Chris Weeks Aquaculture Extension Specialist MSUE/NCRAC

Recirculating Aquaculture Systems (RAS)

2016 Michigan Seafood Summit

Rising Seafood Demand

Imports – Exports US Seafood

0.00 0.50 1.00 1.50

0 1,000 2,000 3,000 4,000 5,000

1998

2005

2013

Value ($ billion)

# Farms

US Aquaculture

FarmsValue

1.37

1.09

0.98

US Production

Oun

ce e

quiv

alen

ts

2015 USDA Dietary Guidelines for Americans

0.00 0.50 1.00 1.50

0 1,000 2,000 3,000 4,000 5,000

1998

2005

2013

Value ($ billion)

# Farms

US Aquaculture

FarmsValue

“We’re not against aquaculture, just this

particular kind of aquaculture… We

already know how to do aquaculture in

Michigan”

“Recirculating aquaculture… is already being implemented in Michigan, raise mass amounts of fish… a practice.. well suited

to vacant warehouses ”

IN URBAN AREAS

IT CAN BE DONE SUSTAINABLY

INDOORS

AQUACULTURE IS

IMPORTANT

THROUGH RECIRCULATING AQUACULTURE

SYSTEMS

RAS Recirculating Aquaculture Systems

Rearing unit Biofilter

Clarifier

Pentair

Waste Treatment System(s)

Purge System

Ozone UV

H2O Aeration/ Degassing

Anchorage Alaska DNR State Hatchery estimated $60-80 million

US Aquaculture Problem? Production of Seafood

• Food • Water • Energy • Environment

Business of Food

• How do consumers see it? • Retailers?

2014

Species Lbs

1 Shrimp 4

2 Salmon 2.307

3Canned Tuna 2.3

4 Tilapia 1.436

5 Pollock 0.981

6 Pangasius 0.69

7 Cod 0.657

8 Catfish 0.517

9 Crab 0.508

10 Clams 0.342

14.6Total All Species

U.S. Per-Capita Consumption By Species in Pounds Data from National Marine Fisheries Service.

Top Seafood Products Consumed in US

Water

Low High Cage, netpen farming, flow through (fish, shellfish, seaweeds) 0 100 RAS (no/low water exchange -African catfish, eel) 400 500 Tilapia 2,800 Catfish (intensive ponds) 4,000 16,000 Fish (freshwater ponds) 4,700 7,800 Shrimp farming (ponds) 11,000 43,000 RAS (trout 90% recycling) 25,000

Estimated Freshwater Use (liters/kg product)

Modified from Costa-Pierce et al. Responsible use of resources for sustainable aquaculture

Energy

• Colt et al. 2008 compared production of salmon smolts in RAS to traditional flow-through methods

RAS 2.5 times electrical requirements

Environment

Basilico in serra-Radiuk

kg CO2/kg Salmon (fresh to US) 7.36

kg CO2/kg Salmon (frozen) 3.39 (fresh to US) 8.24

Model Land-based RAS to Norwegian Netpen Atlantic salmon

7.25 million lbs /yr

Rosten et al. 2013

RAS Netpen

CO2 Footprint

US RAS - Status

- Operational - Unknown - Failed

Information sources: http://www.thebetterfish.com/barra-blog/so-you-want-to-be-a-fish-farmer http://www.ccb.se/wp-content/uploads/2015/11/Freshwater-Institute_Brian-Vinci_day1.pdf Weeks 2015 unpublished data from 2015 NCR survey to aquaculture extension personnel

Blue Ridge Aquaculture Started in 1993 Tilapia 4 million lbs /yr (~2,000 MT)

Source: http://www.thebetterfish.com/

Started in 2006 Species barramundi Target: 2 million lbs /yr (~1,000 MT)

