Aquaculmral Engineering 5 ( 1986 ) 87-101

Aquaculture in Hawaii, a Social and Economic Dilemma Robert Shleser

Aquacultural Concepts. PO Box 560, Waimanalo, Hawaii 96795, USA

ABSTRACT This paper was developed as a means of discussing technical and economic problems in aquaculture that are common to Hawaii and Taiwan. In order to understand some of the problems and opportunities for development in Hawaii or Taiwan, it is useful to compare and contrast these islands with other locations ~4tere similar opportunities exist. For example, in Indonesia there are abundant unused lands, many with huge rivers running to the sea providing a reliable supply of fresh water. In these areas where labor costs are low, land is abundant, and there is an ideal climate and fresh and seawater resources, opportunities are provided to develop aquaculture of the same species we hope to grow in Hawaii and Taiwan. We are faced with the problems of being economically competitive.

BACKGROUND In Hawaii, we have always believed that aquaculture is important. As we look towards the opportunities of developing aquaculture, it must be realized that with these opportunities there are also a great n u m b e r of problems. First of all, our islands, which are volcanic in origin, are primarily mountainous with usable flat lands in only the thin coastal areas. Available land is limited, and that which is available faces a tremendous a m o u n t of pressure for its use. In Oahu alone, we have a population of nearly one million people, which is largely concentrated on the flat coastal areas, making land which could be available for agriculture or aquaculture in very short supply. 87 Aquacultural Engineering 0144-8609/86/S03.50 -- Elsevier Applied Science Publishers Ltd, England, 1986. Printed in Great Britain

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We are faced with the problems of a very high cost of living. In Hawaii electricity costs nearly 14 cents k w h - t. Land costs in Hawaii are among the highest in the world. Lease rents are also very expensive and can be as much as 5% of the gross value of the crop. We are aware that Taiwan faces similar kinds of problems. Hawaii has always believed that there is a great future for aquaculture. There is a State Aquaculture Plan (Aquaculture Planning Program, 1978) as well as a comprehensive publication describing the process that is required to obtain the various permits that are necessary to carry out aquaculture in Hawaii (Aquaculture Planning Program, 1977). In the plan, written in 1976-77, the projections for aquaculture were extremely optimistic. It was expected that freshwater prawn farming would grow to almost 60 million pounds (27.2 million kilograms) annually, and that of marine shrimp was expected to reach approximately 25 million pounds (11-3 million kilograms) annually
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Aquaculture in Hawaii. a social and economic dilemma

89

with large areas in production (Fig. 1). Looking back today on this planning effort, not only do we realize that the opportunities to put these large amounts of land into production or to start business of this kind have not been achieved, but we also now recognize that the development of aquaculture is hampered by a whole variety of technical and economic problems which must be solved if aquaculture in Hawaii is going to be profitable. During the last ten years we have witnessed many very optimistic startups for aquaculture. In 1981, a Japanese firm came to Hawaii to raise Penaeus japonictts, the Kuruma prawn. A very bright future was predicted. However, a brief two and a half years later, the company realized that it was not going to achieve a positive financial outcome, and left Hawaii. Production costs and yields failed to meet expectations. Similarly there was great excitement when one of our largest firms, AMFAC, entered into the freshwater prawn Macrobrachium business. Almost two years after they started, AMFAC decided for a variety of reasons to go out of business. More recently, the people of Hawaii and our planners have asked the important question, is aquaculture a fact or fantasy in Hawaii's economic future? What we have come to realize is that the questions of economic reality have caused us to reexamine the potential for aquaculture in Hawaii's economic future. A better understanding of the problems of aquaculture can be developed by looking at our agriculture situation. Since 1955, we have continued to import more chickens into Hawaii than we produce, and at the present time, our imports of chickens, for a comparison, are nearly four times the amount produced (Fig. 2). Analysis of this situation can give many explanations for the problems to be encountered in aquaculture. In order to produce chickens, we have to import or grow chicken feed. To grow chicken feed, we have to import fertilizer. In most cases it is more economical to import the processed chickens than it is to import fertilizer, grow the feed and pay the very high land-lease costs to farm chickens or any other commodity in the State of Hawaii. The future for animal agriculture or aquaculture will in part depend on costeffective feed production. Carrying this analysis further, we have seen that many of the problems which hamper our future development are directly related to the energy crisis. Comparing the price of chicken feed with the price of gasoline and fertilizer, we see that as the price of gasoline went up

