A Report to the Joint Standing Committee on Marine Resources Rega

Maine State Library Maine State Documents Marine Resources Documents Marine Resources 1-1994 A Report to the Joint Standing Committee on Marine Resources Regarding the Economics of Fish Stock Enhancement Maine Groundfish Hatchery Study Commission Maine Department of Marine Resources Follow this and additional works at: http://digitalmaine.com/dmr_docs Recommended Citation Maine Groundfish Hatchery Study Commission and Maine Department of Marine Resources, "A Report to the Joint Standing Committee on Marine Resources Regarding the Economics of Fish Stock Enhancement" (1994) Marine Resources Documents 16 http://digitalmaine.com/dmr_docs/16 This Text is brought to you for free and open access by the Marine Resources at Maine State Documents It has been accepted for inclusion in Marine Resources Documents by an authorized administrator of Maine State Documents For more information, please contact statedocs@maine.gov A R e p o r t t o t h e J o i n t S t a n d i n g C o m m itte e on M a rin e R e s o u r c e s r e g a r d i n g : THE ECONOMICS OF F IS H STOCK ENHANCEMENT I n a c c o r d a n c e w ith t h e r e q u i r e m e n ts o f P L 9 , C h 194 "A n A c t C r e a t i n g t h e G r o u r id f is h S t u d y H a t c h e r y C o m m is s io n " By T he G r o u n d fis h H a tc h e ry S u b m itte d : S tu d y Ja n u ary C o m m is s io n 1994 THE ECONOMICS OF F IS H STOCK ENHANCEMENT A r e p o r t o n P h a s e I o f a s t u d y f o r t h e M a in e S t a t e L e g i s l a t u r e i n a c c o r d a n c e w i t h t h e r e q u i r e m e n t s o f H P 1 , L D , B i l l , "A n A c t C r e a t i n g t h e G r o u n d f i s h H a t c h e r y S t u d y C o m m i s s i o n " In tro d u c tio n In re sp o n se to an in itia tiv e by th e M a in e F i s h e r m a n 's C o o p e tiv e A s s o c ia tio n th e 1 th L e g is la tu re p assed an act c r e a t i n g a 13 p e r s o n c o m m i s s i o n t o i n v e s t i g a t e t h e f e a s i b i l i t y o f e n h a n c in g t h e g r o u n d f i s h s t o c k s o f f t h e c o a s t o f M a in e The c o m m is s io n c o n s is ts of re p re s e n ta tiv e s fro m th e fis h in g , s c i e n t i f i c , b u s i n e s s , a n d e n v ir o n m e n ta l c o m m u n itie s a s w e l l a s a c o m m i s s i o n e r 's d e s i g n e e f ro m t h e D e p a r tm e n t o f M a r in e R e s o u r c e s T h e c o m m is s io n i s t o u n d e r t a k e a s t u d y i n tw o p h a s e s In P hase I , t o b e c o m p le te d b y J a n u a r y 9 , t h e c o m m is s io n i s t o i n v e s t i g a t e t h e e c o n o m ic f e a s i b i l i t y o f p r o d u c in g h a t c h e r y - r a i s e d f i s h i n t h e S ta te a t a p ro d u c tio n le v e l t h a t w ill a f f e c t th e f is h e r y I f th e e c o n o m ic r e p o r t i s p o s i t i v e , t h e J o i n t S t a n d i n g C o m m itte e o n M a r in e R e s o u rc e s w i l l a p p ro v e th e i n i t i a t i o n o f P h a se I I T h is p h a s e , to b e c o m p le te d b y J a n u a r y 9 , w i l l d e te r m in e t h e n e e d f o r o n e o r m o re h a t c h e r i e s and th e a p p ro p ria te m e th o d s fo r re v ita liz in g l o c a l iz e d s c h o o ls o f g r o u n d fis h , and th e te n d e n c y o f g ro u n d fis h to r e tu r n to t h e i r b re e d in g a r e a s I n a d d i t i o n t h e c o m m is s io n w i l l d e te r m in e th e im p a c t o f in tr o d u c in g h a t c h e r y - r a i s e d g r o u n d f is h i n t o th e g ro u n d fis h e ry C o m m is s io n M em b ers a n d M e e t i n g R e p o r t A lis t appended to o f t h e G r o u n d f i s h H a t c h e r y S tu d y C o m m is s io n m e m b e rs i s th is re p o rt T h e c o m m is s io n w as a p p o in t e d b y t h e C o m m is s io n e r o f t h e D e p a rtm e n t o f M a rin e R e s o u r c e s i n A u g u s t T hey fo rm a lly m et on S e p te m b e r s t t o r e v i e w t h e s t a t u a r y c h a r g e o f t h e C o m m is s io n , t o re v ie w a t r i p r e p o r t o n a r e c e n t s y m p o s iu m (Ju n e 1993) on se a r a n c h i n g o f c o d i n N o r w a y , a n d t o d i s c u s s t h e c o m m i s s i o n 's g o a l s a n d o b j e c t i v e s a n d t o e s t a b l i s h a tim e l i n e a n d w o rk a s s i g n m e n t s A t t h a t m e e tin g i t w as d e c id e d t h a t a n e c o n o m ic m o d e l s h o u ld b e c o n s t r u c t e d t o i n v e s t i g a t e t h e v a r i a b l e s t h a t w o u ld d e te r m i n e t h e f a c to r s c o n tr o llin g th e s u c c e s s o r f a i l u r e o f a h a tc h e ry o p e tio n On O c t o b e r t h , t h e U n i v e r s i t y o f New H a m p s h i r e S e a G r a n t P r o g r a m s p o n s o r e d a w o rk s h o p e n t i t l e d "C od S e a R a n c h in g : I d e n t i f y i n g t h e N e x t S te