Australis, Turner Falls, MA

Operational RAS in US Company State Start Species Production Vero Blue IA 2011 Barramundi 600,000 Australis Aquaculture MA 2004 Barramundi 1,500,000 Hunting Creek Fisheries MD Goldfish, Koi Mt. Parnell Fisheries PA 1999 Goldfish, Koi Desert Springs AZ 2005 Tilapia 1,000,000 Colorado correctional CO Tilapia Tippco IN 2011 Tilapia 125,000 RDM Shrimp IN 2010 Marine shrimp Indiana RAS 1 IN Pond stocking Illinois 1 IL LMB Aqua Green LA 2006 Tilapia 500,000 Astor Farms NC 2009 Tilapia 400,000 Brock Farms NC 2001 Tilapia 150,000 Circle G Farms NC 2001 Tilapia 300,000 DPK NC 2001 Tilapia 300,000 Farmers Catch NC 2001 Tilapia 150,000 Southern Farm Tilapia 1 NC 1998 Tilapia 250,000 Sutton Farms NC 2001 Tilapia 300,000 Taylor Fish Farm NC 2009 Tilapia 250,000 Triple M aquaculture NC Tilapia Freshwater Farms OH Trout, Y. Perch 100,000 Ohio Tilapia 1 OH Tilapia CA sturgeon CA Sturgeon / caviar Blue Ridge Aquaculture VA 1993 Tilapia 4,000,000

4+ yrs operating

Species Number Million Lbs Tilapia 14 7.7 Barramundi 2 2.1 Goldfish, Koi 2 Trout and Yellow Perch 1 0.1 Largemouth Bass 1 Marine Shrimp 1 Unknown 1 Sturgeon (caviar) 2

total 23 ~ 10

4+ yrs operating

Operational RAS in US

rough estimates are < 2% of total US production > 98% live ethnic / direct sale/ premium markets

US RAS – closed / failures State Qty State Qty Al 1 MT 2 CA 3 NC 3 GA 1 ND 1 IA 2 NH 1 ID 1 NV 2 IL 7 NY 3 IN 3 OH 17 KY 1 PA 4 LA 2 TX 1 MA 3 VA 3 MD 2 WA 1 ME 1 WI 9 MI 5 WV 2 MN 4

total 85 ~ 80% failure rate to date

(based on available information)

1999-2013

• $4.5 million facility • Started 1999 • Co-op 308 farmers • Heat from beet sugar processing facility 30,000 lbs tilapia/wk to live ethnic markets

http://prangerent.com

Commercial facility $70+ million ??

2005-2015

RAS in the NCR survey to aquaculture Extension and Industry

Number commercial RAS in state successfully operating for 5+ years

5

Number producing 100,000 lbs+ annually

2

Number failures you can recall in your state

43

Average 5 year success rate (%) 10

Why the high failure rate?

Economics – Poor planning

• Unrealistic expectations • Business planning • Market analysis • Return on investment issues

– Management and manageability

• Complexity • Catastrophic failures

Where does RAS appear to be working?

• Tilapia (live ethnic markets) • Hatchery systems for marine netpens

13.5 million smolts to 200-300 grams for netpen grow out

Where does RAS appear to be working?

• Tilapia (live ethnic markets) • Hatchery systems for marine netpens • Barramundi (relatively new, mostly live

markets) • Sturgeon (caviar) • Smaller scale DIRECT SALES?

Smaller scale DIRECT SALES • Local farm markets and community supported

agriculture (CSA’s) – CAN YOU COMPETE WITH THE TERRESTIAL CROP

STAND /CSA CLOSE TO YOU? – IF NOT, WHY IS YOUR PRODUCT BETTER?

• Live market

– IS THERE A NEW MARKET WITHIN DESIRED RADIUS? – IS THERE ROOM FOR ADDITIONAL PRODUCT?

• Premium fish markets

– ARE THERE ENOUGH RESTAURANTS CLOSE BY THAT WOULD PAY MORE FOR A FRESH PRODUCT?

RAS to Watch

• Barramundi (Iowa) • Salmon

Target 7.2 million lbs /yr barramundi spoke and hub operation

Poland 2016 startup

$12 Million

Geothermal

“Premium” on-land salmon

http://www.intrafish.com/news/article1396517.ece

Part of Atlantic Saphire new 3,000 MT facility Florida??

RAS to Watch

• Barramundi (Iowa) • Salmon • Shrimp?

Darryl Brown of RDM Shrimp (IN). Photo : Purdue University

http://ralcotoday.com/

Target 1.0 million lbs /yr

marine shrimp spoke and hub

operation

Hub and Spoke Contract Network

Contract Producers

Regional Hub

Why RAS needs serious discussion:

• US is falling behind in seafood production

• Higher failure rates – Caused by economic viability – High risk factor for aquaculture investment

• Controversial

– Perception vs reality? • Short and long term sustainability issues