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    Fishy Farms:The Governments Push forFactory Farming in Our Oceans

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    About Food & Water EuropeFood & Water Europe is the European program of Food

    based in the United States that works to ensure t he

    -

    Food & Water Europe

    +32 (0) 2893 1045

    www.foodandwatereurope.org

    euope

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    Fishy Farms 1

    Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

    Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

    Feedlots o the Sea: Factory Fish Farms and the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

    Why Factory Fish Farming Is Not Environmentally Sound or Sustainable . . . . . . . . . . . . . . . . . . . . . 7

    Pollution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

    Disease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

    Escaped Fish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    Sidebox: Genetically Engineered Fish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    Pressure on Wild Fish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

    Sidebox: Fish to Pellets to Fish Again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

    Sidebox: Vegetarian Carnivores? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Impacts on Marine Animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

    Why Factory Fish Farming Wont Fix Our Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

    Logistical Dificulties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

    No Jobs Here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

    Not or Small-scale Entrepreneurs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

    What It Would Take to Ofset the Seaood Decit Through Factory Fish Farming . . . . . . . . . 12

    Why Factory Fish Farming Wont Benet Consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    Health Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    A Costly Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    Contributing to Global Food Insecurity? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Lie on Factory Fish Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    Atlantic Marine Aquaculture Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    Snapperarm and Ocean Blue Sea Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

    Kona Blue Water Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

    Hukilau Foods, Formerly Known as Cates International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

    Other Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

    Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

    Recommendations to Policymakers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

    Recommendations to Consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

    Fishy Farms:The Governments Push forFactory Farming in Our Oceans

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    2 Food & Water Europe

    Over the past decade, people have become in-

    creasingly conscious about the environmental,

    cultural and economic repercussions o their ood

    choices, and a movement has emerged to support

    more diverse, sustainable options. This movement

    has extended to choices about seaood, as people

    take note o issues such as overshing and the

    environmental ramications o diferent types o

    sh arming.

    Despite this, the U.S. government continues to

    subsidize the development o open ocean aqua-

    culture, a type o actory arming that threatens

    the health o our oceans, coastal communities

    and consumers. Factory sh arming involves the

    production o as many as tens o thousands o sh

    in cages of the coastline.

    This report revisits the our U.S. taxpayer-sup-ported actory sh arming experiments in

    Hawaii, New Hampshire and Puerto Rico that

    are described in Food & Water Watchs previous

    reports, Seas of Doubt and the rst edition o

    Fishy Farms. Because all o these research and

    demonstration projects have previously received

    government unding to advance the industry, we

    have traced the operations histories or lessons

    that can be drawn about the easibility o ocean

    sh arming.

    The results are bleak. This newest update nds

    that despite having as many as 13 years to

    overcome setbacks,1 the arms have been largely

    unsuccessul, acing some combination o techni-

    cal, economic or environmental setbacks. They

    have experienced sh escapes, equipment ailure

    and community opposition. In some cases, the

    problems have caused the operations to relocate,

    scale-back, sell out to other companies or evenstop production altogether. Operations that have

    since been proposed have had dificulty securing

    permits and community support.

    Even as new inormation about these acilities

    continues to demonstrate that their easibility

    is uncertain, the data is becoming clearer about

    their potential impacts. A leading argument used

    to promote actory sh arming is that we need it

    to ofset the U.S. seaood trade decit that is, toimport less seaood and produce more seaood or

    local consumption. A Food & Water Watch analy-

    sis nds that to do this through actory sh arm-

    ing, however, would require an almost unimagina-

    ble 200 million sh to be produced in ocean cages

    each year. This would call or approximately 41

    percent o the entire global production o shmeal

    to be used as eed, could produce as much nitrog-

    enous waste as the untreated sewage rom a city

    nearly nine times more populous than the cityo Los Angeles and could lead to the escapement

    o as many as 34.8 million sh (i conditions are

    unavorable) or 12 million sh (i conditions are

    ideal) into our oceans in one year alone.2

    Despite years o opposition rom consumers, en-

    vironmentalists and coastal communities, as well

    as increasing evidence that this type o arming

    is ineasible and irresponsible, the ederal gov-

    ernment, under the National Oceanic and Atmo-

    spheric Administration (NOAA), has continued

    to sink resources to support this industry and

    develop a policy or it. The government already

    has spent over $44 million in support o the

    troubled industry.3 During a time when people

    are pushing to trim the ederal budget, NOAA

    continues to request money to support ocean sh

    arming money that could be more wisely spent

    supporting job creation and economic growth in

    other areas.

    Ater more than a decade o setbacks, it is time

    or the U.S. government to recognize that actory

    IMAGE COURTESY OF NOAA

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    Fishy Farms 3

    sh arming is not the solution or increasing

    seaood saety and availability. NOAA must stop

    taking money away rom improving the sustain-

    ability o our wild sheries. Congress should act

    to prevent ederal agencies rom ast-tracking the

    development o the industry. The international

    community already has learned that large-scale,industrial, land-based agriculture cannot solve

    all economic and ood security problems. When it

    comes to seaood and our oceans, we should take

    a lesson and avoid repeating the same mistakes.

    The actory sh arming industry has ailed

    to demonstrate that it is environmentally sus-

    tainable or nancially or technically viable on

    a commercial scale. None o the U.S. taxpayer-supported actory sh arming experiments

    have succeeded in proving that the industry is

    nancially easible or environmentally sus-

    tainable.

    Open ocean aquaculture is not a solution

    to the U.S. seaood trade decit. According

    to Food & Water Watch analysis, based on

    examples rom cobia, a type o sh currently

    in production, the United States would need

    to produce 200 million sh each year to ofset

    the $10 billion seaood trade decit. Our esti-

    mates conclude that:

    It would take more than 1.2 million tons o

    shmeal or 41 percent o the current es-

    timated global supply to eed this many

    sh.

    Assuming that these sh produce a similar

    amount o waste as armed salmon, this

    volume o production would lead to as muchnitrogenous waste as the raw sewage rom

    a city o over 34 million people nearly

    nine times the city o Los Angeles.

    I as many sh escaped rom these arms as

    escaped on average over the course o three

    unavorable years o salmon production in

    Washington state, 34.8 million sh could be

    released into our oceans, where they could

    compete and interbreed with wild sh. This

    is over 17 times as many sh as are esti-

    mated to escape rom salmon arms in the

    Atlantic Ocean each year.

