Economic feasibility assessment of cage aquaculture in offshore wind power generation areas in Changhua County, Taiwan

Huang, Cheng Ting; Afero, Farok; Hung, Chun‐Wei; Chen, Bo-Ying; Nan, Fan-Hua; Chiang, Wen-Son; Tang, Hung-Jie; Kang, Chao-Kai

doi:10.1016/j.aquaculture.2021.737611

Cited by 19 publications

(13 citation statements)

References 44 publications

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“…The financial indicator in cobia farming suggests a similar trend: increasing cages' units increases the profit gained by producers. The economic analysis of large cage culture in [17] demonstrated that the profit indicators of more than 8 cages are positive. The profitability is gradually improved with the increased number, and 16-unit cages are recommended due to their reasonable investment and easiness to manage.…”

Section: Discussionmentioning

confidence: 99%

“…The cost-benefit analysis adopted in this study was based on previous studies [17,18]. The experiment selected five economic indicators: benefit-cost ratio (BCR), profitability, net present value (NPV), internal rate of return (IRR), and cost recovered years.…”

Section: Cost-benefit Analysismentioning

confidence: 99%

“…The technical, economic, and legal feasibility should be considered in the investment in culture fishery [17]. Taiwan is actively involved in research, development, and discussions at the technical and legal levels.…”

Section: Introductionmentioning

confidence: 99%

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Investment Feasibility Analysis of Large Submersible Cage Culture in Taiwan: A Case Study of Snubnose Pompano (Trachinotus anak) and Cobia (Rachycentron canadum)

Lan

Afero

Huang

et al. 2022

Fishes

Self Cite

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Onshore farming for premium aquaculture is under scrutiny and criticism partially due to possible causes of adverse environmental impacts on other resource users and the surrounding environment. The best alternative to preventing or minimizing these impacts is to utilize open seawater by large submersible cage culture. The current operation in Taiwan has demonstrated that the culture operation is technically feasible but economically demanding because of high capital and operating costs. Therefore, this study conducted an economic analysis of the expansion of large submersible cage culture by selecting two premium species of snubnose pompano (Trachinotus anak) and cobia (Rachycentron canadum) and examined the profitability of large submersible cage culture investment. This study found that the current operation of four-unit cages highlighted a negative net present value and internal rate of return with a payback period of over ten and six years, respectively. Large submersible cage culture can be financially profitable when its operation unit expands from 8 to 24 units. Increasing unit cages to eight incurred a gross margin of 17.09%, BCR 1.21, with a payback period of 5.36 years. Expanding the operation to 24-unit cages was a potentially lucrative investment with a gross margin of 18.51%, BCR 1.23, PI 2.15, internal rate of return of 20.84%, and a payback period of 3.55 years. Sensitivity analyses revealed that market price and survival rate significantly impact the profitability of large submersible cage culture. Finally, it is suggested that producers could invest in 8-unit cages and maintaining the survival rate of snubnose pompano and cobia at 80% and 40%, respectively.

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Section: Discussionmentioning

confidence: 99%

Section: Cost-benefit Analysismentioning

confidence: 99%

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Investment Feasibility Analysis of Large Submersible Cage Culture in Taiwan: A Case Study of Snubnose Pompano (Trachinotus anak) and Cobia (Rachycentron canadum)

Lan

Afero

Huang

et al. 2022

Fishes

Self Cite

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“…Hence, indications made by (Fernández-Sánchez et al 2022 ) for the impacts of variations in model parameters were followed, and the 10% reduction in sale price was used as the model parameter for the evaluation of cage model impact on net profit in the present study. The net profit is the amount of cash return and is also called as net earning return, sales income, or liquid revenue (Castilho-Barros et al 2020 ; Huang et al 2022 ).…”

