1 AQUA y~Zi,"ives Guidelines for Farmingin Alaska

Brian C. Paust MarineAdvisory Program Petersburg,Alaska RaymondRaLonde MarineAnchorage,Advisory Program XIIIIIIW%

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NATIONALSEA GRANT DEPQSITQRY PFLLLIBRARY BUILDING URI NARRAGANSETTBAYCAMPUS 4APRAGANSETT,R.l02882

AlaskaSea Grant College Program PO.Box 755040 ~ Universityof AlaskaFairbanks Fairbanks,Alaska 99775-5040 907! 474.6707~ Fax 907!474-6285 http://www.uaf.alaska.edu/seagrant

AN-16~ 1997~ Price:$4.00 ElmerE. RasmusonLibrary Cataloging-in-Publication Data Contents Paust, Brian C.

Guidelinesfor shellfish farming in Alaska / Brian C. Paust,Raymond RaLonde. The Authors . Introduction . notes; no. 16! Marine Advisory Program The Roadto SuccessfulShellfish Farming . Starting the Business. ISBN 1-56612-050-0 Follow These Steps No Precise Instructions Available 3 1. Shellfishculture Alaska. 2. Oysterculture Alaska. I. RaLonde, Aquaculture Business on a Small Scale . Raymond. Il. Alaska SeaGrant College Program. III. Title. IV. Series. PictureYourself as an Aquatic Farmer 4 4 The Need to Be Optimistic and Innovative SH371,P38 1997 What Niche Do You Want to Fill in Aquatic Farming?...... 4 Practical Experience ls Necessary Be Sure Information Is Accurate 5 5 Be Cautious of Claims of High Profits Beware of the Gold RushMentality 6 7 Checklist Before You Invest...... 7 Financing,...... 8 How Much Money Is Neededfor Investment? ..... 8 Credits Why Some ShellfishOperations Have Failed. 9 Major Constraints Facingthe Industry , 10 Cover design is by SusanGibson, editing is by Sue Keller, and Tips on Reducing Business Risk . 11 layout is by Carol Kaynor. The Market for Alaska Shellfish . .,11 Thisbook is the resultof work sponsoredby the Universityof AlaskaSea Grant College Program, which iscooperatively supported by ShellfishAquaculture Techniques ... 12 the U.S. Department of Commerce, NOAA Office of Sea Grant, under Need for Reliable Seed Sources . . 12 Growing Safe Shellfish ... 13 grant no. NA46RG0104,projects A/71-01 and A/75-01; and by the Universityof AlaskaFairbanks with statefunds, The Universityof Alaska Avoid Water Pollution Problems , 13 is an affirmativeaction/equal opportunity employer and educational Culture Site ... 14 institution. Start Planning a Year in Advance of Applying for a Sea Grant is a unique partnership with public and private sectors Culture Site ... 14 combining research,education, and technology transfer for public Site Selection Process . 14 service.This national network of universitiesmeets changing environ- Key Site Selection Criteria ...15 rnental and economic needs of people in our coastal, ocean, and Great In Summary, Enter with Caution ... 19 Lakesregions. Further Reading...,...... 20 The Authors Introduct>on Brian Paustis professor of fisherieseducation at the Universityof Shellfish aquaculture in Alaska can be a perilous career choice for the Alaska, and has been the SeaGrant Marine Advisory Agent in Peters- new entrepreneur. It can also be exciting and prof~tablefor the person burg, Alaska, for 18 years, He has presented numerous workshops and willing to work hard and deal with the issuesand risks. is the author of several resource manuals on underutilized species and This manual has practical guidelines, strategies, and warnings other Alaska fisheriestopics. about entry into shellfish farming businessin Alaska and other cold- Ray RaLondeis professor of fisheriesfor the Universityof Alaska, water regions. The information was collected by extension workers and has servedas aquaculture specialistfor the Alaska Sea Grant who have worked closelywith Alaska shellfish farmers over the past Marine Advisory Programsince 1991. His experiencein aquaculture two decades.It can be adapted to farming several bivalve speciesin education in Alaska includes teaching at Sheldon JacksonCollege and the North in many parts of the world, at the Universityof Alaska Fairbanks,and he is currently superintendent The book addressesthe culture of the Pacificoyster Crassostrea of the Alaska Future Farmersof America Marine Technology program. gigas!in Alaska,In Alaska,shellfish aquaculture methods include He serves on the Alaska Technical Center Advisory Com- suspendedculture, such as lantern nets hung from surface longlines, mittee, Cook Inlet KeepersTechnical Advisory Board, and the Western and to a lesser extent intertidal zone methods, such as rack-and-bag RegionalAquaculture Consortium ExtensionSubcommittee. culture which can be used in areaswhere winter freezing is not a problem. Suspended culture methods are most frequently used to Brian Paust culture single oysters for the half-shell market, but can also be applied Marine Advisory Program to the production of shucked oysters. P.O. Box 1329 Eventhough Alaska shellfish farmers have experiencedconstraints Petersburg, AK 99833 ranging from biological concernsto complex sociopolitical difficulties, 907! 772-3381 the Alaska shellfish farming industry is making significant progress. ffbcpOaurora.alaska.edu Most of the growth in shellfish culture in Alaska came only a few years httpJ/www.uaf.alaska.edu/MAP/peter/peter. html ago, after the Alaska State Legislaturepassed the Aquatic FarmAct of 1988. This single initiative enabled the expansion of aquatic farms in RayRaLonde severalAlaska regions. During 1990-1994, Alaska went from a few Marine Advisory Program aquatic farms to sixty-four. With farms permitted to culture shellfish 2221 E. Northern Lights Blvd. ¹110 on nearly 200 acres of state tidelands, the industry has grown from Anchorage, AK 99508-4140 production totaling a few thousand dollars in 1988, to several times 907! 274-9691 this amount at the end of 1994. This growth has taken Alaska beyond afrlriluaa.alaska.edu experimental shellfish culture industry. The Alaska industry is now poised for a period of significant growth. In spite of progress made to date, shellfish farming remains a risky business.An important function of this manual is to decreasethe rate of businessfailure associatedwith the industry. Guidelines for Shellfish Farming in Alaska Guidelines for Shellfish Farmingin Alaska

