INTRODUCTION... XVIII OBJECTIVES AND GOALS OF STUDY... XVIII CONTRIBUTION OF THE STUDY AND FOR WHOM... XVIII STUDY SCOPE AND FORMAT... XVIII METHODOLOGY... XIX INFORMATION SOURCES... XX AUTHOR S CREDENTIALS... XX RELATED BCC WORK CREDENTIALS INCLUDING WORK DONE BY OTHER AUTHORS... XX BCC ON-LINE SERVICE... XXI SUMMARY... XXII SUMMARY TABLE ESTIMATED WORLDWIDE AQUACULTURE AND FEED PRODUCTS BY VOLUME AND VALUE, THROUGH 2008... XXII SUMMARY FIGURE ESTIMATED VALUE OF WORLDWIDE AQUACULTURE AND FEED PRODUCTS, 2002-2008 ($ MILLIONS)... XXIII OVERVIEW... 1 DEFINITION OF AQUACULTURE... 1 THE HISTORY OF AQUACULTURE... 1 BRIEF OVERVIEW OF WORLDWIDE AQUACULTURE... 2 KYOTO DECLARATION ON AQUACULTURE... 2 Kyoto Declaration on Aquaculture (Continued)... 3 THE CONFERENCE ON AQUACULTURE IN THE THIRD MILLENNIUM... 4 GROWTH OF THE AQUACULTURE INDUSTRY... 4 Growth of the Aquaculture Industry (Continued)... 5 TABLE 1 TOP AQUACULTURE-PRODUCING COUNTRIES, BY VOLUME, 1988 AND 2000 (METRIC TONS)... 6 TABLE 2 TOP AQUACULTURE-PRODUCING COUNTRIES BY REVENUES, 2000 ($ MILLIONS)... 6 TABLE 3 TOP 10 COUNTRIES IN FISHERIES PRODUCTION, CAPTURE AND AQUACULTURE, 1999 (MILLION METRIC TONS)... 7 TABLE 4 FISH PRODUCTION TRENDS, SELECTED COUNTRIES,1997-2030... 7 TABLE 4 (CONTINUED)... 8 TRADE IN AQUACULTURE... 8 Finfish... 8 American Catfish... 8 Salmon... 9 Sea Bass and Sea Bream... 9 Tilapia... 10 Trout... 10 Crustaceans... 10 Mollusks... 11 Seaweed... 11 Seed Supplies... 11
LEADING SPECIES PRODUCED BY AQUACULTURE... 11 TABLE 5 NAMES OF COMMON AQUACULTURE SPECIES... 12 TABLE 5 (CONTINUED)... 13 TABLE 6 TOP VOLUME AQUACULTURE SPECIES, 1988 AND 1997 (METRIC TONS)... 13 THE NEED FOR AQUACULTURE... 14 PER CAPITA CONSUMPTION OF SEAFOOD... 14 TABLE 7 PER CAPITA CONSUMPTION OF FISH BY GEOGRAPHIC AREA, 1985-2001 (KILOGRAM/PER CAPITA/PER YEAR)... 15 TABLE 8 PER CAPITA CONSUMPTION OF SEAFOOD BY PRODUCT, U.S., 2001 (POUNDS)... 16 POPULATION GROWTH... 16 TABLE 9 ESTIMATED POPULATION GROWTH AND CONSUMPTION OF FISH IN NORTH AMERICA, 1997-2020... 17 ANNUAL EXPENDITURES ON SEAFOOD... 17 DECLINE IN THE BEEF AND PORK MARKETS... 17 SAFETY CONCERNS... 17 CAPTURE FISHERY VERSUS AQUACULTURE PRODUCTION... 17 TABLE 10 CAPTURE FISHERY VERSUS AQUACULTURE PRODUCTION, WORLDWIDE, 1986-2008 (MILLION METRIC TONS)... 18 TABLE 10 (CONTINUED)... 19 TABLE 11 CAPTURE VERSUS AQUACULTURE FISHERY PRODUCTION, PERCENT OF TOTAL, WORLDWIDE, 1986-2008 (%)... 19 FIGURE 1 CAPTURE VERSUS AQUACULTURE FISHERY PRODUCTION, PERCENT OF TOTAL, WORLDWIDE, 1986-2008 (%)... 20 OVERVIEW OF AQUACULTURE IN THE U.S.... 20 TABLE 12 U.S. EXPORTS OF SELECT SEAFOOD PRODUCTS: 2000-2002 ($ 000, LBS. 000S)... 21 TABLE 13 U.S. IMPORTS OF SELECT SEAFOOD PRODUCTS: 2000-2002... 