Faustmann in the Sea: Optimal Rotation in Aquaculture

Abstract

In this article an extended version of the well-known Faustmann model is developed for solving the rotation problem in fish farming. Two particularly important aspects of the problem are emphasized: First, the possibilities for cycles in relative price relationships and second, restrictions in release time for certain species. An illustration of the model based on assumptions from salmon farming shows that the inclusion of these two features has major influences on rotation time, and hence harvest weight.