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  1. #1
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    Commercial Aquaponics – Why is it not pervasive?

    Hi All …

    While I am not an active member, I am an avid reader and consumer of information….

    I come from a large projects environment and for some time now have been trying to figure out why Aquaponics (AP) has not caught on in mainstream farming in a “Big Way”? Aside from the usual barriers to new technology or ideas there must be something else that is hindering the commercial application of this technology….. I thought I would post some thoughts and see what other members think ….?

    Is this new unproven technology ? …. The word may be unfamiliar to some, but the concept is readily accepted by many, indeed there are a number of farms in the US which have been recognised and certified as organic AP producers. Hundreds of back yard enthusiasts have proved that AP works, however scaling up seems to be an issue…??? But what is the issue with scaling up? The minute we scale up we are worried about profit, because well that is what scaling up is for … profit. So is AP unproven technology? At a backyard level NO

    I believe there is a disconnect between the DIY / backyard enthusiast philosophy and a commercial approach to AP. Let me qualify that statement, I am not saying backyard does not work, it clearly does, but the same philosophy cannot be applied to a commercial setup……

    Example 1 : I set up a small AP system at home using IBC containers…. 1000L tank, 1000L growbed, 500L odd sump, pump in sump, flood and drain system with gravel as the grow medium, a couple of tilapia in the tank. The system worked as it should have …. The fish grew and the plants grew…. Yes AP works… Can we take this system and make it into a commercial venture … my suggestion is…………. not with the same sort of thinking.

    With AquaCULTURE (AC), specifically the farming of fish, the world is littered with fish AC projects which have failed…..and others that have achieved success …. What is the fundamental difference between the ones which succeed and the ones which fail? In my mind the greatest difference between these is the value of the product for sale at the end of production….. we have open systems, closed systems, filters of an infinite description, but at the end of the day the value of the end product reigns supreme as the key difference. Point in case look at the value of trout vs the value of tilapia….. food conversion rate is not dis-similar, value of end product is vast. As backyard AP enthusiasts we tend to tinker with the systems and more often than not marvel at our success but we like to have hardy fish as the lifeblood of the system and tilapia, carp etc fit this bill perfectly (I am not suggesting that there is an error in this approach from a backyard AP perspective) but they have little value at the end of production. So in summary commercial AP operations not using a high value fish are missing out on a serious revenue source. I am not suggesting that trout are the solution, there may be other options such as barramundi (sp) in Aus, the key is that the selected fish should be of high value, not simply the easiest fish to keep. If the fish are not high value then aside from the “organic” production method, there is no benefit in AP vs a system like Hydroponics, and the operator is looking after fish without the full financial benefit of doing so

    The next key failure I believe is the failure of the systems to keep it simple, and the failure of the commercial systems to fully appreciate the cost of power. Certainly from an African perspective the cost of power is astronomical and will not come down any time soon, so systems should be simple and energy efficient. If we go back to my example above …. Perfectly good system, for a backyard enthusiast, but very poor power efficiency if scaled up. I needed a 2000LPH pump to pump the 1m head efficiently enough to effectively flood and drain the system….. this has a minor impact on my utility bill, but scale this up 1000 times and whoa, the effect is no longer negligible ….. Is the solution then not to eliminate the “head” requirement…. Bury the main tank into the ground, so that the elevation of the tank is very similar to or the same as the elevation of the grow beds ….. the efficiency of the pumps deployed are exponentially better…. Power usage is thus exponentially better. A deep water system could potentially eliminate the requirement of a sump all together – further eliminating the requirement for a pump that deals with head.

    With small systems we tend to not worry about the solid waste produced by our couple of fish …. We may siphon it out once every two weeks, but further than that we don’t really worry about it. Experience with Koi has taught me that effective and efficient removal of solid waste is critical to maintaining water quality…. Should the same systems employed in koi ponds not be in place for commercial AP? Essential to this is the concept of “bottom Drains” the solids gravitate to the lowest point of the tank or pond and water pumped through the AP system is removed from this point, passing through something like a swirl filter to remove the solids before entering the AP grow beds

    Commercial AP systems need to be viewed in a holistic manner…. It is a neat trick that you can grow plants from fish poop, but a trick it will remain until a high value fish is selected along with a high value vegetable crop, in an energy efficient system designed to cater for high stocking densities. Of course the final closing of the loop is to eliminate costly fish foods, while I will not discuss this in this first post, I believe that the trend towards protein recycling and the use of the humble maggot will ultimately solve this issue.