90
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after the energy crisis of 1976-77, the prices of feed and fertilizer went up (Fig. 3). This is due to the fact that energy (natural gas) is used to make ammonia fertilizer which is required for feed production. Hawaii's problem is even more extreme because materials must be shipped nearly 3000 miles to Hawaii. These shipment costs are added to the price paid for energy-related items such as feed and fertilizer. This means that building a profitable and competitive industry will be difficult. Clearly, taking self-sufficiency (supplying local markets) as an objective is the first step. Marine shrimp is probably the species which has been given the most attention in the last few years. Hawaii and Taiwan are both interested in shrimp farming. A number of years ago at the Oceanic Institute we conducted an economic analysis of a shrimp farm in Hawaii (Shleser, 1979). The study looked at production of a 100 acre (40 hectare) farm with 5 acre (2 hectare) dirt ponds. Shrimp were stocked at 30000 shrimp per crop. Some of the findings were very important in terms of setting objectives for the future. The analysis showed that nearly 35% of the operating costs were represented by feed costs. Labor costs were almost the same. This example shows that if we are going to make progress in developing the shrimp

Aquaculture in Hawaii, a social and economic dilemma

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business, research on feed and labor costs should be given priority. Developing research programs in these areas is essential to build a profitable industry. During the last six years at the Oceanic Institute where I served as Director of Research Development, we developed a comprehensive program that was involved with attempting to reduce feed costs in

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Hawaii. A major emphasis of the program was to evaluate using wastes that are abundant in Hawaii as an alternative for feed. One approach involved evaluation of manure to fertilize production ponds. Hawaii operates major feed lots where cattle that are grazed on many of the sloping hillsides are fed imported feeds in order to produce meat that has a standard that will compete with the product produced in feedlots on the mainland of the United States. Great amounts of manure are produced which create a disposal problem.

ELIMINATING THE NEED FOR FEEDS We felt that manure might have a potential to be used as fertilizer for the development of a feed alternative or food chain in a shrimp pond. The basis of this theory came from two pieces of work. The first was done by Addison Lawrence at Texas A&M University (Aquaculture Planning Program, 1978). He demonstrated in aquaria that, when radioactive glucose labeled with C14 was put into the water, it could be found in the shrimp after a few days. When he then repeated the experiment in the presence of the antibiotic chloramphenicol, he observed that almost none of the radioactivity was incorporated in the shrimp. The antibiotic chloramphenicol inhibits the growth of bacteria which take up the sugar. He reached the conclusion that the bacteria were playing some role in transferring the sugar into the shrimp. Today it is known that shrimp are actually bacterial grazers, a fact that is not surprising bearing in mind that shrimp have long been considered detritivores. During this same period, the Ralston Purina Company conducted studies which showed that a short time after feeding with a pelleted feed the gut of the shrimp was found to contain marine bacteria that were typical of the bacteria found at the bottom of the pond. Therefore a theory was developed that, if the ponds could be supplied with nutrients, such as manure, it would be possible to attain growth rates which were similar to those which were attained on feeds as a result of shrimp grazing on the bacteria-rich benthic material. After almost two years of research, the Oceanic Institute developed a technique of putting manure into ponds, through applications once or twice weekly, that achieved growth rates of shrimp superior to those of shrimp grown on formulated feeds and with survivals under

Aquaculture in Hawaii, a social and economic dilemma

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the best of conditions of nearly 80%. In essence, the application of manure as a fertilizer achieved two things: one, the shrimp grew faster and made it possible to produce a marketable sized crop more quickly, and two, the need for feed was totally eliminated. These experiments were done using Penaeus vannamei at various stocking densities (the major stocking density used was about 30000 shrimp acre-i on a projected basis). An analysis suggested that production costs using manure could be reduced by almost 25%.

