The total cost of starting a commercial aquaponics venture is determined by the design and capacities of both the hydroponics and aquaculture components. The aquaculture and hydroponics aspects ensure that each component meets the necessary requirements, which ultimately raises the cost of aquaponics systems in comparison to hydroponics, soil farming, or aquaculture.
Before beginning, it is wise to inquire about the key features that make aquaponics unique and appealing for a commercial-scale operation. Once you have determined your commitment to establishing a commercial aquaponics system, it is beneficial to analyze each element and associated expenses of aquaponics systems.
Commercial aquaponics startup cost begins with the development of a minimum of 1 acre of total growing area
Farms with a growing space exceeding 1 acre can be classified as a commercial-scale farming operation. When establishing a commercial aquaponics system, it is important to establish goals and objectives for the setup. In any agricultural venture, it is advisable to align growth with the market’s requirements, as this will determine the primary focus of the aquaponics system – either the hydroponics or the aquaculture component.
The majority of prosperous systems focus on providing lettuce or vegetables in bulk for restaurants. In addition, there is an increasing trend for indoor aquaculture systems that circulate and grow fish like aquaculture-grown salmon. To start your commercial aquaponics venture, it is advisable to first assess the local demand in your area and align your operations accordingly. After conducting market research, we should first evaluate the expense associated with the hydroponics aspect.
Greenhouse structures?
Yes, the purpose of these measures is to safeguard the crops and system from rain and temperature.
The design and technical capacities of greenhouses vary, which impacts the temperature, ventilation, and protection they offer for crops. When compared to fruiting vegetables like tomatoes, lettuce and leafy vegetable greenhouses do not need as much ceiling space for ventilation. Smaller structures require less investment in setup and materials. Certain designs, such as the sawtooth design, allow for ventilation without compromising plant protection from rain and strong winds.
The range for the estimated cost of building a single acre of greenhouses will be between $80,000 and $120,000.
The cost of the hydroponics setup
The cost of the hydroponics setup will vary depending on the methods and technologies used in your system.
There are three types of hydroponic techniques used in aquaponics: nutrient film technique (NFT), Deep Water Culture (DWC), and Media beds. The construction cost of these methods varies significantly, with NFT being the cheapest to build.
The text cannot be rephrased as it only consists of one word: “NFT.”
NFT systems are comprised of lengthy pipes or channels that house the plants, with water flowing through the pipes. Certain NFT systems might also incorporate bubblers or aerators in the pipes to enable water to reach the plant’s root system through splashing. The cost of such systems ranges from a minimum of $30,000 for fixed NFT systems to a maximum of $60,000 for open-lid NFT systems.
The concept of deep water culture involves growing plants in a water-based environment that is deep.
My preferred method of hydroponics is deep water culture or raft because of the simplicity of design, operation, and set up for these systems.
DWCs are comprised of a water container with a depth of 10 to 12 inches, which includes a cover used as a plant cup holder. The cover’s materials can be styrofoam, plastic, or wood. Based on the expense of my modular DWC setups, constructing DWCs for an acre will amount to approximately $64,000.
A media bed is an object that requires a step-by-step thought process in order to fully understand its meaning.
The media bed setup will be the most costly option. It is comparable to Dutch bucket systems, in which a container is used to hold a hydroponics medium.
I propose allocating a part of the available area for a media bed, while utilizing DWC or NFT for the majority of the space. Alternatively, Dutch bucket systems can be used as another option. Each Dutch bucket will incur a cost of approximately $5 to $10 per bucket and occupies 1 square foot. In total, it is possible to accommodate 30,000 to 35,000 buckets within an acre, resulting in a maximum investment of $350,000.
Additional expenses
The greenhouse might include exhaust fans and a climate control system.
To ensure proper scaling of your greenhouse, it is important to consider various technologies that can be used in hydroponics. These technologies encompass a wide range of aspects such as climate control and automation. However, it is crucial to source all additional expenses and technologies from reputable companies or sources. This way, you can ensure the effectiveness and efficiency of your hydroponic system. Some examples of these technologies include:
- Heat, Ventilation, and Air Conditioning (HVAC) including exhaust fans, cooling towers, or heating systems that will provide the optimal water and air temperature for your system
- Automation includes controllers for your water injectors which cost around $10,000 when we bought one for our tomato greenhouses. Temperature regulation on the other hand could be done simply by DIY or as an add-on from greenhouse service providers.
- Oxygen injectors have also been shown to provide great results in increasing yields for hydroponic farms. This will also help provide oxygen for your fish in a recirculating system. Companies like BioTherm supply oxygen generators that increase the dissolved oxygen levels in your water or regulate temperature. Their product the TOOB is specialized for increasing dissolved oxygen in irrigation systems but can also be useful for NFT systems.
- Outdoor or Indoor lighting solutions could also be provided by companies like Philips. They have a wide variety of crop and condition-specific grow lights that could augment outdoor sun especially on cloudy days or for indoor operations.
