Aquaculture in Hawaii: Outlook for the Next Decade

The Hawaii aquaculture industry is comprised of two major sectors: Commercial Production, and Research and Technology Transfer (i.e., research, training,

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The Commercial Production Sector is estimated to have grown from $25.2M in 2002 to $27.7M in 2003, a 10% increase in wholesale value. The Research and Technology Transfer Sector is estimated to have contributed another $12M from variety of local and overseas projects. Therefore the Hawaii industry value for 2003 was estimated at $39.7M.

Employment in the Production and Services Sectors increased slightly in 2003. In 2002, total full-time and part-time employment was approximately 880. It is estimated that approximately 942 persons were employed in the industry in 2003.

Over 30 different species of plants and animals are raised in Hawaii. These are grouped in four categories: Algae(ogo seaweed (Gracilaria), Spirulina and other microalgae); Shellfish (marine shrimp, freshwater prawns, crayfish, lobsters, oysters, clams, snails,abalone); Finfish (Japanese flounder, Chinese catfish, tilapia, carp, mullet, moi - Pacific threadfin, awa - milkfish, amberjack); Other (aquarium animals and plants, pearl oysters, shellfish and finfish "baby" (seedstock) and "parent" animals (broodstock).

Hawaii's aquaculture farmers receive attractive prices for their products as the price structure for the local seafood market is high. This is due in part to:

1. The local population's per capita seafood consumption rate is approximately three times the national average;
2. Demand for most products usually exceeds the supply;
3. Products are marketed usually fresh or alive; and,
4. There are strong tourist and Southeast Asia and Pacific Island "ethnic markets" that demand fresh, high quality products, and that pay a premium price for fresh seafood.

During 2003, over 100 farms were engaged in commercial production, or near starting commercial production. Many farms are small-scale family-operated and medium-sized, owner-operated farms. A number of cooperative community-based development groups, made up of backyard family operations, are also in operation. The aquaculture business model in Hawaii varies from small family farms with multiple income sources to limited partnerships or corporations.

Farm-gate and retail prices for cultured products are uniformly high, as demand for aquacultured products exceeds the supply for most species. Algae (microalgae and ogo seaweed) continues to be Hawaii's most valuable aquaculture crop encompassing both local and export sales. Spirulina and Hematococus microalgae for aquaculture feed additives and human nutritional supplements and health foods were the leading species in total value, with more than $11M in farm-gate sales. Limu ogo (edible) seaweed sales varied, depending on type and season. Current prices range between $1.50 to $4.00 per pound. Some ogo growers are working with local food manufacturers to market new value-added products, such as limu salsa and kim chee ogo, to increase product diversity and sales and this trend is expected to continue.

New commercial species and new technologies provided opportunities for industry diversification. Moi, or the Pacific threadfin, was a local fish introduced in 1997 by farmers. In old Hawaii, moi was highly-regarded, reserved for the ali'i (Hawaiian royalty). Several farms began moi production with assistance from the Oceanic Institute and DLNR's Anuenue Fisheries Research Center (AFRC). In 2002, large-scale offshore cage culture of moi began to dominate local sales and the trend continued in 2003.

A variety of freshwater aquarium fish, crawfish, snails, abalone and black-lip pearl oysters continued to be developed for their commercial appeal. Other species used in research or pilot-scale projects included white and Russian sturgeon, kahala (amberjack), papio (blue trevally), and various high value marine aquarium animals.

Farmers are expected to continue to diversify their species mix to expand production and take advantage of new market opportunities. Likewise, value-added products allowed some producers to develop new market niches. In addition, growers of microalgae and abalone are increasing export of products to the U.S. mainland and Asian markets, as well as targeting efforts into Europe.

The year 2003 saw continued growth in the aquarium fish industry, primarily freshwater aquarium fish. Hawaii's climate and growing conditions are ideal for aquarium fish, plants, and other cultured products. Many small backyard "hobbyists" increased their output and existing aquafarms diversified into aquarium fish culture. The U.S. Department of Agriculture (USDA) continued to fund an aquarium industry development projects, which have assisted both existing aquarium producers, as well as developed new farmer interests. Further expansion of this segment of the industry can be expected.

2003 Aquaculture Production Values by Major Species Group.

In 2003, the research and technology transfer sector contributed an estimated $12 million in project revenues, or about the same as in 2002. The non-growth of the Services Sector can be attributed to cutbacks in both State and Federal research dollars. Most affected were components of the University of Hawaii System and the Oceanic Institute (OI). Major funding support has come through the U.S. Department of Agriculture and U.S. Department of Commerce. The USDA Regional Center for Tropical and Subtropical Aquaculture, and the U.S. Shrimp Research Consortium, headed by the Oceanic Institute, continue to pay very prominent roles in the sector.

There are 15 Hawaii-based consulting firms (sole proprietorship and companies) active today. These provided technical expertise to Southeast Asia, Central and South America, Africa, the Middle East, and the Caribbean. In recent years, the demand has been greatest for marine shrimp farming technology Southeast Asia and Latin America. The U.S. Shrimp Consortium was active in Hawaii, as well as on the Mainland in providing "high-health" shrimp, and hatchery and pond technology to local farmers and other farmers on the U.S. Mainland.

Going forward, the strong demand for seafood and the opening up of traditional agriculture lands, will fuel the trend of new companies starting up, particularly in Hawaii's ocean environment. The Algae category, led by Cyanotech Corporation's Spirulina and several new companies, is expected to show strong growth. Major investment in facilities will continue expansion of certified-disease free stock producers for both shrimp and clams. Freshwater and marine ornamental fish and plant production on both small- and large-scales is expected to increase. Emerging species such as abalone, moi, and amberjack, could contribute significantly to increases in overall industry value in the next decade.

Demand for consulting expertise in Central and South America and Asia will continue to be strong in the coming years, as the World Bank, Asian Development Bank and the United Nations place more financial resources into aquaculture development. With over 80 percent of aquaculture growth projected for Asia, Hawaii is positioned to be a source of education, training and technical expertise in this region for the long-term.

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