The Road to Successful Shellfish Farming researchedbusiness plan. A business plan coupled with careful researchand a good pilot project should provide an early indication of As in any new industry, information may not be readily available on problems and give ample time for mid-course corrections. how to plan and start a business.But with a little digging,you will find The easiestway to get into the aquaculture businessis to buy an a wealth of practical information. Veteran farmers are frequently existing viable operation, an option not available in Alaska. For willing to share information. Key to your successas a new aquatic starting the businessfrom scratch, the following sequence is sug- farmer is a close working relationship with resource managers, con- gested Milne 1979, Paust 1987!: sultants, farmers, support industry members, and university extension workers. ~ Completea marketanalysis, including factors influencing Get a copy of Developing a Mariculture Businessin Alaska demand for the product. RaLondeand Paust 1993!, available at the University of Alaska Marine ~ Consider available capital and sourcesof borrowed capital, Advisory Program and local libraries. It has lists of resourcesand and calculate the maximum permissiblescale of the project. contacts necessaryfor the businessplanning process.Also, consider membership in an aquaculture associationto gain industry support. ~ Select speciesor speciesmix based on market demand, The essential organizations include the Alaskan Shellfish Growers available capital, and capabilities of site. Association, 907! 288-3667; and the Pacific Coast Oyster Growers ~ Select appropriate culture methods based on species,product Association, 06! 459-2828. form, and site characteristics. Whenever considering entry into a new businessventure, it is best to develop a clear plan of action and be thoroughly objective. The ~ Start site selection process,involving a searchfor several tasks can be accomplished by the average individual. Many suitable sites within region. peopleentering this field with little to no experiencein aquatic farming have gone on to develop profitable businesses. ~ Select and test the best sites. Before launching into business,the prospective farmer should ~ Choose best site or group of closelyassociated sites examine personal goals, and technical, financial, emotional, and physicalassets. The ability to do heavy work in a harsh environment is Make a forrnal businessplan. required. The currents are strong, the water is cold, and the hours are ~ Start pilot project to verify viability of the site, and the produc- long. Self-preservationis an essentialskill in this field. tion and management assumptions in the businessplan The Alaska aquatic farming industry needs a large number of well- significant modifications may need to be made!. inforrned recruits equipped with the stamina and practical knowlectge to overcome the challenges,We hope you will become a long-term ~ Progressto full-scale production. member of the industry. The following caveatsshould be seriouslyconsidered by prospec- No Precise Instructions Avaiiabie tive farmers and investors.They provide a realistic appraisalof There is no detailed recipe for successfulfarming, for several reasons: problems encountered in the aquatic farming industry. 5tatements are not listed in order of importance.! ~ No two shellfish growing sites are identical. Each site requires different technical solutions and culturing methods. ~ No two farmers are identical. An approach that will work weil Starting the Business for one farmer could result in failure for another. Experience, Fol/ow These Steps information, finance, and accessto supporting infrastructure are different for each farmer. According to Needham 988!, most businessesdo not run into difficulties the difficultieswere presentfrom the beginning.The ~ Farming techniques change with new technology. Careful reduction of businessrisks can be accomplished by following a well researchand application of current methods will be required. Guidelines for Shellfish Farmingin Alaska Guidelines for Shellfish Farmingin Alaska