    Even i the industry avoided the unavor-

    able conditions o storms or equipment

    ailure, we could still expect 12 million

    sh to be released into our waters annu-

    ally, comparable to the quantity o salmon

    escapes in the Atlantic that some scientists

    believe has contributed to the extinction o

    wild Atlantic salmon.

    Ocean actory sh arms will not reduce

    pressure on wild sh populations. The aqua-

    culture industry already is the worlds larg-

    est user o shmeal and sh oil, consuming

    80 percent o the worlds sh oil and hal the

    shmeal each year. Rather than contributing to domestic and

    global ood supplies, open ocean aquaculture

    acilities will likely produce an expensive

    product that is out o reach or many U.S.

    consumers and may, in act, contribute to ood

    insecurity in populations that are dependent

    on the small sh species used in shmeal and

    oil or protein.

    Like other actory-style industries with the

    goal o outputting as much as possible or the

    smallest cost, ofshore sh arms will employ

    relatively ew people, and the jobs may not be

    desirable or sae or workers.

    Despite spending many resources and staf

    time, neither NOAA nor Congress have suc-

    cessully drated a policy that could responsi-

    bly regulate actory sh arming.

    IMAGE COURTESY OF NOAA

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    4 Food & Water Europe

    For example, all o these operations have re-ceived government subsidies, and they have not

    demonstrated that they can be protable or

    even nancially sel-sustaining without gov-

    ernment assistance.4 In one notorious example,

    each pound o sh sold in a year by the Atlantic

    Marine Aquaculture Center, an experimental

    acility in New Hampshire, cost about $3,000

    in U.S. taxpayer dollars to produce.5 Kona Blue

    Water Farms, operating in Hawaii, is currently

    not on the market but has previously supplied aproduct that cost $17 a pound or a llet.6

    Further, all o these operations claim that waste

    rom the submerged cages is causing little or no

    harm to water quality, sea lie or ecosystems in

    general.7 But with a maximum o our operating

    at any one time in the United States (and the

    closest o the two on separate Hawaiian Islands),

    the arms represent a tiny raction o the thou-

    sands o cages that the industry and its govern-ment backers envision building along U.S. coasts

    in the upcoming years. Looking at the impacts o

    a ew arms alone does not reveal the ull poten-tial impact o opening the waters to an entire

    industry o actory sh arming.

    All our o the operations discussed in this report

    have made claims o sustainability,8 and the

    president o one has strongly encouraged the Na-

    tional Organic Standards Board (NOSB) to cre-

    ate organic standards or net pen aquaculture.9

    But ocean actory armed sh cannot credibly be

    considered organic due to the massive amount owater pollution they can cause and the amount

    o non-organic eed made rom wild sh (some

    that are already depleted) and non-organic agri-

    cultural eed constituents like soy that they can

    consume. This large-scale industry runs counter

    to the spirit o organics and the local and sus-

    tainable ood movements.

    The government hopes that ofshore sh arms

    can help reduce the countrys $10 billion seaood

    trade decit.10 Some claim that the industry

    could help U.S. consumers eat more domestic

    Currently located in Hawaii, and previously located or operating in New Hampshire

    and Puerto Rico, none o the U.S. taxpayer-supported actory sh arming experi-

    ments have succeeded. Each has been plagued by an assortment o dificulties. From

    shark encounters and sh escapes to nancial troubles and lawsuits, these opera-

    tions have not demonstrated that they can sustainably meet soaring demand or

    seaood and ease pressure on overharvested wild sh populations.

    IMAGE COURTESY OF NOAA

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    Fishy Farms 5

    seaood and ewer tainted imports. Others even

    boast that it could boost worldwide ood sup-

    plies and global ood security. But existing and

    proposed operations in the United States have

    ocused mainly on expensive boutique sh des-

    tined or high-end restaurants and sushi bars,

    not on varieties with widespread accessibility.11In act, by eeding on smaller sh species, called

    orage sh, high-end armed sh could actually

    reduce ood security in communities across the

    world, many o which depend on smaller sh like

    anchovy or sardines (see box on page 10).

    In sum, despite receiving more than $44 million

    in U.S. taxpayer unding, millions more dollars

    in private investment12 and extensive political

    support rom agencies within the ederal govern-ment, the open ocean aquaculture industry has

    ailed to demonstrate that it is environmentally

    sustainable or nancially or technically viable on

    a commercial scale.

    Fish arming itsel is nothing new. Four thou-

    sand years ago, beore written records, the

    Chinese were said to have begun arming carp.13

    And sh ponds in Hawaii, called loko i`a, may

    have been in operation as early as 1200 A.D.

    These arms were constructed along the shore

    with seawalls and grates to keep in mature,

    typically herbivorous sh that were raised in a

    complex ecosystem. Hawaiian organizations are

    now working to restore the arms to provide local

    ood or their communities.14

    Many types o sh arming exist around the

    world and in the United States to this day

    some sustainable, some not. But the type o

    aquaculture designed or the open marine waters

    most closely resembles salmon net pens, while

    replicating the large-scale livestock production

    model on land that grows thousands o animals

    in a conned environment. Marine sh are

    grown in cages or net pens that allow uneaten

    sh eed, sh waste and any antibiotics used in

    the operation to ow through the cages directly

    into the ocean.15 The rst experimental ofshore

    cages used in the United States were deployed

    of the coast o Washington state in 1989, and

    the rst commercial operation opened in 2001.16

    Both acilities were in state waters, within three

    miles o the coast.

    In 1999, the National Oceanic and Atmospheric

    Administration (NOAA) called or a quintupling

    o the nations annual aquaculture production by

    the year 2025 rom $900 million a year to $5

    billion. The stated goal was to ofset the seaood

    trade decit, create more jobs and bring more

    high-quality seaood to U.S. customers.17

    This has spurred the governments seemingly

    relentless push or the development o more

    ofshore aquaculture, no matter its human and

    environmental costs, specically pushing or the

    industry to be allowed in ederal marine waters

    (typically between three and 200 miles of the

    coast), where it is out o reach o state environ-

    mental laws and ar rom other coastal activities:

    In early 2004, the Gul o Mexico Regional

    Fishery Management Council, the body

    charged with advising the ederal govern-

    ment on how to manage wild sheries in the

    Gul o Mexico, announced intentions to cre-

    ate a plan or developing sh arms in ederal

    waters of the Gul coast.18 The council de-veloped this plan with input rom a recently

    appointed member with a background in

    ofshore aquaculture.19

    In 2005, pressed by NOAA, Congress intro-

    duced legislation in the U.S. Senate that

    would specically authorize aquaculture in

    ederal waters. It ailed to pass.20 Both the

    Senate and the U.S. House o Representa-

    tives introduced similar bills in 2007.21 Mem-

    bers o Congress introduced these bills as a

    courtesy to the Bush administration, and the

    measures were opposed by a wide array o

    shing, environmental and consumer groups.

