Beginning Farmer Webinar: Getting Started with Aquaculture Elliot Nelson, Extension Educator Michigan Sea Grant College Program – Michigan State University Extension Sea Grant Focus Areas Resilient Communities and Economies Healthy Coastal Ecosystems Environmental Literacy and Workforce Development Sustainable Fisheries and Aquaculture Outline Seafood consumption and source trends Potential Species Types of aquaculture systems Starting aquaculture facilities in MI Q&A time Spatial Extent The Great Lakes basin drains almost 520,000 km2 (200,000 mi2) Length of shoreline totals 17,000 km (10,200 mi, including connecting channels, mainland and islands). The U.S, shoreline is 7,200 km (4,500 mi), longer than the U.S. east coast and Gulf Coasts combined. If the water of the Great Lakes were spread across the continental us, everything would be covered in 10 feet of water Michigan Lakes and Stream Michigan has 32,000 miles of rivers and streams Michigan has over 11,000 inland lakes and ponds Massive amount of water in underground aquifers, including many artesian wells The Great Lakes are an Amazing Resource They make us a leader in many types of agriculture Can we be a leader in aquaculture too? Michigan produces over 300 agricultural commodities Michigan has 9.9 million acres of Agg land So what is Aquaculture? Why does aquaculture matter? Globally demand for seafood is expected to rise1 20% in North America over next 20 years 50% in China and other nearby Asian countries over next 20 years http://www.nmfs.noaa.gov/aquaculture /faqs/faq_aq_101.html http://www.nmfs.noaa.gov/aquaculture/faqs/faq_aq_101.html Why does aquaculture matter? Currently the US has an 11 billion seafood trade deficit This is second only to oil in natural resource trade deficits Changes in Culture Production 50 45 40 1989 There is much room for expansion in areas other than Asia 1999 2009 Yield (MMT) 35 30 25 20 15 10 5 0 Africa Americas Asia Europe Oceania FAO 2011 Over 90% of Seafood eaten in Michigan is imported Where will Seafood come from to meet the demand? Commercial Harvest (1,000 lbs) Trends in Lake Huron 18000 16000 14000 12000 Whitefish Total 10000 8000 6000 4000 2000 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 Trends in Lake Michigan Commercial Harvest (1,000 lbs) 60000 Total 50000 Whitefish 40000 30000 20000 10000 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 Trends in Lake Michigan 60000 Total Whitefish 50000 40000 30000 20000 10000 0 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 160 38% 140 Aquaculture 120 Capture 9.2% Yield (MMT) 100 80 60 40 20 0 1980 1985 1990 1995 2000 2005 Yield MMT. Future Trends in Seafood Production 375 2025 Aquaculture 350 73% 325 Capture 300 2011 275 50% 250 225 200 175 150 125 100 75 50 25 0 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 FAO data and Diana projection 12 Yield (million tons) 10 8 Top 24 Species Produced Globally Capture Culture •14 of the 24 top species are cultured •12 of the 14 cultured species are low trophic level and mainly reared semi-intensively – probably over 60% of culture production today is done without using formulated feeds completely •2 of the 10 capture species are for reduction to fishmeal 6 4 2 0 Common name FAO 2011 Top Seafood Products Consumed in US Top Seafood Products – USgrowing in MI? Best potential 2014 1 2013 2012 Species Lbs Species Lbs Species Lbs Shrimp 4 Shrimp 3.6 Shrimp 3.8 2.4 2.307 Salmon 2.702 Canned Tuna 3 Canned Tuna 2.3 Canned Tuna 2.3 Salmon 2.02 4 Tilapia 1.436 Tilapia 1.43 Tilapia 1.476 5 Pollock 0.981 Pollock 1.154 Pollock 1.167 6 Pangasius 0.69 Pangasius 0.771 Pangasius 0.726 7 Cod 0.657 Cod 0.605 Crab 0.523 8 Catfish 0.517 Catfish 0.566 Cod 0.521 9 Crab 0.508 Crab 0.548 Catfish 0.5 10 Clams 0.342 Clams 0.352 Clams 0.347 2 Salmon Total All Species 14.6 U.S. Per-Capita Consumption By Species in Pounds Data from National Marine Fisheries Service. 14.5 14.4 Aquaculture in Michigan Michigan Aquaculture 0 Value ($ million) 1 2 3 201 3 200 5 199 8 4 Farm s 0 20 # Farms 15 year track record Source: USDA Aquaculture Census 40 60 What are people raising in MI? …and why are they raising it? Aquaculture Products in Michigan Commodity and Secondary Food Products Baitfish Fish for Stocking Private or Public Waters Egg and Fry/Juvenile Production Fish for aquarium trade What to Grow? Consider the following when choosing a species to grow Brood stock / egg and fry availability Formulated feed availability Climate constraints Disease susceptibility Aquaculture Species in MI Rainbow Trout, and other cold water trout (Brook, Brown, Char) Aquaculture Species in MI Tropical or Warm Water Species Tilapia Barumundi Shrimp Aquaculture Species in MI Walleye and Saugeye Credit: Oklahoma Wildlife Department Aquaculture Species in MI Yellow Perch Aquaculture Species in MI Bluegill and other Pan fish Aquaculture Products in MI Fathead Minnow, Shiners and other Baitfish And many other native and non-native gamefish species for stocking… Bass Pike Pacific and Atlantic Salmon Species Aquaculture in Michigan