Aquaculture Investment: 6 Question to Ask Before You Invest in Aquaculture

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Over the past 25 years, I have witnessed first-hand the impressive growth of the aquaculture industry through targeted investment. With the demand for seafood on the rise and wild fish stocks dwindling, aquaculture will continue to become a crucial source of global sustenance.

I have invested in many aquaculture businesses, but with any investment opportunity comes risk. Before considering any aquaculture business, I ask six essential questions. These requirements have been shaped by my extensive industry experience and ensure a thorough evaluation process.

So, let’s dive into what you need to know before taking the plunge.

6 Question to Ask Before Making an Aquaculture Investment

1. Can the founder keep the species alive in a bucket for a month?

This is the first and most important question. If the founder can keep the species alive in a bucket, then they can keep it alive in one tank; then they can keep it alive in multiple tanks.

2. Does the founder know what causes mortality?

Unfortunately, mass mortality events are a part of aquaculture. They can be caused by disease outbreak, environmental stresses, nutritional deficiencies, poor management practices, and a whole host of other things.

Each species reacts differently to farming, so the founder needs to know what causes mortality in the particular species. Otherwise it’s a ticking time bomb.

3. Is it a scalable, modular system?

A modular system can be taken anywhere and duplicated in a brief time span. A scalable system provides flexibility and adaptability. Both qualities are key to a successful aquaculture system.

4. Is the FCR proven and is the feed their own?

The FCR, food conversion rate, needs to be proven. For every kilo of product, you need to know how much product you will get. Additionally, it’s important that the business has its own feed and owns the feed IP.

5. Does the product taste good?

A good tasting product is essential. Product is at the core of a company’s revenue stream, so it has to be exceptional.

6. Logistics and how close to the market it sells in

You’ve produced all this wonderful seafood, but do you have a viable route to market? It’s essential to check that the logistics of a company are sound before investing.

Should You Invest in Aquaculture?

As with any investment, you should always first conduct thorough research and due diligence. This includes researching the company or companies involved, analyzing their financial statements and performance history, and assessing the potential risks and rewards.

That being said, I would like to leave you with one piece of advice. Remember that aquaculture isn’t just a monetary investment, it is an investment into the future of our planet.