p " w h e re a c o m m is s io n p r o g r e s s r e p o r t w a s p r e s e n t e d The r e p o r t fro m t h a t w o rk sh o p i s a p p e n d e d t o t h i s d o c u m e n t A seco n d m e e tin g o f t h e f u l l c o m m is s io n w as h e l d o n N o v em b er th t o r e v ie w t h e e c o n o m ic m o d e l a n d d i s c u s s t h e d a t a n e e d s f o r t h e f i n a l P h a s e I re p o rt A d r a f t r e p o r t w as p r e p a r e d an d c i r c u l a t e d to a l l c o m m is s io n m e m b e rs i m m e d i a te l y a f t e r t h e new y e a r a n d t h i s f i n a l d r a f t r e p r e s e n t s a c o n s e n s u s o f t h e e n t i r e c o m m is s io n m e m b e rs h ip C o m m is s io n R e c o m m e n d a tio n s I t i s t h e o p i n i o n o f t h e G r o u n d f i s h H a t c h e r y S tu d y C o m m is s io n t h a t P h a se I I o f t h i s p r o j e c t s h o u ld c o n tin u e T h e e c o n o m ic m o d el p r e s e n t s e n c o u r a g in g s u r v i v a l r a t e s f o r h a t c h e r y - r a i s e d f i s h w h ic h w o u ld b e s u f f i c i e n t t o r e c a p t u r e t h e in v e s t m e n t i n a n e n h a n c e m e n t o p e r a tio n o v e r a p r o je c te d t e n y e a r tim e s p a n T he m odel d e te rm in e s th e b re a k -e v e n p o in t f o r a h a tc h e ry o p e tio n b a se d on th e r e tu r n to th e g r o u n d fis h e ry a s a d d itio n a l la n d e d v a lu e a c c ru e d t o th e fis h e ry in t h e c o u r s e o f n o rm a l o p e tio n s I t d o e s n o t c o n s i d e r a n y m u l t i p l i e r e f f e c t s t h a t w o u ld com e fro m a n i n c r e a s e d h a r v e s t a n d e x p e n d i t u r e s o n s u c h t h i n g s a s n e ts , b o at re p a ir, and o th e r ite m s d i r e c t l y re la te d to th is e c o n o m ic g a i n In a n I n p u t : O u t p u t m o d e l o f M a i n e 's fis h in g i n d u s t r y , b y B r i g g s , T o w n sen d a n d W ils o n ( s e e M a rin e F i s h e r i e s R e v ie w , J a n u a r y ) a d d itio n a l f is h la n d in g s r e s u l t in an added b e n e f i t t o b o th th e h a r v e s tin g s e c to r and p r o c e s s in g s e c t o r The m u l t i p l i e r s f o r in c o m e s g e n e r a t e d fro m a d d i t i o n a l l a n d i n g s a r e fo r h a rv e s te rs and 3 fo r p ro c e sso rs In o th e r w o rd s, a s u c c e s s f u l h a t c h e r y o p e r a t i o n w o u ld h a v e a n e t p o s i t i v e e f f e c t o n t h e i n f r a s t r u c t u r e o f t h e f i s h i n g i n d u s t r y w h ic h s u g g e s t s t h a t o u r h a tc h e r y s u r v i v a l r a t e s c o u ld b e lo w e r th a n o u r m o d el r e q u i r e s f o r a b re a k -e v e n o p e tio n T he p o t e n t i a l f o r s to c k en h an cem en t th ro u g h a f i s h h a tc h e r y i s n o t o n l y b e i n g r e c o g n i z e d b y t h e s t a t e o f M a in e b u t a l s o b y t h e f e d e r a l g o v e rn m e n t The r e c e n t l y e s t a b l i s h e d N o rth w e s t A t l a n t i c F is h e rie s R e in v e s tm e n t P ro g m re c o g n iz e s th e p o te n tia l fo r re s to rin g th e d e p le te d New E n g l a n d g r o u n d f i s h s to c k s th ro u g h a q u a c u ltu r e an d h a tc h e ry p ro g m s S im ila rly , th e l a t e s t l i s t o f S a lto n s ta ll-K e n n e d y F is h e rie s D e v e lo p m e n t P ro g m p rio ritie s r e c o g n i z e s t h e sam e n e e d B o th o f t h e s e p r o g r a m s a r e p o t e n t i a l so u rc e s o f fe d e l fu n d in g C o m p le tio n o f P h a s e I I of th is G r o u n d f i s h H a t c h e r y S t u d y C o m m i s s i o n 's r e p o r t s h o u l d p u t M a in e i n an a d v a n ta g e o u s p o s itio n fo r s e c u rin g fin a n c ia l su p p o rt fo r d e v e lo p in g a h a tc h e r y p ro g m P hase II of th is p ro je c t w ill g iv e th e c o m m is s io n th e o p p o r t u n i t y t o e x p l o r e , a n d rec o m m e n d d e v e lo p m e n t o f , re se a rc h p r o g r a m s t h a t w o u ld a d d r e s s i n c r e a s i n g t h e s u r v i v a l o f r e l e a s e d fis h T h e c o d s e a r a n c h i n g s y m p o s iu m i n N o rw a y a n d t h e w o r k s h o p a t t h e U n i v e r s i t y o f New H a m p s h i r e ( s e e a t t a c h e d ) b o t h p o i n t t o t h e n e e d f o r u n d e r s ta n d in g t h e b i o l o g i c a l p o t e n t i a l o f t h e e c o s y s te m f o r s u s ta in in g re le a s e d f is h , and th e need f o r d is tin g u is h in g th e s e f i s h fro m t h e i r w ild c o u n t e r p a r t s O u r e c o n o m ic m o d e l p r o j e c t i o n s a re b a s e d on th e b e s t b io lo g ic a l in fo rm a tio n a v a il a b l e I t s h o u ld b e r e c o g n iz e d , h o w e v e r, t h a t f u r t h e r r e s e a r c h on f i s h h a b i t a t w i l l n o t o n ly e n a b le u s to e m p ir ic