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www.innovasjonnorge.no Aquaculture in Iran Prepared by NordOest; Innovation Norway representative in the GCC Region September 2016

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Aquaculture in Iran Prepared by NordOest; Innovation Norway representative in the GCC Region September 2016

1. Iran Key facts about Iran

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1.1 Key Facts

Capital Tehran

Area 1,648,195 km2

Natural Resources Petroleum, natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur

Government Islamic Republic

Head of State Ayatollah Ali Khamenei

Regions 31 provinces divided into 5 regions: Tehran, Isfahan, Tabriz, Kermanshah, Mashhad

Official Language Persian

Population 80.1 million

Working days Saturday - Thursday

Religion Shia Islam

Currency Rial (IRR)

Iran Flag and Emblem The emblem features the

Arabic word Allah

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1.2 Climate

Long, hot, dry summers and short, cool winters Northwest: Cold winters with heavy snowfall and subfreezing temperatures during December and January. Mild spring and fall and dry, hot summers. South: Mild winters and very hot summers with average daily temperatures exceeding 38 °C in July. Precipitation: October – April, 250mm on average in most of the country. 500mm at the higher mountain valleys of the Zagros and the Caspian coastal plain. 1000mm + in the western parts of the Caspian through out the year.

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1.3 Geography

Borders; North-West: Armenia, Azerbaijan North: Caspian Sea North East: Turkmenistan West: Afghanistan, Pakistan South: Persian Gulf, Gulf of Oman East: Turkey, Iraq

Islands: ~43 Elevation Extremes

Lowest: 28m – Caspian Sea Highest: 5,610 m - Mount Damavand

Coastline: 2,440km Iran is a country located in the Middle East. It has a strategic location on the Persian Gulf and Strait of Hormuz, which are vital maritime pathways for crude oil export.

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1.4 Demographics

0-14

15-64

65 and over

Age structure

0-14 15-64 65 and over

Iran has a very young population, with 60% being under the age of 30 and 41% under the age of 25. The ratio between sexes stands at 1.03 males/females. Median age is 29.6 years

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1.5 Economy

Iran was the 3rd largest economy in the Middle East last year (2015). Six years ago, the European Union was one of Iran’s main trading partners, however the sanctions took a heavy toll on trade relations resulting in a decline of 93% on exports to the EU and 72.8% of imports from the EU during 2010-2015. The lifting of sanctions are expected to resume trade relations with old partners. Iran is forming new agreements with countries such as France, India, Australia, South Africa and Pakistan. Iran is now regaining access to frozen foreign assets and previously restricted export markets. This boost will be relatively temporary however if reforms are not put in place to combat inflation, low productivity and a build-up of bad loans. The Central Bank of Iran is currently working to bring inflation down to single digits by next year.

Milad Tower in Tehran houses the World Trade Center

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Iran has a largely controlled economic system in which the central government directs the economy regarding the production and distribution of goods, both directly and indirectly through semi-private entities, some of which are companies linked to the Revolutionary Guard. The exact level of control remains unclear as there is a lack of transparency in the operations of the semiprivate sector. As far as the role of fisheries in its economy, access to the Caspian sea, the Persian Gulf, the Gulf of Oman, the Indian Ocean & many river basins provides Iran the potential to develop excellent fisheries. Weather conditions differ greatly across Iran allowing a range of different types of aquaculture to be practiced.

2010 2011 2012 2013 2014 2015

Inflation; % change 10.1 20.6 27.0 39.5 17.5 13.8

Exchange rate per US$ 10,258.74 10,616.31 12,169.85 18,427.67 25,913.97 29,011.49

GDP % real growth 5.9 3.7 -6.6 -1.9 4.3 2.1

GDP; US% millions 467,582.2 592,037.8 587,484.4 511,253.6 425,780.6 407,774.9

Source: Euromonitor International

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1.6 Iran’s Imports/Exports by product - 2014

Total imports for 2014: $53.8b - Total exports for 2014: $51b

37,2

2,7 1,58 1,23

0,92

Top 5 Imports in Iran – 2014 ($billion)

Crude Petroleum Ethylene Polymers Iron Ore

Alcohols Other Nuts

2

1,31

1,19

1,19

0,92

Top 5 Imports in Iran – 2014 ($billion)

Wheat Rice Corn Soybean Meal Light Fixtures

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1.7 Iran’s Imports/Exports Partners - 2015

UAE

China

South Korea

Turkey

India

Germany

Brazil

Italy

Russia

Switzerland

0 5 10 15 20

Iran’s top 10 Import Partners – 2015 ($billion)

China

India

Turkey

Japan

South Korea

Pakistan

Syria

UAE

Saudi Arabia

Italy

0 5 10 15 20

Iran’s top 10 Export Partners – 2015 ($billion)

1.8 Purchasing habits

Grocery retailing in Iran has maintained a traditional form such as local retail stores and bazaars - approximately 75% of the over 300,000 outlets are small independent grocery stores. Modern supermarkets and hypermarkets have been emerging and expanding in the past two years, especially in Tehran and other main cities like Mashhad, Shiraz and Isfahan. This trend is largely due to urbanisation, a fast change in lifestyles, westernisation and the increase in the number of working women which is driving a demand among the young population for quick and easy meals. This in turn is driving an increase in sales in processed seafood and meat which was recorded at a volume growth of 6% in 2015.

