Massachusetts Aquaculture White Paper - Economics

A complete summary of economics for aquaculture can be found in the Northeast Region Aquaculture Industry Situation and Outlook Report (Bush and Anderson, 1993). Massachusetts aquaculture farm gate value for 1992 (the most recent Situation and Outlook Report) was over 8 million dollars. The dominant species produced was the Northern quahog. Other important cultured products were oysters, trout, hybrid striped bass, scallops, baitfish/other fish, and tilapia. Most ($6,350,918) of the farm gate value for Massachusetts comes from the production of oysters, hard clams, mussels and scallops. The species cultured in freshwater (which accounted for the remaining $1,670,000) were trout, hybrid striped bass, baitfish/other fish and tilapia.

Massachusetts is listed as one of the top three Northeast states for the production of trout, hybrid striped bass and tilapia. Information on these species, although not specific to Massachusetts, lends information to the current and potential industry in the Commonwealth.

Trout production, mostly brook and rainbow trout, makes up approximately 20% of the estimated $64.6 million Northeast cultured finfish farm gate value for 1992. Pennsylvania accounts for nearly 72% of the 4.7 million pounds of trout produced in the Northeast in that year. Trout culture has generated some 265 full-time and 250 part-time jobs in the Northeast. Nearly half of the trout production was sold to be stocked into private waters. The most common size sold for this purpose was 10-13 inches. The size of local trout operations is constrained, in part, by the amount of clean, cold water available for culture. The largest markets available to small trout producers are private waters and fee fishing operations.

Hybrid striped bass production in the Northeast accounted for 4% of the estimated $64.6 million farm gate value for 1992. This value translates into approximately 947,000 pounds of fish. The firms involved with hybrid production employ an estimated 85 full-time employees and 78 part-time individuals. Nearly half of this production is attributed to Maryland, the top producer. This is one of the more recent technological advancement forums in fish culture with an estimated 40% of the culture being conducted in recirculating systems. As this method develops, the potential for economic value will also increase as recirculating systems allow compensation for a shortfall in clean, cool available water supply, a common problem in the northeast.

Although the production values for tilapia are nearly inconsequential, this fish has perhaps the most potential to increase in the near future. Maryland, currently producing 250,000 pounds of fish, expects that their production could increase by a factor of 6 in only 2 years. Currently, only about 1% of the finfish production in the Northeast is in tilapia, approximately 280,000 pounds, to which Massachusetts is again one of the top three contributors and one of only two states in the Northeast with verified commercial harvest. Most of the production is in recirculating systems and some production has involved hydroponics. Most cultured tilapia is sold directly to restaurants and the average cost for live weight fish is approximately $2.00 per pound.

Relative to baitfish, little is grown in this region of the country. In fact, most of the baitfish grown in the U.S. is done so in the Southeast, primarily Arkansas. The fish species primarily produced as bait in the Northeast are fathead minnows and golden shiners. The demand for baitfish is reported to be high but extremely seasonal.

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Published: September 1995