    I am really interested in what everyone has to say about the above comments / thoughts … in summary

    This is not a critique on existing AP farms in any means, really just discussion points........

  2. #2
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    Re: Commercial Aquaponics – Why is it not pervasive?

    i think it's because "commercial" producers of vegetables can hydroponically raise more for less, just as an aquaculturist can raise more fish for less $...as an example, an aquaculture company started up near me about a year and a half ago.. indoor facility, with 1 wall of nft tomatoes under lights.. (just as an experiment).. they're running a ras operation, and to be comfortably profitable, they need to raise 100,000 yellow perch/year - this is a small operation, the owner, 1 fullt time guy basically running it, and a couple of part timers - the ft guy also cleans their fish, and they also clean fish that people bring in for a charge - an extra expense - many hoops to go through certification for cleaning/selling cleaned fish - one way around that is to sell live fish but you have to have or create a market.. they "dump" about 300 gallons of water a day which is pretty efficient if you see all the water that they have..the last time i talked to them they were preparing one tank to try raising malaysian river prawns
    i think it's more a matter of marketing.. as you note, having the right fish would make a difference (i've seen koi going for thousands btw!) but having commercial quality veggies that you can sell to niche markets would be the key..
    i'm sure there are a few "commercial" ap enterprises but i'd bet that most of them rely on other streams of income, such as seminars, training, equipment etc....to be profitable.. friendlies in HI has basically evolved to a low density system where the fish are considered an "extra"
    i think it's more a matter of the initial cost at this point.. but really, to make money at it, you have to take a close look at the markets available and target them specifically.. and then look to expand that market and develop secondary income streams..

  3. #3
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    Re: Commercial Aquaponics – Why is it not pervasive?

    I'm really looking forward to the input in this discussion, lately i have been thinking of doing a commercial aquaponics greenhouse. I haven't quite fully moved forward to begin searching for prices and finding out the investment costs and profit margins, but i agree with keith that finding the right market is key and very possible.
    http://www.diyaquaponics.com/forum/s...nder vipar LED
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  4. #4
    Moderator urbanfarmer's Avatar
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    Re: Commercial Aquaponics – Why is it not pervasive?

    Quote Originally Posted by Neil H
    While I am not an active member [...]
    YOU ARE NOW!

    I would like to address some of the things you said in parts as your post is quite comprehensive. First of all, welcome to the forum. I'm sure I speak for everyone when I say we are all very happy you have decided to join our discussion, and wow what a discussion.


    Quote Originally Posted by Neil H
    Of course the final closing of the loop is to eliminate costly fish foods, while I will not discuss this in this first post, I believe that the trend towards protein recycling and the use of the humble maggot will ultimately solve this issue.
    You have made 2 excellent points here. First, the rising cost of fish food due to the heavy reliance on fish meal as the protein source for fish feeds coupled with the rising cost of energy results in a rising cost of fish feed worldwide. The associated cost increase in fish production significantly narrows the profit margins attainable for low to medium value fish thereby eliminating the viability of some business models and, in some cases, in entire geopolitical areas of the world.

    Second, any type of nutrient recycling in a closed system needs to approach high efficiency to become part of a commercially viable model. The spirit of the aquaponics movement aims to do just this. The BIG IDEA here is that we need to turn byproducts into coproducts in our production systems. This is not limited to agricultural systems. This philosophy has been at the heart of human progress and innovation from before recorded history. It's nothing new. What is new are the scientific discoveries and their subsequent applications to technology that fuels all of this "tinkering" we are all doing. For example, a lot of ideas I have independently come up with that seem so amazing and revolutionary often become reality in just a few years. Someone else figures it out just the same or sometimes in a better way! There are millions of people out there with the right education and intellect to come up with the best ideas of our time. To draw analogy, Einstein was just the guy that got off his butt and published his papers and let the world know "HEY WE CAN DO THIS!" In no way was he the only human being during his time that had figured out or would have figured out the same ideas. Similarly, we all share the same thoughts and concerns for this world and I hope we can all move forward together so that our children and our children's children will have a chance to carry on their fathers' work.