The Grand Bazaar of Tehran - Source

These stores are creating a wider distribution network for higher volumes and value sales seafood, particularly for seafood requiring storage and display in freezers and refrigerators. Such growth is changing shopping behavior as consumers are enjoying the benefits of shopping all products in one place rather than pay frequent visits to different traditional grocery stores. Modern grocery retailers have the ability to purchase higher volumes at lower prices passing such cost savings to consumers. Pricing of products is the main decision factor for most consumers in Iran. Standard or economy quality is considered satisfactory and as such will be more popular for middle and lower income households.

% Value 2010 2011 2012 2013 2014 2015

Modern Grocery Retailers 10.30 11.20 11.70 13.00 13.60 14.30

Traditional Grocery Retailers 89.70 88.80 88.30 87.00 86.40 85.70

Sales of Processed Seafood and Meat by Retailer type: % Value 2010-2015

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

2. Seafood in Iran

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At the end of the last Iranian year (ending March 2016), Iran produced over 1 million tons of seafood, its highest production levels so far. 82,000 tons of seafood were exported with a value of $350 million, 15% more than the previous year. Out of this, 13,000 tons were shrimp. The rest consisted of sturgeon and caviar, shrimp and other fishes. Vietnam and the UAE were the main destinations for Iranian shrimp. 1.5 tons of caviar was produced, over 65% of which was exported to Japan, Germany, the UAE, Britain, Italy, Belgium, South Korea and Norway. The total value of such exports was $1.7 million. Approximately 95% of catches come from Southern waters, the remaining comes from catches in the Caspian Sea (2013). Tuna and tuna-like species are a major component in large pelagic fisheries in Iran and one of the most important activities in the Persian Gulf & Oman Sea.

2.1 Seafood production overview - Fisheries Percentage of catches from Iranian waters (2013)

Southern waters Northern waters

514,000 tons

40,000 tons

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2002 2014

Seafood production in Iran 2014

Catches Aquaculture

947,000 MT Catches came from the Caspian Sea, Sea of Oman, the Persian

Gulf and inland waters bodies

Among the 2014 production there have been 203m

pieces of ornamental fish

2.2 Seafood production – Fisheries vs Aquaculture - 2014

2.3 Seafood Consumption Iran is considered to have one of the lowest seafood consumption rates in the world. Trends have been changing over the past few years however, as consumption has increased from just 4kg in 2005 to 10kg per capita in 2014. (The world average currently stands at over 20kg). The trend in consumption has changed partly due to promotion of seafood as a source of protein and government encouragement for higher seafood consumption, development of the seafood processing industry through better quality methods and technologies and more appealing packaging.

*Forecasts

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5

10

15

20

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 … 2025*

Iran seafood consumption – kg/capita

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44%

26%

24%

6%

Seafood product types consumed (2014)

Fresh fishFrozenTunaOther*

The current preference in seafood for Iranians is fish fillets, fresh unprocessed fish or shelf stable fish/seafood, especially among middle aged families. This trend however is changing towards frozen processed fish/seafood due to lower pricing and longer storage. Mollusks and others such as crayfish, lobster, crabs and squid don’t seem to be very popular.

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2.4 Seafood Retail Sales

Thousand tonnes 2010 2011 2012 2013 2014 2015

Processed Seafood (Total) 88.64 92.67 95.89 100.83 104.82 109.70

Shelf Stable Seafood 85.25 88.77 91.52 96.30 99.96 104.46

Frozen Processed Seafood 3.39 3.90 4.37 4.53 4.86 5.24

Sales of Processed Seafood by Volume 2010-2015

Billion IRR 2010 2011 2012 2013 2014 2015

Processed Seafood (Total) 8,649.29 9,881.57 16,431.66 26,306.40 33,928.15 41,903.05

Shelf Stable Seafood 8,215 9,332.19 15,558.40 25,038.00 32,226.91 39,739.00

Frozen Processed Seafood 434.29 549.38 873.26 1,268.40 1,701.24 2,164.05

Sales of Processed Seafood by Value 2010-2015

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

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Thousand tonnes 2016 2017 2018 2019 2020

Processed Seafood (Total) 116.41 124.03 131.59 139.40 147.52

Shelf Stable Seafood 110.74 117.85 124.90 132.20 139.78

Frozen Processed Seafood 5.67 6.19 6.69 7.20 7.74

Sales Forecast of Processed Seafood by Volume 2010-2015

Billion IRR 2016 2017 2018 2019 2020

Processed Seafood (Total) 45,794.55 50,247.79 54,899.15 59,889.69 65.261.96

Shelf Stable Seafood 43,394.22 47,563.22 51,923.43 56,605.88 61,646.90

Frozen Processed Seafood 2,400.32 2,684.62 2,975.72 3,283.81 3,615.06

Sales Forecast of Processed Seafood by Value 2010-2015

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

3. Iran Fisheries

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3.1 Fisheries – The Caspian Sea The Caspian Sea is located in the North of Iran and is the largest enclosed inland water body in the world

• Surface area: 371,000 • Volume: 78,200 km3 • Salinity: ~1.2% (12 g/l) a third of the salinity of most

seawater • Coastline (Iran): 640km • The Caspian Sea is more saline on the Iranian side and

due to the inflow of fresh water its waters on the Norther part are more akin to those of a freshwater lake

• The most important commercial fish species include: • Kutum • Grey mullets • Sturgeon • European carp • Kilka

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3.2 Fisheries – Southern Seas The Southern Seas of Iran include the Persian Gulf and Sea of Oman • Coastline: 1,800km • The most important commercial fishes

from these include: skipjack tuna, long tail tuna, yellow fin tuna, kawakawa, narrow-barred Spanish mackerel, chub mackerel, sharks, scads, black marlin, sailfish, snappers, southern meagre, orange-spotted grouper, deep-flounder, black-pomfert, barracudas, black banded and species of genus Sardinella.