    None o the bills passed out o committee.22

    Foiled by Congress, NOAA turned back to

    the regional development o the industry and

    hired consultants to help the Gul Council

    develop its plan.23

    Meanwhile, the Bush administration soughtalternative ways to launch these arms in

    our oceans, including a 2008 proposal to al-

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    6 Food & Water Europe

    low the ederal agency that regulates of-

    shore oil and gas development, the Minerals

    Management Service under the Department

    o Interior, to grant permits or ofshore

    aquaculture acilities attached to oil and

    gas structures.24 Ater stark opposition rom

    organizations and individuals, the proposalwas dropped.25

    In 2009, ater years o debate and opposi-

    tion, the Gul o Mexico Regional Fishery

    Management Council nalized its regional

    plan or ofshore sh arming. It was passed

    on to the newly appointed Secretary o Com-

    merce under the Obama administration, but

    when the Secretary ailed to veto it, it went

    into efect.26 The agency said that it would

    neither approve nor disapprove the plan,

    but that it would instead develop a national

    policy on aquaculture by which to assess

    aquaculture.27 The Gul o Mexico plan was

    challenged in court, but the judge ruled that

    the lawsuit could not go orward until the

    agency nalized rules to implement it.28

    In response to concerns about NOAAs ag-

    gressive push or the development o a sh

    arming industry, the National SustainableOfshore Aquaculture Act was introduced in

    2009.29 The bill would have authorized sh

    arming in ederal waters but with some

    environmental standards. It did not pass out

    o committee.30

    In 2010, the Research in Aquaculture Oppor-

    tunity and Responsibility Act was introduced

    to put the brakes on open ocean sh arming

    until urther studies could be conducted. The

    bill also contained measures to supplement

    wild seaood with sustainable methods o

    sh arming.31 The bill was unable to moveorward beore the legislative year ended.32

    In June 2011, NOAA announced its nal

    National Aquaculture Policy. The broad

    policy strongly promotes actory sh arm-

    ing, while remaining vague on how the

    non-binding policy document would protect

    the marine environment and shing com-

    munities. The document states that NOAA

    supports sustainable aquaculture develop-

    ment that provides domestic jobs, products,

    and services and that is in harmony with

    healthy, productive, and resilient marine

    ecosystems, compatible with other uses o

    the marine environment, and consistent with

    [its] . . . National Oceans Policy.33 However,

    as demonstrated in this report, ocean sh

    arming may be inherently unsustainable,

    both environmentally and economically.

    The same day that it announced its NationalAquaculture Policy, NOAA announced that

    it would issue rules to implement the Gul o

    Mexico Fishery Management Councils very

    controversial aquaculture plan.34

    Foreseeing that this was a possibility, in Feb-

    ruary 2011 U.S. Representative Don Young

    rom Alaska introduced a bill that would

    block the Department o the Interior or

    Secretary o Commerce rom allowing these

    operations in ederal waters without specicCongressional approval. Rep. Young intro-

    duced the bill out o concern that ofshore

    sh arming would damage Alaskan wild

    sheries.35

    As can be seen, our nation is currently at a

    crossroads. NOAA can either heed the advice o

    congressional members, shing and conserva-

    tion groups and others and halt development o

    the actory sh arming industry, or it can con-

    tinue to pursue the same tired ofshore policies

    o the past to the detriment o the ederal bud-

    get, the environment and coastal communities.

    IMAGE COURTESY OF NOAA

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    Fishy Farms 7

    Untreated sh waste, excess eed and dead sh

    empty directly rom cages into the ocean. This

    waste has been shown to alter ragile marine

    habitats.36 It is unknown how the oceans, which

    have already been damaged by industrial and

    agricultural pollution, and more recently by the

    catastrophic oil spill in the Gul o Mexico, will

    respond to yet another source o pollution.

    Little is known about the assimilative capac-

    ity o the marine environment or these pollut-

    ants, concludes a 2007 report commissioned

    by the Woods Hole Oceanographic Institution.

    Pollution rom a greatly expanded industry

    could have signicant efects locally and region-

    ally.37 The most recent edition o the Congres-

    sional Research Services report on open ocean

    aquaculture makes a similar point, noting that

    The present lack o knowledge owing to lim-

    ited experience, lack o research unding, and

    ew studies ocusing specically on open ocean

    aquaculture limits understanding o potential

    environmental concerns.38

    Although we do not know the ull extent o the

    damage that can be caused by ofshore aqua-

    culture acilities, what we do know does notpresent a pretty picture. A 2011 study accepted

    to the journalMarine Environmental Research

    analyzed the impacts o marine aquaculture on

    a large scale. Researchers ound that aquacul-

    ture acilities were responsible or an increase o

    nutrients (or pollutants) in a gul of the Italian

    Coast and wrote that of-shore aquaculture may

    afect the marine ecosystem well beyond the

    local scale.39

    Antibiotics, pesticides and the other drugs or

    chemicals used in these operations can also be

    damaging.40 As with waste, little is known about

    how these drugs might afect the ofshore marine

    environment, because the drugs that might be

    allowed on actory sh arms have not been test-

    ed in open ocean marine arming situations.41

    Evidence does indicate several serious concerns

    associated with the use o aquaculture drugs.

    For example, Maine lobsters have been harmed

    by pesticides used to control sea lice in salmon

    arms along the Maine and Canadian coasts.42

    Further, antibiotics can kill benecial seaoor

    bacteria and spawn antibiotic-resistant organ-

    isms. One study ound that the use o antimi-

    crobials on sh arms can lead to the creation o

    reservoirs o drug-resistant bacteria. According

    to the study, the genes responsible or this resis-

    tance may ultimately afect the human popula-

    tion through transer to human pathogens.43

    Disease

    The drugs mentioned above are used to overcome

    the increased risk o disease that exists when

    sh are packed densely together in operations,

    are exposed to pathogens in the marine envi-

    ronment and are subject to a number o other

    environmental stressors.44

    Sea lice is perhaps the most notorious o aqua-

    culture inestations, thriving in the presence o

    new hosts, such as with the expansion or addi-

    tion o a sh arm. According to a 2011 article,

    exposure to salmon arms with lice inesta-

    tions may result in a sharp decline in wild

    pink salmon populations in British Columbias

    Broughton Archipelago.45 In addition to sea

    lice, Inectious Salmon Anemia (ISA) has been

    a major problem or salmon arms. The diseasewas reported rst in Norway, and later spread

