Why Open-Net Systems Will Outcompete Closed Technologies in Aquaculture

Why Open-Net Systems Will Outcompete Closed Technologies in Aquaculture

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Introduction

When discussing the future of aquaculture, three main approaches dominate the conversation: open-net systems in the sea, closed systems on land, and closed systems in the sea, along with various combinations of these. In this blog post, I'll argue why open-net systems will ultimately outcompete both land-based and sea-based closed systems. We live in a market-driven world, and ultimately, it's human biology - the end consumer - that decides. Human psychology, world perception, and narratives play a significant role in consumer preferences. I believe this perspective is critical when planning for growth and development in Norway's second-largest export industry. I say yes to open-net pens in the sea - but let's make them the best in the world!

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The Customer's Perspective: Naturalness and History

Consumers worldwide are becoming increasingly conscious of where their food comes from. They desire food produced naturally and labeled as sustainable or natural. Most people understand this to mean that animals should be raised in environments closely resembling their natural habitats. A study from SeafoodSource shows that 65% of consumers prefer seafood caught or farmed in natural settings. Consider the parallel with agriculture: Would you choose a free-range chicken or one raised in a cage? The answer is clear for most. Similarly, who wants to buy salmon produced in a tank instead of one that has swum "freely" in the sea?

Historically, humans have always valued food closely tied to nature. Seafood, in particular, has an aura of freshness and purity when caught or farmed in its natural environment. This sentiment is deeply rooted in our collective consciousness and significantly influences purchasing decisions.

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Human Psychology: The Power of Emotions

Human psychology plays an enormous role in consumer decisions. Even if closed systems have lower mortality rates and potentially better control over environmental conditions, it means little to the consumer 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. Jeff and Janicke, typical American consumers, care more about choosing salmon that has swum in the sea than whether it has been enclosed. The emotional attachment to a more "natural" production method outweighs technical production advantages and mortality figures.

When consumers choose food, they do so based not just on rational considerations but equally on emotional and psychological factors. The ideal of naturalness and purity influences choices, and I believe the aquaculture industry must take this into account. We must dare to market Norwegian salmon with fjords and mountains, as a natural method! Is it correct? How big or small can a fence be before it's natural, true or not? Is the sheep grazing on uncultivated land part of the year natural? When it's confined in a cramped barn half the year? The point is that Lofoten lamb has actually trodden in the mountains, not whether there's a fence in the mountains or not. Similarly, a farmed salmon that has swum in the sea in open nets is a salmon that has swum, grown, and become food in fresh Norwegian fjords!

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

Norway has a unique competitive advantage in the form of our beautiful nature, and for sea-based farming, the Gulf Stream, which provides ideal conditions for salmon farming in open systems, with great circulation and relatively stable sea temperatures often within the salmon's ideal growth temperature range. But perhaps even more important is the Norway brand. Norwegian salmon has a strong international reputation for quality and sustainability. According to a report from the Norwegian Seafood Council, 72% of international buyers see Norwegian salmon as a quality product. I believe this brand is weakened if Norwegian salmon is also associated with production in closed systems and land-based tanks. Consumers associate Norwegian salmon with clean, cold waters and a natural environment. This association is a powerful marketing advantage that we must exploit, and which also diminishes if we mix in too many other elements.

Marketing Open-Net Salmon: A Story of Quality

Smarter farmers are already solidly marketing their salmon as produced in Norwegian fjords, emphasizing that the salmon has swum in fresh water and often adding images and videos of beautiful Norwegian fjords flourishing with nutrient-rich water driven by the Gulf Stream, framed by green mountainsides with glaciers at the end of the fjord - quite beautiful. The salmon produced in open nets reflects the quality of nature's forces in the sea, just as a wild salmon fights through life a little further out in the Gulf Stream. This story is not incorrect, and my hypothesis is that the market will pay more for this salmon than for a "storyless" fish produced in a tank.

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Economic Perspective: Cost-Effectiveness in Open Nets

Production costs in open nets are in a completely different league compared to closed systems on land and at sea. Maintaining large, closed facilities requires significant investments in infrastructure, energy, and technology to maintain optimal conditions. At the same time, it's important to address and solve the challenges in open nets, such as parasites and disease. I strongly believe that we will manage to find solutions to these problems through technological innovation and improved practices.

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Parasite Control: The Solution to Sea Lice

One of the biggest challenges in open systems is sea lice. If we can solve this problem, most farmers could achieve mortality rates down to 5% in open nets. This would remove much of the fish welfare argument often used in favor of closed systems. New methods and technologies, such as biological control with lasers, freshwater treatment, and deep-sea operations, show promising results in the fight against sea lice.

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Closed Systems at Sea: A Middle Ground

Closed systems at sea offer a middle ground that combines the advantages of both open and closed systems. They can protect against external environmental impacts and reduce disease risk while preserving some of the natural experience of being in the sea. This could be a good solution for areas with higher risk of disease or pollution, but it might be difficult to convince consumers that this salmon has actually swum in the sea, and it would be easy for salmon from open nets to argue that the closed sea salmon is like all other "tank salmon."

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International Perspective

Norway is a world leader in salmon farming, but international competition is increasing. Countries like Chile and Scotland are also investing heavily in farming technologies. To maintain our leading position, we have a time window where we must exploit our natural advantages and strong brand. Strengthening the marketing of salmon in open nets gives us a competitive advantage that resonates globally.

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Balanced Perspectives: Advantages and Disadvantages of Closed Technology

While this post argues for open systems, it's important to acknowledge the benefits of closed systems. These systems can offer better control over environmental conditions, reduce disease spread, and minimize environmental impact. Nevertheless, I believe that consumers' preferences for naturalness and authenticity weigh more heavily. Technological advances in open systems can also offer many of the same benefits as closed systems without sacrificing the emotional connection consumers have to products from natural environments.

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My 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!

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