Chapter 4 The interactions of aquaculture systems and the environment 47 4.1 Classification of systems and impacts 47 4.2 An overview of impacts of aquaculture systems 49 4.2.1 Introduction 49 4.2.2 Site requirements 49 4.2.3 Water requirement 51 4.2.4 Nutrient, feed and energy requirements 52 4.2.5 Stock requirements 52 4.2.6 Nutrient waste discharges 53 4.2.7 Chemicals and drugs 53 4.2.8 Interactions with wild stocks and wildlife 54 4.3 Potential indicators of sustainability in aquaculture systems 54 SECTION 2 AQUACULTURE DEVELOPMENT CASE STUDIES 57 INTRODUCTION 57 Chapter 5 Case study 1: Environmental impacts of intensive trout production: Sustainability in the producers perspective. 59 5.1 Introduction 59 5.2 Background 59 5.3 The system and its indicators 62 5.3.1 System description 62 5.3.2 Predicting and modelling impacts 65 5.4 Environmental impacts of the fish production system 66 5.4.1 System interactions and impact predictions 66 5.4.2 The annual cycle and short term changes 69 5.4.3 Long term trends 69 5.5 Feedback from the environment to fish production 72 5.5.1 Annual trends and risks 72 5.5.2 Short term fluctuations and risks 76 5.6 Management implications of environmental changes 79 5.6.1 Short term changes 79 5.6.2 Long term viability of the operation 82 5.7 Sustainability perspectives 84 5.7.1 Commercial and environmental sustainability 84 5.7.2 The issue of wider impacts and sustainability 87 5.7.3 The role of indicators 88 5.7.4 The role of models and classification 90 5.8 Overview of sustainability issues 92 iv Chapter 6 Energy valuation as a sustainability indicator 94 6.1 Introduction 94 6.2 Resource use assessment: Energy as a numeraire 95 6.2.1 Basic concepts, energy sources and systems boundaries. 95 6.2.2 The rationale for energy as a measure of value 98 6.2.3 Approaches to energy analysis 100 6.3 Industrial energy analysis of aquaculture systems 103 6.3.1 Background 103 6.3.2 Methods 103 6.3.3 Results 104 6.3.4 Comparison with other livestock 112 6.4 Analysis of applicability to sustainability assessment 114 6.4.1 Introduction 114 6.4.2 IEA: methodological analysis 115 6.4.3 The potential role of energy analysis. 118 6.5 Ecological Energy analysis for renewable resource use assessment 121 6.6 Energy analysis at the macro-economic level 123 6.7 Summary and Conclusion 124 Chapter 7 Sustainability at the development level: aquaculture in rural communities. 126 7.1 Introduction 126 7.2 Case Study 3: Small scale aquaculture development in southern Malawi 128 7.2.1 Background 128 7.2.2 Methodologies 129 7.3 Results of the appraisal process 132 7.3.1 Introduction 132 7.3.2 Conclusions from model fish farming operations 132 7.3.3 Summary of the project appraisal 135 7.3.4 The post-appraisal outcome 139 7.4 A post-hoc analysis of the project process 143 7.4.1 Introduction 143 7.4.2 Assessing farm level potential 144 7.4.3 Assessing project level potential 145 7.4.4 The limitations of the appraisal and project process 147 7.5 Summary and Conclusions 154 v SECTION 3 ANALYSIS OF GENERIC APPRAISAL METHODS 156 INTRODUCTION 156 Chapter 8 Approach to the analysis of appraisal methods 159 8.1 Focus of the analysis 159 8.2 Criteria for appraisal methods 161 Chapter 9 Analytical based methods 163 9.1 Financial and economic appraisals 163 9.1.1 Background 163 9.1.2 Use of economic approaches in valuing environmental impacts of aquaculture 165 9.1.3 Application to sustainability assessment 168 9.2 Environmental impact assessment (EIA) methods 171 9.2.1 Background 171 9.2.2 The process and it's components 172 9.2.3 El analysis: strengths and weaknesses of different approaches 174 9.2.4 EIA-based decision making (the art of EIA) 176 9.2.5 ETA Applications to aquaculture 177 9.2.6 Application to sustainability assessment 180 9.3 Resource use assessment: Energy and Ecological footprint analysis 184 9.3.1 Background and approach 184 9.3.2 Applications to sustainability analysis 186 9.4 Product Life cycle assessment 189 Chapter 10 Farming systems and participatory appraisal methods 191 10.1 Introduction 191 10.2 Farming systems research and development 192 10.3 Participative Approaches (Appraisal, Research and Extension) 194 10.4 Farming systems and participative approaches in aquaculture development 199 10.5 Applications of systems and participatory approaches to assessing sustainability 203 vi Chapter 11 A strategic analysis of methods 207 11.1 Introduction 207 11.2 Conflicts between specialisation, scope and stakeholder involvement 208 11.3 Overview of features and level of application. 