Currently the industry is small, but has a number of successful businesses Progress has and is being made on regulatory environment, trained workforce, and social acceptance The potential is upwards of a 1 Billion dollar industry in the state Excited to become an aquaculturists yet? How to Grow Fish What do fish need to live and grow? (i.e. what do you have to put into the water?) Food Oxygen Clean water Space How to Grow Fish What do you have Carbon Dioxide to take out of the Fish poop (Solids, water? and dissolved liquid waste) The Fish! Primarily Atlantic Salmon Currently Net-pen is not slated to happen in MI Waters 2 permit applications Science panel review Economic panel review Regulatory review Quality of Life Agencies recommended against Net-pen Aquaculture Potential downside Positive and treatments Fish escape Nutrient pollution from solids Effluent difficult to treat Disease and parasite transfer Chemicals Low cost of operation Low carbon footprint/nrg Ocean systems can be multi trophic to treat waste Can use disease-free fry Use of native species, triploids, etc Most common type of system in Michigan Rainbow trout Salmonids Flow Through Aquaculture Potential downsides Positive and treatments Fish escape Nutrient pollution from solids Effluent difficult to treat Disease and parasite transfer Low cost of operation Low carbon footprint/nrg Can collect solids Effluent can be treated for some facilities Can use disease-free fry Use of native species, triploids, etc Pond Culture Walleye, Musky, panfish, minnows Pond Aquaculture Potential downside Positive and treatments Low rearing density Seasonal growth Effluent pollution Chemicals Erosion of embankments Attracts unwanted species Low cost of operation Low carbon footprint/nrg Can treat effluent Minimal solid waste Creates habitat Aquaponics Flint Aquahome Recirculating Aquaculture Potential Impacts Positive and treatments Economic viability? High energy and start up costs Larger carbon footprint More chemical treatments? Lowest chance of escapement Water fully treated Full control of system, can grow warm water species Water use limited Potential marketing value? Other Considerations RAS requires 3x the investment over “conventional aquaculture” Over 3x the density (issues with organics, animal rights and off flavor) 2.5x electrical requirements 2x carbon footprint 30% + premium pricing US failure rate estimated 80-90% What do you need to get started? What do you need to get started? ENGINEERING -system design -monitoring -pumps/hydraulics -electrical -energy Credit Dr. Barbara Evans FISH HEALTH -development -behavior -water quality -disease Sustainability BUSINESS -entrepreneurship -economics -marketing -life skills A Business Plan Start up costs Buildings / Land Construction Equipment Permits Operational costs Labor Utilities Feed, Medication Fry/eggs Processing and transportation costs Potential products Potential markets Properly Site your Facility Consider Water sources Water quality and quantity Discharge options Surrounding infrastructure Surrounding markets GIS Siting Tool coming soon (MSU Extension) MI Aquaculture Siting GAAMP coming soon (MDARD) Regulations and Permits Michigan Aquaculture Development Act of 1996 Required aquaculture facilities to purchase a license from the state Restricted industry to specific species list Defined aquaculture as an agricultural operation Permit Considerations Liquid and Solid Waste NPDES for discharge into water (if discharging 30+ days per year and 20,000 pounds of warm water or 100,000 pounds of cold water fish per year produced) Groundwater discharge if discharging onto land Permit Considerations Water Source Permits Water withdrawal if wells have a 70 gallon per minute capacity Joint Permit IF altering surface waters or wetland Permit Considerations Processing, Stocking and Transportation Import/Export Permits Stocking Permits Disease free certification Seafood HACCP (For processing) Permit Considerations Voluntary options GAAMPS (in development) MEAP certification USDA Organic (in development) Some Resources Michigan Aquaculture Association – AIM Roadmap http://michiganaquaculture.org/ MDARD Aquaculturehttp://www.michigan.gov/mdard/0,4610,7-12548096_48099_48140-345145--,00.html Wisconsin Aquaculture Association http://www.wisconsinaquaculture.com/ WI and Great Lakes Best Management Practices https://aqua.wisc.edu/publications/PDFs/AquacultureBMP.pdf North Central Regional Aquaculture Center - Chris Weeks http://www.ncrac.org/ - Species Culture Manuals Michigan Sea Grant – Ron Kinnunen, Elliot Nelson: http://www.miseagrant.umich.edu/ Some Potential Grants and Loans USDA – National Institute of Food and Agriculture Grants NOAA Fisheries – Office of Aquaculture SARE Grants - http://www.sare.org/Grants MDARD List of Financial Services http://www.michigan.gov/documents/mdard/Financial_Assistance_Pro grams_-_JH_edits_356064_7.pdf Marketing Guide http://www.michigan.gov/documents/mda/MDA_guide_335948_7.pdf Elliot Nelson elliotne@msu.edu, 906-322-0353 www.miseagrant.umich.edu www.