Aquaculture contributed 43 per cent of aquatic animal food for human consumption in 2007 (e.g. fish, crustaceans and molluscs, but excluding mammals, reptiles and aquatic plants) and is expected to grow further to meet the future demand. It is very diverse and, contrary to many perceptions, dominated by shellfish and herbivorous and omnivorous pond fish either entirely or partly utilizing natural productivity. The rapid growth in the production of carnivorous species such as salmon, shrimp and catfish has been driven by globalizing trade and favourable economics of larger scale intensive farming. Most aquaculture systems rely on low/uncosted environmental goods and services, so a critical issue for the future is whether these are brought into company accounts and the consequent effects this would have on production economics. Failing that, increased competition for natural resources will force governments to allocate strategically or leave the market to determine their use depending on activities that can extract the highest value. Further uncertainties include the impact of climate change, future fisheries supplies (for competition and feed supply), practical limits in terms of scale and in the economics of integration and the development and acceptability of new bio-engineering technologies. In the medium term, increased output is likely to require expansion in new environments, further intensification and efficiency gains for more sustainable and cost-effective production. The trend towards enhanced intensive systems with key monocultures remains strong and, at least for the foreseeable future, will be a significant contributor to future supplies. Dependence on external feeds (including fish), water and energy are key issues. Some new species will enter production and policies that support the reduction of resource footprints and improve integration could lead to new developments as well as reversing decline in some more traditional systems.

This review paper examines the structure of the EU aquaculture sector, the contribution it makes to the EU economy and the policy environment for past and future development. The primary analysis uses statistical data from the Food and Agriculture Organization of the United Nations which has been re-categorized according to species groups established by the European Aquaculture Technology and Innovation Platform (EATiP) and by culture system type using expert knowledge. Additional data sources for the analysis include the European Market Observatory for Fisheries and Aquaculture Products (EUMOFA) and the European Commission Scientific, Technical and Economic Committee for Fisheries. EU aquaculture production was 1.34 million tonnes in 2012 with a first sale value of €4.76 billion. Shellfish comprised 45 % by volume and 28 % by value; marine fish 30 % by volume and 53 % by value; and freshwater fish 25 % by volume and 19 % by value. The total production volume has actually fallen slightly from 1.4 million tonnes in 2000, whilst the value has increased significantly from 2.79 billion in 2000, mainly due to a growth in Atlantic salmon production. Five countries accounted for around 78 % of the direct output value of EU aquaculture in 2012, the UK, France, Greece, Italy and Spain. Around 50 % of the direct output value was generated using marine cage systems (28 % by volume), whilst less than 3 % of value was generated in recirculated aquaculture systems (<1.5 % by volume). Around 5 % of value was contributed by extensive to semi-intensive inland and coastal pond systems. STECF (2014) estimates there are between 14,000 and 15,000 aquaculture enterprises in the EU employing around 80,000 people, approximately 40,000 full-time equivalent (FTE). The greatest number of jobs (FTE) is provided by the freshwater pond and suspended shellfish sectors due to much lower productivity figures. This could be seen as a social benefit in rural and coastal regions, but corresponding low wages could also discourage young entrants to the industry and lead to dependency on migrant workers. Where efficiencies can be improved through capital investment there is likely to be significant scope for consolidation of ownership as can be observed in the marine fish sector. The output from aquaculture has to find a place within the wider fish and seafood market where volumes are generally inversely related to price. The potential growth of the sector is therefore constrained both in relation to the overall market and with respect to competition from substitute products. These include product from EU capture fisheries as well as imports from third countries (sourced from aquaculture and capture fisheries). Whilst interactions between individual products can be hard to demonstrate, any increase in production costs is likely to lead to lower output volumes, whilst improvements in production efficiency can lead to increased output volumes. With around 60 % of EU fish and seafood supply obtained through imports, and little prospect of increasing outputs from capture fisheries, EU policy is generally supportive of sustainable aquaculture development for reasons of food security and economic development. The underlying basis for this is maximizing the quality and health benefits of farmed products, whilst improving resource efficiency and minimizing impacts. This is expressed through funding support for research and technological development and structural funds to the fisheries and aquaculture industries. However, constraints to growth also exist in the form of regulatory barriers and costs that reduce industry competitiveness. Changing market requirements are also a factor. Prospects for growth have been assessed using the results of EATiP stakeholder workshops combined with the analysis of the sector by system type. These suggest an overall increase in production by 55 % is possible by 2030 based mainly on expansion of marine cage-based farming using larger systems in more exposed sites and similarly shellfish farming using larger-scale suspended systems. Expansion of recirculated aquaculture systems appears likely based on entrepreneurial and European policy for research and technological development activity, although constrained by currently low competitiveness.