  5. #5
    Moderator urbanfarmer's Avatar
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    Re: Commercial Aquaponics – Why is it not pervasive?

    Quote Originally Posted by Neil H
    I come from a large projects environment and for some time now have been trying to figure out why Aquaponics (AP) has not caught on in mainstream farming in a “Big Way”? Aside from the usual barriers to new technology or ideas there must be something else that is hindering the commercial application of this technology….. I thought I would post some thoughts and see what other members think ….?

    Is this new unproven technology ? …. The word may be unfamiliar to some, but the concept is readily accepted by many, indeed there are a number of farms in the US which have been recognised and certified as organic AP producers. Hundreds of back yard enthusiasts have proved that AP works, however scaling up seems to be an issue…??? But what is the issue with scaling up? The minute we scale up we are worried about profit, because well that is what scaling up is for … profit. So is AP unproven technology? At a backyard level NO
    It really is just as you say. It has not caught on because of the usual barrier to new technology. The scientific community has not quantified the mechanics of aquaponics. At best, we can qualify some, if not most, of a system's parameters. However, we can quantify very few and the supporting research is nearly nonexistent. With that in mind, consider the process of creating a business plan, proposing it to investors, and winning commitments from funding sources to create your capital investment and turnover capital. It's not that easy. For example, how hard is it to get the money to start a "regular" farm? If it was that easy, a lot more people would be starting a business (and a lot more people would be going out of business). People with money to invest do not just throw it away. They have to quantify their investment. If we can't even quantify our inputs and outputs to a system that is far less variable than the marketplace, what hope do we have of securing funds for a commercial aquaponics venture? Anyway, I could go on, but I think you see my point.


    Quote Originally Posted by Neil H
    I believe there is a disconnect between the DIY / backyard enthusiast philosophy and a commercial approach to AP.
    I think you are comparing apples and oranges. Commercial operations are inherently for profit. DIY / backyard operations are done for so many reasons, well, there's just no comparison. I've met folks doing it simply for the fun of it. I have met people doing it to offset their food bill. I'm sure we all know someone running a backyard system in the hopes one day they will go commercial. I have even heard of folks doing it to grow most of their food while they are completely off-grid in a zombie apocalypse style living scenario somewhere in Montana (or the like).

  6. #6
    Moderator urbanfarmer's Avatar
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    Re: Commercial Aquaponics – Why is it not pervasive?

    Quote Originally Posted by Neil H
    Is this new unproven technology ? …. The word may be unfamiliar to some, but the concept is readily accepted by many, indeed there are a number of farms in the US which have been recognised and certified as organic AP producers. Hundreds of back yard enthusiasts have proved that AP works, however scaling up seems to be an issue…??? But what is the issue with scaling up? The minute we scale up we are worried about profit, because well that is what scaling up is for … profit. So is AP unproven technology? At a backyard level NO
    Hm, this is a tricky question. How do you prove technology in your terms?

    What if I told you I have designed a system that can produce 1000 pounds of fish a month with all the fish feed grown onsite for free and your only cost would be a few hours of labor a week and the whole system including processing facility for the fish and feed would fit in a 30' x 30' area (roughly) and the whole thing could be built for under $1000 USD. If fish price is $4 per pound that's a $4000 per month income and your electric bill would be under 5 kWh for the month (that's about 170 watt pump running 24/7). I have this much unused space in my backyard right now... imagine! (I know it sounds insane, but I call her the world hunger problem solver, haha)

    However, is this technology proven? I can argue yes. But, if you tell me to prove it by building it and showing it works. Okay, let's say I do that too. Now is someone going to loan me the money to do this on a large scale? Let's say 100 times bigger? Who will loan me $100K to do this? Maybe some angel investor, but they require clean and clear business plans that at least give them some idea for their ROI. Can we propose such a business model with a high level of confidence for success? How on earth do we quantify that? Or maybe we have to go THAT FAR to prove a technology?