The development of your definitive farm "recipe" will require a Retirement farmers often consider farming as a source of review of information, a feasibility study and businessplan, and supplementa I income. diligent trial-and-error work during and after the pilot phase. The development of efficient farming methods requires patience. Part-time farmers want to produce supplemental income. One rule is to find methods that work well and stay with them long Diversified farmers want to add aquatic farming to their current enough to test their worth before you make changes.Any changes business.An example is a commercial fisherman who fishes should be in small adjustments along with careful monitoring. Minor during commercial openings and farms at other times. adjustments of a culture technique may be all that is necessaryto bring the farm to peak production. Sudden shifts are to be avoided in Lifestyle farmers maywish to live in an arearemoved from favor of slower, more thoughtful action, population centers and enjoy the hard work associatedwith aquatic farming. Aquaculture Business on a Small Scale Corporate farmers may never get their hands wet, but rather The extension service in Alaska caters to the needs of small-scale invest in a farming effort and supply other talents to the businessclientele. This manual is of greatest value to prospective enterprise, such as marketing skills, farmers interested in a few acres of intertidal and subtidal lands using limited yet adequate mechanization, and a small crew. The farm crew, infrastructure providers offer many servicesto farmers. An in most cases,w II be limited to family members and an occasional aquatic farmer may add equipment salesto the farming seasonalworker. The Alaska shellfish farming industry has attracted a operation. Severalother opportunities are available including number of entrepreneurs seeking rural lifestyles people able to cope transportation services,market consulting, accounting, and with hard manual labor, and able to resolve production and marketing shellfish brokering. challengeswith innovative solutions geared to their small-scale operation. Practical Experience ls Necessary Although helpfulmanuals abound, in additionto readingyou must Picture Yourself as an Aquatic Farmer get "down and dirty," that is, be willing to gain field experience, A The Need to Be Optimistic and Innovative common complaint, even among people experienced with hard labor is: "I have never worked so hard in iny life as I do on this farm." The shellfish farming businessis best suited for individuals with an Severalfarms have failed becauselabor requirements were beyond the optimistic outlook. The work is hard and the rewards are relatively capacitiesof the workers. Newcomerswanting to gain experience modest.Smail-scale shellfish farming is bestsuited for hard-working should find a shellfish farmer who is willing to take on temporary individuals interested in developing a valued lifestyle, not just a lot of workers, At a minimum, visit several farms during peak activity. A list money. of Alaska aquatic farms is available from the Alaska Department of Successful farmers tend to be the ones who are innovative and Fish and Game and the Marine Advisory Program. capable of work-reducing thinking. The successof a small farm is largely cerebral in nature. One of the most important character attributes an oyster farmer can have is the ability to be persistently Be Sure Information Is Accurate innovative. Sole reliance on heavy labor will slowly exhaust the good intentions and aspirations of those incapable of innovative thinking. You should read a variety of materials and maintain a healthy amount of skepticism, In addition, you will need to review information on What Niche Oo You Want to Fill in Aquatic Farminy? businessdevelopment, market conditions, legal issues,coastal zone management plans including state and local land-use plans, current Peopleenter the aquaculture businessfor many reasons. farm directories, equipment catalogs, and many other documents Full-time farmers gain their entire income from farming. pertaining to your area. Guidelines for Shellfish Farming in Alaska Guidelines for Shellfish Farming in Alaska

Pnnted documents can provide information, but not necessarily it grow gradually through time? What assuranceis there for the final answers. It is a good idea to verify the information. Some adequate sourcesof capital investment? ways to do this are: ~ Is the promoter willing to provide complete information? Double-checkwith people knowledgeable in the field. Recog- nized authorities can be found at universities,extension investors entering this industry should be most concerned about the long-term continuity of their business. programs, state agencies,and consulting firms see RaLonde and Paust 1993!. 8eavare of the Gold Rush Menta/ity ~ Join an aquaculture associationand take advantage of the Many industries have evolved from an initial phase during which the expertiseavailable to you among the members. supplyof productwas limitedand the marketprice, as a consequence, ~ Determine if the information has been applied in successful was high. The high profits generated during the initial phase of aquaculture operations or has otherwise been verified. development were not necessarilythe result of high demand and efficient operational procedures, but rather were the result of low supplies or a unique product type that generated high market prices. 8e Cautious of Claims of High Profits High profits from new can produce inappropriate re- The public has been exposed to statements about high profits from sponseson the part of some investors.The stimulation of a gold rush aquaculture investments.These claims should be looked upon with causesinvestors to incautiously move into a developing industry and suspicion. Be cautious about proposalsthat suggest immediate high encouragesthem to take a number of shortcuts in developing business profits. Huge profits are seldom found in any industry, and promoters ventures.The largegap betweencost of productionand farm gate touting major financial gains should be challenged to produce busi- price is seductive. While prices remain high, operators are able to reap ness and marketing plans. considerableprofits. However, an expanding industry produces nore Be cautious about computer-generated financial reports, Com- product and this increasedproduction frequently leads to reduction in puter analysisof businessperformance is a powerful tool to assess marketprices. Marginal and inefficientfarmers not ableto quickly feasibility, but the computer modeled operation is only as good as the modify productionmethods are then forcedout of the industry raw data and assumptions used in the analysis.If you are presented Clearthinking is the best strategyto avoidcalamity when profits with such a program, or any other financial analysis,follow these basic seem guaranteed. It is risky to assumethat an enterprise will be rules. successfulwhen the analysisof financial viability is based on short- ~ Do not relinquish your judgment to the computer. All inputs term phenomena. A carefully drafted businessplan will help avoid should be verified as accurate, problems associatedwith the gold rush mentality. ~ Question the formulas that are used to generate the numbers. What assumptions are behind the formulas? Checklist Before You Invest ~ Don't rely on a single outcome. Changes in the market price, Longbefore an investormakes the decisionto developa farmor mortality, processingcosts, permitting fees, etc., all affect the become a part of the infrastructure supporting an aquaculture indus- profitabilityof a farm,You shouldtest the profitabilityof a try, a crucial assessmentmust be made concerning the strength of the proposed farm against a range of values. industry. Severalcriteria should be satisfied before the decision to invest is made, ~ Any financial analysismust contain a cash flow analysis.You will needto know how muchcash is neededduring the ~ The marketfor the culturedspecies should be expanding. development stages. There is little reason to enter an industry facing a static market. Increasedproduction in a market where demand is ~ Be alert to how the operation is scaled up through time. Does either staticor decliningwill leadto pricedeclines and fading the project start with immediate high level investment or does profit margins, Guidelinesfor Shellfish Farming in Alaska Guidelines for Shellfish Farmingin Alaska