D E V E L O P I N G NEW COMMODITIES Using aquaculture as a means of producing alternative feed ingredients was another approach to reducing feed costs. From this standpoint, we took a broader view of aquaculture; rather than culturing products such as fish, shrimp, oysters or clams for human consumption, aquaculture might be used as a means of growing new commodities or ingredients to be used in the formulation of feeds for animals and aquatic species. Essentially we were interested to see if we could grow aquatic species in Hawaii that could be substituted for imported feed elements. This would create several levels of opportunities for a new industry to grow feed ingredients and an economic advantage in expanding the aquaculture and agriculture production sector. The program that we developed looked at the basic commodities that were currently being used such as corn, wheat, barley, alfalfa, soybean meal and meat and bone meal. We found that there were two products that could be cultured in an aquatic environment with significant protein contents and which might, if grown economically, be used as a substitute for imported ingredients. The two species which seemed quite promising were brine shrimp Artemia, which is 55% in protein, and Spirulina, which is nearly 75% in protein content, on the basis of dry weight. These species have been grown commercially elsewhere at other times, so production methods were understood. The challenge was to grow these 'crops' at a cost that was competitive with imported commodities. It had been demonstrated that it was possible to produce 9 tons dry weight surface acre-~ year-I of brine shrimp (Cohlan, 1976), and nearly 20 tons dry weight surface area-~ year -j of Spirz,lina (Hills & Nakamura, 1978). In comparison, soybean oil meal, which is 40% protein, has a yield of only 5 tons of meal acre- ~.

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It is possible annually to produce nearly seven times the amount of protein growing Spirulina than can be achieved growing soybean oil meal. We recognized that the level of production was not sufficient justification to produce a new crop. The challenge was to find a way to grow Spirulina in a cost-effective fashion. Spirulina is well known in its use in the health food industry, where its retail value can be as high as USS20 lb-t. Our objective was to grow Spirulina at less than USS1 lb- t. In order to do this, we obtained stocks of Spirulina from all over the world, and evaluated various cultures obtained in order to determine: (1) which grew fastest under Hawaiian conditions, and (2) which showed a potential to grow well when supplied with nutrients obtained from wastewaters, which were abundant. Ultimately, several strains were isolated that showed promising characteristics. Once again, as with the shrimp production example, in order to provide a perspective for our research, we did an analysis of the costs of production. In particular, it was clearly demonstrated that the major costs of production were chemicals and energy, with labor costs relatively insignificant in this case (Fig. 4). An analysis of the chemical costs (Table 1) showed that the cost of carbon, nitrogen and phosphorus represented the major costs in Spirulina production (Margarelli & Shleser, 1984). That is, the cost of supplying these chemicals using carbonate for carbon is 22%, nitrate salts for nitrogen is 14% and phosphate salts for phosphorus is 4%, representing the major costs. Therefore, we set out to devise a system which was capable of providing these elements in a less expensive fashion. Early in the program, the experimental work carried out showed that the elutriates of digested manure (composed of organic carbon, nitrogen and phosphorus which had been solubilized) were, with very minor adjustments to the nutrient composition of the media, virtually capable of supporting a Spirulina culture. FERTILIZER AND ENERGY Recognizing that the major costs in Spirulina production are chemical nutrients and energy to turn the paddle wheels to keep the algae in

Aquaculture in Hawaii, a social and economic dilernma

100 acre spmulina farm - control m o d e l Ol~erating costs

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suspension, we wished to develop an approach to production that would significantly diminish these costs. From a theoretical point of view, the solution that was envisioned was the following: manure would be anaerobically digested in a bag fermentation system to produce methane; the methane gas would be used to run a motor that would power the paddle wheels; the carbon dioxide produced in the exhaust would be diffused into the culture to partly supply carbon to the system; and the elutriate from the digester containing the solubilized nitrogen and p h o s p h o r u s would be filtered and p u m p e d to a reservoir, where the mixture would be analyzed and supplemented with small concentrations of inorganic nitrate and phosphate to provide the proper balance of nutrients required to support the growth of the culture. These studies are now in progress at the Oceanic Institute.

