Chapter 18 Commercial Aquaponics: A Long Road Ahead
18.8 Conclusion and Outlook
As discussed in this chapter, economic evaluations of aquaponic systems are still a very complex and difficult task at present. Although aquaponics is sometimes presented as an economically superior method of food production, there is no evidence for such generalised statements. Up to now, there is hardly any reliable data available for a comprehensive economic evaluation of aquaponics. That is partly because there is not “one aquaponics system”, but there exist a variety of different systems operating in different locations under different conditions.
· Aquaponics Food Production Systems18.7 Public Acceptance and Market Acceptance
The future of aquaponics production depends on public perception and the associated social acceptance in important stakeholder groups (Pakseresht et al. 2017). In addition to potential aquaponics plant operators, players at the wholesale and retail level as well as gastro-distributors and collective catering are important actors in supply chains. Moreover, consumers are key actors as they bring in the money into the supply chain at its end. Even though they have no direct economic stakes in aquaponics production, the general public as well as political and administrative bodies are important aspects to consider.
· Aquaponics Food Production Systems18.6 Aquaculture Side of Commercial Aquaponics in Europe
Starting a business in temperate climate regions of Europe or Northern America requires a larger investment since the systems have to be kept frost-free requiring more electrical energy for plant lighting when operated throughout the year. In Europe, there are two strong horticultural production powerhouses, one in Westland/NL and the other in Almeria, southern Spain. The market concentration is high and contribution margins are slim. As a result, some aquaponic producers presumed that in aquaponics the contribution margin from aquaculture is more interesting than that of horticulture, which is probably why some of the few commercial operators chose to oversize the aquaculture part of the setup.
· Aquaponics Food Production Systems18.5 Horticulture Side of Commercial Aquaponics in Europe
Petrea et al. (2016) conducted a comparative cost-effective analysis on different aquaponics setups, utilising five different crops: baby leaf spinach, spinach, basil, mint and tarragon in deepwater culture and light expanded clay aggregate (LECA). Whilst the study was conducted in very small systems without taking into account any upscaling opportunity or potential, several aspects of the presented results are worth discussing. The grow beds have been illuminated in different lighting regimes with fluorescent bulbs and metal halide grow lights.
· Aquaponics Food Production Systems18.4 Aquaponic Farms in Europe
Thorarinsdottir (2015) identified ten pilot aquaponic units in Europe, approximately half of which were at the stage of setting up still rather small-scale systems for commercial production. Villarroel et al. (2016) estimated that the number of aquaponic commercial enterprises in Europe comprised approximately 20 companies. Currently, Villarroel (2017) identifies 52 research organisations (universities, vocational schools, research institutes) and 45 commercial enterprises in Europe. Only a handful of these, however, sell aquaponic produce and could be considered as an aquaponic farm.
· Aquaponics Food Production Systems18.3 Hypothetical Modelling Data from Europe
In Hawaii, Baker (2010) calculated the break-even price of aquaponics lettuce and Tilapia production based on a hypothetical operation. The study estimates that the break-even price of lettuce is $3.30/kg and tilapia is $11.01/kg. Although his conclusion is that this break-even can potentially be economically viable for Hawaii, such break-even prices are much too high for most European contexts, especially when marketing through retailers and conventional distribution channels. In the Philippines, Bosma (2016) concluded that aquaponics can only be financially sustainable if the producers manage to secure high-end niche markets for fish and large markets for fresh organic vegetables.
· Aquaponics Food Production Systems18.2 Hypothetical Modelling, Small-Scale Case Studies and Surveys Amongst Farmers
Early research on commercial aquaponics focused on evaluation and the development of specific, mostly research institute-led case studies. These first results were highly positive and optimistic about the future of commercial aquaponics. Bailey et al. (1997) concluded that, at least in the case of Virgin Islands, aquaponic farms can be profitable. Savidov and Brooks (2004) reported that the yields of cucumbers and tomatoes calculated on an annual basis exceeded the average values for commercial greenhouse production based on conventional hydroponics technology in Alberta.
· Aquaponics Food Production Systems18.1 Introduction: Beyond Myths
Although we have witnessed the first research developments in aquaponics as far back as the late 1970s (Naegel 1977; Lewis et al. 1978), there is still a long road ahead for the sound economical assessment of aquaponics. The industry is developing slowly, and thus available data is often based on model cases from research and not on commercial-based systems. After initial positive conclusions about the economic potentials of aquaponics in research-based settings of the low-investment systems in USA, primarily the system in Virgin Islands (Bailey et al.
· Aquaponics Food Production Systems