Essay PreviewMore ↓
Aquaculture is the fastest growing "agricultural" industry in the United States. In 1990, there were over 100 species cultured; eight species accounted for approximately 70% of total culture, with over 3400 aquaculture operations in the United States. This trend is driven by increased demand for fisheries product and reduced yield from traditional fisheries landings (National Research Council, 1982). Given the increased demand, there is a significant potential for job creation in an expanded aquacultural industry.
The estimated U.S. Total Aquaculture Production (including freshwater) has more than doubled from 139,887 metric tons with a total value of over $260 million in 1983 to an estimated 313,518 metric tons with a total value of over $724 million in 1992. (NMFS Statistics Division) The aquaculture industry supports an infrastructure of hatcheries, feed mills, processing plants, equipment manufacturers, and suppliers of specialty services and products, as well as enhancing the natural fishery with juvenile finfish and shellfish seed and spat.
U.S. annual per capita consumption of fish and shellfish has increased since estimates were first made in 1909. At that time the per capita estimate was 11 lbs., in the 1950 and 60's it was well below 5 lbs., and in 1993 it was 15 lbs. (U.S. Department of Commerce, 1993). Most remarkable was the sharp rise in consumption from 1970 (about 4 lbs.) to 1990 (about 5 lbs.) The domestic seafood industry has identified a goal of increasing domestic seafood consumption to 20 lbs/per capita by the year 2000 although this appears unlikely.
It is estimated that 10% - 14% of the fishery products currently consumed in the United States are aquaculturally derived. Changing consumer preferences combined with the reduction in the wild fishery appear to be the dominant factor in the growth of aquaculture. (FDA, 1990)
Most of the United States' demand for seafood is met by imports. The value of imported fisheries products more than doubled during the 1980's, to $9.6 billion in 1989. This resulted in a significant trade deficit - $4.9 billion for all fisheries products and $3.1 billion for edible fish and shellfish in 1989. Imported fisheries products contribute more to the United States' trade imbalance than any other food or agricultural commodity. After petroleum products, imported seafood contributes more to the United States trade deficit than any other natural resources product.
How to Cite this Page
"Economics of Aquaculture United States." 123HelpMe.com. 12 Dec 2019
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Aquaculture Aquaculture is a growing business and is increasing rapidly as populations rise and the need for food is increased. Aquaculture is the controlled cultivation and harvest of aquatic plants and animals. Aquaculture is beneficial to the world but Aquaculture in different parts of the world has affected the environment also. There are several different types of aquaculture such as Marine Aquaculture and Freshwater Aquaculture. Aquaculture consists of many different people with different professions ranging from high school diplomas to high levels of education such as 4 year degrees.... [tags: Aquaculture, Fish, Salmon, Seafood]
1604 words (4.6 pages)
- In this paper I will discuss the way that war and economics have shaped the development the United States. I want to focus on the two to three main points of history in each topic. On the economic side of things, I want to discuss Colonial America, Slavery, and The Great Depression. On the war side of things I want to discuss The Revolutionary War and The Civil War. Now there are more topics that I could dive into, but I would like to focus on some of the events and not all. Economics, as well as war, have played a pivotal role in Modern day America.... [tags: United States, Thirteen Colonies]
1407 words (4 pages)
- States. More spending on construction and manufacture in departments helped the workers and firms engaged in those areas. Increased defense spending improved the United States border security. A monetary policy that leads to higher interest rate promotes investment from international firms. They bring in and deposit more money into United States to gain advantages from prevailing higher interest rates. Domestic banks earn higher profits and increased demand of dollar and hence increased exchange rates.... [tags: International trade, Economics, United States]
1104 words (3.2 pages)
- Aquaculture in general and shrimp culture in particular have recently been developing strategies of super-intensive cultures without water exchange. This approach addresses environmental questions raised by both society and the scientific community regarding sustainable development concepts which demand a convergence of ecological prudence, economic efficiency and social equity in all human activities (Bailey, 1988; Brown, 1989; Pruder, 1992; Macintosh and Phillips, 1992; Kinkelin and Michel, 1992; Pe´ rez, 1993; Currie, 1994; Primavera, 1994; Rosenthal, 1994; Larsson et al., 1995; Kestemont, 1995).... [tags: New Aquaculture Technology]
869 words (2.5 pages)