a lly e v a lu a te h a tc h e r y s u c c e s s b u t a ls o d e v e lo p a p o s itiv e , th e r th a n re s tric tiv e , m anagem ent s t r a t e g y f o r t h e G u l f o f M a in e T h is m anagem ent a p p ro a c h w i l l , i f s u c c e s s f u l , a llo w o u r fis h e rm e n t o c o n tin u e h a r v e s t in g f i s h w ith o u t th e d e v a s ta tin g co n seq u en ces th e in d u s try is c u rre n tly e x p e rie n c in g T h e E c o n o m ic M o d e l T h e e c o n o m ic m o d e l d e te r m i n e s t h e b rea k -e v en p o in t o f a g r o u n d f is h h a tc h e r y w h ere th e la n d e d v a lu e o f f i s h c a u g h t in th e f is h e r y e q u a ls th e h a tc h e ry c o s ts o f r e a r in g th e s e f is h p r i o r to t h e i r r e l e a s e in t h e e n v iro n m e n t T h e p o t e n t i a l e c o n o m ic g a i n fro m a h a t c h e r y p ro g m i s e x p r e s s e d i n te r m s o f s u r v i v a l o f f i s h fro m b i r t h th ro u g h c a p tu r e a t a m a rk e ta b le s i z e I n p u t p a r a m e t e r s f o r t h e e c o n o m ic m o d e l i n c l u d e : 1) k n o w le d g e o f th e tim in g o f c r i t i c a l l i f e s ta g e s (e g h a tc h in g tim e , tim e o f f i r s t f e e d in g f o r l a r v a l f i s h , le n g th o f th e tim e a g r o u n d f is h l i v e s i n t h e w a t e r c o lu m n p r i o r t o s e t t l i n g t o t h e b o tto m ) 2) r a t e o f n a tu r a l m o rta lity fo r a l l c r i t i c a l l i f e s ta g e s 3) w e i g h t a t a g e 4) c a t c h a t a g e 5) p r i c e p e r u n i t w e ig h t o f h a r v e s t e d f i s h ( la n d e d v a lu e ) and 6) h a t c h e r y a n d o t h e r p r o d u c t i o n c o s t s For our m o d e llin g in v e s tig a tio n th e s e in p u t d a ta w e re ta k e n fro m th e s c i e n t i f i c l i t e r a t u r e o r w e re b a s e d o n e x p e r i e n c e o f c o m m is s io n m e m b e rs F o r e x a m p le , p r i c e , c a tc h a t a g e , a n d w e ig h t a t a g e d a t a a re p u b lis h e d by th e N a t io n a l M a rin e F i s h e r i e s S e r v ic e w h ile h a t c h e r y o p e r a t i o n c o s t s w e r e s u p p l i e d b y c o m m i s s i o n m e m b e r s w ho h a v e e x t e n s i v e e x p e r i e n c e r a i s i n g s a lm o n C ritic a l lif e s ta g e in f o r m a tio n a n d n a t u r a l m o r t a l i t y w e re b a s e d on d i s c u s s i o n s w ith N a t io n a l M a rin e F i s h e r i e s S e r v ic e p e r s o n n e l a n d / o r t h e s c i e n t i f i c lite tu re T he l e a s t w e l l know n l i f e s ta g e in fo rm a tio n c o n c e rn s th e e x p e c t e d s u r v i v a l r a t e s o f t h e f i s h f o l l o w i n g t h e i r r e l e a s e fro m th e h a tc h e ry C o n s e q u e n tly t h e m o d e l i s r u n b y m a k in g a n i n i t i a l e s t i m a t e f o r t h e r e q u i r e d s u r v i v a l r a t e t h r o u g h t o a d u lt h o o d , w hen t h e h a t c h e r y p r o d u c t i o n c o s t s w o u ld b e r e c o v e r e d b y t h e f i s h e r y T he c o s t s a n d b e n e f i t s a r e a c c u m u la te d a n d t h e o r i g i n a l e s ti m a t e i s r e f in e d u n t i l a b re a k -e v e n h a tc h e ry s u r v iv a l r a t e i s a c h ie v e d W h e th e r t h i s s u r v i v a l r a t e i s r e a l i s t i c i s a ju d g e m e n t b a s e d o n o u r k n o w le d g e o f t h e b i o l o g y o f t h e p a r t i c u l a r g r o u n d f i s h s p e c i e s a n d i s e s s e n t i a l l y a b i o l o g i c a l ju d g e m e n t F o r t h e p u r p o s e s o f t h i s r e p o r t t h e c o m m is s io n d e c id e d t o f o c u s o n t h e A t l a n t i c c o d a n d m in im iz e h a t c h e r y o p e r a t i o n c o s t s b y " k e e p in g i t s im p le " Cod w as s e l e c t e d b e c a u s e i t i s t h e " b r e a d a n d b u t t e r " s p e c i e s o f t h e M a in e g r o u n d f i s h i n g f l e e t a n d " k e e p i n g i t s im p le " i s i n t e r p r e t e d a s r e l e a s i n g t h e f i s h fro m t h e h a tc h e r y a t t h e e a r l i e s t t i m e t h a t w o u ld m a x im iz e l a r v a l s u r v i v a l For th is i n v e s t i g a t i o n tw o r e l e a s e s t r a t e g i e s w e r e e m p lo y e d In th e f i r s t case, fe rtiliz e d e g g s w e re r e l e a s e d w h ile t h e s e c o n d s t r a t e g y in v o lv e d h o ld in g t h e la r v a e u n t i l th e y o lk s a c w as a b s o rb e d an d th e y w e re a b o u t t o s t a r t f e e d in g on w ild fo o d T he m odel c o u ld b e ru n th ro u g h to l a t e r l i f e s ta g e s f o r r e le a s e and ev en th ro u g h th e a q u a c u ltu r a l p ro d u c tio n o f an a d u lt, m a rk e t s iz e , f i s h A lth o u g h A t l a n t i c co d d o e s n o t, on a v e g e , h a v e a s h ig h a m a rk e t v a lu e a s e i t h e r h a d d o c k o r w itc h f lo