Optimal Salmon Production: Producing Smolt Under Uncertainty
The salmon farming industry is shifting from an entrepreneurial spirit towards industrialization and cost efficiency. Large players are purchasing the small players,
and the industry is consolidating. Optimization is therefore becoming more relevant,
but little academic work has been done on the freshwater part of the value
This thesis presents a linear stochastic programming model that minimizes the total
expected costs related to smolt production. One of its innovations is a linear
formulation using SOS2, enabling water temperature to be a decision variable. The
main uncertainty, freshwater intake temperature, is modeled through the use of scenarios,which were generated using a seasonal AR(1)-model. Testing and feedback
sessions with biologists were conducted to ensure model quality.
The model was applied to two case studies involving the Marine Harvest freshwater
facility at Slørdal, Sør-Trøndelag. The first case investigates a typical two year production plan, while the other explores the production of 500 grams smolts, which
is a new product. These case studies have yielded three core insights. First, they
indicate that optimization can have a significant impact on the total costs. A typical
two year production plan at the Slørdal facility experienced a total cost reduction
of 11%. Second, smolt orders can be fulfilled with reduced water heating compared
to today?s praxis if the fry are deployed earlier. Third, 500 grams smolt should be
delivered during the winter to exploit the natural temperature seasonalities. Smolt
delivered during the winter has significantly lower cost and production time compared
to other seasons.
Place, publisher, year, edition, pages
Institutt for industriell økonomi og teknologiledelse , 2013. , 123 p.
IdentifiersURN: urn:nbn:no:ntnu:diva-25161Local ID: ntnudaim:9488OAI: oai:DiVA.org:ntnu-25161DiVA: diva2:733302
Tomasgard, Asgeir, Professor