An economic valuation of the commercial cultivation of Agarophyton chilensis in northern Chile

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An economic valuation of the commercial cultivation of Agarophyton chilensis in northern Chile Sergio Zuniga-Jara 1

&

Catalina Contreras 1

Received: 30 January 2020 / Revised and accepted: 27 May 2020 # Springer Nature B.V. 2020

Abstract In this study, we analyze the economic feasibility of commercial cultivation of the red seaweed Agarophyton chilensis in northern Chile. This macroalga grows naturally on the Chilean coast and has been cultivated for several years. However, to achieve a sustainable exploitation over time, it is necessary to increase the effectiveness of the commercial cultivation of this seaweed. In order to carry this out, we study a system of bottom cultivation in 6.4 ha of sea in the Coquimbo Region, north of Chile. Our results suggest that cultivation is cost effective under the conditions used for the majority of commercial cultures of this type in Chile. We found that the culture provides a positive net present value, but only in the long term, specifically if the cultivation continues operating for at least 8 years. Finally, results show that saving money in all steps of the production process is important to improve the profitability of this culture. Keywords Agarophyton chilensis . Cultivation . Chile . Net present value . Rhodophyta . Seaweed culture

Introduction Agarophyton chilensis (formerly Gracilaria chilensis; Gracilariales, Rhodophyta), commonly and locally known as ‘pelillo’, is the main species of marine seaweed cultivated in Chile, as well as the main source of commercial agar extraction (Buschmann et al. 1995, 2001). Agarophyton chilensis is found on the coasts of Chile and New Zealand. In Chile, the seaweed can be found from the Atacama region all the way to the Aysén region (Hoffmann and Santelices 1997; Cohen et al. 2004). This seaweed has a high rate of vegetative propagation (Alveal 1986) as well as the ability to form extensive systems of underground thalli (Santelices et al. 1984), which has made it easy to cultivate in soft seabeds. Furthermore, the ability to propagate through the liberation of spores has helped in its cultivation in hard substrates such as rocks, ropes, nets, and mollusk shells, among others (Alveal et al. 1994).

* Sergio Zuniga-Jara [email protected] 1

Escuela de Ciencias Empresariales, Universidad Católica del Norte, Larrondo, 1281 Coquimbo, Chile

The country’s natural A. chilensis beds have been harvested for many years, turning Chile into one of the world’s main producers of raw materials for agar (IFOP 2019). In 2017, total landings were 64,089 t of fresh weight, although the majority of that quantity came from natural harvesting. Currently, this is a fishery not subject to specified regulations by the Chilean authorities (SUBPESCA 2019a). The main end markets of this production are the United States, China, Japan, Nigeria, and Brazil (IFOP 2019). Historical pricing of this seaweed has encouraged the creation of cultivation farms in Chile. In 2017, the number of cultivation farms registered in Chile was 586, with geographical distribution centere