With commercial aquaponics, it is possible to run a business that utilizes creative sustainable growing techniques, minimizes waste, contributes to the local community through the provision of fresh, locally sourced food, and remains financially lucrative due to the production of high-value, year-round crops.
Can you be the head grower of a commercial aquaponics farm?
Would you like to be in charge of the daily operations of a commercial aquaponics greenhouse? It is crucial to evaluate whether you possess the necessary skills for this role. Numerous growers fail to recognize the challenges of transitioning from a small-scale backyard system to a larger aquaponics project. It is essential to grasp that aquaponics is considerably more complex compared to hydroponic or soil-based commercial greenhouses. Rather than solely overseeing the plants, you will need to manage two additional ecosystems: the fish and a living bio-filter consisting of bacteria and worms.
In her book, Aquaponic Gardening, Sylvia Bernstein skillfully summarizes this idea.
If you attend a weekend workshop and believe that you are prepared to manage a large aquaponics operation, it is the riskiest decision you could make. Aquaponics becomes less complex once you grasp the underlying principles, but it takes time to cultivate the expertise needed to recognize potential issues. Presently, as soon as I enter my greenhouse, I can immediately detect abnormalities based on unfamiliar sounds and odors. By observing the feeding habits of the fish, I can ascertain their level of health. Similarly, I can examine the plants to determine if there are pH, nutrient, or insect-related problems. The thought fills me with dread when I consider what could have transpired if I had embarked on a large-scale growing operation prior to acquiring these skills.
If you are lacking experience in aquaponics growing, there are two options available to you: starting small and learning or hiring an experienced grower. Large-scale aquaponic greenhouses typically employ two head growers, one specialized in aquaculture (fish) and the other specialized in horticulture (plants). It is often advised by experienced growers to set up these systems as potentially independent, able to operate separately if needed. Nonetheless, it is crucial to identify the person with the appropriate knowledge and experience level for your scale as the first step in planning your commercial aquaponics project.
What is your growth strategy for your aquaponics greenhouse?
Many commercial aquaponic growers have found success by adopting the strategy of starting small and gradually expanding their operations.
However, it is worth mentioning that scaling up is not always a linear progression, and the transition to a complete and fully functional commercial aquaponics greenhouse can be quite challenging, as pointed out by others.
If you initially invest in a small greenhouse (1,000 – 5,000 sq. ft.), there might be considerable challenges when transitioning to a larger-scale operation (over 10,000 sq. ft.) in the future. One potential solution is to gradually expand by adding more smaller greenhouses. This is exactly what Rob Torcellini, a seasoned grower at Bigelow Brook Farm in Connecticut, did on his farm.
As a way to refine our aquaponic design and growing techniques, we originally started with a dome greenhouse to test how we could grow in the harsh New England weather. After three years of both success and failure, we decided to reduce our financial risk by expanding into a single 26′ x 144′ greenhouse. Our plan is to make this greenhouse operational and secure a stable cash flow from selling our produce before considering expansion to the next greenhouse. Rather than seeking venture capital or large bank loans, we have made the decision to personally invest in our own operation. Choosing to use our own money serves as an incentive for us to closely monitor every expense during the project.
Growing your commercial aquaponics greenhouse incrementally has a downside in that it requires a larger investment and can result in inefficiencies with workflow and labor. On the other hand, it provides the advantage of containing risks and avoiding overwhelming commitments. Another option is to transition from a small greenhouse to a larger operation by investing in a new structure and hiring experienced growers when you are ready.
There are numerous strategies for scaling a business, each with its own advantages and disadvantages. The choice of strategy depends on the desired starting and end size of the business, as well as its funding sources. Commercial aquaponics greenhouses, like any other business, can be self-funded or financed through loans. Grants are also often obtained by non-profit and school greenhouses as additional income. The decision on which route to take is subjective and influenced by factors such as risk tolerance, financial situation, access to loans, and the preference for self-sufficiency.
What are your top priorities?
Ultimately, the primary reason for wanting to establish a commercial aquaponics greenhouse is the central focus of these inquiries. Certain cultivators prioritize obtaining a substantial and prompt profit from their financial venture. Meanwhile, others are primarily driven by the desire to establish a business that aids their community by providing fresh locally sourced food, and they display lesser concern for the financial gains. Frequently, we encounter instances where cultivators solely aspire to reach a breakeven point or receive a modest salary from the enterprise, with minimal expectations of earning significant profits.
It is crucial to evaluate your expected financial return and diligently create a business plan, regardless of your priorities. Understanding the potential returns early on is important as it will greatly impact the size of your commercial aquaponics greenhouse. Generally, larger operations have a greater focus on profits due to their larger volume and economies of scale. To meet the volume demands of chain retailers and compete effectively, large-scale commercial growers must be fairly large. However, being large also introduces a higher level of risk, which is why many commercial aquaponics greenhouse growers sell produce in local markets from a small or midsize greenhouse.
