Commercial Aquaponics - A Pimp's Approach

[Gina Cavaliero]

I was recently thinking about how operating a commercial aquaponic farm had similarities to my former business.  Having run a huge construction firm when housing and commercial construction was booming far greater than it ever should have, we used to joke that we were pimps.  People were always incredulous that two women operated a company that did trades as diverse as drywall and stucco to insulation, painting and metal framing.  One look at me and they couldn’t imagine me on drywall stilts hanging sheetrock on a ceiling and neither could I!  But what few realized was that we didn’t hang the drywall or the insulation or install the metal studs, we managed it.  We solicited the sale, ‘pimped’ the labor and made it happen; all the while insuring it was done well.

 

How does this relate to commercial aquaponic farming?  A few ways and I will tie it all in shortly, but first a couple things.  Many want to know if commercial aquaponic farming is viable and so many still are of the opinion that it isn’t.  Just recently, a longtime industry aquapon commented to me, “You can’t make any money with aquaponics!  You know that now, right?”, he asked, inferring that we couldn’t possibly be successful.  I said no, you are wrong.  We are definitely figuring out how to do it.  It is not easy but it is undeniably possible as long as you think outside the box.  You must be nimble and innovative and willing to take risks.  I don’t think that is a recipe akin to just an aquaponic endeavor, but any business venture, and absolutely essential ingredients for any entrepreneur.

 

With a young operation, insuring a profit soley on selling the produce can be a challenge, as a clientele needs to be secured, viable and desirable crops determined and much more.  When we and others eeking out a living at commercial aquaponics are criticized for utilizing trainings or system sales or consultations as additional streams of revenue, I am amazed at the short sightedness of that criticism.  For some reason, the expectation is that you must solely weigh your success by selling only the fruits of your system, literally, and that diversification is frowned upon.  To me diversification spells a good, rock solid business model that can weather setbacks because it has multiple revenue streams especially when pioneering a new industry.  Yet when it comes to commercial AP, it seems to be tainted and criticized. 

 

I do realize that the more that join our ranks, there will be less of a possibility for many to tap into things such as trainings or consultations.  However, the more that join in my opinion will  minimize the need to rely on these very things as more data will come available and the risks will be minimized and the path made clear.  Perhaps the trainings and the consultations will lie with the pioneers or trend setters, the ones that boldly went forward into unchartered aquaponic waters and mapped out the unknown.  . 

 

Speaking of risks, some are of the opinion that teaching this very business of commercial aquaponic farming is a risk.  Some think we are crazy for creating what they consider our own competition.  Often folks will reassure me, as they pick my brain for essential commercial information, that they are geographically far enough away to not be my competition.  I laugh.  There is so much demand for local, chem free, organically grown, good food, that it will be a very long time before this market is flooded.  I welcome them.  In fact I tell them that I wish they were closer so we could partner up and optimize our output by specializing crop plantings to supply local needs.  You grow x, y, z and I grow a, b, c.  That is over simplifying it, but essentially multiple farms could collaborate and support each other while supplying the local market.  Unlike in my former cutthroat industry, I hope to foster an atmosphere of collaboration instead of competition.

 

I am always excited when others we inspire and teach and then replicate our raft type systems are close by as now I can rely on them to help supply the demand of our local market that we have already tapped into.  Hmm, not too unlike what we did with construction.  We solicit the sale, “pimp” the produce and make sure it is all done well, while also helping other commercial farms get established and become successful as well.  Nothing wrong with that at all.   

[Gina Cavaliero]

Thank you Sylvia.  Yes, there is such great demand for fresh, chem free produce and I realistically see aquaponics as a viable solution for supplying that demand.   

Kobus, thanks for the clarification.  I had certainly misunderstood your intention. 

[Sylvia Bernstein]

Hmmm..."produce pimp"....I like it!  Very well done post, Gina.  IMO you are just dead right on all of this, and I especially loved your thoughts on "competition" vs collaboration.  As Murray and you both pointed out, there is such a huge, and growing need for good food that it will be a happy day for the planet when the market demand for fresh, chem-free produce is actually filled!

[Kobus Jooste]

Gina - No no, I'm not advocating government regulation at all.  We are being hekld back for permits on stuff such as barramundi, nile tilapia and tilapia hybrids because government is taking its sweet time (over 3 years now) deciding when to conclude a process of mapping fresh water diversity and indicating what they will allow to go where.  There is no industry voice against that, no serious drive to bring down costs (not enough commercial food producers) and not enough production to ensure a steady supply to major retailers.  Sure, government can help bring some of the problems under control, but the bigger solution is for everyone in it to realise that there will be very little competition for a long time and build up the industry as fast as possible.

 

Africa does 1% of world aquaculture and South Africa does around 1% of that.  We suck in this regard. 

[Gina Cavaliero]

Thanks for all the feedback.  Now, now Kobus.  I do not want to out the nay sayer!  I didn't say he was an AP 'consultant', I just said he was in the industry(which can mean a many varied thing) a long time and despite what we are doing is still convinced commercial growing is not viable.  

Did I understand you correctly in your analogy of the aquaculture industry?  Were you advocating government regulation for that industry?  I am surprised given your past thoughts on the potential of regulations regarding aquaponics.  You are surprising me Kobus!

I am sure there is some value to be gleaned from something like a puffed up veggie bag, but I would think that would almost necessitate some degree of processing which we currently avoid, but one must evaluate the value add verses the cost of processing.

Tilapia skin?  Really?!

 

[Nigel Clement]

"utilizing trainings or system sales or consultations as additional streams of revenue," Uhhh, I thought that these were a given. I really thought that these other aspects were a natural part of the whole. Thanks for sharing your thoughts Gina.

[Kobus Jooste]

Now tell us who this long time AP consultant dude is that does not have the vision to see it work?  Why is he in it then?

 

In South Africa, the same theory goes for commercial freshwater aquaculture.  There is such a need for it and the likely market is such that operators could openly share everything they know safe in the knowledge  that the point of market saturation is a generation away.  Yet, the people are back-biting and click forming and secretive and it is actually counter-productive.  No one operator can put enough out there to create demand for a steady supply yet they somehow think that THEIR operation is so unique that it is worth hiding away. Their is not enough united pressure on government agencies that are taking their sweet time in formulating controlling regulations as the industry appears to be in disarray or non-existant.

 

How is the profit margin over there if you value add?  Here, investing in a "pillow pocket" (that puffed up veggie bag) machine could potentially double the value of your crop without doubling your labour. I have also not heard anything much more about the tilapia skin market recently.  There was a time that I was reading reports of $1 per skin from the clothing industry.

[Murray Hallam]

Great blog Gina. It is hard being out there at the beginning of things and there is a bit of criticism but mainly from the "armchair generals".  But it is an exciting time in the world at the moment. Food shortages in both quantity and quality are with us now I believe.
Aquaponics is so exciting. We holds the answer to many of these problems.

[Chris Smith]

You go girl!! I'm with you 100%!

[Chi Ma]

Competition breeds innovation. Good on you for breeding innovation

[Gina Cavaliero]

Thanks Two Jay!