22 FACTORS INHIBITING THE GROWTH OF THE U.S. AQUACULTURE INDUSTRY... 23 Water... 23 Water (Continued)... 24 PRODUCTS... 25 TABLE 14 WORLDWIDE AQUACULTURE PRODUCTION, THROUGH 2008 (MILLION METRIC TONS)... 25 TABLE 15 WORLDWIDE MARKET FOR AQUACULTURE PRODUCTS, THROUGH 2008 ($ MILLIONS)... 25 WORLDWIDE PRODUCTION BY SPECIES... 25 TABLE 16 WORLDWIDE FISHERIES PRODUCTION AND UTILIZATION, 1998-2001 (MILLION METRIC TONS)... 26 TABLE 17 FISHERIES PRODUCTION AND UTILIZATION, WORLDWIDE (EXCLUDING CHINA), 1998-2001 (MILLION METRIC TONS)... 26 TABLE 18 TOP AQUACULTURE SPECIES BY UNIT VALUE, WORLDWIDE, 2001 (U.S. $/KILOGRAM)... 27 CHOOSING THE SPECIES TO CULTURE... 27 CHANGES IN PRODUCTION VALUE... 28 FINFISH... 29
FRESHWATER VARIETIES... 29 Catfish... 29 TABLE 19 SALES OF CATFISH BY STATE, U.S., 2001 (%)... 29 TABLE 20 VOLUME OF FARM-RAISED CHANNEL CATFISH, NORTH AMERICA, 1988-2008 (METRIC TONS)... 30 TABLE 21 VALUE OF FARM-RAISED CHANNEL CATFISH, NORTH AMERICA, 1988-2008 ($ MILLIONS)... 31 TABLE 22 VOLUME OF FARM-RAISED CATFISH SOLD TO PROCESSORS, U.S., 1997-2002 (1,000 POUNDS)... 31 TABLE 23 VOLUME OF FARM-RAISED CATFISH SOLD BY PROCESSORS, U.S., 1997-2003 (1,000 POUNDS)... 32 TABLE 24 AVERAGE PRICE PAID BY PROCESSORS FOR FARM-RAISED CATFISH, U.S., 1997-2003 (CENTS PER POUND)... 32 TABLE 25 AVERAGE PRICE RECEIVED BY PROCESSORS FOR FARM-RAISED CATFISH, U.S., 1997-2003 (DOLLARS PER POUND)... 33 TABLE 26 SALES BY PROCESSORS FOR FARM-RAISED CATFISH, U.S., 1997-2003 ($ MILLIONS)... 33 TABLE 27 NUMBER OF CATFISH FARMS, U.S., 1982-2002... 34 TABLE 28 VOLUME OF IMPORTED CATFISH, U.S., 1997-2001 (1,000 POUNDS)... 34 Improving Catfish Production in the U.S.... 34 Genetics Studies... 35 Cyprinids... 36 TABLE 29 MEMBERS OF THE CYPRINID FAMILY OF FISH USED AS FOOD FISH AND AVERAGE ANNUAL WORLDWIDE PRODUCTION, 1992-2002... 36 Hybrid Striped Bass... 37 Salmonidae... 37 TABLE 30 MEMBERS OF THE SALMONIDAE FAMILY OF FISH USED AS FOOD FISH AND AVERAGE ANNUAL WORLDWIDE PRODUCTION, 1992-2002... 37 Projections for the Future Salmon Market... 38 TABLE 31 SALMON PRICES, 2001-2003... 39 Markets Vary by Geographic Area... 39 Moving from a Production-Driven to a Market-Driven Industry... 39 Competitors in Salmon Farming... 40 Atlantic Salmon... 40 TABLE 32 VOLUME OF FARM-RAISED ATLANTIC SALMON, NORTH AMERICA, 1988-2008 (METRIC TONS)... 41 TABLE 33 VALUE OF FARM-RAISED ATLANTIC SALMON, NORTH AMERICA, 1988-2008 ($ MILLIONS)... 41 TABLE 33 (CONTINUED)... 42 Chinook Salmon and Coho Salmon... 42 Land-Based Salmon Farming... 42 Organic Salmon... 43 Making Farmed Salmon Pink... 44 Rainbow Trout... 44 TABLE 34 VOLUME OF FARM-RAISED RAINBOW TROUT, NORTH AMERICA, 1988-2008 (METRIC TONS)... 44 TABLE 35 VALUE OF FARM-RAISED RAINBOW TROUT, NORTH AMERICA, 1988-2008 ($ MILLIONS)... 45 Tilapia... 45