• Shrimps are also valuable productions for fishermen in the Persian Gulf

• Species of shrimp include Indian white shrimp, banana shrimp and green tiger shrimp

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3.3 Fisheries – Aquaculture The most commonly cultured fish in Iran are: • Rainbow trout (cultured in raceways) • Chinese carps (silver, big head, grass and common) • Shrimp: Up until 2005, Indian White shrimp cultures in

earthen ponds was the most cultured, however this changed after cooperation with Vietnam who introduced expertise in White leg Shrimp

• Freshwater shrimp: Giant shrimp aquaculture began in 2002

Fry and fingerlings are produced primarily for restocking • Sturgeon fry is being used both for aquaculture and

restocking in the Caspian Sea • Caspian salmon, kutum and bream have been

produced for restocking the Caspian Sea • Southern barbs are introduced to southern rivers and

lagoons • Yellow-fin sea bream are produced for restocking the

Persian Gulf as well as post-larva shrimp

3.4 Employment and fishing fleet 2014

140 185

68 287

Fisheries and Aquaculture workforce

Fishermen Aquaculturists and other

Caspian Sea: 898 vessels

Southern waters: 10,600 vessels

Southern waters: 10,600 vessels

More than 20 Universities across Iran offer bachelor and postgraduate programmes within fisheries and aquaculture. Research capacity is extensive however the link between universities and industry is still lacking

4. Aquaculture

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4.1 Aquaculture development - History Real efforts to develop the aquaculture industry in Iran have just been taking place over the last three decades with good growth reported particularly since 2003.

• Prior to that, the Iranian Fisheries Research Institute was the only existing research center • The first aquaculture experiment was conducted with rainbow trout culture near Tehran in

Mahisara (Karaj) in 1959 • The first farm for warm water aquaculture was established in the Gilan Province by the

Sefidrud company Rasht) and the Abzi Company in Khuzestan Province (Shooshtar) in 1971 • In 1973, efforts began for the culture of sturgeon fingerlings in the province of Gilan • After the Iran-Iraq war in 1988, the Iranian government began paying more attention to its

fisheries and aquaculture industry • Bony fish stocks decreased dramatically in those years, primarily due to overfishing,

environmental pollution and illegal fishing • As a result, farms for fry and fingerling culture were developed with the purpose of restocking

the sea with commercially important species • The sector developed fast after the Islamic Revolution of 1979 with production increasing

from 5,000 tons in 1978 to 125,000 tons in 2005

4.2 Needs and Feasibility

• Like other Middle Eastern countries, Iran is also concerned over food security • Aquaculture is seen as an important part of the solution • Additionally, aquaculture is seen as a means to improve the welfare of fishers and farmers,

promote exports and increase fish production to meet demands • Brackish-water and saltwater aquaculture, fish production from cages and ponds, freshwater

production from lakes, reservoirs and rivers are all viable methods for aquaculture in Iran • Favorable climatic conditions, suitable water quality, high natural productivity of the soil,

space availability, economic and social welfare of coastal communities are all factors that makes the long southern coastline of Iran highly suitable particularly for shrimp culture development.

Abhar river. Source Lake Parishan. Source

4.3 Seafood Production through aquaculture

0

50

100

150

200

250

300

350

400

1978 1994 1996 2002 2008 2013 2014

Thou

sand

MT

Aquaculture contribution to fishery production

8%*

*% of total fisheries production

27%*

39%*

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Typical production levels reported include: • Warm water fish farming - 10 MT. / ha • Cold water fish farming - 3 MT. / 100 sq2 • Shrimp farming 3.5-4 MT. / ha In 2014 there were 203m piece of ornamental fish produced As part of a stock enhancement programme 331m fingerlings were released. The majority of fingerlings consisted of sturgeon with some inland water species and shrimp. Sturgeon from the Caspian Sea is highly regarded for Caviar production. As a result, 80-90% of global sturgeon catch came from the Caspian Sea resulting in overfishing close to extinction levels.

Sturgeon fry - Source

4.4 Species

Rainbow Trout Chinese Carp

Whiteleg Shrimp Sturgeon

Warmwater fish culture species in Iran include silver, common, grass, and bighead carps. These species are cultured together typically in the rations shown in the chart, in earthen ponds of approximately 1.8-2.5m depth. Such farms are mostly located in the provinces of Mazandaran, Guilan, Khuzestan and Golestan. Carp is typically grown to 1kg and produced at 3 tons per ha.

Carp production by type

Common Grass Silver Bighead

15-20%

5-10%

60-70%

5-10%

4.5 Species – Warmwater fish

Although commercially, Caspian Sea salmon and red spot trout have potential, coldwater fish culture consists mainly of rainbow trout rearing in raceways.

Fingerlings of Caspian Sea salmon are bred mainly for stock enhancement and released to rivers that flow to the Caspian Sea. The reason further farming doesn’t take place is that it does not feed well on commercial feed resulting in a slow growth rate in culture systems. Similar challenges are faced with culture of red spot trout.

Rainbow trout farms are found mainly in mountainous areas (Alborz Mountain and Zagros Mountains) with cool summers and cold winters such as in the centre, north-western and western parts of Iran including Tehran, Charmahal va Bakhtiari, Lorestan, Fars, Mazandaran, Kohkilouyeh, Kurdistan, Hamadan, Ilam, Kohgiluyeh va Boyrahmad and West Azerbaijan.

