B.E.E.S.T.O.P. is an excellent mnemonic for students to remember all the factors that affect an economic activity.
Biophysical FactorsParticular species have particular requirements and localities that best meet these requirements will have a competitive advantage.
Increasing development of ex situ aquaculture will change this in the future. |
|
Ecological Factors
Aquaculture of many species, as it currently exists, is not environmentally sustainable and cannot continue its path of rapid growth.
The removal of mangrove ecosystems and the use of fish meal with need to be changed (Greenpeace, 2008).
Similarly, monocultures common in aquaculture are likely to continue to be susceptible to disease outbreaks. In part, this results from the increased stress of a weakened species being placed in stressful overcrowded conditions.
Climate change will alter aquaculture, yet also put more pressure on people to provide additional food sources.
Integrated multi trophic aquaculture/permaculture systems are likely to increase in order to promote sustainable practice.
The removal of mangrove ecosystems and the use of fish meal with need to be changed (Greenpeace, 2008).
Similarly, monocultures common in aquaculture are likely to continue to be susceptible to disease outbreaks. In part, this results from the increased stress of a weakened species being placed in stressful overcrowded conditions.
Climate change will alter aquaculture, yet also put more pressure on people to provide additional food sources.
Integrated multi trophic aquaculture/permaculture systems are likely to increase in order to promote sustainable practice.
Economic Factors
There is large amounts of investment into aquaculture projects.
There are also a range of factors of production associated with aquaculture. Low labour costs also favour nations with poor working conditions.
Transnational Corporation and large national corporations dominate aquaculture.
There is also likely to be far greater consolidation of control due to vertical and horizontal integration resulting in economies of scale.
Exchange rates can affect aquaculture exporting nations. For example, China has been accused of keeping its Yuan undervalued to promote exports.
MEDCs (More Economically Developed Nations) tend to seek higher quality (often Higher trophic level) produce. Alternatively, consumers drive down prices.
While in LEDC (Less Economically Developed Nations) aquaculture tends to be used as a "gap-filling" or safety net function.
There are also a range of factors of production associated with aquaculture. Low labour costs also favour nations with poor working conditions.
Transnational Corporation and large national corporations dominate aquaculture.
There is also likely to be far greater consolidation of control due to vertical and horizontal integration resulting in economies of scale.
Exchange rates can affect aquaculture exporting nations. For example, China has been accused of keeping its Yuan undervalued to promote exports.
MEDCs (More Economically Developed Nations) tend to seek higher quality (often Higher trophic level) produce. Alternatively, consumers drive down prices.
While in LEDC (Less Economically Developed Nations) aquaculture tends to be used as a "gap-filling" or safety net function.
Sociocultural Factors
Aquaculture is dominated by nations that have traditionally have large seafood consumption or a historical practice of aquaculture. There is likely to be more growth from other nations either as a cash crop or as a protein food source.
People continue to demand more aquaculture species. LEDC nations want more food, MEDC want low fat, high protein food that can help with particular nutrients like Omega 3 fatty acids.
Supermarkets are retailing time saving seafood products.
People continue to demand more aquaculture species. LEDC nations want more food, MEDC want low fat, high protein food that can help with particular nutrients like Omega 3 fatty acids.
Supermarkets are retailing time saving seafood products.
Technological Factors
|
Technology with continue to radically change many aspects of Aquaculture
Biotechnology will be important in preventing disease and promoting growth. However, this need not be GMO, animal husbandry is also important. Farming techniques also improve and allow higher quality and quantity. eg in Oyster farming. However, retail and marketing will be enhanced by internet sales. Transport technology will enhance global trade in aquaculture products. |
|
Organisational Factors
TNC control is likely to continue, albeit with tighter controls on outsources labour.
while small and medium enterprises are growing rapidly in Asia. vertical and horizontal integration continues and enterprises attempt to diversify and expand across their supply chain.
Internet sales results in disintermediation (removal of the "middle man") as consumers can more effectively by from suppliers.
Supermarkets drive prices down across the supply chain.
Labelling is also changing the way consumers shop.
There may well be increasing controls placed on wild catch fisheries. This may impact on salmon farming.
FAO will provide analysis of global data.
while small and medium enterprises are growing rapidly in Asia. vertical and horizontal integration continues and enterprises attempt to diversify and expand across their supply chain.
Internet sales results in disintermediation (removal of the "middle man") as consumers can more effectively by from suppliers.
Supermarkets drive prices down across the supply chain.
Labelling is also changing the way consumers shop.
There may well be increasing controls placed on wild catch fisheries. This may impact on salmon farming.
FAO will provide analysis of global data.
Political Factors
Global agreements can have far ranging impacts. For example free trade agreements open up both trade and investment by reducing barriers to trade.
The WTO negotiates many trade deals. However, imported goods can swamp local markets with cheaper imports that are of questionable quality or ethical origin. Imported Thai prawns are an example of this.
The WTO negotiates many trade deals. However, imported goods can swamp local markets with cheaper imports that are of questionable quality or ethical origin. Imported Thai prawns are an example of this.
