Thursday April 24, 2014

Today I began researching for the next section of my business model, the market analysis.  The first part of the market analysis is a discussion of the industry and its outlook.  This is what SBA.gov said I should include:

Industry Description and Outlook – Describe your industry, including its current size and historic growth rate as well as other trends and characteristics (e.g., life cycle stage, projected growth rate). Next, list the major customer groups within your industry.

It took me a while to find the right sources of information.  I often found myself looking at aquaculture surveys for the Chesapeake and Gulf regions, but not Northeastern.  Finally I resorted back to NOAA, which I have decided is my best source of information.

The aquaculture industry can be viewed from a variety of levels, but the first is world wide.  From a global standpoint aquaculture is very important.  Of all the seafood consumed, approximately 50% of it comes from aquaculture.  The amount of fish that is actually cultured versus wild surprised me.  I hadn't expected it to be that large, but once you consider how much fish is consumed per capita and how much there is in the ocean, the number makes more sense.  The second level is by country.  Asia accounts for about 88% of cultured seafood and the United States for 0.8%.  Although compared to many Asian countries, the American aquaculture industry seems very poor, it has actually been increasing for the past 20 years.

NOAA Statistic

The second level is by region.  In the United States, oysters are grown in the northeast, mid/southeast, gulf, and only occasionally on the west coast.  The table below shows what percentages go to each of the two markets by region.  

Using this information and a few other sources I was able to parse out the information I though I needed and create the industry description and outlook.  I am not entirely convinced that it is right and will be sending it to my grandfather and mother for their opinions.  Despite it being not very good I though I should share it.  It reads as follows:

According to a 2011 NOAA survey, the worldwide aquaculture industry supplies about 50% of the seafood eaten, about 0.8% of which comes from the United States.  Global aquaculture is valued at $120 billion, while United States aquaculture was only valued at $1.1 billion.  The same survey reported that in 2011 the United States imported around $17 billion worth of seafood and only exported about $5.8 billion worth; this is an $11.2 billon deficit.  Because of this deficit, the industry is becoming a popular option.  Aquaculture has been trending up in the United States for the past 20 years; going from being valued at $0.5 billion in the early 80s to $1.1 billion in 2011.

In the Unites States, oysters are acquired via fishing or culture.  Cultured oysters are grown for two markets, the half shell market and the shucked market.  Oysters are cultured in the northeast, mid-atlantic, gulf, and occasionally on the west coast.  In the northeast, 90% of oysters are grown for the half shell market and 20% for the shucked market.