Baitfish Production... 46 Fish for Insect and Weed Control... 46 The North American Freshwater Finfish Market... 46 TABLE 36 PERCENT BY SPECIES OF FARM-RAISED FISH PRODUCTION, NORTH AMERICA, 1988 (%)... 47 TABLE 37 PERCENT BY SPECIES OF FARM-RAISED FISH PRODUCTION, NORTH AMERICA, 1997 (%)... 47 TABLE 38 PERCENT BY SPECIES OF FARM-RAISED FISH VALUE, NORTH AMERICA, 1988 (%)... 48 TABLE 39 PERCENT BY SPECIES OF FARM-RAISED FISH VALUE, NORTH AMERICA, 1997 (%)... 48 SALTWATER VARIETIES... 48 Cod... 49 Halibut... 49 Snapper... 49 Tuna... 50 Tuna (Continued)... 51 Tuna (Continued)... 52 CRUSTACEANS... 53 TABLE 40 VOLUME OF CULTURED CRUSTACEAN PRODUCTION, WORLDWIDE, 1988-2008 (METRIC TONS)... 53 TABLE 41 VALUE OF CULTURED CRUSTACEAN PRODUCTION, WORLDWIDE, 1988-2008 ($ BILLIONS)... 54 CRAYFISH... 54 SHRIMP AND PRAWNS... 55 TABLE 42 MEMBERS OF THE PENAEIDAE FAMILY USED AS FOOD FISH AND AVERAGE ANNUAL WORLDWIDE PRODUCTION, 1992-2002... 56 The Economics of Shrimp Farming... 57 Stocking Costs... 57 Feed... 57 Yield... 57 Value... 57 U.S. Government Assistance to the U.S. Farmed Shrimp Industry... 57 MOLLUSKS... 58 TABLE 43 VALUE OF CULTURED MOLLUSK PRODUCTION, WORLDWIDE, 1988-2008 ($ BILLIONS)... 58 TABLE 43 (CONTINUED)... 59 CLAMS... 59 Seed Producers... 60 THE NORTH AMERICAN CRUSTACEAN AND MOLLUSK MARKET... 60 TABLE 44 PERCENT BY SPECIES OF FARM-RAISED INVERTEBRATE PRODUCTION, NORTH AMERICA, 1988 (%)... 60 TABLE 45 PERCENT BY SPECIES OF FARM-RAISED INVERTEBRATE PRODUCTION, NORTH AMERICA, 1997 (%)... 61 TABLE 46 PERCENT BY SPECIES OF FARM-RAISED INVERTEBRATE VALUE, NORTH AMERICA, 1988 (%)... 61
TABLE 47 PERCENT BY SPECIES OF FARM-RAISED INVERTEBRATE VALUE, NORTH AMERICA, 1997 (%)... 62 CAVIAR... 62 AQUATIC PLANTS... 62 TABLE 48 VOLUME OF CULTURED AQUATIC PLANT PRODUCTION, WORLDWIDE, 1988-2008 (METRIC TONS)... 63 TECHNOLOGY... 64 PHASES OF AQUACULTURE... 64 IMPROVEMENTS IN PRODUCTION... 65 PRODUCTION SYSTEMS... 65 EXTENSIVE AQUACULTURE SYSTEMS... 65 The Chinese Model... 66 The Israeli Model... 66 The Alabama Model... 66 SEMI-EXTENSIVE/SEMI-INTENSIVE AQUACULTURE SYSTEMS... 66 The European Model... 67 The Latin American Model... 67 The Vietnamese Model... 67 The Thai Model... 67 INTENSIVE AQUACULTURE SYSTEMS... 67 The Malaysian Model... 68 The Thai Model... 68 WATER- AND LAND-BASED SYSTEMS... 69 Enclosure Systems Used in Intensive Aquaculture... 69 Cages... 69 Cage Culture Projects in the Gulf of Mexico... 70 Cage Culture Projects off the West Coast of the U.S.... 71 Challenges to Successful Cage Culture... 72 Raceways... 72 Tanks... 72 OPEN VERSUS CLOSED SYSTEMS... 73 Production Considerations... 73 Recirculation Systems... 74 Uses of Recirculation Systems... 75 Technological Issues... 75 Aeration... 76 Removal of Particulate Matter... 76 Biological Filtration... 77 ph Buffering... 77 Heating... 78 Hyperintensive Recirculation... 78 The Reason for Higher Production Costs... 78
