Economic Analysis of Commercial Aquaponic Production Systems

Aquaponics is a method of food production that combines the practice of aquaculture (raising fish in tanks) with hydroponics (growing plants in water), creating a sustainable production system that mimics a natural ecosystem. Aquaponic production dramatically reduces the amount of water, energy, fertilizers, pesticides, and herbicides used in food production. However, there has been limited research on the economic feasibility of commercial aquaponic food production within the continental United States. The objectives of this research are to identify, describe, and evaluate 3 different commercial aquaponic production systems, collect data for capital budgeting analyses of the 3 identified producers, and to analyze the supply chain, marketing techniques and trends, and strategic partners utilized by commercial aquaponic producers across the United States. This will provide information to aspiring entrepreneurs, limited resource farmers, and current farm operators about alternative aquaponic system considerations, potential profitability, and current marketing techniques and trends. The objectives will be reached through collaboration with Kentucky State University supporters, interviews and on-site visits with commercial producers, and a marketing survey for aquaponic producers. There has been limited research on the overall profitability of specific aquaponics systems that produce specific products, such as the Universtiy of the Virgin Islands study, but the outcomes have been highly dependent upon site-specific factors, including system design, labor and utility costs, climate, market supply and demand, etc. This project is innovative in regards to the diverse range of data that will be collected across alternative commercial aquaponic enterprises in different climates and economic environments.