Atlantic Halibut Aquaculture

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Atlantic Halibut Aquaculture

• Brian C. Blanchard
• Scotian Halibut Ltd
• www.halibut.ns.ca

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1,700 mtAtlantic
Wild Harvest Farmed
Norway Pot. 10,000 mt
30,000 MT Pacific Halibut
Atlantic Canada - Value Pot. 10,000 mt 100
Million 2 million juveniles

• Atlantic Canada
• Lower cost of Production
• Proximity to market
• Ability to produce Juveniles

Salmon 1,000,000 MT Halibut 10,000 MT
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Halibut in Norway

• Started early 1980s
• Juvenile based on Extensive pond systems
• Production 200,000 400,000 /year
• On growing - scale up late 1980s
• Juvenile Production very inconsistent
• Early 1990s on growing struggled for juveniles

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Halibut On growing 1990s

• Growers competed for juveniles
• Never enough no. for scale up
• 1998 Availability of Juveniles
• On growing efforts expand dramatically
• Financial support for growout operations
• These are non repayable loans.

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Development of juvenile production in Norway
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Juvenile productionHistorical data
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ATLANTIC HALIBUT

• KICK START PROGRAM

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PARTNERSHIP

• FEDERAL AND PROVINCIAL SUPPORT
• SHL RR
  MMI
• HALIBUT JUVENILES
• HALIBUT ON GROWING
• INDUSTRY DEVELOPMENT

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ACOA Participation

• Loan program 50 purchase of juvenile cost.
• Only one producer used program
• All other interested salmon companies had no
  available cash flow to use program.

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Current Situation

• Hatchery production predictable and increasing
• Hatcheries financially strapped , cannot afford
  to to the grow out themselves

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Current Situation

• Last years production still remains with the
  hatcheries. Over 150,000 were left without a
  direct sale.
• 80,000 were lost at R R

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Current Situation

• Hatcheries are unable to generate cash flow
  required for survival.
• Without committed sales there will not be an
  industry by January 2005

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Commercialization CycleHatchery

• Private Investment Outside forces
• Year 1 2 3 4 5 6 7 8
  
• 
  
• Sales must happen!!

Market US 911 Superchill ISA
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Employment 2003
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Employment Value

• 130people _at_ 25,000 per annum
• 3,250,000 wages

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Research ContributionsHalibut

• NRC NS, NB
• CCFI NFLD
• DFO NB ( 10 yr)
• ACRDP NS, NB
• NB/ACOA
• CBT NB

• 500,000
• 350,000
• 2,000,000
• 200,000
• 1,750,000
• 50,000
• Total 4,850,000

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Commercialization CycleIndustry

• Investment
• Salmon Profit
• Year 1 2 3 4 5 6 7
  8 9 10

Expansion Reinvestment
All the things that go wrong





Self Supporting

Government
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All the Things that go Wrong

• Staff inexperience
• Superchill
• Broodstock performance
• US Dollar
• Feed Development
• Learning curve with new equipment Shelves / Sea
  water Recirc.

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Commercialization CycleIndustry

• Investment
• Salmon Profit
• Year 1 2 3 4 5 6 7
  8 9 10

Expansion Reinvestment
All the things that go wrong





Self Supporting

Government
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Development Contributions

• There are no programs in Canada that support
  development
• 0.00
• With a goal to develop an economic benefit from
  research!

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What do we need

• We need an environment which will allow
  diversification
• It will require investment, However we are
  building stability and economic viability in
  rural Atlantic Canada.
• We should be proud of this!

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Value of Research

• If we can not realize an economic benefit
  from aquaculture research then there is no reason
  to continue to fund research in this sector!
• 15 years of research is long enough with out
  applying the knowledge to the benefit of the
  industry.

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Loan guarantees

• Are of no value
• We cannot get anyone to fund development.

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Recommendations

• Support the hatcheries during the scale up to
  full production levels.
• Support grow out operations by financing
• Capital for Feed systems / shelving / cage
  modifications.
• Capital for Juveniles
• Capital for feed

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Recommendations

• Joint Federal / Provincial Development Program
• Interim Financing from ACRDP!
• Other programs

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Restaurant model
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Restaurant model
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Restaurant model
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Restaurant model
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Commercialization CycleIndustry

• Investment
• Salmon Profit
• Year 1 2 3 4 5 6 7
  8 9 10

Expansion Reinvestment
All the things that go wrong





Self Supporting

Government
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Private Investment in Atlantic Halibut Farming

• 25 Million
• Industry has committed !

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What we want from Government

• Commitment
• Cooperation between provincial / federal
  department
• Leadership

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Leadership

• Stand up for our industry
• Demonstrate competence by making decisions in a
  timely manor
• Dont create more policy / democracy