    to Canada, Scotland, the Faroe Islands and the

    IMAGE COURTESY OF NOAA

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    8 Food & Water Europe

    United States.46 Around 2007, the virus wreaked

    havoc on the salmon industry in Chile devas-

    tating production and putting more than 7,000

    people out o work.47

    Disease has also been a problem or open ocean

    aquaculture acilities in the United States. In

    Hawaii, or example, Kona Blue Water Farms

    has encountered problems with skin ukes, a

    parasite that does not harm human health but

    must be controlled due to its negative impact

    on the sh.48 The company also has dealt with

    streptococcus inections, which it treated with

    the antibiotic orenicol, a drug that has not

    been tested specically or aquatic use in Ha-

    waiis unique marine environment.49

    Escaped Fish

    Fish escapes are a major problem on open water

    sh arms. They can be caused by equipment

    ailure, staf error and adverse weather condi-

    tions. Fish raised in aquaculture acilities are

    bred to thrive in armed, rather than wild, en-

    vironments. When escaped sh interbreed with

    wild sh, their ofspring may have diminished

    survival skills, resulting in a genetically less t

    wild sh population.

    The recovery o wild salmon populations has

    been jeopardized by armed salmon escapes.

    These escapees can interbreed with wild salmon

    and may harmully alter the genetics o the wild

    stocks.50 The international list o escape disas-

    ters is extensive: About 2 million armed salmon

    escape into the North Atlantic each year, an

    amount equal to the number o wild salmon in

    the region.51 In six months o 2007 alone, more

    than 100,000 Atlantic salmon escaped rom

    our acilities on the west coast o Scotland.52

    On December 31, 2008, storms caused 700,000salmon and trout to escape rom various arms

    in Chile, prompting the leader o the Chilean

    Senates Environmental Committee to proclaim

    the incidents an environmental disaster.53

    In October 2009, 40,000 salmon escaped rom

    a arm in British Columbia.54 One year later,

    Some of the currently or previously op-

    59

    that NOAA hopes, however, the industry

    a salmon farmers dream, but GE salmon

    60

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    Fishy Farms 9

    70,000 salmon escaped rom a arm

    in Norway.55

    And not all instances o escape occur so ar

    rom home. In 2010, an article revealed that a

    research project in the Bahamas, headed by Uni-

    versity o Miami researchers, experienced a losso approximately 90 percent o its sh.56 Kona

    Blue Water Farms in Hawaii also has encoun-

    tered ongoing instances o escapes.57

    The negative impacts o escaped armed sh can

    be even more serious i the sh are non-native

    or have been genetically modied. Caliornia,

    Maryland and Washington have addressed this

    by banning arming o genetically modied sh

    in their state marine waters.58

    Although one might assume that arming sh

    could take the pressure of wild stocks, this is

    not actually true. Farmed sh oten are ed large

    amounts o eed made rom shmeal and oil.

    These ingredients are derived almost exclusively

    rom small ocean sh such as sardines, ancho-

    vies and herring, caught in mass quantities in

    the Northeast Atlantic and of North and South

    Americas Pacic coast.61 The aquaculture indus-try is the largest user o shmeal and oil, and

    the amount demanded continues to increase.62

    In 2006, an estimated 3.72 million metric tons

    o shmeal were consumed, representing 68.2

    percent o worldwide production and 0.84 million

    metric tons o sh oil, or 88.5 percent o produc-

    tion.63 Many species o small sh being converted

    to aquaculture eed are being harvested beyond

    sustainable levels, not only leading to their

    depletion but also jeopardizing the predatorynsh that depend on them or survival, such as

    tuna, salmon, grouper and snapper.64

    -

    65

    one pound for every two pounds of

    66 Thus, for every

    between two and six pounds of wild

    Cobia67

    68

    Red drum69

    70

    71

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    10 Food & Water Europe

    Some researchers

    73

    74

    Many of these

    -

    75

    76 -

    77 Kona Blue Water

    78

    -

    -

    79

    -

    80 -

    81

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    Fishy Farms 11

    Open ocean aquaculture acilities could nega-

    tively afect the marine animals that requent

    these sites, including whales, seals, dolphins,

    turtles and sharks. Dolphins have requented

    the site at Kona Blue Water Farms (see page

    16), and the animals have apparently begun to

    exhibit unnatural behaviors, which may con-

    stitute conditioning. I the animals have become

    conditioned to respond to eeding opportunities

    at the site, they may experience reduced survival

    skills.82 An investigation o sharks and ocean-

    arming cages in Hawaii has ound that sandbar

    sharks tend to aggregate around the cages, and

    that tiger sharks occasionally visited. Although

    the study concluded that the sharks were not

    afecting public saety at beaches adjacent to the

    cages, the researchers noted that the ecological

    efects o aggregating sharks are unknown.83

    Due to the challenges o ofshore sh arming,

    development o the industry could sacrice envi-

    ronmental stewardship with little in return.

    As discussed in the ollowing proles o sh

    arms, actory sh arming technology comes

    with a host o economic and easibility challeng-

    es. To date, no U.S. operation has shown that it

    can be used to consistently raise healthy crops o

    sh and generate income.

    The our acilities proled in the originalFishy

    Farms report (2007) have aced major setbacks.

    The Atlantic Marine Aquaculture Center haslost unding and halted its open ocean sh arm-

    ing demonstration. The owner o Snapperarm

    shut down operations in Puerto Rico ater nd-

    ing that it could not expand, which the company

    blamed partly on U.S. regulations. Kona Blue

    Water Farms, ailing to secure permission to

    expand, was orced to cut staf and has sold its

    cages in Hawaii to another company, although

    it continues to be heavily involved in the opera-

    tion. It recently lost two cages that it was test-

    ing or production in ederal waters. And nally,

    Hukilau Foods, once known as Cates Interna-

    tional, has led or bankruptcy.