Systems include integrated fish farming, multipurpose water pool reservoirs, paddy fields, recalculating systems, earthen ponds and closed area such as canals, cages and pen culture.

The number of farms has been reported to be anything between 306-1,200 farms accounting for non-licensed farms. The effect of improvement in techniques and technologies has been apparent in the increase of production over years, starting with 208 tons in 1978 and up to 62,000 tons in 2008.

Approximately 20kg are produced per m2 and grown to 250-300 gr.

0

10000

20000

30000

40000

50000

60000

70000

1978 2008

Trout production

4.6 Species – Coldwater fish

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Shrimp and prawn culture includes Indian white shrimp, banana shrimp and green tiger shrimp.

Indian shrimp are reared in the semi-intensive earthen ponds.

At a lesser production there is also culture of giant freshwater prawns

Due to a white spot syndrome outbreak in 2005 and the economic loses it caused, indian shrimp was replaced with white leg.

Major shrimp aquaculture sites are based in the southern Iranian provinces including: Sistan and Baluchestan, Bushehr, Hormozgan and Khuzestan.

4.7 Species – Shrimp and prawns

4.8 Species – Sturgeon and caviar

Iranian caviar is associated with luxury and has been known as the best in the world. With international sanction being lifted, Iran is keen on reviving its caviar industry. The effect of the sanctions can be seen clearly in caviar’s export numbers, in 2000, Iran exported 40 ton of sturgeon eggs, whereas in 2014, just 1 ton. Iran’s biggest competitor in caviar, Russia, has strict regulations over its production, which is limited to 50 sturgeon farms and the indigenous people’s of the North who must obtain permits as wild caviar production is almost completely banned. The ban is due to illegal fishing resulting in sever decline of sturgeon stocks in the Caspian Sea.

Caviar exports before and after sanctions

2000 2014

However, overfishing, environmental pollution destroying spawning sites and illegal fishing have taken their toll on fish stocks which have decreased dramatically. As a result, a temporary global fishing ban was placed on catching wild sturgeon in 2001 due to fears of beluga facing extinction. The 5 countries surrounding the Caspian have agree to extend the ban to allow stocks to replenish. The commercial importance of caviar, has sparked interest in sturgeon farming which is rapidly growing , however compared to other species that have been farmed for years, practical experience is limited. Experience currently lies mainly in hatchery programmes for the release of fish into the sea. Sturgeon takes at least 12 years to mature and start producing roe in captivity. It takes 20 years in the wild. The import of wild Caspian beluga caviar from Iran is banned in the US but other varieties of sturgeon are allowed but are subject to quotas.

Species Description

Huso huso – Beluga sturgeon

Native species that reaches to at least 1kg in one year, can be cultured in concrete, fiberglass and earthen ponds environments. It can reach a maximum specific growth in brackish water

Barbus sharpeyi Dependent on warm and freshwater and feeds on aquatic plants, aquatic insects and small fish. Reaches maturity at 2 years

Barbus grypus – Large freshwater carp

One of the most famous freshwater fish in Iran and can cope in various conditions.

Abramis brama – Common bream

Feeds on larvae of aquatic insects, crustaceans and diatoms and is cultured in earthen ponds.

Stizostedion lucioperca - Perch

Reaches maturity in 3-5 years and feeds on larvae from zooplanktons and adults from other fish.

Cichlidae This fish has a great tolerance to low water quality and uses a wide range of natural food. Commonly kept in aquariums.

Indian carps These have been imported to Iran and reach maturity after 2-3 years.

Chanos chanos – Milkfish

The fish remains alive in low oxygen and at temperatures ranging 15-45 oC

Rachycentron canadum - Cobia

Young fish can be cultivated up to 4 kg of weight during 1.5 years.

Coryphaena hippurus – Mahi mahi

Reaches maturity after 4-5 months and feeds on zooplankton, crustaceans and fish. Reaches 2 kg of weight within 6 months.

Serranidae – Sea bass and Grouper

Carnivorous fish found in the Persian Gulf and Oman Sea

Mugil cephalus – Flathead grey mullet

Found in the Caspian Sea and reaches maturity at 2 years with 1-1.2kg.

Others Acanthopagrus latust (yellowfin seabream), Sparidentex hasta (Sobaity seabream), Pampus Argenteus (Solver/white pomfret), pearl-making oyster, lobster, sea cucumber, pike, crayfish

4.9 Fish with high production and economic potential for aquaculture in the waters of Iran

Reference: A Review on Aquaculture Development in Iran, Kalbasi et al, Ecopersia, Article 5, Volume 1, Issue 2, Spring 2013, Page 159-178 - Source

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Trout 10%

Trout 17%

Trout 8%

Trout (14%)

Trout 6.5%

Trout 8.5%

Shrimp

Shrimp

Shrimp

Shrimp

Carp

Carp Carp

Carp

4.10 Aquaculture production locations Rainbow trout is cultured in all provinces except Bushehr and Hormozgan.

The largest producing regions are the Alborz Mountain in North and Zagros Mountain in Northwest, west and southwest of the country such as in such as Tehran, Mazandaran, western Azarbaijan, Kurdistan, Lorestan, Hamadan, Ilam, Chaharmahal va Bakhtiari, kohgiluyeh va Boyrahmad and Fars provinces.

Even in central and the warm provinces of Kerman, Yazd, Isfahan and Semnan, this species is farmed in water bodies and Agriculture reservoirs of higher regions in autumn and winter.

