Abstract
The economic performance of the current inshore rock bream aquaculture industry conducted in Yeosu, Korea was compared with a pilot commercial scale offshore aquaculture farm in Jeju, Korea. Data was collected from 12 inshore farms and two production cycles of the offshore farm for use in Monte Carlo simulations run over a ten year time horizon. Net present value was compared for the inshore farms and two survival rate scenarios for the offshore farm. The offshore farm is expected to have a higher survival rate if it can withstand tsunamis and avoid pollution, disease and red tide impacts that are prevalent inshore. When the offshore farm was modeled with its observed higher survival rate, its average net present value ($1,016,483) significantly outperformed the inshore farms average net present value ($182,153). In the second scenario, the offshore farm survival rate was lowered based on performance data from the inshore farms. Not surprisingly, given the higher investment costs, the offshore farm performed poorly in terms of average net present value ($-137,142) compared to the inshore farms when it no longer had the advantage of high survival rates.
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