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HAVBRUK2-Stort program for havbruksforskning

Production and Market Responses to Sea Lice Motivated Production Growth Restrictions

Tildelt: kr 0,22 mill.

Prosjektnummer:

294590

Prosjektperiode:

2019 - 2019

Geografi:

The major issue facing Norwegian salmon aquaculture is sea lice (Lepeophtheirus salmonis). The sea lice problem has motivated regulations to control production growth (the traffic light system). Norway is the largest producer of Atlantic Salmon, and when the Norwegian Ministry of Trade, Industry and Fisheries decides to restrict production growth, Norway is essentially exercising its market power. This has supported very high salmon prices in a period of strong demand for salmon. The current policy discourse has not sufficiently realized that such restrictive growth regulations, through its market impact, will affect how private farmers responds to the regulations. This again will determine the outcome of the regulations. The primary aim of this project is to investigate the private production and market responses to sea lice motivated production growth restrictions. We hypothesize that the restrictive growth policies have created a regulatory scarcity rent in salmon production that has rewarded incumbent license owners. In addition, we hypothesize that farmers have responded to a lack of new production licenses by intensifying the use of existing licenses, through high stocking density of smolt, higher feeding intensity and shorter grow-out periods. Investigating these hypothesis will provide information on market responses to sea lice regulations, and will provide context to a more complete evaluation of the sea lice regulations that better incorporates the responses to the market effects of the regulations.

Budsjettformål:

HAVBRUK2-Stort program for havbruksforskning