Trout

Carp

Shrimp

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4.11 Species - production

According to the Fisheries Sciences Research Institute (FSRI) seafood production through aquaculture has been increasing steadily since 1978. FSRI reports that farming of rainbow trout has been increasing noticeably over the past two decades to the point that Iran is now ranked among the major producing countries of fresh water rainbow trout. By contrast, in the last decade, shrimp aquaculture has been affected negatively due to white spot syndrome.

2008: Rainbow Trout 1998: Silver Carp

Percentage of total aquaculture production

50% 40%

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0102030405060708090

100

Carp

Thou

sand

MT

Total aquaculture production comparison - weight

1995 2008

0

50

100

150

200

250

Carp Trout Shrimp Other‘0

00 U

SD

Total aquaculture production comparison - value

1995 2008

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4.12 Feed

• Almost 90% of fish feed is produced in Iran, there are around 17 active fish feed factories

• The rest is imported from South

East countries and France

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4.13 Antibiotics and medication

50% of antibiotics used in commercial aquaculture are produced locally. A herbal medicine called Avisheet has been produced as a disinfectant that can replace MG (Malachite Green) which is considered carcinogenic. Avisheet can be used gainst Oomycete saprolegnia which infects fish eggs in commercial aquaculture. Source

4.14 Aquaculture methods

Extensive aquaculture: The number of inland lakes, dams and reservoirs in Iran offer ideal conditions fish farming. The majority of reservoirs by the Caspian Sea produce Chinese and common carps. Semi-intensive aquaculture: In Iran this includes production of carp in earthen ponds, rainbow trout in raceways (approximately 20kgm2 in 2008) and shrimp farming. Raceways are made of concrete and water runs through continuously. Trout farms have been developed mainly in mountainous areas along the centre, north western and western parts of the country where winters and cold and summers are cool.

A review of the development of aquaculture in Iran by Tarbiat Modares University reports the following methods are currently applicable in Iran. The number of farms remains unclear as there are a few unlicensed farms.

Bakhtiari dam, South West Iran

Fish pond

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Intensive and super intensive aquaculture

• 108 licenses have been issued in recent years for the development of recirculation production systems.

• Out of these, 32 are known to be operational with a capacity of 2,400 tons.

• In 2002, 430 tons of rainbow trout were produced using this method (3% of total Rainbow trout production).

• Equipment inadequacy has been the main reason for lower productivity levels and the costs associated with this method are still higher than raceway systems.

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Integrated farming systems

• Although not a common method, the Iran Fisheries Organisation has received funding with the purpose of introducing new techniques to increase the productivity of both water and soil resources in the agriculture sector.

• Fish culture in paddies following the harvesting of rice and irrigation reservoirs have brought considerable benefits to rural families including food security.

• Around 2,100 tons (13%) of the total rainbow trout production is produced using integrated systems as are 740 Ttons of Chinese carp (1.3%). There are extensive rice paddies in the northern part of Iran which would allow for further development and expansion of this system.

County No of rice-fish fields Field area (ha) Fish production (tons)

Asfaneh Ashrafiyeh 125 123.1 123

Rasht 28 26.8 18

Some’sara 65 53.5 36

Lahidjan 78 75.0 93

Talesh 47 47.0 28

Masal 26 13.6 10

Fooman 28 22.7 23

Siyahkal 21 14.1 21

Rezvanshahr 9 6.4 4.7

Roodsar 61 44.8 31

Astara 12 26.2 17

Bandar Anzali 14 22.8 24

Shaft 20 16.4 17

Langrood 55 55.1 41

Roodbar 1 0.3 0.3

Amlash 11 8.2 6

Total 601 556 493

Statistics of integrated rice-fish farming in North Iran Gilan province - 2011

Reference: DEVELOPMENT OF FISH PRODUCTION IN RICE FIELDS OF NORTHERN IRAN, Indian Journal of Fundamental and Applied Life Sciences, Noorhosseini-Niyaki and Jokar, 2013 Vol. 3 (4) October-December, pp.196-199 - Source

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Inland saline aquaculture

A big majority of Iran’s central regions are facing high risk of increased salt content. Inland salt affected areas become unsuitable for traditional agriculture.

Research* by the Inland Brackish water Fish Research Center of the Iranian Fisheries Science Research Institute, suggests that using saline groundwater in aquaculture could offer a solution for productive use of this land. Rainbow trout is potentially a suitable species for such culture systems due its adaptability to fast changes in salinity.

Such a system would need to be developed in a manner that offers a sustainable economic base for rural areas and prevents further degradation of land. For the same reasons, future expansion would be limited to the size of the site. However the abundance of salt-affected land and water resources, lead to investigating these as a suitable resource for aquaculture. * Review on rainbow trout (Oncorhynchus mykiss) farming in desert underground Brackish water in Iran, Alizadeh M.1*; Dadgar Sh.2; Hafezieh M., Journal of Survey in Fisheries Sciences, 3(1) 21-35

4.15 Current facilities

16254

1595

518

Number of fish farms and types in Iran

Warm water Cold water Shrimp

Chinese Carps Total area: 50,853 ha 63.5% of production

Shrimp Total area: 7,053 ha 2.5% of production

Rainbow Trout Total area: 225 ha 34% of production

There are 14 Stock enhancement government hatcheries aimed at rehabilitation of fisheries particularly in the Caspian Sea.