Recirculation Systems Slow to be Adopted... 79 ROTATION SYSTEMS... 79 INTEGRATED, MULTIPLE-USE SYSTEMS... 79 AQUAPONICS... 80 EXAMPLE OF A MODEL AQUACULTURE OPERATION... 81 HATCHERIES... 81 THE IMPORTANCE OF ZOOPLANKTON... 82 TRAINING FISH TO EAT ARTIFICIAL FEED... 83 Zooplankton... 83 Microalgae... 84 The Greenwater Technique... 84 Benefits of Microalgae... 85 AQUAFEEDS... 86 TABLE 49 ESTIMATED AQUAFEED REQUIREMENTS BY VOLUME, WORLDWIDE: THROUGH 2008 (MILLIONS OF METRIC TONS)... 86 TABLE 50 ESTIMATED GLOBAL AQUAFEED PRODUCTION AND FISHMEAL AND FISH OIL USE FOR MAJOR AQUACULTURE SPECIES, 1997... 87 THE FEED CONVERSION RATIO... 88 FISHMEAL... 88 Price Projections... 89 Changes in the Fishmeal Market... 90 The Market for Fishmeal... 90 TABLE 51 ESTIMATED SALES OF FISHMEAL, WORLDWIDE, THROUGH 2008 ($ MILLIONS)... 90 Leading Competitors in the Fishmeal Market... 91 FISH OIL... 91 TABLE 52 ESTIMATED PERCENTAGE OF FISH OIL USED BY FARMED FISH AND SHRIMP, WORLDWIDE, 1994 AND 2010 (%)... 92 NONFISHMEAL AQUAFEEDS... 92 TABLE 53 CULTURED CARNIVOROUS VERSUS NONCARNIVORUS FINFISH PRODUCTION, WORLDWIDE, 1984-1997 (MILLIONS OF METRIC TONS)... 93 The Growing Demand for Alternative Feeds in China... 94 The Market for Nonfishmeal Aquafeeds... 94 TABLE 54 ESTIMATED SALES OF NONFISHMEAL AQUAFEEDS, WORLDWIDE: THROUGH 2008 ($ MILLIONS)... 95 Soybean-based Feeds... 95 Fishmeal Analog... 96 TABLE 55 COMPARISON OF CATFISH FED FISHMEAL ANALOG AND CATFISH FED FISHMEAL... 96 Feed Peas... 97 Rendered Products... 97 Animal versus Plant Protein in Feeds... 98 Microalgae... 98 Liquid Feeds... 99 GENETIC MODIFICATION TO EXPAND FEED AVAILABILITY... 99 FEEDS FOR CATFISH... 99
TABLE 56 CATFISH FEED VOLUME, U.S., 1997-2008 (THOUSAND TONS)... 100 TABLE 57 CATFISH FEED PRICES, U.S.: 1997-2003 ($/TON)... 100 FEEDS FOR SALMON... 100 NATURE OF THE FISH FEED INDUSTRY... 101 MARKET LEADERS IN THE FISH FEED INDUSTRY... 101 TABLE 58 MARKET SHARES BY PRODUCTION VOLUME OF GLOBAL FISH FEED PRODUCERS, 2002 (%)... 101 FIGURE 2 MARKET SHARES BY PRODUCTION VOLUME OF GLOBAL FISH FEED PRODUCERS, 2002 (%)... 102 PHARMACEUTICALS... 102 PATHOGENS INVOLVED IN FISH DISEASE... 102 STRESSORS INCREASE THE CHANCE OF INFECTION... 103 USE OF ANTIBIOTICS IN THE AQUACULTURE INDUSTRY... 103 Use of Antibiotics in the Aquaculture Industry (Continued)... 104 The Economics of Medicated Feed... 105 DETERMINING THE SENSITIVITY TO ANTIBACTERIAL AGENTS... 105 METHODS OF DRUG ADMINISTRATION... 105 Oral Administration... 106 Water Administration... 