    An article in an industry publication discussing

    the dificulties aced by two operations in Hawaii

    ound that Hawaii and the U.S. governmenthave been generous with support nancial and

    otherwise or both o these edgling ofshore

    operations. So youve got to ask yoursel: I of-

    shore cant make it there, can it make it any-

    where in the United States?84

    The international community also has noted the

    dificulties o ofshore aquaculture. A report by

    the Food and Agriculture Organization o the

    United Nations noted that ofshore aquaculture

    means higher risk o sh escapes; higher trans-

    portation costs; dificulty in approaching cages

    during severe weather conditions; deeper [and

    more dangerous] operational routines or divers;

    and more expensive cages, mooring systems and

    nets.85

    No Jobs Here

    In our current economy, job creation is a prior-

    ity. Yet ofshore sh arms are unlikely to cre-

    ate many jobs. In 2009, the two open ocean sh

    arms operating in Hawaii employed a total o

    44 people. At that time, both companies were

    planning modications to their business models.

    Combined, these modications would result in

    an approximate overall 173 percent increase in

    production, rom 2.2 million pounds o sh to 6

    million pounds, but would lose ve employees

    an 11 percent decrease in employment.86 Accord-

    ing to Kona Blue Water Farms, the company

    needed to reduce the number o divers on staf in

    order to achieve protability.87

    Furthermore, it seems that the ew jobs that are

    ofered may not be sae. Four ormer employees

    have led lawsuits against Kona Blue Water

    Farms, alleging various ailures to provide a

    sae working environment and claiming various

    physical and emotional repercussions.88 A much

    greater loss occurred when a diver was killed at

    Hukilau Farms in 2011.89

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    12 Food & Water Europe

    As demonstrated in the proles below, setting up

    an open ocean sh arm is a dificult and costly

    endeavor, oten requiring government subsidies

    and private investment. Even with AOLs Steve

    Case as an owner and inusing $4.5 million

    into the operation in 2007,90 Hukilau Farms in

    Hawaii led or bankruptcy in 2010.91 Clearly,

    this industry will not be the domain o small

    businesses with limited resources, and i it were

    to restrict access to shing grounds or damage

    wild sh populations, it could damage the small

    businesses o many shermen.

    Many commercial shermen are sufering rom

    competition with cheap seaood imported rom

    other countries, as well as by disasters such asHurricane Katrina and the BP Deepwater Hori-

    zon explosion. They ear that the advent o acto-

    ry sh arming in the ocean will urther damage

    their livelihoods.92 The state o Alaska banned

    open ocean aquaculture in its state waters in

    1990 as shermen experienced stif competition

    rom cheaper, mass-produced armed salmon

    grown in Canada and other countries.93 The rise

    o salmon arms was dealing a hard blow to sh-

    ermen acing competition rom mass-producedarmed salmon.

    Proponents o ofshore aquaculture claim that it

    could be used to ofset the nearly $10 billion U.S.

    seaood trade decit, which is the amount o sh

    imported compared to the amount exported.94

    According to Food & Water Watch calculations,

    the United States would need to produce anastounding 200 million sh per year to close

    the decit, based on data rom open ocean cobia

    arms. This volume o production would require

    an unrealistic amount o small wild sh to be

    converted to sh eed and could lead to a right-

    ening volume o escapes and pollution.95

    To eed this many armed fsh would take

    approximately 1.2 million tons o fshmeal,

    or 41 percent o the estimated global pro-duction.96 In act, this is a conservative esti-

    mate, and the requirements could actually be

    much higher i the operations cannot achieve

    a eed-conversion ratio o 1.75 or lower, or i

    a eed consisting o more than 50 percent sh-based protein is used.

    Fishmeal is already demanded elsewhere, and

    production is currently decreasing,97 so it is un-

    likely that this need or shmeal could be met.

    But i this limitation were somehow overcome,

    the production o 200 million sh on ofshore ac-

    tory arms could produce an astounding amount

    o environmental damage. This many fsh

    arms would result in approximately thesame amount o nitrogen pollution as the

    untreated sewage produced by a city that

    is nearly nine times the population o Los

    Angeles.98

    Further, as discussed earlier, escapement is a

    common problem on sh arms. For instance,

    over the course o three years in Washington

    state, the salmon industry lost approximately

    17.4 percent o its sh annually.99

    I the armsaveraged this same rate o escapes, 34.8 million

    sh could be released into our oceans each year.

    This is roughly 17 times the amount o salmon

    that escape rom arms in the Atlantic Ocean per

    year an amount that some scientists ear is

    leading to extinction o the wild species.

    Granted, those three years, which are the only

    three or which we could obtain records, were con-

    sidered to be the product o catastrophic events.

    In the unlikely scenarios that the new ocean sh

    arming industry consistently avoided adverse

    weather conditions or technical ailures and lost

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    Fishy Farms 13

    only the minimum amount o sh that sh arms

    should expect, the industry could still be expected

    to release 1 to 2 million sh into the ocean every

    single year, approximately the same number o

    salmon that escape each year in the Atlantic.100

    I this is what it would look like to ofset the sea-

    ood trade decit through ofshore sh arming,

    it is clear that we must pursue other options,

    such as limiting imports and producing sustain-

    able, healthy, afordable seaood domestically or

    U.S. consumers.

    Perhaps the worst news or the ofshore aquacul-

    ture industry is that its operations may produce

    hazards to human health. A serious public

    health concern with actory sh arms is the use

    o antibiotics. Antibiotics, which can be applied

    by way o medicated baths and medicated ood,101

    can enter the environment around cages, where

    they may alter the composition o marine bacte-

    ria.102 Evidence suggests that these antibiotic-

    resistant bacteria can, in turn, pass on their

    antibiotic resistance genes to other bacteria,

    including human and animal pathogens.103

    An increasing number o studies have docu-

    mented elevated levels o bacterial antibiotic

    resistance in and around aquaculture sites.

    For example, beore 1990 in the United King-dom, the disease-causing bacteriaAeromonas

    salmonicida were sensitive to amoxicillin. But

    ater the antibiotic was introduced to sh arms,

    amoxicillin-resistant strains began to appear.104

    Evidence o antibiotic resistant bacteria also

    has been reported in the Mediterranean,where

    a study ound a high percentage o resistant

    strains, indicating a widespread antibiotic resis-

    tance in the bacterial populations surroundingsh arms.105

    At a time when more and more consumers are

    moving toward organic meat and milk in order

    to avoid ood products rom animals that have

    been excessively exposed to antibiotics,106 it is

    unclear why we would develop a new, antibiotic-

    dependent ood industry.