These focus mainly on Caspian kutum and 5 species of sturgeon including: • Acipenser guldenstaedti – Russian

sturgeon • A. persicus - Persian • A. stellatus - Sevruga • A. nudiventris - Ship sturgein • Beluga - Huso huso

Sea farming is comprised of 18 Cages

5. Key market players

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5.1 Private and Public sector involvement

• The Iran Fisheries Organisation - IFO is the authority responsible for ensuring best fishing and aquaculture practices

• It is part of the Ministry of Jihade-e-Agriculture and responsibilities include:

• Issuing licenses and certifications to fish farms • Aquaculture research, development and

implementation • Planning and preparation of national

development plans • Training • Improvement of existing farmer's knowledge,

promotion of new culture systems • Fish stock enhancement • Investment in aquaculture infrastructure

Photo: User farhadzadeh, http://www.panoramio.com/photo/9589739

Fish farms are typically operated by private persons or entities. Investments in infrastructure is normally by private companies and bank loans.

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5.2 Development plans and targets

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1000

1200

2014 2025

Thou

sand

MT

Iran Fisheries plan for aquaculture production in 2025

Aquaculture Catches

947,000 MT

1,879,000 MT

Based on current trends, Iran fisheries plan to increase total seafood production to 1,879,000 MT by 2025: • 605,000 MT through catches • 974, 000 MT through aquaculture

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Seafood consumption is expected to increase to 18 kg per capita by 2025. According to IFO, the annual per capita consumption of fish in Iran is 10 kg as against the global average of more than 20 kg. Greater awareness of fish as a healthy option and source of protein, expansion of aquaculture and campaigns by the IFO and Ministry of Health and Medical Education have all encouraged higher fish consumption. Increase of production and consumption, improvement of fishers and farmers welfare, promotion of exports and generally provision of food security are the main aims of Iran’s Fisheries development plans. Demand for trout is particularly exceeding production, and as such, the government is currently supporting a major programme to increase output. The programme has involved both building state-owned hatcheries and on-growing units and by providing licenses, land and juvenile fish to private farmers. Brown trout has also attracted some interest for culture in cages and raceways.

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Development of the aquaculture sector in Iran will have a focus on marine cage culture. A proportion of this will be in brackish waters with tilapia. Potential investors in cage farming will be granted with financial incentives according to the Management and Planning Organisation of Iran. Studies by the IFO have indicated good potential for cage farming in brackish water and marine species along the coasts of Iran. Cages can be placed in lakes, ponds, rivers or oceans. Some focus is being placed in the northern provinces od Gilan, Mazandaran and Golestan with cage farms expected to yield 20,000 tons of fish annually. Plans include export of fish fry to regional countries as well.

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5.3 Fish Farms in Iran

Bandar Torkaman in the province of Golestan, is among the most important aquaculture centers of Iran - various types of shrimp and bonefish are cultured In Gomishan Golestan two 20 hectare shrimp farms were built, this was an investment of 6b rials by the private sector.

Caspian Sea

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Ghareh Boron Caviar Fish Farm, in the coastal village of Goldasht began in 2005 as an investment of $100 million • It spans an area of 860,000ft2 while breeding 0.5 million fingerlings a year • Pools are filled with water pumped in from the Caspian Sea • The farm has generated 200 jobs • Aims to export 30 tons of salt cured caviar and 2,000 tons of sturgeon meat by

2018 • Expected earnings of $90 million per year, through selling caviar, meat, oil,

cosmetics, leather and even sutures made from fish intestines • Expecting to start producing caviar this year • 110,000 of the fish are beluga

Several smaller sturgeon farms have been established across the country including one in Qom, Iran’s religious capital. Pools in this farm are filled with salt water pumped from wells.

5.4 Sturgeon farming

Goldasht

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Farming of trout in Iran began in 1960 at the Karaj Mahisara Company. At the time, it had a capacity of 120 tons. Other important farms in that time were Jajroud trout farm with 166 tons capacity in 1966 and Yegandasht with a capacity of 300 tons in 1977. Support and investments by the governments have helped make this region improve in fish farming as well as in areas including Palangan and Sirvan in Kordestan, Gamasyab in Hamedan. Personal farms were also developed in Fars province and the Haraz riverside in Mazandaran.

5.5 Trout farming

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Indication of a few of the biggest fish producers in Iran and their locations

Anatos Trout Farm Sarshar Trout farm

Bahonar Salmon Farm

Ghezel Alla Fish Farm

Malosjan Yazdani fish hatchery

Yasuj

Mahi Saraye

5.6 Fish Farms

5.7 Key market players – Organisations

Being a large country, there are many regional fishery and aquaculture related organisations. Some of these include: • Iranian Fishery Organisation – IFO (Shilat) • Golerstan Fishery Organisation • Iranian Shrimp Producers Association • Mazandaran Fisheries Department for Aquaculture • Iran’s Cooperative Aquatic Production, Farming, and Exports Union • Bandar Torkaman Fishery Department • Fisheries Department of South Khorasan Agricultural Jihad Organization • Fisheries Office of Bandar Anzali • Iranian Fisheries Export Development Fund • Aquaculture Producer & Exporter Co. Union

5.8 Research in aquaculture

The oldest research centre within fisheries is the Iranian Fisheries Research Organization (IFRO) which was established in 1917. Its objective is to conduct scientific research on aquatic organisms an their environment and identifying and developing best practices for stock recovery and sustainable harvesting. The commercial importance of sturgeon as a species has led to the establishment of the International Sturgeon Research Institute (ISRI), based in Rasht. Its research focuses on conservation and sustainable use of sturgeon stocks in the Caspian Sea. It also aims to encourage cooperation with scientists worldwide to conduct research in the Caspian Sea. Iran’s universities have been offering fisheries science courses since 1970, these were arranged by the Ministry of Science, Research and Technology. Bachelor, master’s and post graduate programmes related to fisheries and aquaculture are on offer in more than 20 universities. The longest running programmes have been by the Universities of Tehran, Gorgan University of Agricultural Sciences and Natural Resources in Golestan, the University of Guilan and Tarbiat Modares University. As yet there is little link between universities and industry however.