~ A "premium" speciesshould be involved, one for which How Much Money Is Neecteci for Investment? relatively high prices are paid. Aquaculture is an expensive Initiating a shellfish aquaculture businessrequires a significant financial undertaking with narrow profit margins. Most successful investment. In some casesthe availability of vesselsand equipment farmers have been forced to reduce production costs through used in other businesses or fisheries can cut down on initial costs. For adjustment in gear and production strategies. example,a commercialfisherman who owns a boatwith hydraulic ~ The price paid for the speciesshould be stable, and not based operatedequipment would find it a veryvaluable asset in a farming solely on a short-term shortage of product. business. Startinga cultureoperation even on a smallpilot scalebasis will ~ Proventechnology for the cultivationof the speciesis readily require severalthousands of dollars in initial investment. Larger available and the needed equipment can be purchased off- operations with an annual production of 100,000-150,000 half shelf the-shelf. Avoid unproved technology. oysters can cost $40,000 in initial cash investment for culture equip- The investor and farmer must position themselvesin the ment alone. Additionai costs can easily bring the total to $70,000- 80,000 before the first sale of product. This estimate does not include industry based on personal skills and financial resources, purchaseof a servicevessel or work raft another $5,000-$50,000 ~ You must prepare for a long-term business,Do not expect investment! immediate profits. New aquaculture ventures often require a Obtaining investment capital is a difficult problem in Alaska. Most numberof yearsof operationbefore the first saleof product. aquatic farmers use personal assetsand private investment capital. Oyster culture may take as long as three years before income Financialinstitutions are hesitant to back aquaculture in Alaska is generated. You must be adequately capitalized to support because of failure rates and because loan officers are not well in- the businessduring the start-up years, formed about the aquaculture industry and its potential. This situation ~ Enough information should be gathered to evaluate the risks is improving. If you hopeto borrow moneyfor investmentcapital from any and estimate the effort needed to make the business succeed. source, a carefully crafted businessplan wiil be required. The plan shouldprovide clear indications of projectorganization and profitabil- Financing ity. The businessplan shouldalso have a sensitivityanalysis, to assess The best strategy for funding a new aquaculture enterprise is to the "what ifs" within the businessoperation. For example, what will maximize equity financing in whatever form possible. Equity financing happento projectprofitability if the pricefor oystersdrops by 10'/0? refers to funds you have control over, usually your own money. Some What couldyou do to compensatefor the problem?Financial institu- general rules about equity financing are: tions will look at your understandingof the business,including the Rule ¹1. The use of commercial sources for capital money for sensitivity of the operation to various risks. which interest must be paid! should be considered only when the enterprise has moved out of its early developmental phases, Rule ¹2. Low- to no-interest funds for initial investment can come Why Some Shellfish Operations Have Failed from the owner, partners,contract growers, employees, public agency grants, and financial institutions willing to defer interest payments for Nationwide studies have shown unusually high rates of failure for severalyears. newly established small businesses. Most of these failures are due to Rule ¹3. New farmers are advised to dilute personal ownership poor management practices. Shellfishaquaculture, like any smail rather than to rely on loans, by bringing in partners or stockholders. business,has a highfailure rate becauseof a lackof background This strategy is easy to justify if the businessis successful,the information availableto the investor, Iverson 976! and Paust987! founder of the company can generate sufficient discretionary capital haveinformation with accuratedata on the management,finances, to repurchaseownership rights at a later date, operation, and performance of operational farms in Alaska and other 70 Guidelines for Shellfish Farmingin Alaska Guidelines for Shellfish Farmingin Alaska 77 northern regions see Further Readingsection!, This type of informa- ~ Chronic absenceof suitable marketing plans. tion is difficult to obtain becauseof its proprietary nature and, in Alaska, becausethe industry is new. ~ Limited availability of investment capital. ln the recent past, many aspectsof aquaculture development such ~ Overregulation by government inspectors and resource as site selection, speciesselection, and project management were managers, basedon trial-and-error.The high rateof businessfailure, encountered by those who pioneered the oyster industry ten to twenty years ago, ~ Logistical complexities, persists today. ~ Inadequate commercial and service infrastructure to support The oyster industry's businessproblems are exacerbated by lacal the developing industry. conditionssuch as the lackof supportiveinfrastructure, equipment suppliers, veterinary services,competent consulting services,market ~ IVlanyparticipants in the industry, including both farmers and coordination, transportation services,and communication networks. regulators, still have much to learn about the industry, The Other contributing problems include friction between farmers and the development of expertise can require years of practical government agencies responsiblefor the regulation of the industry, experience. and friction between farmers and competing users of estuarine ~ Lack of dedicated seed sources. waters. Shellfishfarmers themselveshave been responsiblefor some of Thefirst three itemsare consideredmajor obstacles facing the overall their businessproblems. The lack of comprehensivefeasibility studies, U.S. aquaculture industry. the absenceof businessplans, and general ignorance of biological requirements of the speciesbeing cultured contribute to the demise of Tips on Reducing Business Risk an aquaculture business. Other causes of business failure are more The complexity of the aquaculture industry is often underestimated by subtle an imbalance in the relationship between personal capital and the newcomer. Aquaculture sounds easy, but the cultivation of long- and short-term debt, the inability ta work through a systematic organisms such as the Pacificoyster is a complex arrangement of development process,and miscalculating the amount of personal time biophysical and sociopolitical conditions that need careful manipula- that can be devoted to the project. Problemscan become even more tion if the venture is to be successful. acute when inadequate planning is linked with impetuousnessand Evenwith propermanagement strategies, there are still manyrisks impatience. that can place an independent operation in jeopardy. Methods of risk reduction should focus on the following: Major Constraints Facing the Industry ~ Developing proper management skills. The potential for aquaculture development in the Gulf of Alaska is ~ Remainingacquainted with traditional methods of cultivation. great. Major advantagesinclude expansesof nutrient-rich waters and many undeveloped areas with pristine water quality. Many estuaries ~ Being informed about the availability and proper use of along the Gulf of Alaska coast are suitable. technological innovat ons. Despitethe advantages,there are severalmajor constraints facing ~ Maintaining relationships with industry workers who have the industry, Most of the constraints exist becauseshellfish aquacul- ture in Alaskais a relativelynew enterpriseand problemsare still being long years of experience in the industry. addressedby the industry.Some of the problemsare serious,while others are just a nuisance.However, all of them will affect your The Market for Alaska She0fish businessand you will need to find ways to deal with them. Some of A frequently asked question is whether Alaska, at the outer limits of the important constraints in development of aquaculture businesses the natural distribution of the Pacificoyster, can effectively compete are: with farms closer to the center af the oyster's range. The answer is, 12 Guidelines for Shellfish Farmingin Alaska Guidelines for Shellfish Farming in Alaska 13 while Alaskaoysters are high priced,they are recognizednationwide you can acquire the necessarytechnical skills needed to run your farm as high quality and are enthusiastically receivedin markets. at a profitable level. Pacificoysters grow very well in Alaska, with some farms market- ing half-shell oysters in about 18 months. Alaska oysters can be Need for Reliable Seed Sources marketed in summer, when oysters from roost warmer regions have become spawny and unmarketable. At ideaI growing sites in Alaska, Most Alaska farmers currently must import spat from commercial the colder water temperatures prevent oysters from becoming spawny hatcheries in Washington and California. Alaska statutes require that in summer. The spawny condition is caused by the development of imported seed be lessthan 20 rnm in length as a means to control reproductivetissue gonads!.While summermarketing is a plus,the diseases associated with larger seed. Because of these restrictions, advantageis challengedby the high priceof Alaskaoysters. Expenses Alaska farmers often do not get high quality seed and the seed may are higher becauseof higher production and transportation costs, be delivered late in the growing season.As a result, the Alaska farmer Accessingthe market is not simple. Many Alaska farmers try to has lesscontrol over production schedules.In addition, the brood market their oysters locally or in other parts of the state. The Alaska stock parent oysters! used in the southern hatcheries to produce seed marketsbecome saturated during peakproduction, causing the price for Alaska are not always acclimated to northern growing conditions. to drop. Becauseof the in-state price volatility, many operating farms Thus survival and growth of the oysters is inconsistent. A solution to are now devoting resourcesto developing markets outside the state. these problems would be the successfuloperation of a shellfish Unfortunately,Alaska oysters do not enter the marketon a regular hatchery in Alaska. The first seed production facility was constructed basis. Production is not dependable becauseof a lack of secureseed near Seward in 1996. This facility will become involved with aquacul- sources, poor marketing plans, unavailablecapital sources, and no ture researchand development involving other bivalve species, unifiedindustry organization. Fortunately, progress is being madein all including littleneck and . of these areas. Growing Safe Shetlfish She llf ish Aquaculture Techniques Alaska's pristine cold waters are able to produce shellfish to satisfy the highest quality standards. In this case, quality means product safety Juvenileshellfish, called spat, are purchasedfrom a shellfishhatchery, with regard to consumer health. stocked in rearing trays, and allowed to grow for one to three years Two indicators of product safety are monitored total tissue beforebeing harvested and sold.This is a deceptivelysimple proce- bacteria count and tissue fecal coliform count. Total tissue bacteria dure. However, as novice farmers quickly learn, the aquaculture measuresthe total of all types of bacteria contained in the shellfish businessrequires a sophisticatedlevel of understandingand a mastery tissue and is an indicator of the general quality of the tissue. High of technicaldetails. This is especiallytrue in Alaska,where nearlyevery numbers of bacteria indicate a potentially shortened shelf-life and a technical application is a modification of techniques used in other greater level of product deterioration. Fecal coliform, on the other parts of the world. Alaska farmers need to work out the details of hand, indicates the degree of contamination by bacteria of fecal origin stockingdensities, growth projections,design modifications, sorting primarily from mammal or bird wastes. The presenceof fecal coliforrns procedures, and severalother specificsto conform with the unique is an important indicator of food safety. characteristics of their farms. Alaska shellfish have consistently exceededthe Food and Drug Other technical details of farm operation include identifying the Administration FDA! standards in terms of both of these quality "how-to" of shellfish processing,sanitation procedures, shell stock indicators. While the FDA limit in total bacteria is 500,000 bacteria per holding, seed holding, and shipping requirements, all of which are gram of tissue, Alaska shellfish typically register counts around 30,000. needed to optimize product quality. Finding technical information For fecal coliform bacteria the FDA limit is 230 bacteria per 100 grams. about oysterculture is not difficult. The difficulty arisesin assimilating Alaska shellfish average about 33 bacteria per 100 grams. These the information to make appropriate modifications and assemblea bacteria levels are impressivelylow and indicate to the consumer that working farm. If you learn through researchand practical experience, Alaska cultured oysters are safe and wholesome. 14 Guidelinesfor ShellfishFarming in Alaska Guidelines for Sheilfish Farmingin Alaska

