national aquaculture extension conference michael h. schwarz - aquaculture specialist virginia tech...
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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.
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
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..