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THE TEXAS AQUACULTURE INDUSTRY - 2012 Part 1 (243 Pages) Compiled by Granvil D

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THE TEXAS AQUACULTURE INDUSTRY - 2012 Part 1 (243 Pages) Compiled by Granvil D THE TEXAS AQUACULTURE INDUSTRY - 2012 Part 1 (243 pages) Compiled By Granvil D. Treece Texas A&M University Sea Grant College Program The historical average for Texas aquaculture production is: Estimated Totals from approximately 180 operations on TDA aquaculture licenses list / Approx. 8,000 ac./Approx. 30,000,000 pounds,/ Approx. US $60,000,000 Total Value. Estimated $360 million/yr total economic impact on state’s economy when jobs, feed, and other economical benefits are included. Channel catfish has remained the largest aquaculture crop in Texas since 2008. In 2008, there was an estimated production of 28 million pounds produced on 3,500 surface acres of water, and about the same in 2009 with 45 producers and 3 processors in 2009, which dropped to 2 in 2010. Catfish is also the largest value aquaculture crop in the state. According to Peter Woods, Fisheries Specialist with Texas AgriLife Extension, “ Most of the catfish production area in 2009, about 3,000 acres, was in the Coastal Bend, and the remainder (500 acres) is in upper East Texas. The value of the fish remained relatively constant at $0.80/lb live weight for a total value of approximately $22.4 million. Entry and exit of the industry balanced out with little-or-no change in total acreage under water from 2007 levels to 2008.” A few farms did exit the industry in 2009 and even more in 2010. There was a more dramatic change in the industry in 2010, according to Peter Woods. The number of producers dropped from 45 to about 40. The number of acres dropped from 3,500 to about 3,000, and the production dropped from 28 million pounds to about 20 million pounds, or from about 8,000 lbs per acre to about 6,666 lbs per acre. Some producers could not afford to feed the fish, but still had fish in ponds in 2010. The farm gate price stayed about the same at $0.80/lb, giving an estimated total value of $16 million of catfish for the state in 2010. In 2011 most of the farms that were sold because of producers going out of business were purchased by other producers, so there was not a large drop in production acres. The overall number was about 30 producers on 2,160 acres and they produced 14.4 million pounds in 2011. The average price for the year was $1/lb so the crop price was $14.4 million. Those catfish farmers that survived the high feed costs and low prices are doing much better now. In the latter part of 2011 and 2012 the feed cost have stabilized and the catfish farm gate price is up around $1.25/lb. Catfish is still the highest production species in the state and has the highest value for an aquatic crop in the state. 5 main aquaculture crops in Texas in 2011 Catfish /30 producers /2,160 ac. / 14.4 million lbs./ $14.4 million (Estimate from Peter Woods, TAE, 1/18/12) Red Drum / 5 farms / 710 total ac. (600ac. grow out) / 3,250,000 lbs. / $9,000,000 (Est. J. Ekstrom 2012) Hybrid Striped Bass / 4 farms / 1,800 ac. / 3,500,000 lbs / $9,400,000 (Est. from J. Ekstrom, 2012) Water Gardens / Operators ? / Production ?/ retail sales $7,000,000+ Marine Shrimp / 5 farms / 629 ac. / 2,179,508 lbs. / $5,230,819 (from Dr. Ya-Sheng Juan, TPWD, Jan. 2012) Some species production goes up and some goes down. For example, from 2004 to 2007, marine shrimp production in Texas declined, but went up in 2008 and back down in 2009 and down even more in 2010. Catfish, hybrid striped bass and red drum production all increased in 2007, but slowed down in 2008 and 2009, and catfish dropped in 2010. Texas now has the largest hybrid striped bass farm in the USA, with about 1,000 acres at one operation (at several farm sites). The hybrid striped bass farm increased in size from 500 acres to 850 acres and then when Kent Sea Tech Farms in California switched from hybrid striped bass to algae for biofuels, that left Silver Streak Bass Company near El Campo, Texas the largest farm in the US with around 1,000 acres. Some small catfish producers and hybrid striped bass producers dropped out in 2010 or lost their farms to the bank, according to Peter Woods. The cost of catfish feed stayed over $400 per ton, which contributed to some the problems. However, things improved in 2011 and producers are making money again. The overall aquaculture production (all species) for the state showed a decrease in 2010 over 2009. Fewer shrimp ponds were stocked the last few years and shrimp production dropped