- During the past decade, the state of California has been one of the fastest growing economies of the United States. The substantial growth has positioned California as the top one economy in the United States, with a gross domestic production of approximately 2.3 trillion dollars for the fiscal year 2014. The state of California has also ranked number eight in the largest world economies, passing countries like Italy and Russia (Young, 2014). Although many factors have led to this growth, the most influential have been related to the high investment of private industries and the increases on international trade and the real estate sector.... [tags: Unemployment, Economics, United States, California]
949 words (2.7 pages)
- When it comes to immigration many things comes to a person mind. There are many things that an immigrant faces when he/she decides to migrate to another country. For instance, for an immigrant moving is not an easy thing to do they will have to leave everything behind and start over again in a whole different country than their own native country. At first is going to be hard because they do not know anyone, they do not speak the language. The parents will have to look for a house and also look for a job to support their family and learn how to survive in what seems like a different world.... [tags: United States, Economics, Dominican Republic]
1456 words (4.2 pages)
- The United States of America has had a staggering history between economics and monetary processes throughout its history. The variation between the low income classes and the high end classes have varied for centuries in the country. This long history has always affected the health and standard of living of both classes. Usually the low end class individuals would have less material and shorter life spans, whereas the high end individuals would have a massive amount of materials as well as a longer life span.... [tags: Economics, United States, Factors of production]
1716 words (4.9 pages)
- Russia and the United States have many common traits between each other. Both countries have had their ups and downs, economically, over the several years they have existed. But, what easily sets these two countries apart is how they have handled their ups and downs to improve their economical stance in the world. In comparing Russia to the United States, we must first look at a quick history of both countries to get a grasp of the structures and functions that have molded these two countries to what they are today.... [tags: Economics, Investment, Economy, United States]
1252 words (3.6 pages)
- Comparison of Economies: United Kingdom vs. United States The United States of America (USA) and the United Kingdom (UK) are similar in many different ways, but their economies are much different. The difference in population contributes to several of the differences between the economies. Vast differences in the percentages of the Gross Domestic Product (GDP) that agriculture, industry and services make up are another way in which the economies differ. Last, the share of trade in each economy is extremely different.... [tags: Economics Compare Contrast]
492 words (1.4 pages)
- Aquaculture Aquaculture is a form of agriculture that involves the propagation, cultivation and marketing of aquatic organisms in an controlled environment. The history of aquaculture first begun in ancient China some 4000 years ago with ornamental carp ponds to today's $264 million commercial production of catfish in the southern states of America. 1 The following essay will be a broad examination of the conditions and requirements of aquaculture and a closer study of the industry in Western Australia.... [tags: Papers]
1052 words (3 pages)
Despite the trade imbalance, some aquacultured fish products are exported. There has been significant growth in U.S. exports of ornamental fish with exports of $17 million in 1993 and over $10 million in the first half of 1994. (US Department of Agriculture, 1994)
The Northeast Region, as covered by the Northeastern Regional Aquaculture Center (NRAC), includes the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, and West Virginia. NRAC estimates the total 1992 farm gate value of aquacultured products in the northeastern United States to be $146,409,000. Cultured shellfish comprises approximately 53 percent of the 1992 regional farm gate value, with oyster production being the single largest segment of the regional industry accounting for roughly 42 percent of the total. Net pen culture of Atlantic salmon and steelhead trout was the second largest category contributing 29 percent to the regional value. (Northeastern Regional Aquaculture Center, 1993)
The state of Connecticut is the largest aquaculture producing state in the region with estimated farm gate sales of $61.7 million, primarily from oyster sales. Maine is the second largest aquaculture producing state in the region with farm gate sales of $42.9 million, largely from pen-reared salmonid. Pennsylvania is the third largest aquaculture producing state, with farm gate sales totaling $11,926,000, dominated by trout culture. New York is the forth largest aquaculture producer, with $9,637,000 in sales, primarily from the Long Island oyster farms. (NRAC, 1993)
Massachusetts follows as the fifth largest aquaculture producer with $8,020,000 in sales. The dominant species in Massachusetts, in order of economic value are: Northern Quahog, oyster, trout, hybrid striped bass, scallops, baitfish/other fish and tilapia. (NRAC, 1993) Trout, striped bass, baitfish/other fish and tilapia are all grown in inland facilities in Massachusetts.
