The economics of recirculating aquaculture systems

Recirculating Aquaculture Systems (RAS) have become part of the global aquaculture landscape. Announcements new, planned investments in large-scale RAS countries around world appear frequently news media. Yet RAS, as a viable production system for businesses, are not new. Blue Ridge Inc. (USA), example, has been continuous business more than 30 years and is clear pioneer success story profitable, farm. A few farms operated successfully United States 15 on much smaller scale. Salmon smolt further emerged profitable sector salmon supply chain (Bjorndal & Tusvik, 2017). Less well publicized other fish farming businesses that incorporated into their overall pond-based operations. In some cases, used to grow fingerlings over winter larger size stocking ponds spring reach harvest earlier year extend sales period crops. Other installed produce specialty species sold at lower quantities but high value market. Thus, there proven examples profitability aquaculture. What new substantial turn-key facilities or proposed operate very large scales. While RAS-based many stories continue refer “unproven economics” RAS. This editorial will attempt break down what known about economics The press those seeking venture capital tout advantages often “future” Chief among these claims environmentally sustainable systems, facility can be located anywhere. Such key successful recruitment capital, particularly Environmental, Social, Governance (ESG) targeted by startup ventures. Economics provides lens through which examine claims. economists use monetary values way standardize discussion relative inputs outputs, its most fundamental level, “the study scarcity, how people resources respond incentives…” (American Economic Association, 2023). After all, if producer uses efficiently, then costs per unit fish, shellfish, shrimp associated with less efficiently. kg product closely efficiency resource use. Are efficient pond raceway crops? terms land, yes. ha land production. Feed efficiencies also greater outdoor systems because indoor offers opportunity better control temperature water quality parameters year-round. Outdoor subject fluctuating seasonal temperatures, losses predatory birds animals, challenges related effective biosecurity measures open environments. Individual exhibit great deal variability from one next even when treated same manner, commonly measured coefficients variation 20% (Shell, 1983). results being plankton-based ecosystems develop different plankton blooms adjacent change season. feed efficiently systems. Energy high, although it variable (Badiola et al., 2018). Much energy (and, hence, cost) need heating cooling maintain temperatures an optimal range specific species. Raising tropical animal, such tilapia, northern climates likely require raising tilapia warmer climates. Similarly, coldwater animal like warm climate building climate. various locations affect and, degree, limit where able manner. Discussions focus recirculating aspect tanks. Biofiltration technologies time created ability recycle percentages fish/shrimp Nevertheless, total requirement quite high. Media reports permitting applications requested millions liters (15–20 million liters/day) pumped daily amount discharged daily. exclusively growout, purging off flavors, quarantining animals brought outside, cleaning, processing, problems occur tanks emptied refilled. volumes required mean cannot just anywhere—they must access necessary acceptable (to relevant regulatory authority) discharge either available could constructed. wastes, mostly form sludge. ongoing research seeks ways utilize sludge produced commercial practice traditional ways, publicly owned on-site treatment facility. Sludge disposal contributed demise businesses. labor-intensive. environmental resources, labor essential factors intensively account greatest economic bottom line RAS? answer is, course, depends. long-standing developed sustained models profitable. failure rate however, Comparisons costs, profitability, resource-use across perhaps shed light aspects drivers cost compared raceways (Engle 2020, 2021). efficiencies, intensive catfish (the widely raised finfish States) labor/management, water, energy, Yield (kg/ha harvested kg/m3 RAS) major driver relatively fixed facilities. Engle al. (2020, 2021) studies average yield reported literature farm datasets possible. Overall, were all accounted for. Substantial increases yields analyses would make reduce level. Assuming buyers pay premium price, especially projects production, realistic. small-scale may charge price while, only until enter increased drives market prices back levels. Very densities, course. Efforts made rights groups densities net pens; yet higher pens profitable? Some clearly are, others failed. As any venture, “resource” entrepreneurial owner correct choices respect model (i.e., scope, scale, engineering, species, markets, products). Equally important skill manager who decisions every day; managers decisions. High-intensity continuously contribute per-kg product. obstacle challenge increase labor/management third RAS). currently technological development improve (not maximum ever achieved) biomass cubic meter tank growout volume. Increased volume sold. variety scales adequate attention paid productivity invested (that includes filtration systems) achieving biomasses Is future aquaculture? Terrestrial agriculture diversified greenhouse hydroponic crops, diversification complemented, replaced, field produce, grain livestock. already landscape undoubtedly be. highly labor, management manner little room incorrect mishaps addressing inevitable arise living aquatic organism. Research needed identify economically yields, strategies, scale pond, raceway, pen crops provide comprehensive guidance producers investors. Journal World Society welcomes focuses commercial-scale strategies accompanied detailed offer There no data this editorial.