210 11.4 Building on existing methodologies 213 SECTION 4 AN APPROACH FOR ASSESSING SUSTAINABILITY OF AQUACULTURE DEVELOPMENT 215 Chapter 12 A soft systems framework for sustainability assessment 215 12.1 Introduction 215 12.2 The assessment process 217 12.2.1 Introduction 217 12.2.2 Screening and scoping the assessment 218 12.2.3 Implementation of the sustainability assessment 221 12.3 Use of the information in the decision making process 223 Chapter 13 Assessment in practice: illustrations for different technologies and scales 225 13.1 Introduction 225 13.2 Salmon farming in Scotland 226 13.2.1 Overview 226 13.2.2 Sustainability analysis: potential conclusions for a sectoral study 228 13.2.3 Conclusions 233 13.3 Mussel farming in Scotland 234 13.3.1 Overview 234 13.3.2 Sustainability analysis: potential conclusions of a sectoral study 235 13.4 Shrimp farming 239 13.4.1 Overview 239 13.4.2 Sustainability analysis: potential conclusions for a sectoral study 241 vii 13.5 Small scale rural aquaculture 243 13.5.1 Assessment of the production activity 243 13.5.2 Assessment at the development project level 245 13.6 Costs and practicalities of implementing of sustainability assessment into the decision making process 246 Chapter 14 Summary and Conclusion 248 14.1 Overview of issues and objectives 248 14.2 Overview of the assessment process. 249 14.3 Further research and prospects for practical application of the model 251 REFERENCES 253 ANNEXES Annex 1 Season changes in water quality in Loch Fad 268 Annex 2 Methods for the Financial and energy analysis of aquaculture production systems 276 Annex 3 Energy conversion values applied to case studies 285 Annex 4 Financial and energy analysis: intensive salmon production 298 Annex 5 Financial and energy analysis: intensive finfish culture, sea cages, Indonesia 307 Annex 6. Financial and Energy analysis: semi-intensive pond culture of Tilapia in rural Africa. 312 Annex 7 Financial and energy analysis: long line mussel culture. 317 viii LIST OF TABLES Table 1.1 World aquaculture production statistics and forecasts 3 Table 1.2 Classification of aquaculture technologies 4 Table 2.1 Payoff matrix for technological optimism vs. scepticism 22 Table 2.2 The Sustainability Spectrum 24 Table 2.3 Sustainable development: Operational Principles 25 Table 3.1 Proposed Framework and list of Indicators of UNSTAT, 1993 35 Table 3.2 A few Indicators of Sustainable Development 36 Table 3.3 Policy Orientated Indices Suggested by Earthwatch 38 Table 3.4 Pressure- state - response (PSR) framework of OECD, 1993 38 Table 3.5 The 'hard' (systematic) and 'soft' (systemic) traditions of thinking compared 44 Table 4.1 Potential indicators of sustainability in aquaculture developments 55 Table 4.2 Key features of sustainability for the assessment process 56 Table 5.1 Potential indicators for assessing commercial sustainability 64 Table 5.2 Fresh water body classifications 66 Table 5.3 Modelling allowable fish production in loch Fad for specified water quality criteria. 68 Table 5.4 Water quality in Loch Fad: summary data 1982-1986 70 Table 5.5 Predicting potential oxygen depletion following a collapse in the algal bloom. 77 Table 5.6 Cost analysis for stocks received from July 1982 to June 1983 80 Table 5.7 Proposed water quality criteria for different uses 91 Table 6.1 Case study summary: energy analysis of aquaculture systems 105 Table 6.2 GER of a range of livestock production systems 112 Table 6.3 Comparative efficiency of food conversion in livestock 123 Table 7.1 Cost and revenue assumptions for smallholder case studies 131 Table 7.2 Model 0.05ha Smallholder fish farm 133 Table 7.3 Model 0.01 ha Smallholder fish farm 134 Table 7.4 Predicted potential for aquaculture development 136 Table 7.5 Summary of base case project costs 137 Table 7.6 Summary of Cost-Benefit analysis for the base case project 137 Table 7.7 Summary of cost benefit analysis of alternative project options 138 ix Table 7.8 Perspectives on the problem of aquaculture development in Africa 149 Table 8.1 A selection of methods or approaches for project assessment 160 Table 9.1 ETA: an outline of main approaches and features 173 Table 10.1 Principles of RRA and PRA 196 Table 11.1 Overview of assessment methods for aquaculture development 211 Table 13.1 Sustainability features analysis: salmon farming in Scotland 229 Table 13.2 Sustainability features analysis: mussel farming in Scotland 237 Table 13.3 Sustainability features analysis: intensive, semi-intensive shrimp farming 242 Table 13.4 Sustainability features analysis: smallholder tilapia farming 245 Annex 2. Table 1. Glossary for financial and energy models 284 Annex 3. Table 1 Summary of Energy Conversion Values used in Case Studies 286 Annex 3. Table 2 Energy costs of manufactured salmon feed 292 Annex 4. Table 1. Financial and