Avoid Dater Pollution Problems in terms of biological and economic feasibility, but if you lack social Marinebivalves are a valuableinternational food commodity.In recent acceptance, you may not get your site. years, market prices have increasedin part becauseof decreased An important thought to keep in mind is that an aquat c farming productionin traditionalfarming regions.Reduced U.S. production of ventureis dynamic.The dynamicnature of the typicalfarm will require shellfishwas causedby increasedpollution and growing areaclosures carefullong-term planning to determinewhere you want your farm to in severalmajor productionregions Pollnacet al. 1982!.Llnexpected be five, ten, twenty yearsdown the road. Developinglong-term plans water pollutionis probablythe most seriousrisk facing a shellfish will also help you narrow down your choices for a site. farmer.It is difficult to find a simplesolution to pollution problems. The need for site selection criteria implies that an aquaculture An important point to remember is that even a small source of venture cannot be randomly placed in any coastal location. The list of fecalcontamination sewage! in a bayof considerablesize can damage criteria covers a broad spectrum of environmental variables ranging a shellfishfarm. Evenminor levelsof poilutionwill complicatethe from the required biophysicalconditions needed to sustain the cul- operation. Increaseduse of the area by recreationists,commercial tured organism, to more subtle sociopolitical and economic fishingvessels, and residentialexpansion can placethe farm in jeop- considerations.The following section has a brief list of criteria to ardy,Aquatic farms in remoteareas are not isolatedfrom the pollution consider.Please note that this list is not meantto encompassall the problems found elsewhere in the world. Pollution incidents and problems you may come across in your searchfor a farm site. productrecalls occurring in one growing regioncan havea nasty impacton the marketabilityof oystersgrown in distantareas. In the Key Site Seiection Criteria seafoodbusiness bad newstravels fast. Eviltidings concerning illness Pay attention to land use patterns in your area. The site's appear- and areaclosures due to water pollutioncan quicklygeneralize and ance today may be different from what it will look like ten years from depressthe consumptionof productregardless of origin. In the now. Be sure you won't lose quality, particularly water quality, at your seafoodindustry, consumer perception is as importantas fact. location.Is the areadeveloping? What typesof developmentalready exist in the area? Culture Site Avoid too much isolation. You will need adequate transportation to Start P!anniny a Year in Acivance of Applyinci for e and from your site, so staynear transportation corridors. Air freight is Culture Si te expensive,and transportingyourself, your crew,and your suppliesand productto and from the site is time consumingand expensive.Can Undercurrent regulations, which are subjectto change,the Alaska your site be accessedin rough weather? For many farm sites, the AquaticFarming Permit application must be receivedby the Alaska realistic approach is to make a compromise between your urge for a Departmentof NaturalResources ONR! during March-Aprilof a given wilderness farm and locating a farm close to a population center. year.Site productivity must be evaluatedfrom springto fall, along with a winterassessment. For this reason,planning should start in the Explore the prospectsof locating near existing farms, Many winter or early spring of the year before the application is submitted. farms,because of their smallsize or managementstyle can be oper- This will require a lot of field work. ated as a cooperativeventure with other farms.We stronglysuggest you look at becomingpart of a clusterof farms if you expectto keep your farmedproduction to lessthan 300,000marketable oysters per Site Seiection Process year or expect to pursue another profession while farming. One Thesite selectionprocess is an importantpart of your project.Several advantageof clusteringfarms is the ability to shareresources. The biological, physical, social, and economic factors must be examined to mostobvious shared resources in cooperativefarming are: determinethe short-and long-termviability of your farm. Avoid locatinga farmfor convenienceonly. Do considera setof site selec- ~ Personnel.You can sharethe work force. Multiple farmsmay tion criteria.One majorsite selectioncriterion that is frequently be ableto employa few full-tiine employees. overlooked is a review of the local sociopolitical climate, Are the ~ Sharing eguipment. Farmequipment ran be expensive. neighborswilling to acceptyour project?You might havean idealsite Equipment expensesare not easily met by the individual farm, 16 Guidelines for Shellfish Farmingin Alaska Guidelines for Shellfish Farmingin Alaska 17

