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Why Open-Net Systems Will Outcompete Closed Technologies in Aquaculture

Industry Insights
/
July 19, 2024
Image of a open pen, in norwegian salmon farming.

Why will open-net systems in aquaculture outcompete closed technologies? This post explores market trends, consumer preferences, and Norway’s unique advantages, highlighting why open-net systems offer a competitive edge in the global aquaculture industry.

In the debate over the future of aquaculture, three main approaches dominate: open-net systems in the sea, closed systems on land, and closed systems at sea. Each has its advocates and its critics. In this post, I argue why open-net systems are poised to outcompete both land-based and closed sea-based systems in the long run. The answer lies not just in technological and economic factors but also in human psychology, consumer perceptions, and Norway's unique natural advantages. The future of aquaculture is about harmonizing with nature, not conquering it—and open-net systems, when managed sustainably, offer the best path forward.

Illustrative image showing market trends combining norwegian nature.
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The Customer's Perspective: Naturalness and History

Consumers worldwide are increasingly conscious of where their food comes from. They value food produced in environments that resemble natural habitats and are labeled as sustainable or natural. According to a study by SeafoodSource, 65% of consumers prefer seafood farmed in natural settings. The parallel with agriculture is clear: just as most people prefer free-range chicken over caged chicken, they favor salmon that has swum in the sea over salmon raised in a tank.

Historical Context: Seafood has always been associated with freshness and purity when sourced from natural environments. This deep-rooted sentiment significantly influences purchasing decisions, making it crucial for the aquaculture industry to align with these consumer expectations.

Human Psychology: The Power of Emotions

Human psychology plays a significant role in consumer decisions. Even if closed systems offer lower mortality rates and better control over environmental conditions, they lose consumer appeal if the perception of naturalness is lost. A survey by the Global Aquaculture Alliance found that 78% of respondents were willing to pay more for seafood they perceived as naturally produced.

Emotional Appeal: Consumers are emotionally attached to the idea of salmon swimming freely in the sea. This connection outweighs the technical advantages of closed systems. Marketing Norwegian salmon with imagery of fjords and mountains can enhance this emotional appeal, making open-net salmon more attractive to consumers.

Norway's Unique Advantage: The Gulf Stream and Norwegian Branding

Norway has a unique competitive advantage due to its beautiful nature and the Gulf Stream, which provides ideal conditions for salmon farming in open-net systems. The Gulf Stream ensures great circulation and stable sea temperatures, often within the ideal growth range for salmon. The Norwegian brand is synonymous with quality and sustainability, with 72% of international buyers associating Norwegian salmon with high quality, according to a report by the Norwegian Seafood Council.

Brand Impact: The strong association of Norwegian salmon with clean, cold waters and natural environments is a powerful marketing advantage that could be diluted by shifting to closed systems. Maintaining and promoting this brand identity is crucial for Norway's continued leadership in the global aquaculture market.

Marketing Open-Net Salmon: A Story of Quality

Norwegian salmon farmers are already marketing their products as being produced in the pristine waters of Norwegian fjords, emphasizing the natural environment in which the salmon has swum and grown. By showcasing images of fjords, nutrient-rich waters driven by the Gulf Stream, and lush green mountainsides, they create a compelling narrative that resonates with consumers looking for high-quality, natural seafood.

Strategic Messaging: Highlighting the story of salmon thriving in open-net systems amidst Norway's natural beauty strengthens the value proposition of Norwegian salmon, appealing to consumers willing to pay a premium for quality and sustainability.

Economic Perspective: Cost-Effectiveness in Open Nets

Open-net systems are significantly more cost-effective compared to closed systems, whether on land or at sea. Maintaining large, closed facilities requires significant investments in infrastructure, energy, and technology to maintain optimal conditions. While addressing challenges like parasites and disease in open nets is essential, technological innovations and improved practices offer solutions that are both cost-effective and sustainable.