    Additionally, there is cause or concern that ac-

    tory sh arms could lead to higher incidence o

    ciguatera in both armed sh and surrounding

    wild sh populations. Ciguatera poisoning is the

    largest cause o nsh-related ood-borne illness

    in the United States, and possibly globally. It

    causes an array o gastrointestinal, cardiologi-

    cal and neurological symptoms. Poisoning is

    contracted by consumption o a sh that has

    accumulated toxins living in microalgae.107 A

    study examining the impacts o ofshore rigs has

    parallels to ofshore sh arms, as they both pro-

    vide havens or toxins to accumulate. The study

    ound that use o these platorms or sheries

    enhancement structures could have unintended

    consequences or human health, and that these

    concerns also extend to proposals or of-shore

    mariculture [marine aquaculture] operations.108

    In addition, there is the possibility that armed

    sh could contain higher levels o certain con-

    taminants such as PCBs, dioxins, ameretardants and pesticides than wild sh.

    Although this has not been critically examined

    or all types o aquacultured sh, one study o

    salmon ound that 13 out o 14 organocholo-

    rine contaminants are more common in armed

    salmon than wild.109Another study has sug-

    gested that exposure to sh arms may increase

    mercury contamination in nearby wild sh.

    Rocksh around a salmon arm in British Co-

    lombia were ound to have increased levels omercury contamination ater being exposed to

    arm waste and uneaten eed.110

    IMAGE COURTESY OF NOAA

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    14 Food & Water Europe

    Further, products produced on ofshore arms

    are likely to be out o reach or many U.S. con-

    sumers. The most commonly consumed seaood

    items in the United States are those that have

    become more widely and cheaply available at

    grocery stores and inexpensive restaurants:

    shrimp, canned tuna, salmon, pollock (used in

    sh sandwiches and sh sticks), tilapia and cat-

    sh.111 The majority o seaood that U.S. consum-

    ers eat is imported, oten rom countries with

    less stringent regulations on the chemicals and

    conditions that seaood can be armed in, leading

    to concerns about the quality and saety o these

    sh.112

    In order to benet the majority o U.S. seaoodconsumers, we need afordable seaood that is

    locally available and locally produced. However,

    open ocean aquaculture operators are primarily

    interested in growing premium products that

    can be sold or a high value. Kona Kampachi,

    the brand name

    o Kona Blue Water Farms sh, have been sold

    or $17 a llet.113 The newest sh arm on the

    horizon

    in Hawaii hopes to grow bigeye tuna, a popularspecies or sushi.114 Not only are these products

    out o reach or many consumers, they are also

    likely to be exported to Japan or countries in

    the

    European Union, where high-quality seaood

    can etch a higher price.

    As discussed earlier, it can take many pounds o

    small wild sh in order to grow the carnivorousmarine nsh armed in open ocean aquaculture

    operations. These small sh, such as anchovies

    and sardines, may not be in high demand or

    human consumption in the United States, but

    they are a healthy ood source that low-resource

    populations in many parts o the world rely on

    or a component o their protein intake. A 2009

    article pointed out the dire consequences o

    malnutrition around the globe, and the grow-

    ing competition or small pelagic sh or direct

    consumption, or or reduction into shmeal.115 I

    these small sh species are shed out to create

    ood or large species o armed sh, we may be

    trading many peoples access to a nutrient-rich

    ood source or ewer peoples access to morehigh-value, sushi-grade sh.

    Since the originalFishy Farms was published,

    the our arms proled have not ared well. At-

    lantic Marine Aquaculture Center has stopped

    production. Snapperarm, in Puerto Rico, has

    ceased production, and its owner has moved

    production outside o the United States. Kona

    Blue Water Farms has sold its grow-out opera-tions and has not had sh on the market in the

    past year. And nally, Hukilau Farms (ormerly

    known as Cates International) has ceased pro-

    duction in the open waters in order to ocus on

    its land-based hatchery. Three new operations

    have proposed development in Hawaii but have

    yet to make it to the operational stage. Another

    arm was proposed of the coast o Caliornia

    but mysteriously stopped, while complaining

    about the permitting process.

    In 2006, Richard Langan, director o the Univer-

    sity o New Hampshires Open Ocean Aquacul-

    ture Project told Congress that one o his cen-

    ters goals was to explore the economic viability

    o arming nsh.116 In early 2007, Langan

    observed: At the University o New Hampshire,

    eight years o research and technology develop-

    ment have led us to conclude that a commer-cially viable and environmentally sound ofshore

    aquaculture industry is an option or the U.S.117

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    Fishy Farms 15

    Between 1997 and 2007, NOAA gave $19 mil-

    lion in support to the Atlantic Marine Aqua-

    culture Center. But since 2007, when AMAC

    and its various operational and technological

    setbacks were eatured in the originalFishy

    Farms report, the center does not appear to have

    ared well. All o the programs progress reportson nsh aquaculture, updated regularly rom

    2000 onward, cease ater 2007.118 A call placed

    to AMACs ormer spokesperson, Dolores Leon-

    ard, in August 2009, revealed that the project

    had lost some o its unding in 2007, leading to

    a reduction in staf, and research activities were

    thereore greatly curtailed.119

    In 2008, however, the center did receive

    $474,999 rom NOAA to support the advance-ment and improve the economic viability o

    ofshore sh arming,120 as well as $355,000

    or research on ofshore cage technology to nd

    ways to optimize eeding processes, reduce sh

    stress and promote sh growth.121 These hety

    grants did not result in new public inormation

    on the topics they were intended to explore.

    The centers website has not even been updated

    since 2007. Although Langan once said that his

    operation had made tremendous strides towardbringing ofshore aquaculture closer to com-

    mercial reality,122 in the end, it could not exist

    without research unding.

    In 2003, Brian OHanlon, a young entrepreneur,

    put the rst trial cages o cobia of the coast o

    the Puerto Rican island o Culebra.123 The com-

    pany, Snapperarm, aced some initial growing

    pains. A 2010 paper that lists OHanlon as thesecond author details open ocean sh arm trials

    that occurred during a previous but unspecied

    year in Puerto Rico.124

    Between 2007 and 2009, the company ramped

    up operations, increasing production and ex-

    perimenting with new production technologies,

    such as the sel-propelled Aquapod, an enormous

    geodesic cage that can roam the ocean unteth-

    ered.125

    By 2009, the company was growing 50 tons o

    cobia.126 OHanlon had hoped to grow his a-

    cility up to 750 tons 1,500 percent its cur-rent size.127 Ater struggling through disease

    outbreaks in Puerto Rico and the loss o his

    ngerling supplier in Miami, Florida, he even-

    tually gave up and moved to Panama, where

    he launched Open Blue Seaarms in conjunc-

    tion with his investor, Aquacopia.128 There he

    ound the permitting system to be easier; as he

    explained to a reporter in 2010, Panama has

    a very small government. Lower labor costs

    and the ability to build larger acilities was alsoanother draw.129

    OHanlon has acquired another operation, Pris-

    tine Oceans,130 and developed what he describes

    as the largest ofshore sh arm in the world,

    where he grows cobia nine miles of the coast

    within a 2,500 acre site.131 Currently, the compa-

    ny appears to be the most successul o the open

    ocean arms discussed in terms o production

    and scale, but it is unclear whether the armcould ever reach the same success in any condi-

    tions o the U.S. coastline, or while subjected

    to suficiently environmentally and culturally

    protective regulations.