but cooperative purchase or leasing can make these acquisi- easy to underestimate the power of moving water, particularly if the tions feasible. force is appliedagainst shellfish culture gear covered with heavy fouling. Excesscurrent can also tangle the culturegear and damage ~ Supervision of the site. If you do not intend to live at the the shellfish. farm and maintain a constant vigil, you will probably need to provide a caretaker to prevent vandalism and loss of product Checkfor evidenceof foiuling. Foulingis an unavoidablepart of life for the oyster farmer. Fouling is caused by other marine plants and through theft. Splitting the cost of a caretakerwith neighbor- ing farmers will help with this expense. Insurancecompanies animals growing on the farm equipment and lines. If extreme, it can progressfrom beinga merenuisance to a disaster.Locations plagued will also expect a reasonabledegree of farm security. with repeated sets of barnacles, colonial tunicates, and blue mussels ~ Marketing product. Clustering of farms alsoallows for the should be avoided. The best way to determine the potential for fouling coordinated delivery of product. Joint marketing can provide is to place culture gear into the water and allow it to foul over a contributing farms with more market stability and higher period of months. Repeatedsettings of fouling organisms can become prices for their product. To maximize this benefit, cooperating a realproblem because of the laborrequired to continuallyclean the farms should have uniform quality standards. gear. An examination of the shoreline next to your site will provide some indication of the probable extent of fouling, Look for extensive Avoid sites that are highly confined, It is a serious mistake to select beds of barnacles, mussels,sponges, tunicates, and seaweeds. a site that is confined in a small cove and has reduced water circula- tion. Backwater areas may have warmer water temperatures that can Get an estimate of plankton productivity. Phytopiankton abun- lead to increasedgrowth, but problems commonly far outweigh this dance coupled with currents will control the growth rate of your advantage. Low circulation decreasesnutrient import which, in turn, shellfish,Clear water is not what you want when selectinga site.In leads to reduced phytoplankton productivity and eventually reduced areas not overly influenced by turbidity caused by suspendedsilt, the shellfish growth. High water temperatures can also result in spawny productivityassessment can be madeusing an inexpensivesampling oysters that are not marketable during the summer. device known as a secchi disk. The secchi disk is a 20 cm diameter Checkfor paralyticshellfish poison toxin. Whenyou applyfor an white disk that is weighted to sink. Attached to the center of the disk aquatic farming permit, you will notice that there is no requirement is a ropethat is markedat one meter intervals.A readingis madeby for the site to be tested for the presenceof paralytic shellfish poison lowering the disk into the water to a depth where it can no longer be PSP!,The state instead tests for PSPeach time you harvestshellfish for seen.The moreshallow the depth of disappearance,the more produc- market. It would be a disasterto obtain a permit to operate, spend tive the site. At times of high plankton abundance, secchi depths of two years developing the site, and then learn, upon your first harvest, lessthan 3 metersare not unusualfor productivesites. As a general that your shellfishare not ableto passa standardPSP test. Forthis rule, siteswith secchidepths consistently greater than 5 metersduring reason, you should conduct a preliminary PSPsurvey during the site the warm water period late spring through fall! should be avoided as selection process.A simple strategy is to collect at least 200 grams of being too low in productivity, drainedblue musseland butter clamtissue during the late springor Test water quality. A water quality problem can produce serious summer. Sampling these two specieswill provide information on the consequencesranging from temporary harvest restrictions to the short- and long-term occurrence of PSPtoxicity at your site. Blue completeclosure of a farm operation.To preventwater quality rnusselscan quickly accumulate very high levelsof PSPwith no long- problems, all potential sites must be extensivelyexamined for sources term retention of the toxin. Butter clams, on the other hand, retain the of pollutantsand adulterants.This includes the inspectionof adjacent toxins over a long period, as long as two years in some regions. The watersheds and all developmentstherein. Marine mammals can also AlaskaDepartment of EnvironmentalConservation DEC! is willing to be a source of water contamination. help you take this sample. Contact the DEC laboratory in Palme~for The contentsof the seawaterare the oyster'sdiet. Of great further information, 907! 745-3236. concernis the organism'sability to collectand concentratepathogens Watchcurrent velocities. Knowledge of the physicaloceanography and toxinsproduced by pollution.For this reason,estuaries n popu- of the site is necessaryto develop farm construction specifications. It is lated and developed regions should be avoided becauseof potential 78 Guidelines for Shellfish Farming in Alaska Guidelines for Shellfish Farmingin Alaska 19 pollution sources.A relatively insignificant source of sewage or fecal preservethe high water quality standards upon which the farming pollution is sufficientto contaminateeven a fairlylarge bay. industry relies. The opposition stems from Alaska state policies that Site requirements have been establishedby the National Shellfish imply that once a farm is sited in an area, the farm water quality Sanitation Program NSSP!.Alaska regulations require that the site standard is fixed for the area. On the other end of the scale are passthe water quality test before the first product can be sold. The preservation organizations that see aquatic farm buoys as unsightly water quality testing conducted by the state of Alaska is reputed to be and contend that farms adverselyaffect the scenic quality of the area. the most exhaustivein the nation. Unfortunately, water quality testing Very little field researchhas been done in Alaska to identify areas is not required until after the Aquatic Farm Permit is issued. By this suitable for aquaculture, There is a basic lack of biophysical and other time you may have already spent considerabletime and expense environmental information on which decisions of this kind can be developing the site, only to find out that your site does not pass the based ADNR 1987!, Coastal zone management plans provide some requirements and you cannot sell your product, help in assessingsites. Unfortunately, some management plans To avoid such a problem, we suggest that you contact the DEC contain little useful information other than precautionary statements laboratory in Palmerearly in the process, 907! 745-3236, DECwill that mariculture should not interfere with current uses. Consequently, assistyou in having your site tested for fecal coliform bacteria before in addition to sampling sites for their biophysicalcharacteristics, you make any substantial investment. prospectiveinvestors will alsoneed to completea thoroughreview of When DECofficially comes to certify your site, they will collect competitive usesas part of the site selection process.If potential water samplesunder the worst possibleconditions when the risk of conflicts surface, the farmer must determine if there is potential for water pollution is highest. This water sampling strategy includes taking coexistenceor if it will be necessaryto give up on the site completely. samplesimmediately following a dry period,Your sitewill be tested A fact to be remembered is that two very important skills a prospective during the first part of a rainy period when the farm site receivesa farmer can have are patience and diplomacy. significant amount of fresh water flow from nearby streams. Under these conditions, water quality problems, if present, will become apparent. You should also follow this procedure to get preliminary In Summary, Enter with Caution water quality samples.Independent samplescan be sent to local water There is a certain allure that attracts individuals to the aquaculture laboratories. industry,As Secretansays 988!, aquaculturehas an "almost magical ability to attract the innocent and to lure them into its web and ruin Competitive use of growing areas. The best sites for aquaculture them." The seemingly simple task of culturing scarceand valuable operations are frequently also good sites for other types of commercial aquatic creatures, and then selling them at a good profit, is an irresist- activities. As stated by Clime and Hami!I 979!, aquaculture does not ible attraction to many people. Any rational investor, after completing enjoy any heavenly blessing that would favor it over other competing an aquaculture farm feasibility study, will probably shy away from uses.Competitors for estuarine sitesrange from tourists seeking most aquaculture investment opportunities and instead place money solaceon quiet waters to mining companies seeking use of the site for in a local fast food franchise Secretan 1988!! the construction of docks and transfer facilities. Also, keep in mind On the other hand, the oyster culture industry has been in opera- that people using upland areas may have the power to deny you tion for many centuries in estuarine areasof the world. The oyster has accessto a site that might otherwise be ideal for shellfish production, an old and well-establishedmarket that is ingrainedin the traditions Coastal property and estuarine acreage are among the most valuable and lifestylesof manyconsumer groups throughout the world Lavoie real estate in the country, 1989!. Moreover, the oyster has a shelf life superior to that of most Aquatic farming competes for tidelands used for two traditional other shellfish currently being marketed. Many prospectivefarmers land uses: development and preservation, Aquaculture occupies the and investorshave recognized the opportunitiesprovided by the middle ground between these extremes. This position has led to some shellfish industry and have used standard businessdevelopment interesting problems. Aquaculture has the most stringent water quality strategies to capitalize on them. Among these necessarysteps is close requirements of any marine activity. As a consequence,opposition to attention to a feasibilitystudy and a businessplan, includinga major the siting of a farm has come from land development interests that are section on product marketing. With proper planning, it is quite seldom willing to comply with discharge requirements necessaryto possiblethat you will be able to build a profitable aquatic farm. Guidelines for Shellfish Farming in Alaska Guidelines for Shellfish Farming in Alaska

