Poor return on investment
By Grant Warkentin, Comox Valley Echo May 6, 2011
In his May 3 letter responding to Mr. Robert Wager, Will Soltau mentions the Canadian Science Advisory Secretariat (CSAS) 2010 report on closed-containment aquaculture and claims the report "shows how re-circulating salmon aquaculture systems could produce positive returns on investment."
This is technically true, but Mr. Soltau fails to mention the numbers in the report, which conclude that the "positive" return on equity would be four per cent after three years, and the return on investment would be two per cent.
If anyone tried to present this proposal on "Dragons Den" they would be laughed off the set. No one is going to invest $22.6 million to build one farm for returns that small.
With such a slim margin, profits would be highly susceptible to fluctuating exchange rates, fluctuating salmon prices and fluctuating energy costs. As well, with a $22.6 million initial investment to build one land-based farm, at those miniscule return rates it would take decades to pay back the original capital costs.
We are very familiar with the latest recirculating aquaculture systems technology, as we use them in our land-based hatcheries to grow salmon to smolt size before entering them into the ocean. We know its limitations, and it is not feasible to use this technology at this time to grow fish to market size.
As well, we are confident that our sustainable, ocean pen farms are the best and most sustainable way to grow salmon. That said, we are following the development of closed-containment aquaculture closely, and will explore the possibilities of closed-containment fish farming if suitable projects and partners are presented.
We encourage people to find out more for themselves at our website, http://www.mainstreamcanada.com, which contains a link to the CSAS report as well as other information about closed-containment technology.
Grant Warkentin
Communications Officer
Mainstream Canada
dba EWOS Canada Ltd.
Part of the Cermaq ASA group of companies
Campbell River
The letter above was submitted in response to the following Letter to the Editor:
Closed-containment can work
By Will Soltau, Comox Valley Echo May 3, 2011
In his April 26th Letter to the Editor, Mr. Robert Wager refers your readers to an outdated report from 2007 on the science of closed containment systems. The final 2010 Canadian Science Advisory Secretariat (CSAS) report from the same scientific experts he pointed to in his letter shows how re-circulating salmon aquaculture systems could produce positive returns on investment.
Mr. Wager also pointed to the 2009 Pacific Salmon Forum (PSF) Final Report in his letter but failed to mention that they recommended open net-cage farmed salmon production in the Broughton Archipelago be capped. Further, PSF Recommendation #16 urged that; "the province working with other interested parties should issue a request for proposals for a closed containment demonstration project to recover wastes and reduce the risk of lice and disease transfer to the natural environment."
Finally, Mr. Wager claims that the economic health of the North Island is at stake if our newly elected Member of Parliament supports a transition to closed containment salmon farming.
A recent analysis of the marine-based economy collaboratively produced by Living Oceans Society and the Mount Waddington Regional District showed that over 50% of the jobs and wages in that sector, jobs such as commercial fishing and wilderness marine tourism, rely on a healthy marine environment.
Salmon aquaculture does not.
Technology keeps improving and there are new closed containment ventures starting up on the North Island adding to the economic base and technical expertise in the region.
Closed containment raised salmon is already being sold in Canada by Overwaitea Food Group and demand continues to increase. North Islanders should continue to press the new government to support the transition.
Will Soltau
Local Research Coordinator, Salmon Farming
Living Oceans Society, a member organization of the Coastal Alliance for Aquaculture Reform
Sointula
For reference here is Robert Wager's Letter to the editor: "Closed Containment" Salmon Farming is a Political Idea
Dear editor,
I have been following the debates of the candidates in the riding of Vancouver Island North.
The issue of aquaculture is very important and therefore some real questions need to be asked of the candidates. Some background information on this issue can be read on the Pacific Salmon Forum 2009 final report.
Everyone with interest in salmon production (wild and farmed) should read this report. When one reads this report from many career marine scientists one is quickly educated on the real science of closed containment systems for salmon aquaculture.
They stated:
"In 2007 the Canadian Science Advisory Secretariat (CSAS) engaged a multi-sector panel in an international review of closed containment technology. In a review of more than 40 closed containment systems from around the world, CSAS reported that
none was successful in producing adult salmon at a
commercial level."
Here is my question.
Can you please explain how you can campaign on the idea "closed containment" salmon farming can replace open net-pen aquaculture when the world experts state it is not possible at this time?
Three of the four main candidates who have given support to the political idea that open net-pen aquaculture should be converted to closed containment systems need to answer this very important question so that the voters can see the difference between real aquatic science and political-science.
The economic health of the North Island region is at stake.
Robert Wager,
Nanaimo