When comparing the aquaculture industries from state to state, it should be kept in mind that the potential for aquaculture to succeed is dependent on several considerations. While some of these considerations are flexible and can be made more accommodating for aquaculture (laws, regulations, policy, business climate, private and public initiatives) others, (tidal range, exposure, biological parameters, flushing rates, temperature, native species) cannot be easily overcome.
Economic success of aquaculture requires maintenance of a high price in the market to offset basic investments and rearing costs per organism and to assure a good profit margin. Price per organism however, is insufficient to insure economic viability. Maintenance of consistently high sales volume is also required.
The reported (landing) value of aquacultured shellfish in Massachusetts is difficult to calculate. The Division of Marine Fisheries and municipalities collects annual landing data from aquaculture producers as a part of their reporting requirements under Section 35 of Massachusetts General Law Chapter 130. Precise reporting to DMF is not required of aquaculturists and thus the information received and summarized by DMF reflects only the producers who self-reported. As has been mentioned previously in this report, aquaculturists have also historically underreported their landings for various reasons. Due to both the chronic under-reporting that exists within the industry and the lack of any sophisticated, consistent calculation of true value, shellfish aquaculture is both undervalued and overlooked in Massachusetts.
If the real values were consistently reported, the significance of this industry to Massachusetts would become apparent. Although the shellfish aquaculture industry in Massachusetts is not large when compared to other industries in the state, it is important to consider that the industry is located in small Cape Cod towns which have few other year-round industries. To the municipalities where shellfish culture is practiced, this industry is increasingly desirable for economic development.
Total Estimated Values for Cultured Shellfish; 1986 - 1993
The following estimated values are derived from DMF landing data. For the year 1992 estimated values from the Northeast Region Aquaculture Industry Situation and Outlook Report are also provided for the sake of comparison. NRAC compiled its data via individual grower surveys and is likely to be more realistic, but still not precise. The NRAC figure includes production of inland cultured striped bass, trout, baitfish and tilapia. Comparison of the two estimated values of aquacultured products for 1992 reveals the significant problem Massachusetts has with accurate reporting of aquacultural production.
1986 = $ 2,114,026
1987 = $ 318,584
1988 = $ 620,058
1989 = $ 1,933,145
1990 = $ 906,815
1991 = $ 1,884,017
1992 = (DMF)$ 863,418 (NRAC) $ 4,000,000 (approx. value of quahogs & oysters)
$ 8,020,000 (all aquacultured products)
1993 = $ 1,753,192
An additional 4.5 market multiplier is utilized by NMFS to conservatively account for the additional value of spin-off jobs, support industries and employment-related benefits.
The common constraint shared by almost all aquaculturists is the lack of dependable funding sources, both for start-up and for operational costs. Most federal funding sources are geared toward traditional agriculture and the programs that include aquaculture generally limit it to finfish and inland endeavors. Most private lending institutions in Massachusetts either do not recognize aquaculture as a commercial venture or recognize the high risk of "crop failure" inherent to aquaculture. This financing vacuum forces most aquaculturists to apply for personal loans to get the venture and operating capital they need.
One of the essential keys to success in any industry is its access to reliable sources of funding. Traditional agriculture has relied upon three sources to provide many of its capital needs: the farm credit system, the Farmers Home Administration, and private lenders. Aquaculturists, particularly shellfish culturists, need the same access and the same opportunities.
Shrewd marketing is important to the livelihood of any industry, particularly aquaculture. Concurrently, an effective marketing campaign can expand the distribution of aquaculture products outside of the local area. At present, however, local growers are providing product to a limited market which has forced down the unit price. Through aggressive marketing efforts, the market for local aquaculture products could be expanded to other regions of the country, which would increase product output forcing up the unit price. Unfortunately, the industry is not currently capable of funding such a marketing initiative.
Similarly, financial obstacles to aquaculture projects including start-up costs and marketing initiatives, as well as those inherent to the complicated permitting process, exclude all willing participants from entering the aquaculture industry other than large corporations. In order to open the industry up to small scale operations and provide any chance of an alternative to traditional fishing, governments might need to create a framework whereby small scale projects could obtain permits more easily. Additionally, states would need to provide assistance in the form of funding start-up costs and marketing initiatives if such projects are to have a chance of maintaining viability.
Modern Economics Pp 23 - 39
Micro Economics in the USA Pp 349 - 364, & 398 - 401