    Well, this post made a lot less sense than I had hoped, but I maybe it will open up some discussion and I will have a chance to clarify.

  7. #7
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    Re: Commercial Aquaponics – Why is it not pervasive?

    Thanks for the replies guys, some interesting points raised

    @ keith_r Excellent points, a commercial market for what you produce is key, but AP is not selling new products, simply food, the local market would need to be defined of course but they exist worldwide
    I think the initial costs are driven by the design and if the correct design is implemented then the capital costs may look very very different to an upscaled backyard version

    @urbanfarmer .... wow some great discussion points there....
    nutrient recycling will be the fuel for farming of the future IMO.... whether this is in the form of maggots digesting slaughter house waste or animal waste fueling biogas generators to offset power costs, with shrinking agricultural land and increasing populations, this is a no brainer

    I agree that the backyard and commercial AP systems are apples and oranges, that was essentially what i was trying to get at in a round about way ..... have commercial operations being trying to make apple pies using oranges? Have commercial operations based their systems on the wrong foundation??

    Your points on proven technology are valid ..... and perhaps one of the biggest hurdles for funding ....

    Here are some other thoughts
    AP requires only a clean water source, NO arible land .... a mine waste dump cound be used where nothing else grows.....

    How would you design a commercial operation if you had an option for funding?

  8. #8
    Moderator urbanfarmer's Avatar
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    Re: Commercial Aquaponics – Why is it not pervasive?

    Quote Originally Posted by Neil H
    nutrient recycling will be the fuel for farming of the future IMO.... whether this is in the form of maggots digesting slaughter house waste or animal waste fueling biogas generators to offset power costs, with shrinking agricultural land and increasing populations, this is a no brainer
    I have to stop you there. It's not the future anymore, it's the present. Exciting times! Albeit, we're just at the cusp of the modernization of ancient agricultural concepts, but that's always the case; is it not? I know for a fact very large commercial aquaponic systems are being built in the central parts of the US, and I mean BIG. They take time to build. Everything is happening, but it will take time. Legal red tape, construction delays, and (as we have been discussing) procurement of capital investments. All the technologies you have discussed have already been implemented and successfully and profitably used in the last decade. Governments, financial institutions, corporations, NGOs, and individual investors are all flooding money into these agricultural technologies. Aquaponics will be mainstream in the following years, worry not on this. (No puns were harmed in the making of these sentences.)

    Quote Originally Posted by Neil H
    How would you design a commercial operation if you had an option for funding?
    That's a tricky question with no one-size-fits-all answer. Climate, seasonal patterns, availability of cheap system inputs, government regulations, and local market prices would strongly influence the design. Furthermore, what type of funding options are available? Is it a loan or a grant or a silent partner or an operating manager type partner? Does the design need to account for a small upfront investment with the system having upward scalability as profits come in or is the system designed for a specific annual revenue dictated by the investors portfolio size which is already predetermined? What I'm saying is, it's not aquaponic technology that really presents the challenge to an aquaponics business. It's designing a business model that works and gathering the funding and leading a team to make it happen. Because if you're not making money, it's just a hobby.

    "Efforts and courage are not enough without purpose and direction." --John F. Kennedy

  9. #9
    Moderator JCO's Avatar
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    Re: Commercial Aquaponics – Why is it not pervasive?

    Welcome to the forum...and thanks for the great post. I realize I'm not on track with the subject, but would like to know where you live.
    JCO
    Irish eyes are always smiling but
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    so never forget
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    Re: Commercial Aquaponics – Why is it not pervasive?

    Quote Originally Posted by JCO
    Welcome to the forum...and thanks for the great post. I realize I'm not on track with the subject, but would like to know where you live.
    Thanks

    I live in South Africa at the moment

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