u n d e r i t d o e s h a v e a h ig h g ro w th r a t e and is a " ro b u s t" fis h T h e re is a ls o e x te n s iv e s c ie n tific l i t e r a t u r e o n c o d w h ic h m ak e s t h e i n p u t f o r t h e e c o n o m ic m o d e l m o re re a lis tic M odel I n p u t V a lu e s 1) K n o w le d g e o f t h e tim in g of c ritic a l life s ta g e s A t l a n t i c co d e x p e r ie n c e s e v e r a l m a jo r c h a n g e s in t h e i r l i f e h a b its as th e y g ro w in to m a rk e ta b le fis h F irs t th e y a re f e r t i l i z e d e g g s t h a t d e v e lo p i n t o y o lk s a c l a r v a e F o llo w in g t h i s s ta g e th e y b e g in t o fe e d and becom e t r u e p e la g ic l a r v a l f i s h F in a lly th e y s e t t l e to th e s e a f l o o r w h ere th e y t a k e on th e c h a r a c t e r i s t i c b e h a v io r o f a d u lts F is h a t e a c h o f th e s e s ta g e s e x p e r ie n c e s d i f f e r e n t l e v e l s o f n a t u r a l m o r t a l i t y w h ic h , o b v io u s ly , h a s a m a jo r im p a c t on th e s u c c e s s o f h a tc h e r y p r o d u c tio n H a tc h in g a n d d e v e lo p m e n t a r e te m p e r a t u r e d e p e n d e n t a n d v a r i a b l e i n n a t u r e I n a h a tc h e r y we a r e a b le t o m a in ta in an o p tim a l te m p e r a tu r e f o r d e v e lo p m e n t a n d t h e r e f o r e we h a v e a s s u m e d t h a t t h e f i s h r e m a in i n a p a r t i c u l a r s t a g e f o r a f ix e d p e r i o d i n t h i s m o d e l Cod r e m a in a s e g g s and y o lk s a c la r v a e f o r th r e e w eek s T hey th e n a r e p e la g ic l a r v a e u n t i l t h e y a r e f i v e m o n th s o l d w h en t h e y s e t t l e o u t o f t h e w a t e r c o lu m n a n d e s s e n t i a l l y b e c o m e a d u l t s 2) R a te o f n a tu l m o rta lity fo r a ll c ritic a l life s ta g e s E g g m o r t a l i t y i s a s s u m e d t o b e 25% o f t h e t o t a l p r o d u c t i o n i n th e f i r s t w eek in th e h a tc h e r y T h i s 25% a s s u m e s t h e l e v e l o f m o r t a l i t y t h e e g g s w o u ld e x p e r i e n c e u n d e r h a t c h e r y c o n d i t i o n s p r i o r to re le a s e I n t h e s e c o n d s t r a t e g y , w hen f i s h a r e i n t h e h a tc h e r y u n t i l t h e y h a v e a b s o r b e d t h e i r y o l k s a c , a n a d d i t i o n a l 25% o f t h e f i s h a r e assu m ed t o d ie p r i o r t o r e l e a s e M o rta lity o f p e la g ic l a r v a e i s r e p o r t e d i n t h e s c i e n t i f i c l i t e r a t u r e t o b e a b o u t 5% p e r day u n t i l th e y a re f i v e m o n th s o l d N a tu l m o r ta lity th e n c o n tin u e s a t a h ig h b u t e s s e n t i a l l y unknow n r a t e f o r t h e re m a in d e r o f th e f i r s t y e a r o f l i f e F o r b o t h r e l e a s e s t r a t e g i e s we h a v e a s s u m e d a n a t u r a l m o r t a l i t y r a t e i n e x c e s s o f 95% o v e r t h e f i r s t y e a r f o llo w in g r e l e a s e i n th e e n v iro n m e n t The a c c e p te d n a tu r a l m o rta lity r a te (M) f o r a d u l t f i s h i s 20% p e r y e a r a n d , i n t h e m o d e l, t h i s v a lu e i s a p p l i e d t o f i s h f o ll o w i n g t h e i r f i r s t y e a r 3) W e ig h t a t age W e ig h a t a g e d a t a h a s b e e n c o l l e c t e d b y t h e N a t i o n a l M a r i n e F i s h e r i e s S e r v i c e f o r t h e G u l f o f M a in e s t o c k , NAFO D i v i s i o n 5Y , f o r th e p e r io d -1 9 T h ese d a ta a r e p u b lis h e d in : "T he R e p o rt o f t h e th N o r t h e a s t R e g io n a l S to c k A s s e s s m e n t W o rk sh o p " N o r t h e a s t F is h e rie s S c ie n c e C e n te r R e fe re n c e D ocum ent -0 , is s u e d in F e b ru a ry 9 T he a v e g e y e a r c l a s s w e ig h ts w e re c a lc u la t e d o v e r t h i s t e n y e a r p e r i o d a n d t h e s e v a lu e s a r e : A ge = b s , A ge = 9 b s , A ge = 9 b s , A ge = 0 l b s , A ge = b s , A ge = , A ge = b s , A ge 10 = 1 b s 4) C a tc h at age F o r th e m odel i t i s assu m ed t h a t f i s h r e c r u i t t o th e f i s h e r y a t a g e t h r e e a n d 48% o f t h e e n t i r e s t o c k i s h a r v e s t e d e a c h y e a r F is h in g m o r ta lity r a t e s a re r e p o r te d in th e N o rth e a s t F is h e r ie s S c ie n c e C e n te r R e fe re n c e D ocum ent -0 a s in s ta n ta n e o u s r a t e s P r i o r c a l c u l a t i o n s b y c o m m is s io n m e m b e rs h a v e c o n v e r t e d t h e s e r a t e s in to an e q u iv a le n t y e a rly m o r ta lity r a t e The y e a r ly m o r ta lity r a t e s w e r e t h e n a p p l i e d t o t h e m o d e l b y s u m m in g t h e y e a r c a t c h p e r io d , ag e to ag e 10, and d iv id in g to g a in th e a v e g e c a tc h r a te e x p re sse d above 5) P ric e p e r u n i t w e ig h t o