Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Aquaculture Summit
Washington, D.C.

Thank you, Admiral, for the kind words. Good evening everyone. I understand you’ve had a productive day.

We’ve come together here to talk about the future of the U.S. seafood industry. I believe that future must include aquaculture.

At this Summit, we have a unique opportunity to drive this fledgling industry forward in a way that meets our economic and environmental needs.

Aquaculture can be a great, new source of innovation. But we need a framework that fosters innovation, investment and prosperity.

As a major growth engine, aquaculture can help preserve the historic ties that fishing communities have to the oceans and create a new and vibrant means for job creation.

Demand for seafood is growing. We’re working to ensure our wild fisheries remain among the most productive and best managed in the world. But the domestic wild harvest is insufficient to meet new demands. And global competitors have seized this market opportunity.

Earlier this year, President Bush signed the reauthorization of the Magnuson-Stevens Act.

This new law is vital for our commercial fisheries. It sets a firm deadline to end overfishing by 2010. And it will help rebuild our fish stocks through more effective, market-based management, and by aggressively enforcing annual catch limits.

This is important. But we need to do even more.

We have an $8 billion seafood trade deficit. When it comes to aquaculture, we account for less than two percent of the $70 billion global industry.

As more and more consumers become aware of how they can improve their health by eating seafood, demand will keep rising.

The best way to meet that rising demand is by expanding our seafood production through aquaculture.

As the President said in his 2007 National Oceans Month proclamation:

“By working to build a well managed system of offshore aquaculture, we can provide a healthy source of food and reduce pressure on our ocean ecosystems.”

Legislation to promote safe and sustainable aquaculture has been introduced:

• In the House by Congressman Nick Rahall, chairman of the Natural Resources Committee, and Congresswoman Madeleine Bordallo (bord-eye-oh), who chairs the Fisheries, Wildlife and Oceans Subcommittee. And,
• In the Senate by Senators Daniel Inouye and Ted Stevens, chairman and vice chairman, of the Commerce, Science and Transportation Committee.

Let me say here, we very much appreciate their commitment to promoting safe and sustainable aquaculture.

The National Offshore Aquaculture Act of 2007 provides for fish farming in federal waters, beyond three miles offshore.

It’s an important step toward increasing our supply of home-grown seafood.

The United Nations is projecting a 40 million ton global seafood shortage in 23 years (by 2030), unless something is done.

So, even when we end overfishing and rebuild wild stocks, we still need U.S. aquaculture to narrow the trade gap and to keep up with consumer demand.

Aquaculture is becoming a very big market: nearly half the seafood consumed in the world today is farm-raised.

The global numbers are stunning.

• Of the $70 billion in aquaculture, China accounts for 70 percent of production and the rest of Asia adds another 20 percent.
• The U.S. accounts for just 1.5 percent, with only Africa lagging.
• 80 percent of the seafood consumed in the U.S. is imported. And 40 percent of those imports are farm-raised.

U.S. aquaculture is growing. Last year, I had the opportunity to visit an innovative aquaculture facility in Hawaii. And this past April, Chairman Rahall and I had the opportunity to tour the fish hatchery in Pie, West Virginia.

Domestic aquaculture is now a billion dollar industry. However, relative to the global industry it’s very small.

With 100 farms, for example, Hawaii is a leader in this young industry. But at $40 million, Hawaii’s aquaculture industry is a fraction of what it could, and should, be.

One of the biggest barriers to faster growth has been a lack of access to suitable places to set up an open-ocean farm.

You need lots of deep water to raise fish on a large scale. .

The new legislation will create a regulatory framework that allows for safe and sustainable offshore operations. The bill will also safeguard the marine environment, spell out the role for states, set up a system for getting permits, and facilitate research.

Additionally, it provides the transparent and predictable regulatory environment necessary to attract the capital needed to build this innovative industry.

We’re hopeful that Congress will act quickly to pass this legislation and give entrepreneurs and investors the opportunity to become global players in aquaculture.

We know that it can be done. NOAA is already supporting successful open-ocean pilot projects in state waters in Hawaii, New Hampshire, and Puerto Rico.

We’re asking Congress for $3 million to formally set up a federal aquaculture program, which will give more focus to expanding the industry.

I believe there is more that we can do to grow this industry. Clearly we’re working hard to create the conditions that allow growth. But government doesn’t have all the answers.

At the end of the day, aquaculture is a business. The private sector knows best how to build this industry.

So at this summit, we will be addressing questions such as:

• How do we create more fish farms to meet exploding consumer demand for seafood?
• What are the best technologies and best practices?
• How best to deal with the environmental aspects of aquaculture?
• And what are the economics of setting up an aquaculture business and attracting investors?

This summit isn’t about abstract concepts. It’s about what works. It’s about what creates jobs and makes us grow and makes us more competitive. And it’s about balancing the economics with a vital need to protect our ocean resources.

Over one hundred years ago, President Ulysses S. Grant made increasing our country’s fish and seafood resources a national priority. That is still our mandate.

The time for aquaculture is now.

So, I thank you for joining us. We look forward to your ideas and recommendations.

Thank you.