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Shellfish Aquaculture: Do You Really Need to Start With a Big Fortune to End up With a Small Fortune?By David Alves The bottom line in judging the effectiveness of any program is how it meets its stated goals. The stated goal of the Rhode Island Aquaculture Initiative (RIAI) was two-fold: first, to promote aquaculture while respecting Rhode Island traditions, and second, to foster an environment that would enable the industry to grow and innovate. Before we get to the numbers, I’d like to explain how we have tried to meet those goals. To foster sustainable long-term growth of any industry, it is important to determine how the industry must be regulated. The other critical input into sustainable growth is a long-term investment in the industry. Regulation is a critical issue to the shellfish aquaculture industry, more so than most other industries, since it entails the leased use of the state’s submerged lands. The state has a role in ensuring that submerged lands are used for the benefit of all its citizens under the public trust doctrine. It is a balancing act to make sure the environment is protected while also ensuring the industry has the room to innovate and grow. An enlightened approach is for natural resource regulatory agencies to realize that they must focus solely on their role, which in this case means protecting the public trust, and leaving the business of running a business to the business owners. The economic environment changes constantly and most regulators are ill equipped to keep up with the rapid rate of change in business. The economist Joseph Schumpeter characterized capitalism as “creative destruction,” in which the old ways of doing things are endogenously destroyed and replaced by the new. This holds especially true for an innovative, dynamic, and science-based industry like aquaculture. The R.I. Coastal Resources Management Council (CRMC) strives to reach a balance of protecting the public trust while giving business the freedom it needs to continuously reinvent itself. One example of the success the agency has had is shown in the evolution of aquaculture practices in Rhode Island over the past few decades. The industry has evolved from floating mussel culture, to oyster culture using transient-style cages, to oyster culture on bottom. Farmers are constantly working to increase the efficiency of their farming practices, which increases the profitability and viability of their farms. It is critical that the lead regulatory agency for Rhode Island aquaculture, the CRMC, gives these businesses the freedom to evolve and remain competitive in an increasingly global market while concurrently protecting the state’s natural resources. Fortunately, the two goals are quite compatible when using an enlightened approach. All of this theory is well and good, but how has the RIAI done in meeting its stated goals and how is the industry doing as a result? It is actually difficult to determine success in the short term. The RIAI has, instead, focused on long-term investments in creating the conditions for sustainable industry growth. Since the inception of the RIAI, aquaculture industry numbers are up dramatically. The industry farm-gate value (the gross sales value that the farmer gets for his/her products) has grown an average of 32 percent per year in the past four years, with a 45 percent increase in 2005–06 alone. The industry is also investing in its continued vitality. The chart on the right shows the relationship between seed bought, animals in the water, and number of shellfish sold. The interesting part of this chart is the number of seed purchased. The industry has more than doubled its investment in seed purchased per year in the years since 2003 compared to previous years, indicative of the increased investment that growers are making as a result of increased sales. In 2006, the industry broke the $1 million mark for the first time since the 1930s. And a spin-off ornamental fish business was established as a result of research funded by the RIAI (see article, page 4). A report of all the RIAI accomplishments for 2006 can be viewed/downloaded at www.crmc.state.ri.us/pubs/pdfs/aquareport06.pdf. The CRMC will continue to use rational, science-based inputs in crafting the regulatory environment for aquaculture in Rhode Island while recognizing that the best way to grow the industry is to let the owners have the freedom to innovate. —David Alves is Rhode Island State Aquaculture Coordinator. SIDEBAR During RIAI, the aquaculture industry grew from a $300,000-a-year industry to a $1.5 million dollar industry. Concurrently, the amount of land leased for aquaculture grew from 54 acres to 123 acres. The amount of land under lease is not large in raw acreage, but is a significant increase from a small base. CRMC is addressing this growth through the CRMC Working Group on Aquaculture Regulations (see “Up to the Minute,” page 27). The RIAI supported funding for innovative research that assisted the industry and regulatory agencies to work toward a better understanding of the processes necessary to oversee this growth in a rational manner. This research ranged from continuing the shellfish disease survey to supporting on-the-water activities by the state aquaculture coordinator. As any new entrant into the industry can attest, the process has improved tremendously in part by allowing continued disease monitoring and supporting site visits by the aquaculture coordinator. The work conducted under the auspices of the RIAI has made a significant difference and this effort will continue.
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