University of Tehran

5.9 Other research organisations and University departments • Iranian Fish Processing Research Center, Bandar Anzali, Iran • National Inland Water Aquaculture Research Center, Bandar Anzali • National Fish Processing Research Center, Bandar Anzali • Aquaculture Knowledge and Industry Coordination Center • Coldwater Fish Research Center – CFRC, Tonekabon • Seafood Processing Knowledge and Industry Coordination Center • Persian Gulf and Oman Sea Ecological Research Institute • Iranian Artemia Research Center • South of Iran Aquaculture Research Center • Caspian Sea Ecology Research Center, Sari • Mariculture research center, Ahwas • Langeh research station • Brackish water research station, Bafgh-Yazd • Inland water Aquatic stocks Research center, Golestan • Offshore Fisheries Research center, Chabahar • Iran Fishery Data Collection System (IFDCS)

• Department of Fishery, Faculty of Fisheries and Environment, University of Agricultural Science and Natural Resources, Gorgan, Iran

• South of Iran aquaculture fishery research center, Ahvaz

• Department of Agricultural Economics at Shiraz University

• Department of Agricultural Management, Rasht Branch, Islamic Azad University

• Department of Agronomy, Lahidjan Branch, Islamic Azad University, Lahidjan

• Faculty of Marine Sciences, Tarbiat Modares University, Noor

5.10 Key players in seafood processing

Iran Protein Co is among the main players in processed seafood with its Shilton brand that offers a variety of tuna products such as canned tuna in olive and vegetable oil, smoked tuna, fate free and with herbs. It is present in most cities as they have a strong distribution base. Amol Meat Products Co, a subsidiary of Solico Food Industrial Group, is considered one of the leaders in the country within is mostly known for its processed meat products due to the image of its brand Kalleh. Seafood products include fish filets, deboned fish and fish sausages, fish fingers and tuna fish. Tohfe Food Products Co, with its Tohfe brand was previously considered a small brand however has increased its visibility in the last year. Seafood products include frozen fish such as salmon, tilapia, mackerel, tuna, promfret, hake and shrimp as well as canned tuna products. Mahya Protein Sultan Ibrahim fish fillets, boneless sturgeon fillets, tilapia fish fillets, sole fish fillets, fish steaks, prawns, shrimp Sheidan Protein Products Co, Canned tuna products producer, based in Esfahan

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5.11 Competition Almost 70% of equipment are manufactured locally, however it is generally believed that their quality must be improved to match western standards. Since lifting of sanctions, the business world’s eyes are set on Iran. As far as aquaculture, it is attracting investment from countries including France, Russia, Norway, Iceland, China, Thailand and South Korea, especially in Qeshm island, which is quickly set to become a major fisheries industry. China is investing $3 billion in Qeshm and Bandar Abbas. Iran and France inaugurated a joint fish farm on Iran 's southern Island of Qeshm. Iranian and French companies have invested 2 million euro in the joint venture. The farm has the capacity to produce 10 million fry per year and 3 million saltwater fish will be produced in the farm per year in its first phase. France and Iran also reached an agreement to develop a research center for raising salmons in the Iranian city of Kalardasht near the Caspian Sea. South Korea is also set for cooperation and possibly a joint venture in fish farming – an MoU was signed with Iran in May this year.

6. Sustainability

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6.1 Sustainability in Aquaculture Sustainability as a concept, especially in fisheries and aquaculture is still in a relatively nascent stage. Recent years have seen some discussions mostly by educational and research institutions on suggestions or calls for sustainable practices in fish farming. One example is a paper* by researchers from Islamic Azad University, that suggests integrated rice fish farming should be encouraged more due to is being a low cost and relatively simple method for producing high value protein and minerals. Rice fish farming offers the advantage of complementary use of land and water and decreased use of fertilizers, insecticides and pesticides. Economically from the point of view of the farmer this means less costs and increased profits through sales of rice and fish. Another example is the paper** by Mohammad Allayari from the same university which aims to grade the sustainability of fisheries in the Guilan province. The paper calls for action by government authorities as it concludes that fisheries are at a border of unsustainability and middle status rating.

*Production of Fish Varieties in Paddy Fields Simultaneously (The Case Study in Iran), Seyyed Ali Noorhosseini-Niyaki* and Forouzan Bagherzadeh-Lakani, International Journal of Farming and Allied Sciences, 2013-2-15/464-469 ** Fisheries sustainability assessment in Guilan Province, Iran, Mohammad Allahyari, Journal of Food, Agriculture and Environment, January 1300

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The desire to implement sustainable practices and pay consideration to the environment and the resources it offers are seen in the sixth Five-Year Plan (2016 - 2020) set by the IFO and local governments around the country for the fisheries and aquaculture sectors. The plan focuses on: • Increase of the share of fish in ensuring Domestic Food Security • Responsible Conservation and Sustainable harvesting of Aquatic Resources • Increase of productivity • Improve balance of export/Import trade in fish market This will occur through: • Food security through increasing domestic fish production • Responsible and sustainable utilization of wild fish resources • Proper use of infrastructure • Improved productivity in aquaculture • Quality improvement and waste reduction in fisheries • Market improvement • Fish conservation and enhancement • Increased fish consumption

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Further sustainability assessments will be required if the plan is to be followed and these will need to address environmental, economic and social factors in order to establish policies, programmes and action plans. Sustainability methods to follow depends on species, location, local traditions and local knowledge. Implementation of a sustainability plan will require first and foremost, human resources development and capacity building. Education and provision of knowledge to fisheries to create and nurture environmental awareness and offer training on best practices that will change behaviours and attitudes would form the basis. The procedure envisioned, would be that local governments/public organisations work on these issues with the fishing cooperatives. Funding for cooperatives and providing capital will aid in providing the means to spread awareness and create training programmes.

