National Aquaculture Extension Conference

Michael H. Schwarz - Aquaculture Specialist Virginia TechDan Kaufmann – Agricultural Economist Virginia Tech

Recirculating Systems: Lets see what’s going on

Recirculating systems, what’s going on?

- Businesses continue to fail at historic levels.- Systems too intensive!

- Financial, biological, marketing limitations.

- Lending institutions have limited ability to analyze the biological assumptions behind business plans.

- Similar to restaurant businesses- Viable facilities often have 2 or 3 bankruptcies before

capital costs are low enough for economic viablity.

Systems too intensive!

Systems too intensive!

Why am I making money??

Product value

Estimated annual US farmgate prices (nominal)

00.5

11.5

22.5

3

1998 1999 2000 2001 2002

Year

Val

ue

in $

US

HSB $/lb($2.00)

Tilapia $/lb($1.10)

Y. Perch $/lb($2.50)

Where do we go?

Balance system intensity with realistic value of product, production cost, and capital investment

Technological reductions underway

• Density reductions (<0.5lbs/gallon)– *Enhanced fish health/performance*– Reductions in:

• nutrient loading• solids loading• BOD, COD, TSS• CO2 off gassing req.• Req. of pure O2

*overall capital and operating costs

Low head, high volume

Recirculating systems, what’s going on?---short-term future for RAS in

food fish production

• Lowering of system capital and operating costs through technological/system intensity reductions.

• Implementation of low head, high efficiency applications.• Lowering of standing biomass (<0.5lbs/gal)• Improving management, animal husbandry techniques.• Niche marketing continues…• Emerging species applications..