energy analysis of intensive salmon production 303 Annex 5 Table 1 Financial and energy analysis of intensive finfish culture in sea cages, Indonesia 311 Annex 6. Table 1 Financial and Energy analysis of semi-intensive pond culture of Tilapia 316 Annex 7. Table 1 Financial and energy analysis of long line culture of marine mussels 321 x LIST OF FIGURES Figure 1.1 Structure of the thesis 8 Figure 2.1 Two dimensional section through phase space for earth 18 Figure 2.2 The economic system as an open subsystem of the ecosystem 18 Figure 2.3 Sustainable development as a process of trade-offs between subsystem objectives 20 Figure 2.4 First order relationships among natural capital, human-made capital and cultural capital 20 Figure 3.1 Capital and activity systems as a focus for sustainability assessment methods 31 Figure 3.2 Societal and ecosystem boundaries 46 Figure 4.1 Classification of impacts of aquaculture systems 48 Figure 4.2 Classification of aquaculture systems according to land, water, and other inputs and outputs 48 Figure 5.1 Loch Fad 60 Figure 5.2 The aquaculture system comprising the business system and the loch ecosystem. 63 Figure 5.3 Fish production -Aquatic ecosystem interactions 67 Figure 5.4 Seasonal changes in water quality and mortalities, 1982 73 Figure 5.5 Seasonal changes in water quality and mortalities, 1983 74 Figure 5.6 Mortalities in relation to time of stocking 1982/1983 75 Figure 5.7 The influence of wind on water quality at the cage site 78 Figure 5.8 Estimated returns 1982/83 81 Figure 5.9 Estimated returns 1985/86 81 Figure 5.10 Waste inputs and commercial risk 86 Figure 6.1 System boundaries in global energy and process analysis 96 Figure 6.2 Natural and Economic systems involved in intensive salmon production 102 Figure 6.3 Sensitivity analysis for financial and energy costs of salmon production 107 Figure 6.4 Sensitivity analysis for financial and energy costs of mussel production 111 xi Figure 11.1 Relationship between specialisation, scope and participation in assessment methods 209 Figure 12.1 Screening and scoping for sustainability assessment 219 Figure 12.2 The sustainability assessment process 222 Figure 13.1 Sustainability features diagram: intensive salmon farming 227 Figure 13.2 Sustainability features diagram: mussel farming 236 Figure 13.3 Sustainability features diagram: shrimp farming 240 Figure 13.4 Sustainability features diagram: smallholder tilapia farming 244 Annex 1 Season changes in water quality in Loch Fad 268 Annex 1. Figure 1 Temperature 268 Annex 1. Figure 2 Chlorophyll 'a' 269 Annex 1. Figure 3 Transparency 270 Annex 1. Figure 4 Dissolved Oxygen 271 Annex 1. Figure 4 (cont) Dissolved Oxygen 272 Annex 1. Figure 6 Ammonia 274 Annex 1. Figure 7 Nitrite 275 Annex 1. Figure 8 Dissolved Phosphorus 276 xii ACRONYMS and ABBREVIATIONS Terminology Fish farming and environmental quality measures CC Cultural Capital GDP Gross Domestic Produce BKD Bacterial Kidney Disease GNP Gross National Produce BOD Biological Oxygen Demand HMC Human made Capital Chl 'a' Chlorophyll 'a' LDC Less Developed Country DO Dissolved Oxygen NC Natural Capital DP Dissolved Phosphorous NNC Non renewable Natural Capital ERM Enteric Redmouth Disease RNC Renewable Natural Capital FCR Food Conversion Rate TCO Technical Cooperation officer Phosphorus TOR Terms Of Reference PKD Proliferative Kidney Disease VSO Voluntary Service Overseas SGR Specific Growth Rate Analytical methods/ terminology Organisations CBA Cost Benefit Analysis DoF Department of Fisheries CEA Cost Effectiveness Analysis EC European Community EPA Environmental Protection agency EA Energy Analysis FAO United Nations Food and ECCO Enhanced Carrying Capacity Agricultural Organisation Options GoM Government of Malawi EFA Ecological Footprint Analysis HIDB Highlands and Islands Development EIA Environmental impact Board Assessment LGMB Local Government Management EIS Environmental Impact Statement Board FSR&D Farming Systems Research ODA United Kingdom Overseas and Development Development Administration GER Gross Energy Requirement GIS Geographic Information Systems IUCN International Union for the IEA Industrial Energy Analysis Conservation of Nature IRMP Integrated Resource Management OECD Organisation for Economic Planning Cooperation and Development IRR Internal Rate of Return UNCED LCA Life Cycle Assessment United Nations Conference on MCA Multi-Criteria Analysis Environment and Development NPV Net Present Value (1992) PA Participatory Appraisal WCED World Commission on PRA Participatory Rural Appraisal Environment and Development ROT Return on Investment RRA Rapid Rural Appraisal SCBA Social Cost Benefit Analysis SIA Social Impact Assessment