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Aquaculture Alternatives in Arkansas

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Aquaculture Alternatives in Arkansas Aquaculture/Fisheries FSA9055 Aquaculture Alternatives in Arkansas Nathan Stone Aquaculture, the farming of season. Prior to entering commercial Extension Fisheries aquatic animals and plants, is a form farming, consider if you have the of agriculture. Many people are temperament, skills, management Specialist looking at various aquaculture enter­ ability, financial resources and time prises as a way to start a new busi­ required to run a fish farm. If you George Selden ness or provide food for their families. are not interested or suited to the Extension Aquaculture Arkansas is a prime location for the task and still wish to pursue fish Specialist development of aquaculture farms. farming, you will have to pay to hire Industry infrastructure, such as a manager. SRAC 0441 is a fact sheet feed mills, aquaculture supply houses, on the realities of aquaculture and is Anita M. Kelly financial institutions and equipment an excellent resource for people think­ Extension Fish Health manufacturers, is available in ing of beginning an aquaculture busi­ Specialist Arkansas or adjacent states and ness. It points out the potential for supports existing producers. In con­ catastrophic disasters such as oxygen sidering an aquaculture business depletions and disease, emphasizes venture, there are a number of impor­ the importance of marketing and tant decisions to be made. This fact discusses the risks and benefits of sheet is intended to assist potential fish farming. producers by outlining critical ques­ tions and briefly describing the vari­ Financing and Marketing ous alternative species and culture systems. The Southern Regional It is critical to develop a business Aquaculture Center (SRAC) provides plan before beginning an aquaculture online access to over 150 fact sheets operation. A business plan includes (https://srac.tamu.edu/), many of a marketing plan and a financial which are referenced by fact sheet analysis of the proposed operation number throughout this publication. (see SRAC 0381). The University of Minnesota AgPlan web site (https:// Commercial aquaculture opera­ www.agplan.umn.edu/) provides free tions typically sell fish to processors, online assistance in developing a wholesalers or directly to consumers. business plan. Marketing is the key Markets must be developed by the to a successful aquaculture business. individual producer. In addition to For producers planning to sell locally, commercial operations, small-scale Arkansas MarketMaker (http://ar aquaculture can produce food for .marketmaker.uiuc.edu/) provides an family and friends. A pond, a few online site for buyers and sellers of cages or an indoor system can be agricultural and fishery products to managed to provide a supply of fresh connect. Unfortunately, USDA organic fish for the table. Information on certification is not available for raising fish for family food and aquaculture products as yet. recreation is also available through the Univer sity of Arkansas You will likely need to contact Cooperative Extension Service. lenders and investors to acquire the necessary capital. Commercial lenders The vast majority of fish farms in typically are very reluctant to finance Arkansas are small family businesses. aquaculture operations. Fish farming Fish farming requires a high level of requires large amounts of capital for dedication, hard work and near- pond construction and equipment, constant attention during the growing and it is not always easy to sell or University of Arkansas at Pine Bluff, United States Department of Agriculture, and County Governments Cooperating lease the business if you decide to exit. Your plan Aquaculture Species Regulations should indicate potential profits. Will the profit make your efforts worthwhile? Visits to commercial farms To commercially culture fish or other aquatic and with Extension personnel can help you set goals animals in Arkansas, a Fish Farming Permit from for your aquaculture operation and assist with the Arkansas Game and Fish Commission (AGFC) developing budgets. SRAC 4400-4403 describe finan­ should be obtained. To buy or sell paddlefish or cial management considerations for aquaculture sturgeon, a Roe Taker/Seller Permit is also required. businesses. Fish farmers also must supply a bill of sale or lading when they sell fish (see Section 42 of the AGFC code Deciding which aquaculture species to produce is of regulations for details). The AGFC also maintains an important step. Each species has its own biological a list of approved aquaculture species, those species and economic potential and constraints. The principal that can be legally cultured in Arkansas without a question is, can this species be raised and sold for a special permit. A number of additional species can be profit in Arkansas? In selecting a species, it is critical raised if a farm meets AGFC requirements and to study not only the production methods but also obtains a “restricted species possession permit.” markets available and accessible to your proposed Species that are not on either list cannot be legally operation as well as anticipated costs, market price cultured. However, the AGFC does have a process and expected profits. where producers may apply for permission to culture certain species under an “unlisted aquaculture Production of many aquaculture species depends species permit.” For example, marine shrimp culture upon a supply of commercially available feed. Unfor ­ requires this permit. It is essential not to introduce tunately costs of feed grains and other ingredients new species into Arkansas unless and until AGFC have increased dramatically in recent years. Much of approval has been obtained. Exotic species can cause the protein in catfish feed comes from soybean meal, tremendous economic and ecological damage to and feed alone accounts for over half of the cost of the state and the region as well as to the state’s catfish production. aqua culture industry. Sources of Information Aquaculture Species The Aquaculture/Fisheries Center of the Univer ­ A large variety of different aquaculture species sity of Arkansas at Pine Bluff (http://www.uaex.uada is cultured in Arkansas. The major species raised are .edu/aqfi) and the University of Arkansas Division channel catfish and baitfish (golden shiners, fathead of Agriculture, Cooperative Extension Service minnows and goldfish). Information on culture (http://www.uaex.uada.edu) work cooperatively to methods for these crops is readily available from the provide research-based information to people Cooperative Extension Service. Additional species interested in aquaculture. Information on fish currently or historically raised in Arkansas include production can be obtained from any county hybrid striped bass, grass carp, largemouth bass (food Cooperative Extension Service office in Arkansas. fish), fancy goldfish, koi, common carp, ornamental Your county Extension agent can provide valuable fish, crawfish, trout, black carp, tilapia, freshwater information on local conditions. Extension materials prawns, marine shrimp and turtles. Sportfish, fish for are designed to pro­vide an objective overview of the stocking recreational ponds, such as largemouth bass, requirements and rewards involved. Ultimately, the bluegill, black crappie, hybrid bream and redear sun­ decision to enter fish farming rests with the fish, are also farmed. However, there is limited infor­ individual. Informed indi­viduals make better mation available on the production and/or marketing decisions, reducing the chances of failures that hurt of many of these species. Existing producers have everyone in the business. spent much time and effort developing their own pro­ duction methods and markets. A potential producer Use reasonable caution when obtaining informa­ should gain experience before attempting to produce tion from the Internet or other sources. Be wary of these species commercially and must expect to devote offers that are “too good to be true,” such as free fish. a large portion of his or her time to marketing efforts. Unfortunately, some new producers have been taken advantage of by “aquashysters” who promote novel Every year a number of people “discover” new culture systems or improved breeds. It is important aquaculture species that are not being raised in to thoroughly investigate such claims and to seek Arkansas and see great profit potential in these new unbiased information from Cooperative Extension. ideas. If a species is not presently cultured, usually While many commercial sites provide useful informa­ it means that there are technical problems in its tion and links, the potential exists for information to culture or that it cannot be raised profitably. be biased toward a particular company’s product or service. Even government or educational sites may be Catfish and Hybrid Catfish – Arkansas is third unintentionally misleading. For example, it is possi­ in the nation in channel catfish production, with ble to access publications developed for one region of approximately 9,000 acres of ponds (Figure 1). the country that offer recommendations unsuited to Catfish production is capital-intensive, with invest­ other locations. Reliable, research-based information ment costs of approximately $4,000 per acre. It is also can be obtained from the University of Arkansas a demanding business that requires hard work and Cooperative Extension Service, the Southern skilled management. There are economies of scale in Regional Aquaculture Center and from eXtension catfish farming, meaning that production costs
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