PROSPECTS FOR ESTABLISHING A FISH FARMING NETWORK IN THE RUSSIAN ARCTIC

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Olga V. Tarasova1, 2, Daria Yu. Anderson3

1Novosibirsk State University, Novosibirsk, Russia, tarasova.o.vl@gmail.com, ORCID 0000-0003-3523-7641

2Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences, Novosibirsk, Russia

3Trevelier LLC, Moscow, Russia, dashhand.01@mail.ru

 

Abstract. Fostering aquaculture aligns with key priorities for Arctic development in Russia, encompassing ecosystem sustainability, job creation, Northern import reduction, enhanced nutritional value of local products, support for small businesses, and advancement of high-tech industries. This study aims to determine the best configuration for a new network of Arctic fish farms in the Russian Arctic. To comprehend the potential of Arctic fish farming, the study starts from identifying feasible farm locations based on an analysis of demand in key Arctic settlements. Criteria-based assessments identified Pevek, Sabetta, Dudinka, Tiksi, Tazovsky, Yamburg, Kharasavey, and Khatanga as potential locations. A comparative economic analysis evaluates logistic options for networks featuring three to eight fish farms in conditions of limited infrastructure.  The study determines the attending vessel location (Novosibirsk) and the genetic breeding center location (Pevek). Transportation schemes for feed, fry, and breeding material are developed in accordance with production process requirements. The study proposes the Arctic char as the focus of commercial cultivation at the simulated facility. Economic and mathematical modeling is employed to forecast the effects of creating networks in two configurations at the business, regional, and national levels. The findings reveal that a network of three facilities is more profitable for investors, while  a network of eight facilities yields greater social significance with higher fiscal, social, and ecological effects. The quantitative estimates provided serve as a foundation for investment decisions in the development of fish farming in the Russian Arctic.

Keywords: commercial fish farming, Arctic, location, logistics, transport costs, business network configuration, effects

Acknowledgments: this article was prepared within the research project No. 121040100262-7 conducted at the Institute  of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences. We would like to thank S. M. Rusyaev, PhD, Lead Researcher at the Magadan Branch of VNIRO for his help and expertise in performing modeling  and calculations and for giving feedback on the research results.

For citation: Tarasova O. V., Anderson D. Yu. Prospects for establishing a fish farming network in the Russian Arctic.  Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2023,  no. 4, pp. 175–189. doi:10.37614/2220-802X.4.2023.82.012.

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