Milne, P.H. 1979.Fish and shellfish farming in coastal waters. Chapter Further Reading III: Legal aspectsof seafarming. Fishing News Books Ltd., Surrey, ADCED. 1988. Warld markets for : Pen-reared salmon impacts. England. Section 2-9. Alaska Department of Commerce and Economic Development, Juneau. Needham, T. 1988. Financing aquaculture: The risk/reward trade-aff in salmon farming. In; Aquaculture International Congress proceed- ADNR. 1987. Mariculture issuesand proposed goals and guidelines. ings. British Columbia Pavilion Corporation, Vancouver, British Planning team draft, Prince William Sound Area Plan and Prince of Columbia, pp. 221-224. Wales Island Area Plan, Alaska Department of Natural Resources, Juneau. Paust, B.C. 1987. Aquaculture site selection strategies and selection criteria. In: P,V. Else,B. Paust,and D.IVI,Burns eds.!. Alaska oyster Aquaculture Network Information Center AquaNIC!. Gateway to the grower's manual, Third Edition. University of Alaska Sea Grant warld's electronic resourcesfor aquaculture. Purdue University, Program, MAB-17,Fairbanks, pp, 37-69. Out of print, $2 photo- West Lafayette, IN. http: //www.ansc.purdue,edu/aquanic/ copy fee.!

