants and eutrophication, with little inflow of fresh water. The depth of the water for implantation should be over 2m, and seed dispersal should be between 5~20m deep. Locations where natural sea cucumbers live are a good place. Especially, boulder walls are used to create new habitats in locations sea cucumbers do not live in. In this case, there should be plentiful supply of food, and sea cucumbers sometimes settle below an abalone farm. When developing a wall, rocks of different sizes should be used so that the sea cucumbers can find a hideout and habitat. Artificial reefs can be used to develop a habitat.

144 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

Habitat Standard for Sea Cucumber Cultivation

Content Standard Notes Water Temperature 0~28℃ Salinity 24~34 psu Nutrient Salts Framework Ac on -Phosphoric acid Below 0.03 mg/L Environmental Policy -dissolved inorganic nitrogen Below 0.3 mg/L Enforcement (1st class ocean (total nitrogen) standard) Framework Act on Environmental Policy Dissolved Oxygen Above 7.5 mg/L Enforcement (1st class ocean standard) Framework Act on Environmental Policy pH 7.8~8.3 Enforcement (1st class ocean standard) Sediment Areas rich in seaweed Grain quicksand, gravel, rock

Chemical Oxygen Below 20 mg O2/g·dry Demand(COD) Below 0.2 mg O2/g·dry Acid-volatile Sulfide (AVS) Plankton Little red tide indicator planktons Harmful organisms Less starfish, crabs, etc. Tidal Current Protected against tidal current implantation: over 2 m, seed Depth dispersal: 5~20 m Freshwater Drainage little influence little influence from nearby Pollutants pollutants or eutrophication Waves Protected against waves Artificial rock beds and natural Rockbeds rock beds Seed dispersal: locations where Other natural sea cucumbers live

Source: Made by the author

2.3.1.2. Seed Dispersal Method

Sea cucumber seedlings between 1~5g should be selected for seed dispersal. The separated sea cucumbers should be drained of moisture for a smooth implantation

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 145

and placed in onion nets, then into a plastic bag and placed in ice boxes to prevent outside temperature from affecting the sea cucumbers. Then the seedlings should be shipped to the dispersal area swiftly. The iceboxes should have ice packs and ice inside to maintain the refrigerated status. The shipped seedlings should be moved to a ship standing by on the ocean and moved swiftly to the dispersal area. Dispersal can be conducted from the ship, but it is optimum to use divers to place the sea cucumbers in favorable location directly. The seedlings can be taken underwater by divers to the dispersal area and each sea cucumber can be deposited by the diver by hand. Survival rate of the sea cucumber can be increased by listening to the fishermen's opinion to find locations where sea cucumbers generally occur. Dispersal can occur from the ship, but to raise survival rates, it is best to use divers to directly place the sea cucumbers in the ocean. It is acceptable to carry the sea cucumbers in the onion nets they were packaged in. The sea cucumber habitats that the seedlings were dispersed in should be periodically maintained. Any trash in the area should be cleared away, and harmful organisms such as starfish should be periodically eliminated to aid growth and survival.

2.3.1.3. Collection

Sea cucumber collection usually occurs in the spring. When collecting, only sea cucumbers that weigh over 200g should be collected so that the sea cucumbers can reproduce. The collected sea cucumbers should be shipped in standardized containers on the ship. and the shipped sea cucumbers should be left in a tank for 1~2 days to remove any excess secretion before processing.

