San Diego Business Journal

Aquafarming Could Slow the Flood of Imported Seafood

By San Diego Business Journal Monday, February 26, 2007

One fish, two fish, red fish, blue fish farm fish?

Carlsbad aquafarmers, who use science to breed commercial seafood supplies, are fighting to grow their industry at home.

They're doing so despite competition from importers who are used to gorging on U.S. dollars and opposition from animal welfare activists.

According to the U.S. Department of Agriculture, 70 percent of seafood consumed domestically each year is imported.

About half of all imports are "aquafarmed," said Donald Kent, president and chief executive officer of the Hubbs-SeaWorld Research Institute.

The value to importers is $11 billion. In comparison, the United States' aquaculture industry generates about $1 billion in sales, Kent said, so the gap is enormous.

The Hubbs-SeaWorld Research Institute is an independent, not-for-profit, 501(c)(3) public benefit corporation. SeaWorld is among its funding sources.

The institute operates a 20,000-square-foot white sea bass hatchery in Carlsbad that plans to release as many as 350,000 farm-grown bass back into the Pacific Ocean this year.

The operation, which employs 20 and costs $1.3 million a year to run, is designed to replenish oceanic supplies depleted by human encroachment. The program has been under way for 12 years.

Kent said that while the United States imports $11 billion in seafood each year, the nation exports just $3 billion, creating an "unacceptable" $8 billion trade deficit.

"We import so much but most of it is aquacultured, which means we're paying someone else to grow it for us when we know we could be growing it ourselves," Kent said.

Kent's group regularly drops its "crop" into the ocean from 14 staggered sites from Santa Barbara to San Diego.

Kent, who says aquaculture is about "farming the sea instead of harvesting it," said it used to cost $5 per released fish but refinements to the process with trial and error have brought that down to $2.

He said if the institute could operate as a for-profit business that amount could probably be further reduced.

For-Profit Farming

While Kent's group releases fish for other for-profit fishermen to catch, nearby business Carlsbad Aquafarm Inc. profits.

Family-run since 1990, Carlsbad Aquafarm annually produces 1 million oysters, 300,000 to 400,000 pounds of mussels, 50,000 pounds of seaweed and 12,000 seahorses. The mussels and oysters are sold for human consumption, while the seaweed and seahorses are sold to home aquarium owners.

"The bread and butter of what we do are the mussels and the oysters that we grow here," said Andrew Davis, vice president of the business that employs about 20 on a 10-acre site. Davis did not disclose revenues or profits.

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