f h a r v e s te d fis h T h re e p r i c e c a te g o r i e s o f co d w ere e s ta b l is h e d an d th e la n d e d v a lu e f o r t h e s e s i z e c l a s s e s a t t h e P o r tla n d F is h E x ch an g e w ere u s e d i n t h e m o d e l T h e y a r e $ p e r p o u n d f o r s c r o d , $ p e r p o u n d f o r m a r k e t c o d , a n d $ 0 p e r p o u n d f o r l a r g e c o d T hese n u m b ers a r e f ix e d f o r a l l m o d el r u n s In o th e r w o rd s, th e y a r e n o t a d ju s te d f o r se a so n , o r fo r in f la tio n a r y in c re a s e s , o r p o te n tia l p r ic e in c re a s e s o r d e c re a se s a s c o d b e co m e m o re o r l e s s a b u n d a n t o v e r tim e 6) H a tc h e ry and o th e r p ro d u c tio n c o s ts H a t c h e r y c o s t s a r e c o n s i d e r e d i n tw o w a y s F ir s t, th e re is t h e u p f r o n t c o s t o f p r o d u c in g f i s h b a s e d on e s t i m a t e s fro m o u r c o m m is s io n m e m b e rs e x p e r i e n c e o p e r a t i n g h a t c h e r i e s i n M a in e In t h e tw o h a t c h e r y r e l e a s e s t r a t e g i e s t h e s e e s t i m a t e d c o s t s r a n g e d fro m $ ,0 t o $ 0 p e r f i s h Second, th e re is th e c o s t o f b o r r o w in g t h e m oney t o p r o d u c e t h e f i s h a n d t h e a s s o c i a t e d i n t e r e s t r a t e s f o r t h e s e l o a n s w e r e e s t i m a t e d t o r a n g e f r o m 5% t o 20% f o r b o r r o w in g m oney o v e r a t e n y e a r p e r i o d M odel R e s u lts Two h a t c h e r y r e l e a s e s t r a t e g i e s a r e p r e s e n t e d b e l o w , a n d i n t h e a c c o m p a n y in g t a b l e s a n n d f i g u r e s , a n d r e p r e s e n t e a r l y r e l e a s e o f l a r v a l f i s h r a t h e r t h a n t r y i n g t o g ro w f i s h i n a h a t c h e r y f o r a p ro lo n g e d p e r io d I n t h e f i r s t e x a m p le , f e r t i l i z e d e g g s a r e r e l e a s e d a f t e r o n e w eek in th e h a tc h e r y In t h i s c a s e i t i s assu m ed th e c o s t p e r f i s h c o u ld r a n g e fro m $ ,0 t o $ 0 a n d t h e i n t e r e s t r a t e w a s v a r i a b l e f r o m 5% t o % A t th e lo w e s t c o s t p e r f i s h ( $ ,0 ) a n d t h e l o w e s t (5% ) i n t e r e s t r a t e f i s h o u t o f e v e r y t h o u s a n d r e l e a s e d w o u ld h a v e t o s u r v i v e u p t o t h e a g e j u s t p r i o r t o t h e i r r e c r u i t m e n t i n t o t h e f i s h e r y ( a g e 3) f o r t h e h a t c h e r y o p e r a t i o n t o r e c o v e r i t s c o s ts o v er a te n y e a r p e rio d I n o t h e r w o r d s , i t w o u ld r e q u i r e a % s u r v i v a l r a t e f o r t h e s t a t e t o r e c o v e r i t s i n v e s t m e n t i n a h a tc h e ry I n c o n t r a s t , a t $ p e r f i s h a n d a 20% i n t e r e s t r a t e i t w o u l d r e q u i r e a % s u r v i v a l r a t e I n t h e s e c o n d e x a m p le , t h e f i s h a r e k e p t i n t h e h a t c h e r y an a d d i t i o n a l tw o w e e k s , u n t i l t h e y h a v e a l m o s t a b s o r b e d t h e i r y o l k sa c and a re a b o u t to becom e t r u l y p e la g ic la rv a l fis h The in te re s t te s w o u ld r e m a in t h e sam e b u t t h e cost per fis h in c re a s e s to a r a n g e o f $ 0 t o $ 0 p e r f i s h due to th e a d d it io n a l tim e th e a n im a ls a r e h e ld in th e h a tc h e r y In t h is case th e l e a s t e x p e n s iv e ( $ 0 p e r f i s h a n d a 5% i n t e r e s t r a t e ) c o m b in a tio n w o u ld r e q u i r e t h a t f i s h o u t o f e v e r y th o u s a n d r e l e a s e d s u r v i v e , o r a % s u r v i v a l r a t e On t h e h i g h e n d ( $ p e r f i s h a n d 20% i n t e r e s t ) t h e s u r v i v a l r a t e i n c r e a s e s t o % o r 56 f i s h o u t o f e v e r y t h o u s a n d r e l e a s e d T h e s e c a l c u l a t i o n s w e re a l l b a s e d o n a h a t c h e r y e m p lo y in g a s t a f f o f t h r e e w i t h 50 s i x f o o t d i a m e t e r t a n k s E ach ta n k c a n h o ld b e tw e e n t o 10 m i l l i o n e g g s F or th e f i r s t s tr a te g y , p ro d u c tio n w o u ld b e p h a s e d o v e r a p e r i o d o f tim e s o t h a t h a t c h e d f i s h a r e r e a d y f o r r e l e a s e a l m o s t w e e k l y f o r u p t o a t h r e e m o n th p e r i o d A f a c i l i t y o f t h i s s o r t s h o u ld b e a b l e t o p r o d u c e f a r m o re h a tc h e d e g g s t h a n i t s m ax im u m o n e t i m e c a p a c i t y o f m i l l i o n F or th e p u rp o se s o f t h is e s tim a te of fe a s ib ility , c o s ts a r e b a se d on " b a t c h e s " o f 50 m i l l i o n e g g s U nder th e se c o n d s t r a t e g y , h o ld in g t h e l a r v a e u n t i l t h e y h a v e a b s o r b e d t h e i r y o lk s a c , t h e sam e s t a f f o f t h r e e a n d s i m i l a r t a n k c a