TABLE ! Chemical Costs for .S~irulitm Production M o d e l e d for a 100 acre l:arm in ltawaii

Ingredient

I,itial cotlcettlratiott (.~ liter -I )

.S't,rtup & eve O' 4 months kg)

I'ach moltth

.4,mini per pottd (kg)

A n m , d per 150 pollds (tons)

Unit cost (per lOll) (S)

Ann,al cost per p o n d (S)

A n n u a l cost per filrm (.~)

% o]" % o] total total n,trient operating cost costs

NalICO, K,HPO 4 NaltO~ K,SO 4 NaCI MgSO4-7H20 CaCI, FcSO~-7H20 ILI)TA II3PO 3 MnCI,-4lt,O ZnSO~-71t20

Ct1SO4-511211

MoO 3

16.811 10416.(10 11-511 310.00 2.511 1 5 5 0 . 0 0 1550.1)11 1'00 6211/10 1.00 620.00 0.211 124.011 55.1111 x 111-" 3,1.10 IIFt)0 x 1 0 - " 6.211 81H10 x 10 " 49.611 2 . 8 6 x 10 t, 1'77 1 . 8 0 x 10 " 1"12 11.22x 111-~' 0'22 811"1111X10 " 49"611 16'00 x 10 -" 9"92 TOTA L NUTRIENT COSTS

31 2 4 8 . 0 0 9311-1t11 186110.00 I 8611"1111 1 8611.00 372.1111 1112.311 18.611 148.811 5'32 3"35 11.41 0"1488 0"0298

5156 153 3069 3117 307 61 17 3'1 25 0.798 0"502 11.061 11"1122 0"0045

412.00 2 272.110 -129.0tl 198'011 137.0(/ 258-00 458.00 256-00 5256.1111 perkg4.60 perkg0-63 per kg 0"611 per kg 1"64 per kg 44-20

14 162.(t(I 2 1 2 4 2 3 9 0 0 2 324.1111 348 638-011 8785.00 1317675-00 4115"1111 60 766"1111 281/.011 421145-1111 106.00 15 836.1111 5200 7 731.00 5.23 784.1111 860.011 1291145.1111 24-1/11 3671.1111 2.11 316.110 11-25 37.1111 11"24 37"1111 1-32 197.00 27 007.15 4 051 0 1 7 . 0 0

52.44 8.61 32.53 1'511 1.04 11.39 0-19 11.112 3-19 11.119 11-01 11.110 I1'1111 0.00

22.69 3.72 1.1-07 0'65 11.45 11.17 11.118 0-01 1-38 11.114 0.00 I1.1111 I1"1111 11.00

l)vring 1983, studies s u p p o r t e d by the A q u a c u h u r c l ) e v c l o p t n e n t F'rograrn of the State of Hawaii were carried out vt the O c e a n i c Institute. A n a,mlysis of the costs of ,mtrients to operate 100 acres of p r o d u c t i o n raceways for o n e year defined the a b o v e costs (Margarclli & Shlcse,-, 198-1).

