March 8, 2007

Some US hog farmers switching to aquaculture for higher profits

The high profits to be gained from aquaculture are luring some farmers in the US state of Ohio to make the switch from poultry and pig rearing to aquaculture.

With technical advice from the county authorities, some farmers have converted hog and poultry barns into aquaculture production facilities as feed price rises and hog and poultry rearing have become less profitable.

The conversion makes use of pig barns that has since been unused, said Gonzalee Martin, extension educator agriculture/natural resources. Martin said he is positive that more farmers would be making the switch.

Demand would not be a problem as restaurants are in abundance in the state. Moreover, increasing awareness of the health benefits of fish is stimulating demand among consumers.

Shawn McWhorter, a research associate/aquaculture specialist at Ohio State University said there are now more opportunities for aquaculture.

In Ohio, yellow perch are a traditional meal while tilapia is growing in popularity, he noted.

However, the startup costs may deter some farmers-- An aquaculture farm can cost a startup US$250,000. Moreover, such operations could take up to five years before the operation turns a profit. He also advised farmers to attend university workshops on aquaculture operations as opposed to simply jumping into aquaculture.

Another major challenge would be the rise cheap seafood from Asian countries. At prices offered currently, and with myriad environmental regulations and high production costs, it would be hard for US aquaculture companies to compete, said industrial analysts. However, anti-dumping duties imposed by the US government may have had its intended effect on curbing cheap imports, for example, exports of Indian shrimp to the US have been halved since the duties were introduced, although an upcoming review is expected to lower the duties. 

Meanwhile, some US-based companies such as HQ Sustainable Maritime Industries have opted to set up operations in places like China's Hainan for its aquaculture operations and exporting its products back to the US.