At present, there is a scarcity of publicly accessible data and analysis regarding the economic feasibility of professional aquaponics. However, researchers from the Leibniz-Institute of Freshwater Ecology and Inland Fisheries (IGB) have conducted a profitability analysis on a facility that already engages in large-scale production of fish and vegetables. The findings suggest that aquaponics could offer both environmental and cost advantages, provided it is practiced in compliance with good agricultural practices and suitable conditions.
The aquaponic system of the Müritzfischer in Waren, Germany, was the subject of analysis. This facility, covering an area of 540 square meters, produces fish and vegetables in a recirculating system. The aquaponics system was constructed as part of the EU-funded project, Innovative Aquaponics for Professional Application (INAPRO), which was led by the Leibniz-Institute of Freshwater Ecology and Inland Fisheries (IGB).
The aquaponics method created by IGB researchers involves utilizing two recirculating systems, one for fish production and another for plant cultivation. Through the use of intelligent software and sensors, measurements are regularly taken and the two cycles are interconnected as necessary to maximize the benefits of their interactions. This ensures that the optimal growth conditions are maintained for both the fish and plants.
The researchers conducted a thorough evaluation of real production data for the profitability analysis. Despite not being profitable during the research stage, the aquaponic system provided data that allowed the researchers to create two production practice scenarios. One of the scenarios demonstrated profitability of the aquaponics approach for adequately sized facilities. Using this scenario, the scientists established a model case with specific economic indicators, which allowed them to calculate figures for facilities of various sizes.
The IGB researchers have identified two main challenges for commercial aquaponics: the high investment costs and, particularly in Germany, the expensive operational costs including fish feed, labor, and energy. Additionally, they emphasize the importance of having expertise in both aquaculture and horticulture for successful ventures. Moreover, the profitability of aquaponics is significantly influenced by the market conditions and the unpredictable production risks in certain cases.
Is There Profit in Aquaponics Farming?
Enthusiasts often wonder if there is a profit in aquaponics farming, which is an environmentally sustainable method of growing crops compared to traditional agriculture. If aquaponics farming is not profitable, it may not be a viable venture for many enthusiasts. This article will discuss the profitability of aquaponics farming, how to start it, and why it can be a worthwhile investment.
What is Aquaponics Farming?
Aquaponics is a type of farming that does not involve soil. It involves combining aquaculture, which is the raising of aquatic animals like fish, with hydroponics, which is the method of growing plants without soil. This is all done within a single recirculating environment. The process works by growing the plants in a separate area called the grow bed, while the fish are kept in a fish tank. The water from the fish tank, which contains nutrient-rich fish waste, is then fed to the grow bed. In the grow bed, billions of naturally occurring beneficial bacteria break down the ammonia in the water, converting it first into nitrites and then into nitrates.
The fish tank’s water, which is fresh, clean, and full of oxygen, circulates continuously from the fish tank to the grow bed. In this process, plant roots absorb the nitrates and other nutrients, ensuring healthy and efficient growth while simultaneously creating a cleaner and more oxygen-rich water environment for the fish to live in.
In this farming technique, the farmer has the opportunity to generate a dual income by selling both crops and fish in the market. Aquaponics is an environmentally friendly farming method in which food is grown naturally without the utilization of harmful chemicals. Setting up aquaponics farming is simple and can be done at home or as a profitable business venture through commercial aquaponics farming.
Is There a Profit in Aquaponics Farming?
If done correctly, aquaponics can be the most sustainable method for cultivating plants. Despite this, like any other business, some farmers have experienced failures, while others have achieved expected profits and some have even accomplished impressive gains. Thus, if you execute aquaponics properly, you will generate profit from your farm.
Aquaponics farming has the potential for good earnings, as revealed by a 2014 study conducted by Johns Hopkins University. The study focused on 257 aquaponics farmers primarily residing in the US and identified several important findings from the survey.
- Most aquaponics farmers use a greenhouse as an addition to another structure.
- The average size of the farm is.03 acres (1,307 sq. ft.)
- About 40% of the operations are located at the grower’s home. The rest are on commercial or agricultural-zoned land.
- Most growers used a combination of two or more systems (media bed, vertical towers, NFT, and raft), with media and raft being the most common combination.
- 31% of the respondents were profitable in the past year.
- 55% of the growers expected to be profitable within the next 12 months and
- 70% of the respondents stated that their aquaponics farm was not their primary source of income.