p a c i t y w o u ld p r o d u c e f e w e r 'b a t c h e s ' f o r r e l e a s e o v e r t h e t h r e e m o n th s , s i n c e y o l k s a c a b s o r p t i o n w o u ld t a k e a n a d d i t i o n a l tw o w e e k s , b u t t h i s t i m e w o u ld b e o f f s e t b y a n in c re a s e d la r v a l s u r v iv a l r a t e In th e h a tc h e ry , f i f t y ta n k s i n i t i a l l y h o ld in g m illio n eg g s e a c h , w o u ld p r o d u c e ,6 a d u l t f i s h a t t h e b r e a k - e v e n l e v e l a s su m in g a s u r v i v a l r a t e o f % I f th e h a tc h e ry re le a s e d f e r t i l i z e d e g g s , a t tw o w e e k i n t e r v a l s f o r t h r e e m o n th s , t h e t o t a l a n n u a l p r o d u c t i o n w o u ld p o t e n t i a l l y b e ,4 ,0 f i s h A c tu a l s u r v i v a l o f t h i s n u m b e r o f f i s h i s q u e s t i o n a b l e s i n c e t h e y w o u ld a l l r e q u ir e s u ita b le h a b it a t and fo o d N e v e rth e le s s , t h i s le v e l o f p r o d u c t i o n c o u l d s u b s t a n t i a l l y e n h a n c e t h e G u l f o f M a in e l a n d i n g s B U T T O N -U P H A T C H E R Y p e rc e n t s u rv iv a l to re q u ire d fo r a g e th re e b rea k -e v en 0 c o s t p e r fish 0.01 EG G R E LEA SE HATCHERY: p e r c e n t s u rv iv a l to n e c e ssa ry age fo r e c o n o m ic th re e b re a k e v e n 0 1.50 p e rc e n t s u rv iv a l 1.00 20% 0.00 in te re s t 0 p ro d u c tio n c o s ts p e r fish r e le a s e d 0 P age r a te W O R K IN G G R O U P R E P O R T IS S U E : F IS H IN G P R E S S U R E A N D IM P A C T A S S E S S M E N T W orking G roup C hairs: R oland B am aby, M a rk L ussier W h a t a r e th e ste p s to im p le m e n ta tio n ? T he critical step to im plem entation w ill be the identification o f m arkers fo r the discrim ination o f hatchery-raised fish It is currently unclear w hat type o f m arker is best, and a research p ro g ram is required to exam ine various m arkers and their costs and benefits fo r such a p rogram T he desirable attributes o f this m arker are that it m ust be easily identifiable, cost effective, non-m utilating, and have little im pact on the survivability o f the fish F o r full im plem entation o f stock enhancem ent, a p rogram w ill be needed to retriev e the identification inform ation It w ill be critical to identify a person or group that retains prim ary responsibility fo r the interpretation o f the identification inform ation C learly, the fishing industry m ust be a full and w illing participant in this process; fisherm an m ust be com m itted to the accurate retrieval o f the identification inform ation W h a t a r e th e o b sta c les to im p le m e n ta tio n ? A n early obstacle will be to obtain the funding fo r the research necessary to develop identification tags fo r hatchery-raised fish T he next obstacle w ill be to secure the cooperation o f fishing industry T here is another obstacle that is less obvious: a som ew hat negative attitude on the part o f som e portions o f the fishing com m unity C om m unity attitudes can m ake the funding o f research projects to evaluate prospects for enhancem ent m ore difficult to obtain A nother attitude that w ill p resen t an obstacle to im plem entation o f stock enhancem ent are concerns - p rim arily on the p a rt o f the environm ental conservation constituency - ab o u t alteration in the genetic m akeup o f natural populations o f groundfish that m ay be unavoidable w ith successful enhancem ent W h a t re so u rc e s a r e r e q u ir e d f o r im p le m e n ta tio n ? Funding fo r research projects and the associated equipm ent is essential to evaluate possible m ethods fo r im pact assessm ent W e believe that a central agency o r group p rogram w ill be required that retains prim ary responsibility fo r the interpretation o f identification data o f ranched fish T his group should also be charged w ith the assessm ent o f the econom ic, environm ental, cultural, and social im pacts o f enhancem ent o f natural stocks o f groundfish 10 W h o s h o u ld b e in v o lv e d ? T he fishing industry m ust m aintain active involvem ent and support o f the concept o f stock enhancem ent F isheries organizations w ill also be required in any full-scale effort Scientists, including academ ic researchers and research staff o f several agencies, w ill be needed to assist w ith the selection o f appropriate m ethods fo r im plem entation and evaluation 11 W O R K IN G G R O U P R E P O R T IS S U E : P R O G R A M D E V E L O P M E N T A N D F U N D IN G C O N S ID E R A T IO N S W orking G roup C hairs: K en Beal, R ich L angton, N orm Stavis W h a t a r e th e s te p s to im p le m e n ta tio n ? A ny approach to the evaluation and im plem entation o f stock enhancem ent o f groundfish in the N o rth east should w o rk w ithin the N ew E