Why fish farms fail, and how to avoid becoming a statistic

The popularity of launching fish farms is not matched by their success. Leslie Ter Morshuizen, owner of Aquaculture Solutions, explores the factors that cause most of these businesses to go under.

- Leslie Ter Morshuizen

The farming of fish is an enjoyable activity as well as a potentially lucrative business, and this has attracted many entrants to the industry. Sadly, statistics tell us that more fish farms fail than succeed, so it is important for us to consider the reasons why fish farms fail and what potential or existing farmers and/or investors can do to avoid the known hazards.

MARKET-RELATED CHALLENGES

The investment is often based on an assumption that a certain price can be obtained for the fish. However, in reality, sometimes the quantity of fish that can be sold at the anticipated price doesn't meet these expectations.

So before any significant investment is made, the fish farmer needs to confirm who will buy the fish, what species they want to buy, what size they want, the price they will pay, and the form in which these fish need to be supplied.

In addition, the point of delivery for the fish needs to be confirmed, and all parties need to understand if there is either a seasonal or an annual fluctuation in demand or price.

Also bear in mind that markets fluctuate, so you need to remain in touch with your market and be flexible enough to ensure that you can keep selling your fish at the best possible price.

WATER AND SITE REQUIREMENTS

The quality and quantity of water that is available on the proposed site need to match the requirements of the species of fish that is being produced, the infrastructure, and the envisaged scale of production.