The COVID-19 pandemic is a shock affecting all areas of the global food system. We tracked the impacts of COVID-19 and associated policy responses on the availability and price of aquatic foods and production inputs during 2020, using a high frequency longitudinal survey of 768 respondents in Bangladesh, Egypt, India, Myanmar, Nigeria. We found the following: (1) Aquatic food value chains were severely disrupted but most effects on the availability and accessibility of aquatic foods and production inputs were short-lived. (2) Impacts on demand for aquatic foods, production inputs, and labor have been longer lasting than impacts on their supply. (3) Retail prices of aquatic foods spiked briefly during March-May 2020 but trended down thereafter, whereas prices of production inputs rose. These trends suggest a deepening ‘squeeze’ on the financial viability of producers and other value chain actors. (4) Survey respondents adapted to the challenges of COVID-19 by reducing production costs, sourcing alternative inputs, diversifying business activities, leveraging social capital, borrowing, seeking alternative employment, and reducing food consumption. Many of these coping strategies are likely to undermine well-being and longer-term resilience, but we also find some evidence of proactive strategies with potential to strengthen business performance. Global production of aquatic food likely contracted significantly in 2020. The importance of aquatic food value chains in supporting livelihoods and food and nutrition security in Asia and Africa makes their revitalization essential in the context of COVID-19 recovery efforts. We outline immediate and longer-term policies and interventions to support this goal.

SUMMARY: Aquaculture development over the past 50 years has been facilitated largely by the application of science and the introduction of new technologies. Although aquaculture is a very diverse sector in products, production systems and business structures, almost every activity has benefited from scientific advances. However, the impact of technological progress is most clearly seen where there has also been substantial industrial consolidation. This has provided greater capital resources for investment and a more attractive market for suppliers of innovations to target. It has also encouraged consolidation of research capacity and stronger articulation between private and publicly funded research efforts. Further development along current trajectories is possible through advances in genomics, information technology, materials science and other areas. However, there may also be substantial disruptions if, for instance, energy becomes much more expensive, or large mono-cultures are impacted by climate change. Substantial change could also be driven by policies that aim at bringing realistic external costs of environmental services into company accounts. Research into more resilient aquaculture systems that comply more with ecological than financial accounting principles is under way, but will require substantial development to meet the challenges of rising food needs and social aspirations.

The development of fishery technologies supports food sustainability to achieve a steady supply of fish and fishery products. However, the priorities for research and development (R&D) in fishery technologies vary by region due to differences in fish resource availability, environmental concerns, and consumer preferences for fishery products. This study examines trends in fishery technology innovations using data on patents granted as an indicator of changing R&D priorities. To clarify changes in R&D priorities, we apply a decomposition analysis framework that classifies fishery technologies into three types: harvesting, aquaculture, and new products. This study mainly focuses on China, Japan, and Korea as the major fishing countries in the north-east Asia region. The results show that the number of fishery technology patents granted increased between 1993 and 2015; in particular, the number of aquaculture patents granted has grown rapidly since 2012. However, the trend in Japan was the opposite, as the apparent priority given to aquaculture technology innovation decreased between 1993 and 2015. The trends and priority changes for fishery technology inventions vary by country and technology group. This implies that an international policy framework for fishery technology development should recognize that R&D priorities need to reflect diverse characteristics across countries and the technologies employed.