New Recirculating Aquaculture System Business Opportunity

Opportunity Summary

Business Concept and Objectives

Malama Kai, translated from Hawaiian, means “stewardship of the sea”.  This statement embodies our goal to take a leadership role in the delivery of high quality marine fish, specifically Barramundi (Lates calcarifer) or “seabass”, that are sustainably produced to the high end seafood markets in the Hawaiian Islands (USA).  We strive to pioneer and foster the growth of innovative technical advances in sustainable aquaculture systems, setting new standards while providing fresh high quality seafood products to the rapidly expanding market.

Market Status

Hawaii currently imports approximately 80% of its seafood and fresh produce.  Nationwide the seafood trade deficit exceeds $9 billion, second only to oil.  Per capita, Hawaii consumes more seafood than any other state (approximately 25 lbs/person/year) and the appetite for fresh seafood is insatiable.  To capitalize on this trend we will produce high quality farmed seafood in the first truly environmentally sustainable, zero discharge system in Hawaii.

Market Advantage

The advantage of Malama Kai’s products is they will come from a local, trusted source versus imports of unknown quality.  We escape environmental impact concerns with traditional aquaculture practices with our 100% recirculating, zero discharge systems.   Waste that is normally discharged in traditional aquaculture, will be collected and used to produce valuable secondary products.  We also will be the first, fully integrated, Barramundi hatchery and farm in the USA.  Production can be tailored to meet clients desired size and consistency to be delivered in the freshest condition possible, only hours after harvest.  We also have the ability to cater to the highly lucrative live fish market in Hawaii the US west coast and Asia.  The modular and scalable footprint allows future expansion by the ability to construct new units directly adjacent to targeted markets, a luxury traditional methods such as open ocean culture do not have.

Financials Summary

- $6.0 million for RAS system construction.

- $1.5 million for hatchery facility construction.

- $1.0 million for initial operating expenses.

- $1.5 million for real estate purchase (dependent on final site selection)

Total estimated investment required = $10 million

Management Team

 As individuals we have had many documented accomplishments in the scientific, agricultural, and aquaculture fields .  As a team we will be able to combine our unique and difficult to obtain experience to achieve the goal of financially rewarding ourselves and investors while bringing environmentally sustainable aquaculture practices to Hawaii.

Conclusion

With the ever increasing demand for seafood, coupled with the ever decreasing supply of wild fish, aquaculture is the only way to fill the growing void.  This situation makes aquaculture the fastest growing sector of agriculture worldwide, and will only continue to increase.  Consumers are increasing aware of the low quality and questionable environmental and safety record of imported seafood products.  There is also growing resistance in Hawaii and globally to the practice of open ocean and coastal fish farming as many see this being harmful to the environment and local wildlife.  Our system will be the first of its kind in the USA and will be environmentally sustainable.  The systems will be land based, will reuse and recycle 100% of the water used, producing no discharge, and utilize collected waste to produce compost, seaweeds, organic produce and water for irrigation of field crops.  This will eliminate any negative environmental impacts, while producing valuable secondary products.  We will accomplish this, becoming the first truly sustainable aquaculture operation in Hawaii, the first and only Barramundi hatchery in the USA while setting the standard for the future of the industry locally and abroad.