Bill, A.H., and T.Y. Nosho. 1988.Aquaculture in Washington State. Pierce, B, 1987. Prospects for aquaculture diversification in Alaska. Washington SeaGrant, WSG-AS-88-5,University of Washington, Alaska Economic Trends 7!:4-9. Seattle. Pollnac,R.B., S.B. Peterson, and L.J.Smith. 1982. Elementsin evaluating Castagna, M., and J.N. Kraeuter. 1981, Manual for growing the hard successand failure in aquaculture projects. In: L,J,Smith and S. Mercenarla. Special Report in Applied Marine Science and Petersson eds.!. Aquaculture development in lessdeveloped Ocean Engineering No. 249. Virginia Institute of Marine Sciences, countries. Westview Press, Boulder, Colorado, pp, 131-144. Glaucester Point, Virginia. Prakash, A. 1989. Environmental implications of coastal aquaculture. Chaston, I. 1989.Aquaculture: An attractive investment opportunity. In: Aquaculture Association of Canada Bulletin 89!:109-111. Proceedings of the Twentieth Annual Shellfish Conference, The Shellfish Associationof Great Britain, London, England, pp. 77-87. RaLonde,R., and B.C.Paust. 1993. Developing a mariculture businessin Alaska: Information and resources.University of Alaska SeaGrant Clime, R., and D. Hamill. 1979.Growing oystersand musselsin Maine. Program, AN-15, Fairbanks. 35 pp, price $4. Aquaculture Development Workshop. CoastalEnterprises, Inc., Bath, Maine. Secretan, P.A.D. 1988. Trends in aquaculture related to insurance, In: Aquaculture Internatianal Congressproceedings. British Columbia Egan, B. 1991. The Days are doers at this oyster farm. Fish Farm News Pavilion Corporation, Vancouver, British Columbia, pp. 227-232. 4!: 19-21. Williams, D.B.C.1988. High profits, high risk. Economicanalysis of Freeman, K. 1993. Fish for the future. Seafood Business 12!:50-59, tropical culture. In: Aquaculture International Congress proceedings. British Columbia Pavilion Corporation, Vancouver, Helm, M.M. 1990.Managing production costs:Malluscan shellfish British Columbia, pp. 249-252, culture. In: Aquaculture international Congress proceedings. Heighway, LtdVancouver, British Calumbia, pp. 143-149,

Iverson, E.5. 1976. Farming the edge of the sea. Fishing News Books, Ltd., Surrey, England,

Lavaie, R.E.1989. Culture of the American oyster, Crassastreavirginica. In: A.D. Boghen ed.!. Cold-water aquaculture in Atlantic Canada. Canadian Institute for Research on Regional Development, Moncton, New Brunswick, pp. 125-155.