ngland G roundfish R einvestm ent P rogram F unding fo r the critical studies needed to evaluate prospects fo r the success o f enhancem ent w ith hatchery-raised fish should be provided from these funds Funding fo r the hatchery p roduction o f ju v en ile fish fo r release into natural ecosystem s should be provided by private sources, including venture capital W e also recom m end the form ation o f a p ublic/private co rporation, the "G u lf o f M aine Stock E nvironm ent C orporation", that w ould perhaps parallel the M ain e G roundfish Study C om m ission W h a t a r e th e o b sta c les to im p le m e n ta tio n ? O ne o f the gravest concerns is that as w e slow ly develop the research rationale, seek funding through the com petitive grants process, and devise an overall p rogram plan, the industry continues to approach collapse Since a coordinated p rogram w ill require funding from a v ariety o f sources, w e will need to w ork in a coordinated and com plem entary fashion w ith m ultiple funding sources, including: the Saltonstall-K ennedy P ro g ram , the N ortheast G roundfish R einvestm ent P rogram , the S ports F ish R estoration A ct, etc C oordination o f m ultiple, distinct funding sources can be v ery com plicated, especially when there is a sense o f urgency T h e cu rren t lack o f a m eans to rapidly and inexpensively determ ine the origin o f fish and to distinguish betw een w ild and raised fish is a significant obstacle to success T h e only m eans o f m aking stock enhancem ent through aquaculture pro fitab le fo r individual com panies is through retention o f ow nership o r paym ent for released fish T h e re is currently no m echanism o r po licy that w ould m ake this possible W e w ill also eventually req u ire the assistance o f N O A A funding fo r replacem ent o f industry funding fo r the initial investm ent phases W h a t re s o u rc e s a r e n e e d e d ? A stock enhancem ent effo rt w ill require a m arriage betw een N O A A and industry, both to pro v id e funding and to p u t the program into effect W e w ould hope fo r increased attention to this p a rticu la r effort from N O A A /N M FS W e also hope that U SD A funding w ill be available fo r som e o f the aquaculture aspects o f this pro g ram 12 W e w ill also need to pursue legislative support fo r such a program I f early research suggests that stock enhancem ent o f groundfish is econom ically feasible, w e m ight expect support from the N ew England C ongressional delegation W h o s h o u ld b e in v o lv ed ? T he players in the program m atic effort should include the private industry lobby, the governm ental scientific sector, and N O A A ’s new O ffice o f Sustainable D evelopm ent (John B ullard, D irector) 13 C o d S ea R a n c h in g : Id e n tify in g th e N e x t S te p s M E E T IN G A G E N D A O ctober 26th, 1993 at T h e N ew England C enter, U N H , D urham , N H 8:30 R egistration / C offee and Pastries 9:00 W elcom e; D r A nn B ucklin, D irector, U N H Sea G rant P ro g ram 9:15 R esults o f the M asfjorden E xperim ent in C od E nhancem ent, N orw ay; G eir D ahle, D eputy H ead , A quaculture D epartm ent, Institute o f M arine R esearch, B ergen, N orw ay 10:15 C om parative R esults o f Stock E nhancem ent in V arious Species; D r H u n t H ow ell, P rofessor o f Z oology, U niversity o f N ew H am pshire, D u rh am , N H 10:45 C O F F E E B R EA K 11:00 Industry P erspective: H ow W e G ot H ere and W here W e N eed T o Go; N orm an Stavis, P resident, N orth C oast Seafoods, Boston, M A 11:30 R esearch P erspective o f C od R anching: Studies o f E arly L ife H istory; D r L a rry Buckley, U R I/N O A A C ooperative M arine E ducation and R esearcN dfragaaneft, R I 12:00 Sea R anching: T he M aine A pproach; D r R ichard L angton, M aine D epartm ent o f M arine R esources, B oothbay H arb o r, M E 12:30 L unch at th e N ew England C enter (catered) 1:30 Plenary Session: W hat D o W e N eed to K now to Proceed? :3 W hat A re the N ext Steps? (F orm ation o f W orking G roups) 3:00 C O F F E E B R EA K 4:00 Sum m ary o f Strategic Plan(s) (W orking G roup R eports) 5:00 A djourn S p o n s o re d b y the N e w H am pshire / M aine S e a G ran t Program Q u e stio n s? Call UNH S e a G rant (6 -7 -1 ) or A nn Bucklin ( -8 -0 2 ) 14 A B ST R A C T O F P R E SE N T A T IO N R e su lts o f th e M a s fjo rd e n E x p e rim e n t in C o d E n h a n c e m e n t, N o rw a y G eir D ahle, D eputy H ead o f the A quaculture D epartm ent Institute o f M arine R esearch B ergen, N O R W A Y N orw egian cod sea ranching program s have provided valuable inform ation fo r future, sim ilar program s in different habitats o r areas B iological and ecological know ledge about the release sites, as w ell as know ledge about physical and chem ical conditions is vital to be able to m easure the