    The company compares its product to ree-range

    bee, poultry and eggs,132 appearing to try to

    capture interest rom environmentally conscious

    consumers. It claims that its approach lessens

    environmental impact, providing a guilt ree,

    high quality, sae, healthy and sustainably

    cultivated seaood.133 Numbers on the company

    eed-conversion ratios, waste dispersal and

    IMAGE COURTESY OF NOAA

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    16 Food & Water Europe

    incidence o escape are unavailable to the public,

    however. And considering that the arm hopes to

    net $20 million in revenue annually using eight

    aquapods and has a permit to arm 10,000 tons

    o sh on its 3.5 square-mile arm,134 it is hard

    to believe that this enormous arm is the type

    o operation that consumers o ree-range eggshave in mind when they seek out seaood, clearly

    demonstrating that to be protable actory sh

    arms must be large and capital intensive.

    Located of the western coast o the Island o Ha-

    waii, Hawaii, Kona Blue Water Farms (KBWF)

    has possibly the most storied history o the open

    ocean operations. When Food & Water Watch

    proled KBWF in 2007, the company alreadyhad experienced its share o tribulations, includ-

    ing killing a tiger shark in 2005 that requented

    the site;135 contamination o eed with melamine

    rom China in 2007;136 and over 1,000 sh es-

    caped that same year when a diver let a zip-

    pered entrance to the cage open.137

    Since then, the troubles have continued. In 2009,

    a Galapagos shark attack released hundreds o

    the companys armed sh into the wild.138

    Theyear beore, a public oficial raised concerns

    about the arms potential or causing impacts

    to benthic (seaoor) organisms and its ail-

    ure to adequately address these issues during

    the permitting process to recongure the cage

    site.139 Additionally, concerns were raised about

    unnatural behaviors in dolphins that had be-

    gun requenting the arm site. The oficial was

    concerned that interaction with the arm could

    be causing dolphin conditioning, which canbe detrimental to the animals survival due to

    altered eeding and social behaviors.140

    In 2008, the company applied or a modication

    to its permits in order to double the capacity o

    its operation.141 However, the arm aced opposi-

    tion rom the community. Two challenges were

    led against the application, and KBWF with-

    drew its request.142 In 2009, the company submit-

    ted another application and received approval or

    modiying its net pen designs. This modication

    didnt enable KBWF to scale up, but it did allow

    it to experiment with new cage types.143 KBWF

    claimed in its application that changes werenecessary to achieve economic eficiency. The

    changes would also allow the operation to mini-

    mize its need or divers, shrinking its already

    small staf. In its application, the company wrote:

    We believe that the only way or Kona Blue to

    achieve protability or our Kona operation is by

    reducing our reliance on SCUBA divers.144

    Meanwhile, KBWF has expanded into Mexico

    with an operation in the Sea o Cortez.145

    Pre-sumably, KBWF, like Snapperarm, was looking

    to avoid the regulatory hurdles it aced in the

    United States. Following these various attempts

    to overcome nancial dificulty and achieve

    protability, Kona Blue sold its operation and

    received approval on January 8, 2010 to transer

    it to Keahole Point Fish LLC, a company regis-

    tered just months prior in Delaware.146

    In November 2009, KBWF said that it would

    temporarily halt production in Hawaii as it con-

    tinued to develop a hatchery in Hawaii and move

    its operations in Mexico. Reportedly, sh would

    be back on the market by the end o 2010.147

    However, as o June 2011 Kona Kampachi was

    still not on the market, and any availability o

    the product appears to have been ragmented

    since November 2009.148

    In January 2011, the company was charged or

    coral damage ater it had parked an experimen-

    tal pen that it was no longer using in the Kawai-

    IMAGE COURTESY OF NOAA

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    Fishy Farms 17

    hae Small Boat Harbor on the western side o

    the Island o Hawaii. Twenty-eight instances o

    coral damage were cited. The $13,500 ne was

    cut in hal and eventually waived, allowing the

    company to use the monies instead to support

    coral conservation eforts.149

    In November 2010, KBWF applied to the Na-

    tional Marine Fisheries Service or a Special

    Coral Ree Ecosystem Fishing Permit in order

    to conduct an open ocean aquaculture operation

    in ederal waters, where it will attempt to raise

    sh in a cage towed by a boat largely oating

    with natural eddies.150 In June 2011, KBWF

    received the permit, the rst o its kind, setting

    a dangerous precedent or uture operations. In

    March 2011, prior to the issuance o its permit,the company took empty cages out into the ocean

    or testing. They quickly lost one and had to sink

    the other.151 The permit has been legally chal-

    lenged by both Food & Water Watch and KA-

    HEA: The Hawaiian-Environmental Alliance.152

    Cates International, the rst commercial sh

    arm in the United States, rst secured its lease

    in 2001.153 The company took over operations

    rom a demonstration acility led by University

    o Hawaii researcher Charles Helsley. Like the

    other acilities discussed in this report, Cates

    International has aced a dificult path in its

    quest or viability. One year into the experiment,

    Helsley wrote in a report that 30 percent o the

    sh had died rom inections, lack o oxygen and

    other problems when they were transerred into

    sh cages. He wrote that the experiment was

    operating at sub-economic levels, and yet he

    optimistically wrote that moi, the species being

    cultured, could be raised in an economically vi-

    able way.154

    From site sampling between 2001 and 2004,

    researchers reported that the arm had grossly

    polluted the seaoor and severely depressed

    some types o sea lie. Despite the open ocean

    location and alongshore currents, the efects o

    sh eed and waste on the [seaoor] community

    were evident. The ecosystem had been drasti-

    cally changed, they ound, and the efects hadspread beyond the area beneath the cages.155

    That same year, the company entered into

    agreement with Visionary LLC, a company

    owned by Steve Case o AOL-Time Warner, to

    orm a company called Grove Farm Fish & Poi,

    LLC. In 2007, Cates Internationals lease was

    transerred to this company, and the arm was

    renamed Hukilau Foods.156 The company hoped

    that this merger would enable it to expand itsoperation and build a large land-based hatchery.