106 Parenteral Administration... 106 CONCERNS ABOUT ANTIBIOTIC RESIDUES IN AQUACULTURE PRODUCTS... 107 Limiting the Use of Antibiotics... 108 Maximum Residue Limits for Aquaculture... 109 TABLE 59 PROPOSED MAXIMUM RESIDUE LIMITS RELEVANT TO AQUACULTURE... 110 TABLE 60 CURRENT TOLERANCES RELEVANT TO AQUACULTURED SPECIES IN THE U.S.... 110 TABLE 61 CURRENTLY APPROVED DRUGS FOR AQUACULTURE AND THEIR MAXIMUM RESIDUE LIMITS: CANADA... 111 TABLE 62 PROPOSED MAXIMUM RESIDUE LIMITS RELEVANT TO AQUACULTURE... 111 TABLE 62 CONTINUED... 112 Worldwide Efforts to Limit the Use of Antibiotics in Aquaculture... 112 Zero Tolerance Standards... 113 VACCINES... 113 Adjuvant Technology... 114 Encapsulation Technology... 114 Recombinant Vaccine Technology... 114 DNA Vaccine Technology... 114 Nucleic Acid Vaccines... 114 Vaccine Manufacturers... 114 SYNTHETIC SPAWNING PRODUCTS... 115
THE AQUACULTURE INDUSTRY... 116 FACTORS DRIVING THE INDUSTRY... 116 SMALL COUNTRIES MAY BECOME BIG PLAYERS IN THE AQUACULTURE MARKET... 116 EMPLOYMENT INCREASES IN THE AQUACULTURE INDUSTRY... 116 TABLE 63 FISH FARMERS BY CONTINENT, 1970-2000... 117 THE IMPORTANCE OF MARKETING STRATEGY... 118 BUILDING INTERNATIONAL TRADE... 119 The U.S.... 119 China... 120 Thailand... 120 THE EMERGENCE OF MARKETS FROM BACKYARD FARMS... 120 THE U.S. AQUACULTURE MARKET... 121 AQUACULTURE RESEARCH AND DEVELOPMENT CENTERS... 121 THE ARIZONA MODEL... 122 THE TEXAS MODEL... 123 Estimated Production of Aquaculture in Texas... 124 TABLE 64 TEXAS AQUACULTURE PRODUCTION, 2001... 124 TABLE 65 TEXAS AQUACULTURE PRODUCTION, 2002... 124 TABLE 65 (CONTINUED)... 125 Potential for a Commercial Catfish Industry in the Coastal Bend... 125 Potential for a Commercial Catfish Industry in the Coastal Bend (Continued)... 126 GOVERNMENT INVOLVEMENT IN THE DEVELOPMENT OF AQUACULTURE... 127 GLOBAL POLICIES... 127 HACCP... 128 The Global Aquaculture Alliance Proposal to Address Antibiotic Residue Concerns... 128 U.S. POLICIES... 129 Safety of Fish and Fish Products... 129 Drug Reaction Reporting... 130 EUROPEAN POLICIES... 131 Concern about Contaminated Farmed Salmon in Britain... 132 POLICIES IN CANADA... 133 GOVERNMENT FUNDING OF AQUACULTURE... 133 THE U.S.... 133 Mississippi Approves Labeling of Catfish as Domestic or Imported... 134 CANADA... 134 AQUACULTURE: A PERFECT FIT WITH EMERGING DISTRIBUTION CHANNELS... 134