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Another part of the program involved evaluating the performance of Spirulina and other products as feed ingredients. Tested feeds were formulated, substituting Spirulina for some of the high protein elements such as soybean oil meal and meat and bone meal. A feed mill was built at the Oceanic Institute. A variety of feeds were formulated and tested. Using a commercial steam extruder, feeds for aquatic and terrestrial species were evaluated. 'Spirulina-substituted feed' was compared with feeds now being used in the industry. We were fortunate to have feeds that were produced for the industry for use in intensive systems for comparison. The testing lab was designed as a totally controlled system which eliminated the growth of aquatic organisms in the environment which might contribute to the nutrition of the shrimp. The preliminary work showed that some of the Spirulina-substituted feeds did very well, and in fact did nearly as well as some of the feeds currently in commercial use (Margarelli & Shleser, 1984).

AGRICULTURA L FEEDS A real challenge was then to use Spirulina-based feeds in chicken studies. Chicken feed was formulated substituting Spirulina for soybean oil meal and some of the other meat and bone meals that were characteristically used in chicken feeds. These studies, conducted by Dr Ross of the Department of Animal Science of the University of Hawaii, were promising. The Spirulina-substituted feeds showed the same or better survival, and also demonstrated growth rates that were similar to those produced by the commercially available rations (Margarelli & Shleser, 1984).

U S E F U L BY-PRODUCTS Several of the observations made were very important. Studies were carried out with egg production in quails fed on diets composed with Spirulina. It was observed that the yolk of the eggs that were produced were much brighter in color. Quail eggs are a product which is highly cherished by our Oriental population. It was observed that putting a small amount of Spirulitta in the diet made it unnecessary to add the

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R. Shleser

amounts of very, expensive sources of carotene that were normal.l,, required to produce brightly colored egg yolk. Today there is great interest in cultivating blue-green algae for fertilizer and valuable biochemicals. Several firms have been established in Hawaii with these objectives. Hawaii continues to look hopefully at other aquaculture possibilities such as culturing catfish, which draw a very good price in Hawaii. But once again, the major economic problems such as feed, labor and land costs must be solved before we can expect very much from the industry.

USING M U N I C I P A L WASTEWATER When we consider growing feeds in Hawaii we cannot consider protein alone. We must look at all of the feed components. We have to look at the opportunity to produce the fiber, carbohydrate, fats. minerals and protein required to formulate feeds. Once again I feel that our waste products provide much of the solution. We have just recovered from a period of nearly two years of drought; learning how to expand our usable water will be vitally important to Hawaii's future. Specifically, the location for new opportunities is the wastewater treatment plant. Almost all of our wasted nutrients pass this point. We spend a great deal of money treating the water, only to throw it away. If we were to use wastewater as a source water for irrigating certain crops (with appropriate technology to maintain health standards), we would experience significant opportunities for future economic de`,'elopment. I began research in this area in the late sixties. A program that we started at UCLA provided the basis for a consulting contract with the Disney Corporation and resulted in the building of a water-hyacinth wastewater treatment system at Disney World in Orlando, Florida. This system is now in operation at EPCO':f in Orlando. The main activity involves cultivating water-hyacinths which are used to clean the wastewater of dissolved nutrients. The biomass produced is then fermented to produce methane as a source of energy. T h e residual material, rich in nutrients, is plowed back into the soil as a means of improving the quality of the soil for crop production. There are numerous other opportunities for the direct use of wastewater. The direct use of treated wastewater to irrigate grass

Aquaculture in HawaiL a social and economic dilemma

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crops, which can be fed to beef cattle or used in feed formulation and forage crops such as alfalfa or sorgum, is another area for economic development potential. A ~ e a t deal of work has been done on technology for using wastewater in Israel, China, India and Europe. We have been slow to take advantage of these opportunities in Hawaii where we need them the most. A program run by Dr Tchobanoglous at the University of California at Davis demonstrated the use of wastewater for the overland irrigation of crops. The results have been very favorable. Dr Tchobanaglous' experiment has been implemented next to the Davis sewage treatment plant where large fields of forage grass are cultivated using overland wastewater flow. He has also shown that it is possible to cultivate other crops such as long-stem crops that can be used for paper production and other uses. It is not so far-fetched to recognize that the nutrients contained in wastewater, if the proper system is utilized, can be used in hydroponic systems to produce lettuce, tomatoes and other crops while saving the costs of water and fertilizer, reducing imports and creating new jobs in agriculture in Hawaii.