    In 2008, a concerned government oficial com-

    mented that studies conducted at the arm had

    ound a large cyanobacterial mat growing be-

    neath cages, which raises concern because the

    sandy bottom underneath cage sites is a home

    or sea grasses that provide a meadow-like graz-

    ing habitat or a wide variety o marine organ-

    isms.157 Despite these ndings, in 2009 the com-

    pany was granted approval to expand operation

    rom 1.2 million pounds a year to 5 million. 158

    IMAGE COURTESY OF NOAA

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    18 Food & Water Europe

    However, the arm has not actually been able to

    scale up to this size. In June 2010, Randy Cates,

    ounder o Cates International, sued Visionary

    LLC or what he alleged was mismanagement o

    the company.159 Then, in November o that same

    year, according to an article in theHonolulu Star-

    Advertiser, the company led or bankruptcy with

    only $5 million in assets compared to $8.6 million

    in debts.160 The company estimated in July 2011

    that it would take two-and-a-hal years to raise

    the $9.8 million that would return it to protabil-

    ity.

    Cates has cited mismanagement and low sur-

    vival rates o the sh as contributors to the

    bankruptcy. According to Cates, the survival

    rate or its sh dropped by more than 50 percent

    since 2009. The company has not had any sh on

    the market since February 2011, and with none

    currently being raised in its ofshore cages, the

    sh will not likely be back in distribution until

    next year.161 The cages themselves are currently

    out o compliance with state regulations, since

    the company ailed to obtain approval rom state

    agencies beore deploying new equipment.162

    Hukilau has been nanced in part by American

    taxpayers through a $3.8 million secured loan

    that the company received rom the NationalMarine Fisheries Service and another, unse-

    cured loan o $64,450 rom the U.S. Department

    o Commerce.163

    Over the past several years, additional arms

    have attempted to set up shop in marine waters

    around the country. Hubbs-SeaWorld Research

    Institute in San Diego, under the leadership o

    Don Kent, developed a plan to grow 1,000 metrictons o striped sea bass ve miles of the coast o

    San Diego, and to eventually scale up to produce

    3,000 metric tons annually.164 The project was

    pitched as a demonstration project, a somewhat

    dubious claim considering that it was planning

    to produce more sh than any commercial arm

    operating in U.S. waters is permitted to.165 In

    2009, Don Kent submitted a letter asking that

    his permit applications or the operation be put

    on hold. Ater complaining about dificultiessecuring approval, he indicated that he would

    wait until the Obama administrations national

    aquaculture policy was nalized.166

    In 2009, a company called Indigo Seaood dis-

    cussed opening a acility in an area hal a mile of

    the western coast o the Island o Hawaii,167 and

    another company in Hawaii, Maui Fresh Fish,

    LLC, is moving orward in the permitting process

    to establish a arm of o the Island o Lanai. 168

    Most troubling, however, are developments with

    a company called Hawaii Oceanic Technology,

    Inc. In October 2010, the company received a

    35-year lease rom the Hawaiian Board o Land

    and Natural Resources or a 247-acre ocean arm

    site 2.6 nautical miles of the western coast o

    the Island o Hawaii.169 The company plans to

    arm 12 million pounds o either bigeye or yel-

    lown tuna in its enormous, patent-pending

    Oceanspheres.170 The company boasts that itsoperations are environmentally sustainable and

    will represent a more eficient source o ood than

    land agriculture or wild sh.171 And yet it also

    says itsel that it takes up to 42 pounds o wild

    sh to create 10 pounds o marine armed sh.172

    Wasting 32 pounds o wild sh that could be

    consumed by other marine sh, animals or people

    hardly seems like an eficient source o produc-

    tion, especially considering the high cost that is

    generally associated with sushi-grade resh tuna.

    The company plans to deploy its rst ull-scale

    oceansphere in 2012.173

    IMAGE COURTESY OF NOAA

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    Fishy Farms 19

    As the United States emerges rom recession, we

    must continue to prioritize the development o

    local economies, create steady job opportunities

    and spend ederal money wisely. Meanwhile, e-

    orts to support local businesses and buy local,

    while promoting environmentally sustainable,

    community-supportive businesses, have grown.

    The local oods movement has gained support

    rom diverse sources as people have recognized

    potential economic and environmental benets.

    In light o these trends, the ederal governments

    support o ofshore actory sh arming seems

    woeully wasteul and out o place.

    Ater over a decade o exorbitant nancial sup-

    port rom the ederal government and labor

    wasted by government oficials and university

    scientists, the open ocean sh arming industry

    still has not provided any clear indication thatit can create a signicant number o jobs or an

    afordable source o quality sh products. The

    edgling industry is not yet large enough to

    draw conclusions about the environmental rami-

    cations o a ull-scale industry, but evidence

    indicates that ofshore sh arms, especially at

    the scale imagined by NOAA, will threaten the

    marine environment in a variety o ways.

    I we want to achieve the goals o strengtheningthe economy, making more sae domestic sea-

    ood available, protecting our beautiul marine

    environments and ostering a diverse array o

    businesses that rely on it, we must stop sinking

    money into this troubled industry. Instead, we

    must ocus on managing our wild sh resources

    responsibly, developing alternative methods o

    sustainable sh arming, reducing seaood ex-

    ports and limiting imports by turning away more

    contaminated seaood at the border.

    Support bills to prohibit ederal agencies

    rom authorizing commercial nsh aquacul-

    ture operations in ederal waters.

    Support eforts to increase seaood inspec-

    tions, so that U.S. consumers will not be

    exposed to unsae, contaminated seaood

    imports.

    Support research and eforts to sustainably

    manage wild sh stocks, and explore other

    methods o aquaculture, such as land-based

    recirculating systems.

    Let your Senators and Representatives know

    that you are concerned about ofshore actory

    sh arming and its impacts.

    Make sae, sustainable choices about sea-

    ood. Show restaurants, vendors and oth-

    ers that you care about the type o seaood

    you eat. For tips, see Food & Water Watchs

    Smart Seafood Guide.

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    20 Food & Water Europe

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    money theyve spent in support for the Gulf of Mexico aquacul-

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    mental Assessment for Proposed Expansion of Hukilau Foods

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    cod,

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    United States District Court for the

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    in Federal Waters West of the Island of Ha-

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    Malae Point, North Kohala, Island of Hawaii, by Hawaii Oceanic

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    Food & Water Europe

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