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Illegal fishing and pollution are also problems that add to the issue and will need to be addressed in this effort. Responsible and efficient sourcing of broodstock and juvenile fish taking into consideration the effect of transport for these and ensuring these are either produced locally or sourced from as nearby as possible as well as minimizing biodiversity and wildlife impact are important factors to consider. In addition, resources and waste management are key issues in addressing environmental impact, including effluent management, water quality control, sediment control, sludge management, soil and water conservation and efficient fishmeal and fish oil use. Disease control systems, hygiene, microbial sanitation, use of antibiotics and pharmaceutical are also important aspects that cannot be omitted in an effective sustainability plan.

7. Challenges in Iranian aquaculture

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Although there are fish farms spread across the country and aquaculture has proven to be feasible, the practice does not come without challenges. Lack of knowledge on up to date practices and technologies, hygiene, disease control, water quality, low hatching rates, feed quality and management, especially at the hatchery phase and the absence of a strategy for genetic improvement of stocks are all issues the sector needs to address.

7.1 Challenges in the aquaculture sector in Iran

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Trout Farming Freshwater resources: Iran has a large semi arid region with little rain, so freshwater bodies are limited and decreasing every year

Social issues: A lot of the resources for rainbow trout have shared ownership which may create conflicts in the use of these

Costs: Costs for feed, labor, fry and drugs for trout farming have increased in recent years. As much as 60% of costs associated with trout farming are for feed only.

Disease control is also amajor issue especially in hatcheries where the water sully come from rivers.

Research: There is not enough applied research on the topic. Two research centers have been established to tackle this problem, one in the southwest in Kohgiloye and BoyrAhmad province and the other in the north in Mazanderan province, (Tunikabon city).

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Shrimp culture Lack of financial liquidity in order to acquire the right equipment including aerators, pumps, and necessary inputs to improve the management and the control of the production operation has slowed down the industry.

White Spot Syndrome caused major economic problems resulting in changing species entirely.

There is low average production per hectare and so far production of SPF (Specific Pathogen Free) and SPR (Specific Pathogen Resistant) broodstocks of shrimp inside the country has not been successful resulting in increased costs due to having to rely on imports.

Production levels for shrimp culture have not realized their full potential yet. Poor feeding management and the insufficient use of quality feed seem to have been the main cause.

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Sturgeon Sturgeon culture is relatively new compared to other species therefore further exploration in the technologies, feed and genetics are needed to ensure the most efficient farming methods are developed and used.

The main purpose of sturgeon aquaculture is the production of caviar. More efficient and reliable methods for separating fish according to gender would enable better management of monosex populations of caviar producing females.

Warmwater fish farming in general faces challenges including lack of technical knowledge, low production, fish disease, and in feeding and fertilizing management.

The slow maturation rate of sturgeons also poses some challenges, control of reproduction and captive breeding is necessary

Rice fish farming

Fish farmers in rice paddies received little access to support by the fisheries organisations, facilities and loans.

There is a general lack of knowledge in transportation methods for fingerlings, whose supply is usually poor, as well as in disease control and prevention.

Adequate feed is another issues as well and environmental control – widllife entering the ponds, water shortage, inappropriate temperatures, pesticide pollution coming from upstream farms and poor oxygen content are all threats to water creatures raised in integrated rice fish farms.

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8. Entering the market

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8.1 Challenges for Norwegian companies Although Iran holds good possibilities for Norwegian companies wishing to approach the market, this does come with a few challenges. Some of these include: • It is a price sensitive market and requires a lot of flexibility in negotiations • Competition by companies from European and Eastern countries is potentially high • Business success is based on cultivating relationships so frequent visits may be necessary • This entails a long term commitment towards the market • There are developments in the sector and so new technologies may need to proven for the local

conditions and against current practices • Different culture can pose communication challenges • Although a local partner is not an obligation, a partner with a good network that can assist with

local procedures is helpful • Low English language skills, an interpreter may be needed in business communication • Slow and often complex bureaucratic procedures

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Norwegian companies are perceived as offering high quality and professional equipment and services. Iran has already called on Norway for cooperation on research and development for countering diseases in fish farmed in net cages. Opportunities lie in other aspects of aquaculture including: • Offering new and updated technologies as well as the associated training and knowhow • Assessment of best farm management practices and particularly for sturgeon farming • Research in genetics may focus on genetic stock control and broodstock planning so as to

improve and maintain good traits including disease resistance and good growth. Another aspect of genetics research may aid in identifying caviar origin

• Feed formulation for all commercially important species that is untested and takes into account the raw materials available in the region

• Transportation methods, particularly for fingerlings • Training in environmental control such as temperature, pesticide pollution, oxygen content,

water quality and hygiene standards • Transfer of knowledge in economically sustainable practices

8.2 Opportunities for Norwegian companies

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For further information contact: Matteo Chiesa [email protected] +971 056 601 8336 Maritsa Kissamitaki [email protected] +971 50 907 1490