## (Differences in the business management of yellowtail aquaculture and red sea bream aquaculture in recent years)

Both fish species have a cost structure where the feed and seed costs account for a large proportion of the total cost. The profit margin is structurally narrow, so a fall in the unit price directly leads to a price below cost.

Meanwhile, the business management statuses of yellowtail aquaculture and red sea bream aquaculture have been contrastive in recent years. Yellowtail aquaculture has continued to be in the red due to a drop in the unit price associated with a large production volume, while red sea bream aquaculture has turned into the black due to a rise in the unit price associated with a decline in the production volume.

## (Comparison of fish aquaculture in Japan and Atlantic salmon aquaculture in Norway)

Comparing yellowtail, red sea bream, and coho salmon, which are the major cultured fish species in Japan, and Atlantic salmon in Norway, the Norwegian Atlantic salmon has more advantageous characteristics in terms of the conversion coefficient, aquaculture period and stocking period, which also are reflected in business management.

[Comparison between yellowtail, red sea bream, coho salmon and Norwegian Atlantic salmon]

Yellowtail	Red sea bream	Coho salmon	Norwegian Atlantic salmon
Conversion coefficient	2.8	2.7	1.5	1.2
Culturing period	24 months or longer	20 months or longer	5 months or longer	14 months or longer
Stocking period	March-April	April-July	November	Year-round
Production cost per kg (yen)	Feed cost	(Individual operators)	(Corporate operators)	(Individual operators)	(Corporate operators)	-	198
455	568	450	435	-
Seed cost	129	71	67	80	-	36
Others	96	57	166	262	-	122
Total	680	696	683	777	-	356

Source: Compiled by Fisheries Agency based on MAFF, Annual Statistics on Fishery and Aquaculture Production and Statistical Survey on Fishery Management, Marine Harvest, Salmon Farming Industry Handbook 2013, etc.

## (Trends of Fish Meal Prices and Countermeasures)

O Fish meal, which is the main ingredient of compound feed for aquaculture, is mostly imported. Since fish meal is made of mass-caught migrating fish such as anchovy, the resource level of which changes dramatically, its production volume fluctuates considerably in line with such changes. Fish meal is not only used for fish aquaculture but also for pig farming and poultry farming, and its price has risen due to global demand growth in recent years.

O Since FY2010, a project for building a safety net for fishery business management has been implemented whereby a fisher and the national government contribute funds in advance at a fixed percentage, and when the price of compound feed rises beyond a specific level, a subsidy is provided to the fisher from that reserve. The participation rate is 64% and the number of participants is 749 (as of the end of March 2014).

[Changes in the import price of fish meal]

Source: Compiled by the Fisheries Agency based on Ministry of Finance, Trade Statistics

[Changes in the total production volume of Peruvian anchoveta and Murphy's mackerel in Peru and Chile and

Source: FAO, Fishstat (Capture production, Commodities production and trade)

## (Business management status and the cost structure of scallop and laver aquaculture)

In scallop aquaculture (hanging culture), the cost for the work to ear-hang the scallops that were in nets and the work to detach them from the lines and the cost for the machine to hang the scallops deep under the sea are large. Indeed, the cost for labor and machines including fishing vessels (repair cost and depreciation cost) accounts for around 40% of the total cost. Although fishery earnings have remained in surplus, they have been declining every year.

In laver aquaculture, aquaculture operators process the harvested laver to a certain extent before selling them. Therefore, the fuel cost, repair cost and depreciation cost for machines, such as large drying machines required for processing, constitute 42% of the total cost. The repair cost has been on an increase, suggesting that operators are inclined to use existing machines for a long period of time while repairing them as needed. Fishery earnings are in the black.