L O O K I N G AT T H E T O T A L SYSTEM Though the future is still ahead of us, I would like to sum up the situation by describing an integrated system that is based on energy conservation and utilization of waste products (Fig. 5). The scenario begins when pure rain water falls on the mountains and filters through lava to be trapped in our aquifers, the source of our very high quality fresh water supply. This water supplies our households, where we not only consume it, but use it to remove our sewage and for other purposes. T h e n we throw the water away! The water all goes to the sewage treatment plant where we spend money to clean it and throw it in the ocean. Instead of having five or six times more water to use for many purposes in Hawaii, hundreds of millions of gallons per year are wasted. However, we could consider the sewage treatment plant as a center of economic opportunity. Some of the potential uses include a cut-flower industry, grass crops, water-hyacinths for methane recovery and energy and grain crops for animal feed. As shown in Fig. 5, if the animals are fed on products that are grown, the manures that are produced can be used as sources of both nutrients and energy for

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Fig. 5. Integrated food production for Hawaii. Hawaii imports all its basic materials including animal feeds and fertilizer. If wasted nutrients and water were reclaimed at the wastewater treatment plant, many economic opportunities could be developed.

the production of crops such as Spimlina, brine shrimp and other aquatic species, or as fertilizer for producing marine shrimp or tilapia. Consider the economic consequences of growing enough feed to produce all the chickens we consume in Hawaii, thus producing 100% of our chicken requirements instead of importing 80% of the chickens (Fig. 2). Visualizing this picture is the first step. Although we certainly have not yet achieved our objective, unless we understand our future options and opportunities, we cannot create our future. The dilemma that we are facing is that future development of agriculture and aquaculture is hindered by economic problems which have solutions, yet we, as a society, have not yet been able to find a way to conduct the research and development activities that will solve these problems.

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ACKNOWLEDGEMENTS I wish to recognize the participation of the staff of the University of California at Davis, Bodega Bay and UCLA in the wastewater activities and the staff of the Oceanic Institute of Hawaii, especially Dr Chen Sheng Lee, Dr Paul Magarelli, Mr Mike Hites, Billy Richards and Jim Sweeney for their contributions to this paper. This work would not have been possible without financial support from Sea Grant, USDA, EPA and Alu Like of Hawaii, the Hawaii State Le~slature, the Aquaculture Development Project of the State of Hawaii and the Disney Corporation.

REFERENCES AND BIBLIOGRAPHY Aquaculture Planning Program. (1978). Aquaculture Development or Hawaii, Assessments and Recommendations, Center for Science Policy and Technology Assessment, Department of Planning and Economic Development, State of Hawaii. Aquaculture Planning Program. (1977). Permits and Environmental Requirements for Aquaculture in Hawaii, Center for Technology Assessment, Department of Planning and Economic Development, State of Hawaii. Statistics of Hawaiian Agriculture. (1983). Hawaiian agriculture reporting service, Hawaii Department of Agriculture. Shleser, R. (1979). Economics of Shrimp Farming in Hawaii, Oceanic Institute (unpublished). Cohlan, B. (1976). Experiments conducted at Bolsa Chica, California (unpublished). Hills, C. & Nakamura, H. (1978). Food from Sunlight, World Hunger Research Project, University of Trees Press. Margarelli, E & Shleser, R. (1984). Final Report on Aquaculture and Livestock Feeds, The Oceanic Institute. Developed from data contained in statistics of Hawaiian Agriculture 1977-1983, Hawaiian agriculture reporting service, Hawaii Department of Agriculture. Castille, F. L. Jr & Lawrence, A. L. (1979). The role of bacteria in the uptake of hexoses from seawater by posflarval penaeid shrimp, Comp. Biochem./ Physio., 64A, 41-8.