An assessment of the environmental impact and economic viability of a UK based Scallop Farm

Abstract

The UK scallop capture fishery’s use of dredging is, at times, both environmentally damaging and economically unsustainable. With demand for seafood continuing to rise, scallop farming may be able to offer an alternative source of supply that addresses increasing consumer concerns over sustainable food production and traceability. This study is based the research conducted on the UK’s first fully integrated scallop farm and hatchery in Torbay Devon. The research focuses on two separate aspects of the scallop farm: its ecological impact on the epibenthic and pelagic organisms at the site and surrounding areas and an assessment of the economic viability of the farm. The ecological impact survey monitored species richness, abundance and assemblage composition of sessile sedentary and mobile epifauna over a 3-year period both at the farm and in two control sites adhering to a Before After Control Impact (BACI) design. Data was collected from underwater video footage at each site for statistical analysis. The results confirm that after 3 years species richness and abundance were significantly higher under the scallop farm’s nets and changes in assemblage composition were observed. The economic viability research was based on the creation of a bioeconomic model that incorporated all the capital and operation costs for the set up and running of the scallop farm and extrapolated these into a 10-year plan. The critical success factors of price and survival rates were modelled using a Monte Carlo simulation. The model showed that hypothetical survival rates of between 20-30% combined with a price per scallop of between £1-£1.50 gives a return on investment above an assumed hurdle rate of 8%. Finally, the study explores the opportunity scallop farming has to become a potential disruptor of the existing scallop fishery. It considers the potential role of the scallop farm in fulfilling the criteria of “other effective area-based conservation measures” (OECMs) and its importance as form of sustainable development through the “triple bottom line” (benefits of economic viability, environmental sustainability and positive social outcomes.