Section: Methodsmentioning

confidence: 99%

“…A theoretical static model was projected with the spreadsheet Microsoft Excel for Mac (version 16.66.1) on a Mac macOS Big Sur (version 11.4) computer for the design and stimulation of operational strategies with two different cage systems. Influences of traditional surface cage versus submerged cage models on economic and financial indices from the production of Turkish salmon were subjected to “cost-benefit analysis” for the comparison of cost, revenue, and profit variations in each production model using economic formulations provided by earlier reports (Shang 1990 ; Martin et al 1998 ; Castilho-Barros et al 2020 ; Fernández-Sánchez et al 2022 ; Huang et al 2022 ). The cost-benefit analysis is important in economic decision-making through comparative evaluation of total costs and benefits for the assessment best benefit with minimum cost for a target farm project (Huang et al 2022 ), and the cost-benefit analysis is recognized as a useful tool for the evaluation of industrial projects and investments (Farel et al 2013 ; Boardman et al 2018 ; Liu et al 2020 ; Mahony 2021 ).…”

Section: Methodsmentioning

confidence: 99%

Analysis of the economic performance of salmon farming in submerged and surface cages in the Black Sea

Yigit,

Ergün

et al. 2023

Aquacult Int

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The production period for salmon farming in the Black Sea comprises the winter period and is limited to seven months, due to high water temperatures during the summer time. As an alternative strategy, temporary cage submersion during the summer season might be a solution for salmon grow-out throughout the year. Therefore, this study was conducted for comparative evaluation of economic performance of submerged and surface cages, by analyzing structural costs and returns for Turkish salmon farming in the Black Sea. As a result of the temporary cage submersion strategy, economic profits increased by nearly 70%, granting higher values of financial indicators with increased net profit (685,652.5 $ year −1 ) and margin of safety (89.6%), compared to the traditional surface cage (397,058.5 $ year −1 net profit and 88.4% margin of safety). The “What-if” analysis showed that profits from both cage systems were sensitive to variations in sale price, and the simulation by 10% reduced export market value may decrease revenues, with less financial profit loss for the submerged cage over the surface once. Hence, temporary cage submersion seems to be an alternative farm management strategy with extended production cycle and higher profits for the sustainable development of Turkish salmon farming in the Black Sea.

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Offshore wind energy and fisheries: Sustainable development goals, enterprise practices, and fishermen's perspectives

Lin,

Lee,

Hsu

et al. 2024

Sustainable Development

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This study comprises two essential components: a scoping review and interviews with fishermen, both aimed at understanding the Sustainable Development Goals (SDGs) and their relevance to Offshore Wind Energy (OWE) enterprises, particularly in mitigating impacts on local fisheries. Key findings from the scoping review indicate a scarcity of research explicitly dedicated to OWE enterprises' practices concerning. The review's findings emphasize the need for further research to understand the rationale behind these decisions and to explore how OWE enterprises can optimize their practices to address SDG 2. The second part of the study involves interviews with fishermen near proposed offshore wind farm sites in Taiwan. These interviews revealed that fishermen's primary concerns revolve around SDGs 2, 8, 14, and 17. However, OWE enterprises do not prioritize SDG 2, even though fishermen express concerns related to food security, proposing the adoption of marine ranching to enhance seafood supply. Moreover, SDG 17 stands out as a priority for fishermen, while OWE enterprises overlook connections with fisheries associations and fishermen. In conclusion, this study highlights the complexity of the SDG‐related issues surrounding OWE enterprises and their impact on local fisheries.

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Economic feasibility assessment of cage aquaculture in offshore wind power generation areas in Changhua County, Taiwan

Cited by 19 publications

References 44 publications

Investment Feasibility Analysis of Large Submersible Cage Culture in Taiwan: A Case Study of Snubnose Pompano (Trachinotus anak) and Cobia (Rachycentron canadum)

Investment Feasibility Analysis of Large Submersible Cage Culture in Taiwan: A Case Study of Snubnose Pompano (Trachinotus anak) and Cobia (Rachycentron canadum)

Analysis of the economic performance of salmon farming in submerged and surface cages in the Black Sea

Offshore wind energy and fisheries: Sustainable development goals, enterprise practices, and fishermen's perspectives

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