Application of a Dynamic Stochastic Adaptive Bioeconomic Model to Evaluate the Economics of Offshore Bluefin Tuna Aquaculture

Over the past fifteen years, the market for bluefin tuna has evolved in an attempt to further enhance the economic value of bluefin tuna landings. Historically, the US East Coast has been a major supplier of high quality bluefin tuna to Japan, the primary market for sashimi grade tuna. To date, many questions regarding the economic feasibility of offshore aquaculture, and in particular offshore bluefin tuna farming in the United States, remain unanswered. This research assesses the economic feasibility of an offshore bluefin tuna aquaculture industry located on the East Coast of the US by developing a dynamic stochastic adaptive bioeconomic model of such an offshore enterprise. The bioeconomic model incorporates the biological constraints of the species, the interaction of relevant economic parameters and constraints, and stochastic sources of risk, to solve for the profit maximizing behavior of a farmed bluefin tuna producer. This research identifies the optimal harvest schedule for an offshore bluefin tuna farming facility that maximizes the net present value of the operation under a variety of economic, biological and regulatory conditions. Economic feasibility is analyzed using profitability indicators including net present value (NPV) and internal rate of return (IRR). This research is relevant given the continued expansion of bluefin tuna aquaculture globally, the increasing demand for high-quality bluefin tuna, and the uncertainty regarding the economic feasibility of an offshore bluefin tuna aquaculture industry in the United States

The Relationship between Fisheries and Farming

Fishmeal is a critically important feed ingredient for use in animal (e.g., poultry and pork) and aquaculture production (e.g., salmon, trout, and shrimp). There is concern that demand for fishmeal may place additional stress on the world’s pelagic fisheries and may undermine the sustainability of some aquaculture systems that rely on fishmeal. Our research suggests that since 1998 market for fishmeal has changed. An important explanation is likely to be the increasing use of specialized feed formulations in the pork, poultry and aquaculture sectors. It is clear that growth in aquaculture production alone is insufficient to explain the structural change since growth in the use of fishmeal in aquaculture has slowed considerably despite the continued rapid growth in global aquaculture sector. The increasing relative price of fishmeal is likely to increase costs for animal producers, act as a stimulus for innovation and have considerable implications for the management of pelagic fisheries.Keywords: Interrelations between Aquaculture/Animal Production and Fisheries, Structural ChangeKeywords: Interrelations between Aquaculture/Animal Production and Fisheries, Structural Chang

Obstacles and Opportunities in Seafood Direct Marketing: A Georgia Case Study

Abstract accepted for paper presentation at International Institute of Fisheries Economics and Trade. Cancelled due to COVID-1

A Longitudinal Analysis of Commercial Fishing Infrastructure

Paper presentation given at the Annual Meeting of the North American Association of Fisheries Economists

Evaluating the Economic Viability of Inland Seafood Markets in Georgia: A Two Pronged Approach

There is a lack of information regarding the barriers preventing Georgia seafood producers from taking advantage of a presumed market premium in inland markets. Using a two-pronged approach, we estimated the willingness to pay (WTP) for locally caught Georgia seafood (clams, crab, oysters, shrimp, and grouper) sold in either farmers markets or through community supported agriculture outlets in the Atlanta-Athens area. We then estimated the costs per pound associated with targeting inland markets using an enterprise budget framework. This cost data, combined with the WTP data, provides a more holistic picture of the potential profitability associated with transporting Georgia-caught seafood inland to in-state consumers. While our analysis suggests inland markets could be economically viable for shrimp, we also identified factors hindering the development of inland markets