The Regional Economics of Aquaculture

In 1992, according to a recent report from the Northeastern Regional Aquaculture Center, aquaculture products in the Northeast were valued at over $146 million. Oyster harvests in Connecticut accounted for 42% of this value and salmon netpens in Maine accounted for 29%, with quahogs principally in Massachusetts accounting for 11%. Hybrid striped bass represented only 2%, trout 9% and other finfish (tilapia, catfish, ornamental, baitfish) 5%.

Most aquaculture operations in Maryland are relatively small, says Roy Castle of the Maryland Department of Agriculture, and they will probably continue to be so. "It's like running chicken houses. Businesses are family-owned and, in general, growers are not looking to expand - they might raise 20,000 to 50,000 pounds of fish a year, enough to make a profit. That's it." There are a number of reasons for this, according to a recent University of Delaware report, The Potential for Aquaculture in Delaware and Maryland.

Though hybrid striped bass, catfish, tilapia and other species account for a small percentage of the aquaculture market, a growing industry means more than merely the value of fish at wholesale and retail markets. The nascent business benefits local economies and means added economic impact by what economists call "multiplier effects," for instance, increased need for feed stocks such as soybean, corn and cottonseed; new equipment; construction. Estimates based on the catfish industry in the South suggest that for every 10 million pounds of fish produced, approximately 220 jobs were created. In South Carolina in 1992 sales exceeded $4 million - with multiplier factors the economic impact to the state was estimated at nearly $7 million.

Land may be relatively expensive in the Mid-Atlantic region, and startup costs may be high, but with proper marketing, growers of hybrid striped bass - the fish of choice for current growers and potential growers in the Delmarva region, according to the University of Delaware survey - can expect to increase market share. But just how much that share will continue to increase - particularly with the comeback of commercially harvested wild striped bass - remains uncertain.

According to the University of Delaware report, which based its Maryland information on interviews and economic data from the Maryland Department of Agriculture, gross sales of aquaculture-grown finfish are projected at $16.8 to 20.9 million with a total economic impact from $30.3 to 62.7 million. Though a small part of agricultural production, the potential benefits to local economies could be significant.

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