CURRENT CHALLENGES AND NEEDS IN THE AQUACULTURE INDUSTRY... 135 NUTRITION... 136 GENETICS... 136 ENVIRONMENT... 137 Environment (Continued)... 137 Environment (Continued)... 138 Ranking Aquaculture Species and Production Area by Eco-Friendliness... 139 FUNDING... 140 REGULATORY ISSUES... 140 Regulation of Transgenic Fish as New Animal Drugs by the FDA... 141 U.S. Federal Organic Rules Exclude Seafood... 143 State Laws on the Size of Crops... 144 COMPANY PROFILES... 145 ALPHARMA, INC.... 145 BUSINESS OVERVIEW... 145 PRODUCTS... 145 Aquaculture Vaccines... 145 AQUA HEALTH (Europe)... 146 BUSINESS OVERVIEW... 146 PRODUCTS... 146 Products (Continued)... 147 CORPORATE STRATEGY... 148 BAYOTEK INTERNATIONAL, INC.... 149 BUSINESS OVERVIEW... 149 PRODUCTS... 149 BIOMAR... 150 BUSINESS OVERVIEW... 150 FINANCIAL INFORMATION... 150 PRODUCTS... 150 CORPORATE STRATEGY... 151 Corporate Strategy (Continued)... 152 BIOSHELTERS, INC.... 153 BUSINESS OVERVIEW... 153 PRODUCTS... 153 CORPORATE STRATEGY... 154 CARDS AQUACULTURE PRODUCTS LTD.... 155 BUSINESS OVERVIEW... 155 PRODUCTS... 155 Steel Cage Systems... 156 The Viking Sea Cage System... 157 Mooring Systems... 157
Other Products... 158 CORPORATE STRATEGY... 158 COREY FEED MILLS LTD.... 158 BUSINESS OVERVIEW... 158 PRODUCTS... 158 CORPORATE STRATEGY... 159 EWOS... 160 BUSINESS OVERVIEW... 160 CORPORATE STRATEGY... 160 FARMOCEAN INTERNATIONAL A.B.... 161 BUSINESS OVERVIEW... 161 PRODUCTS... 161 Products (Continued)... 162 PowerRing Mark II Model... 163 CORPORATE STRATEGY... 163 MARICULTURE SYSTEMS INC.... 164 BUSINESS OVERVIEW... 164 PRODUCTS... 164 TABLE 66 COMPARISON OF SARGO TECHNOLOGY WITH TRADITIONAL NET PENS... 164 TABLE 66 (CONTINUED)... 165 CORPORATE STRATEGY... 165 MICRO GAIA INC.... 166 BUSINESS OVERVIEW... 166 PRODUCTS... 166 CORPORATE STRATEGY... 166 MOORE-CLARK... 167 BUSINESS OVERVIEW... 167 PRODUCTS... 168 CORPORATE STRATEGY... 168 NELSON & SONS INC.... 168 BUSINESS OVERVIEW... 168 CORPORATE STRATEGY... 169 NUTRECO HOLDING N.V.... 169 BUSINESS OVERVIEW... 169 FINANCIAL INFORMATION... 170 PRODUCTS... 170 Salmon Feed... 171 Trout and Marine Species Feed... 171 Innovations in Fish Feed... 171 CORPORATE STRATEGY... 172 The Aquaculture Division... 173 Marketing of Farmed Salmon... 173 Restructuring the Aquaculture Division... 174 Fish Feed... 174
Acquisitions... 175 Internal Growth... 176 PROCEAN A/S... 176 BUSINESS OVERVIEW... 176 PRODUCTS... 176 Products (Continued)... 177 QUADRA PACIFIC NETLOFT... 178 BUSINESS OVERVIEW... 178 CORPORATE STRATEGY... 178 REED MARICULTURE, INC.... 179 PRODUCTS... 179 Instant Algae... 179 Instant Algae (Continued)... 180 Zooplankton... 181 Instant Rotifers Live Rotifer Concentrates... 181 SHUR-GAIN... 182 BUSINESS OVERVIEW... 182 PRODUCTS... 182 CORPORATE STRATEGY... 183 SYNDEL INTERNATIONAL INC.... 184 BUSINESS OVERVIEW... 184 PRODUCTS... 184 CORPORATE STRATEGY... 185 WATER MANAGEMENT TECHNOLOGIES, INC.... 186 BUSINESS OVERVIEW... 186 PRODUCTS... 186 ZEIGLER BROS., INC.... 187 BUSINESS OVERVIEW... 187 PRODUCTS... 188 CORPORATE STRATEGY... 189 Corporate Strategy (Continued)... 190