from 5 million pounds in 2006 to 3.4 million pounds in 2007, and went back up slightly to 3.7 million pounds in 2008, down to 3.2 million lbs in 2009 and dropped to 2.5 million pounds in 2010 and again in 2011 the total production reported to TPWD was 2,179,508 pounds, worth about $5,230,819. The catfish sector was growing rapidly in Jackson, Matagorda and Wharton counties and other Texas coastal counties until 2007, when a downward turn in the economy in 2008, with high fuel and feed costs, slowed the growth. Feed cost jumped some 25% in 2008, which slowed growth and narrowed profit margins for all aquaculture producers. Pacific White Shrimp (Litopenaeus vannamei) culture in Texas peaked in 2003 when it set a state production record at 4,081 metric tons (9 million pounds worth $18 million farm-gate). The industry began declining and produced 3,600 metric tons in 2004 worth $15.88 million; 3,098 metric tons or 6.8 million pounds, worth US$14.5 million in 2005; 2,273 metric tons or about 5 million pounds, worth $10.5 million, in 2006; 1,542 metric tons or 3.4 million pounds worth $6.8 million in 2007; in 2008 the industry had an increase to 1,690 metric tons or 3.73 million pounds worth $7.45 million, in 2009 produced 3.2 million lbs worth $6,902,333, and in 2010 only six farms remaining produced 2,526,648 pounds worth an average price of $2.40/lb, or $6,039,955, and in 2011 five producers on 629 acres produced 2.179 million pounds worth an estimated $5.23 million, according to Dr. Ya-Sheng Juan of Texas Parks and Wildlife, Brownsville, Texas. Over the last 19 years, the Texas marine shrimp aquaculture industry has produced 89,017,404 lbs of shrimp with a farm-gate value of approximately $230,432,288, contributing an estimated 6 fold amount or $1,382,593,728 to the state’s economy. However, the shrimp farm gate price has been low since 2004, recovered somewhat in 2007 and 2008, but farm-gate prices are still limiting interest in shrimp farming with low profit margins being experienced. The average farm gate price dropped below $2/lb, but has increased to $2.40/lb (all sizes and prices were averaged). The Texas Aquaculture Industry also has a large aquatic plant or water garden industry, with very large ornamental fish sales. It was last estimated that retail water gardens generate 7 million dollars in sales annually in Texas, but this industry has probably grown some since that estimate several years ago. Bait fish, as well as stocker fish for recreational ponds are also big business in Texas. Several tilapia farms in the state have historically produced about 500,000 pounds of fish annually. But the largest tilapia farm in the state, Simaron, was for sale in 2011-2012 and only produced about 100,000 lbs. The total tilapia production for the state from 2 producers was 150,000 lbs in 2011, worth $277,500, according to Dr. Ya Sheng Juan and Rob Schmid of Texas Parks and Wildlife. There is a great potential for offshore aquaculture in the Gulf of Mexico. According to NOAA – NMFS Statistics No. 2003, the total fish and shellfish production for the Gulf of Mexico averages about 194 million pounds annually, excluding Menhaden and shrimp. According to a spokesperson at Sea Fish Mariculture in Houston, 457 cages (32 meter diameter) carrying 20 kg/cubic meter of fish could produce the entire annual commercial finfish catch of the Gulf, requiring a sea bottom area of only 800 hectares or about 2,000 acres. Of course you would not want to put the fish in a concentrated area, but would spread them out over the Gulf. There was one permitted offshore aquaculture project in Texas, but after years of fighting with the State (General Land Office), which would not renew its lease on a platform off Port O’Conner, the company abandoned the project. The regulatory framework is still a major source of uncertainty for potential offshore producers. The Texas Parks and Wildlife has established its rules for offshore aquaculture in state waters and has published them in the State Register and on their web site and the Gulf of Mexico Fisheries Management Council has approved an offshore aquaculture amendment to allow commercial offshore aquaculture in Gulf of Mexico Federal waters (EEZ, from state boundary out to 200 miles). The process of establishing the regulations is very slow, and has met with opposition from environmental groups. Under the Magnuson-Stevens Fishery Conservation And Management Reauthorization Act of 2006, the “Gulf Council” has only been able to allow research projects to conduct offshore aquaculture under an exemption to the Act.
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