2.3.2. Cofferdam Cultivation

2.3.2.1. Site Selection for Cofferdam

Most of the Korean sea cucumber yields are from collecting natural sea cucumbers in the ocean, and cultivation through seed dispersal has very little yield. Hence, to utilize seed dispersal cultivation and secure steady sea cucumber supply for consumption and processing, cofferdam cultivation will be efficient as it is possible to manage the farmed animals systematically. A location that is ideal for cofferdam requires good sea water circulation. Intertidal or land areas of in a bay which is well protected from storms and waves makes a good place for cofferdam. The water

should also be clean with no fresh water inflow, salinity between 27~35psu and with

146 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region

pH levels of 7.5~8.5. Especially, the salinity greatly affects the sea cucumber's survival, so this factor should be well reflected in site selection. A site for cofferdam should have favorable conditions for water intake/drainage, and the floor should be solid ground consisting of sand + rock, sand + gravel, or rocks. Floors that are only sand or mud are not an ideal location for implantation. Sea cucumber seedlings are implanted mostly in the spring, and only sea cucumbers weighing more than 200g are collected for reproduction. Collected sea cucumbers are put into standardized containers on the ship, and the shipped sea cucumbers are placed in a tank for 1~2 days to remove any excess secretions before processing. Ideal cultivation fields for implantation have rectangular burrows for water flow, and the area that receives sunlight from the east and west should be maximized. The ideal depth of the burrow is over 1.5m, with depths between 2~3m being most ideal. The floor of the burrow should be a 30~40cm deep circular ditch to make ideal conditions for summer estivation and winter preparations. The development of sea cucumber hideouts in cultivation fields for implantation influences estivation, wintering, and survivability greatly. It requires piles of rocks or artificial structures, and when creating a shelter, the cultivation field should be sterilized.

2.3.2.2. Constructing Rock Pile Shelter for Sea Cucumber

Sea cucumber cultivation utilizing rock piles is a cultivation method mainly used in China. Furrow for implantation should be 0.5~1.0m wide to make cleaning easier, with a height of 3~4m. The furrows should be 3~4m apart, and rock piles that are 1∼2㎥ should be placed 2~3m apart, and each row should be 3~4m apart. Other cheaper materials that can be used for shelter include ceramics, blocks, pottery, roof tiles, bundled sticks, boxes, nets, vinyl sacks, etc. The shelter's adhesion area should be around 50~70% of the total floor area.

2.3.2.3. Stocking the Sea Cucumber Seedlings

Sea Cucumbers that are selected to be introduced to cultivation field for implantation have various lengths between 5~8cm (weight 3~5g) weighing between 10g or 50g. Seedling that are large increase in price, while smaller specimens lower profitability because they have less survivability. When selecting seedlings, healthy, sizable seedlings with sharp, long spikes and clear body pigment are ideal. Specimens that do not scatter sticky excrement and feeds vigorously are also favorable. The desirable seedling release density is 3 sea cucumbers/㎡(10 g),

Appendix 2 Comments for Technological Development for Cultivating Strategic Aquaculture Species ∙ 147

5∼10sea cucumbers/㎡(5∼7 cm, 3∼5 g), 10∼12 sea cucumbers/㎡(2 g). In the cultivation field, seedlings should be released by placing them into rock piles and other shelters, or purchasing seedlings and securing them in large netted boxes, or cages for their mid-life and placing them in the cultivation field.

2.3.2.4. Rearing the Juvenile Sea Cucumbers

Water that is favorable for plankton and seaweed growth should be created for the young sea cucumbers 1 month before release. Water color should be yellowish green (where diatoms thrive) or dark brown, and visibility between 40~60cm is the best for growth and survivability. Also, in the long-term, the water quality (water temperature, salinity, etc.) should be examined and for 1 week after dispersal, the sea cucumber's vitality and activity(adhesion to the adhesion structure, vitality, movement, food ingestion, excretion, etc.) should be closely observed. Especially when maintaining for warm temperatures in the summer or low temperatures in winter, the depth should be kept at a maximum to protect against water temperature or salinity changes. In the summer, water filtration should be maximized to reduce the rising water temperature, and installation of shading nets on the surface of the cultivation field should be considered.

2.3.2.5. Harvesting the Sea Cucumbers

The collection of sea cucumbers in cofferdam cultivation should be carried out by divers. Large sea cucumbers (over 150g) should be collected, there are no instances where the cultivation field is drained to collect all the sea cucumbers.

148 ∙ 2015 Knowledge Sharing Program (Industry & Trade) with Russia: Sakhalin Region