In this paper the optimal management strategy for intensive aquaculture is viewed in terms of a combined strategy of releasing the optimal number of recruits and harvesting those recruits at the optimal harvesting time. A model which can be used to determine the optimal management strategy is developed. In the model the optimal harvesting model documented by Bjorndahl (1988, 1990) in which harvesting and feed costs are considered, is extended by including release costs and how they influence the optimal number of recruits. The model forms the basis for an empirical analysis in which the optimal management strategy for a yearclass of Atlantic salmon farmed in Australia during 1989-91 is considered.