PROSPECTS FOR ESTABLISHING A FISH FARMING NETWORK IN THE RUSSIAN ARCTIC

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