im pact o f release and to optim ize release strategies Surveys o f the release and grow -out areas before and during a restocking or enhancem ent program is a key factor in the developm ent o f ecologically- and econom ically-based sea ranching p rogram s Several factors (including price and quality o f juveniles, and the value o f the recaptured fish) w ill determ ine w hether sea ranching can be econom ically feasible T h ere is usually a close correlation betw een the quality o f the juveniles and their prospects fo r survival T he quality o f the juveniles should then be a second key factor in the developm ent o f a sea ranching program I f the aim o f the release program is a "put and take" fishery, it is n ot essential that the reared individuals resem ble w ild conspecifics H ow ever, strict dem ands m ust be m ade o f the individuals that are to be released in an enhancem ent o r restocking program T he consequences o f releasing genetically divergent individuals w ith unnatural behaviors m ay result in reduced survival rates I f the aim o f the release program is to enhance recruitm ent to overfished populations, the released anim als m ust also have natural spaw ning behavior A rtificial rearing environm ents w ill produce individuals that differ in som e traits from w ild populations, but the deviations from norm al behavior and phenotype appear less in cod produced in natural sea w ater ponds com pared to fish reared in com m ercial plastic or concrete pens 15 ABSTRACT OF PRESENTATION Comparative Results of Stock Enhancement in Various Species Hunt Howell, Professor of Zoology University of New Hampshire Durham, NH Declining natural populations, combined with advances in finfish aquaculture techniques, have caused a resurgence of interest in stock enhancement Research associated with enhancement is both widespread and diverse At present, there are well over 50 species being evaluated, and studies are being conducted in a dozen or more countries Two largely government-supported stock enhancement programs in the United States, the red drum efforts in the Gulf of Mexico and the striped bass efforts along the eastern seaboard and Gulf of Mexico, were discussed Approximately 15 million juvenile fish are released each year in both of these programs Although natural populations of both species have risen since the implementation of stocking, there are insufficient data to demonstrate that these increases have resulted from the enhancement efforts Indeed, given the very high mortality of the stocked fish, it is probable that very strict fisheries regulations, imposed along with the enhancement programs, may have resulted in the observed population increases A third enhancement program, involving the Japanese flounder, was discussed This effort is being supported by the Japanese government and the fishing industry and has been quite successful The program’s success has resulted from relatively low production costs, high survival rates of stocked fish, high market value of this species, and very restrictive harvesting regulations A broad overview of stock enhancement efforts to date leads to the conclusion that enhancement is technically feasible for many species, but that much more research is needed before it becomes economically feasible for most species Lastly, it was noted that stock enhancement cannot, at least in the near future, be considered as an alternative to increasingly restrictive fisheries management plans 16 ABSTRACT OF PRESENTATION Industry Perspective: How We Got Here and Where We Need To Go Norman Stavis, President Northcoast Seafoods Boston, MA Abstract not yet available 17 ABSTRACT OF PRESENTATION Research Perspective of Cod Ranching: Studies of the Early Life History Larry J Buckley URI/NOAA CMER Program University of Rhode Island Narragansett, RI The Early Life History Investigation at the Northeast Fisheries Science Center, Narragansett Laboratory, has been spawning and rearing marine fishes in captivity for over two decades The eggs and larvae produced are used for experimental studies of the effects of natural and anthropogenic variability on growth and survival The group has spawned and reared to the juvenile stage many of the important demersal and pelagic species found in the Northwest Atlantic, including cod (Gadus morhua), haddock (Melanogrammus aeglefinus), silver hake (Merluccius bilinearis), summer flounder (Paralichthys dentatus), winter flounder (Pleuronectes americanus), yellowtail flounder (.Limanada fer'ruginea), tautog (Tautoga onitis), mackerel (Scomber scombrus), and sand lance (Ammodytes americanus) Characteristics of cod that make the species a good candidate for aquaculture include: 1) the ability to produce viable eggs through most of the year by manipulation of temperature and photoperiod, and 2) good growth and survival at low prey densities (