Cost Advantages:

  • Lower Infrastructure Costs: Open-net systems do not require the extensive infrastructure needed for closed systems.
  • Reduced Energy Consumption: Open nets rely on natural water flow and temperature regulation, reducing energy costs.
  • Scalability: Open-net systems are easier to scale, allowing for more rapid expansion of production capacity.

Parasite Control: The Solution to Sea Lice

Sea lice are one of the biggest challenges in open-net systems. However, advancements in parasite control, such as biological treatments, lasers, and freshwater baths, show promising results. If effective solutions can reduce sea lice-related mortality, open-net systems could achieve mortality rates as low as 5%, significantly improving fish welfare and production efficiency.

Innovative Solutions:

  • Biological Control: Cleaner fish and other natural predators are being used to manage sea lice populations.
  • Laser Technology: Lasers can target and eliminate sea lice without harming the salmon.
  • Freshwater Treatments: Regular freshwater baths help reduce lice infestations, improving fish health.

Closed Systems at Sea: A Middle Ground

Closed systems at sea combine the advantages of both open and closed systems, protecting against environmental impacts while preserving some natural aspects of being in the sea. However, these systems may struggle to convey the same sense of naturalness to consumers as open-net systems, potentially making them less appealing.

Potential Drawbacks:

  • Perception Issues: Consumers may view these systems as less natural, reducing their market appeal.
  • Cost Considerations: Closed systems at sea require significant investment and may not be as economically viable as open nets.

International Perspective

Norway is a global leader in salmon farming, but competition is increasing from countries like Chile and Scotland. To maintain its leadership position, Norway must leverage its natural advantages and strong brand identity. Promoting the benefits of open-net systems, while continuing to innovate and improve these practices, will be key to staying ahead in the global market.

Strategic Focus:

  • Leverage Natural Assets: Highlight the advantages of Norwegian fjords and the Gulf Stream in marketing.
  • Innovate in Open Nets: Focus on improving open-net systems to address environmental and welfare challenges.
  • Brand Strengthening: Maintain the strong association between Norwegian salmon and natural, sustainable production.

Balanced Perspectives: Advantages and Disadvantages of Closed Technology

While this post advocates for open-net systems, it's important to acknowledge the benefits of closed systems. These systems offer better control over environmental conditions, reduce disease spread, and can potentially minimize environmental impact. However, they may struggle to resonate with consumers' preferences for natural and authentic seafood.

Balanced View:

  • Advantages of Closed Systems: Better disease control, lower environmental impact, and potential for higher biosecurity.
  • Challenges: High costs, limited scalability, and weaker consumer perception compared to open-net systems.

Can open-net systems in aquaculture offer a sustainable and economically viable alternative to closed technologies, while aligning with consumer demand for natural and authentic seafood?
Image illustrating various salmon farm environments from closed farm systems.

Conclusion

Open-net production in the sea is not just a technological solution but should also be a market strategy that resonates with consumers' desires and feelings. Norway should focus on improving and optimizing open systems, exploiting our natural advantages, and strengthening the "Norwegian salmon" brand. By integrating technological innovations and sustainable practices, we can ensure that we continue to lead in one of our most important export industries. An industry we can live on after oil - literally. Let's say yes to open nets in the sea and work to make them the best in the world!




References:

  1. SeafoodSource. (2024). Consumer Preferences for Naturally Produced Seafood: A Global Survey.
  2. Global Aquaculture Alliance. (2023). The Role of Consumer Perceptions in Aquaculture.
  3. Norwegian Seafood Council. (2024). The Branding of Norwegian Salmon: Market Insights and Trends.
  4. Norwegian Ministry of Fisheries. (2024). The Economic Impact of Aquaculture in Norway.

Keywords:
Open-net aquaculture, sustainable salmon farming, fish welfare, aquaculture technology, Norwegian seafood, open-net vs closed systems, fish farming innovations.

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