Aquaculture Is Hot

Agora, Inc's logo.

Agricultural giant Cargill is plunking down money on enterprises that cater to the fishing industry, in a manner of speaking. They bought a company that makes salmon feed and another company that makes shrimp feed, each in different countries. These are industries that make the feed for fish which are commercially grown.

For many reasons, fish farming has become a large enterprise, changes in diet being one of them. By 2010, fish production has exceeded the production of beef products.

According to Wall St Daily, produced by a subsidiary of AGORA INC, a Baltimore-based holding company, salmon is in the lead. "Over the past five years, production of farmed salmon has soared by a third to 2.5 metric tons. Much of this growth occurred in China. The country is believed to produce about 62% of the world's farmed salmon.



More salmon raised means more salmon feed is needed. Demand for salmon feed is expected to climb by 4% to 5% this year and next. That's a faster clip than any other animal protein." Thus the reason for at least the former purchase by Cargill.

And they aren't the only ones. About a year ago, Mitsubishi got into aquaculture by purchasing Norwegian fishery Cermaq ASA, thus becoming the world's second largest salmon farmer. Last year was also the first year that the consumption of farmed fish exceeded that of fish caught from the wild.

Tim Maverick, senior correspondent, writes, "By 2030, the World Bank estimates that 62% of all fish eaten will be farm-raised. And since 1980, farmed fish production has grown a spectacular 13-fold. But it's not enough. A study from the World Resources Institute said that the world, with more than nine billion people by 2050, will need farmed fish production to more than double by then."

However, there are some obstacles to aquaculture growth, such as sea lice infestation. This problem is more likely to occur in the more confined spaces that are utilized for fish farming. In addition,sea lice also compromises the fish's immune systems, making them more susceptible to other infections.

The question becomes, then, how to treat this organism. Although chemicals and medicine have been tried, the former led to further pollution of surrounding open seas and the latter tended to cause sea lice to develop immunity to the treatment.

So, recently fish farm companies are trying to add natural predators, which consume the sea lice, and laser treatments, which target the sea lice.

A fish, whose body is pocked with sea lice.

This is an example of the financial investment analysis in which Agora, Inc's holdings engage withing their publications. By publishing such analyses, they are offering a background for investors to make decisions.

Harvesting fish for the marketplace.

Thanks to this article from Wall St Daily: http://www.wallstreetdaily.com/2015/09/14/aquaculture-salmon-farmed-fish/.

 

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