Based on a study conducted by Johns Hopkins University, it can be deduced that aquaponics is less lucrative compared to conventional farming. Merely a portion of the growers, specifically ? of them, reported making profits from their aquaponics farms. Nonetheless, it should be highlighted that the respondents in the survey were still in the early stages of establishing their businesses.
The most recent study by researchers at the Leibniz Institute of Freshwater Ecology and Inland Fisheries (IGB) in Germany focused on examining the profitability of commercial aquaponics farms. According to the survey findings, aquaponics could offer environmental and cost advantages if implemented with good agricultural practices and in appropriate conditions.
The IGB researchers state that the primary challenges faced by commercial aquaponics farms involve the significant expenses associated with investment and operations, namely fish feed, labor, and energy. The survey findings also indicate that aquaponics farms can yield substantial profits if certain conditions are met, particularly in urban and peri-urban regions where there is vast potential for monetary gain.
How Can Commercial Aquaponics Farms Make More Money?
In addition to its positive impact on the environment, numerous cultivators are interested in discovering methods to profit from their aquaponics produce. Provided below are several ways in which aquaponics farms can generate extra income.
- Selling various products related to aquaponics, such as marketing services like aquaponics courses or consulting.
- Selling harvest from the crops.
- Selling fish.
- Selling aquaponics systems.
- Students or individual commercial aquaponics farm tours.
- Aside from selling the products mentioned above, it is also vital that growers have a more in-depth knowledge of aquaponics systems. Knowledge will make it easier for the grower to resolve future issues.
- Dedicating to their system is more likely to succeed than those who don’t dedicate time and effort to their aquaponics farm.
Commercial Aquaponics Farms Business Tips
In addition to the methods previously mentioned, there are numerous ways to enhance the profitability of systems. Here are a few helpful suggestions:
- Raise edible fish such as tilapia or trout instead of goldfish or koi.
- Grow crops considered premium quality in your location to balance the cost of running and maintaining your business.
- Know the best fish to use in your aquaponics system based on your local climate. Doing this will help lower the maintenance cost.
- Consider the fish-to-food ratio to avoid overfeeding your fish.
- Consider growing the best plants for your system with reference to climate, harvest time, and difficulty of growing.
- Start with a small system to familiarize yourself with running an aquaponics system before scaling up into a more extensive system.
What Is Required to Start an Aquaponics Farm?
Before you begin a commercial aquaponics farm, there are a few important steps to take. Firstly, you should familiarize yourself with how aquaponics functions. Additionally, it is crucial to develop a comprehensive business plan specifically tailored to aquaponics. Moreover, you will need ample space to accommodate the planned system, along with all the required tools and materials. The setup will ultimately be determined by your chosen method of aquaponics, which may involve a combination of two or three techniques. Prior to embarking on your commercial aquaponics venture, consider several key actions you can undertake.
- Conduct thorough research on commercial aquaponics farming. Gather sufficient information on establishing an aquaponics farm. You can also visit your local or state Department of Agriculture and Fisheries to gain their advice on how to operate an aquaponics farm and learn the necessary registration requirements before starting your business.
- Research the internet to gather more knowledge on aquaponics farming. You can also join aquaponics groups and discussions on the internet.
- Consult a qualified accountant to help prepare your detailed aquaponics business plan. The business plan should contain the financial forecast of the farm, projected cash flow statements, estimated start-up costs, sales forecasts, market analysis, and marketing strategies.
- Identify the location of the farm. The site will significantly affect the growth and development of your plants and fish. So choose an area where the temperatures are not too hot or too cold and have sufficient sunlight exposure.
- Acquire all the necessary materials required for setting up an aquaponics farm. These include; fish tanks, grow beds, pumps, grow media, pipes, and many more. Consult a professional to help plan the design and build your farm for a more successful system.
- Register your aquaponics farm and get all the necessary permits and licenses.
- Roll out your aquaponics farm as per your business plan. Continue consulting other aquaponics farmers and professionals for continuous guidance on effectively and efficiently managing your farm and learning about new trends in the aquaponics business.
Conclusion
The rapid growth of the aquaponics industry is a result of several factors including urbanization, climate change, the lack of arable land, and the demand for healthy foods. Despite its existence for thousands of years, aquaponics farming is still considered a relatively new method of agriculture, resulting in limited research and data for economic evaluation. However, thanks to the internet, we now have access to success stories of commercial aquaponics farms in cities globally. If executed correctly, with a solid business plan and strategy, aquaponics farming can be a profitable venture.
