By: Emma Rawley
The rising human population has unsurprisingly led to a boom in the demand for seafood. Consequently, the ocean is being rapidly depleted, not only reducing the seafood supply, but also negatively impacting ecological systems and reducing biodiversity. The rising need for animal protein, which is expected to increase by 52% by 2050, can only be met by farming fish. Aquaculture, which is the controlled breeding and harvesting of aquatic organisms, creates alternative sources of seafood for the growing population.
Though fish farms were once known for spreading diseases to local wild marine life, modern aquaculture is actually very sustainable. Indoor fish farming requires less water and produces less waste. Some systems even allow for the marine waste to be recycled into crop fertilizer. As for the spread of diseases, scientists and agriculturalists actively prevent infections, and since the fish are only interacting in stabilized water, diseases are not introduced or passed on. Not only are farmed fish safe to eat and can be just as nutritious and tasty as wild-caught fish, aquaculture is also much safer for wild marine ecosystems. Since wild fish populations aren’t being harvested, ecosystems are able to stabilize as fish populations grow. Aquaculture also prevents bycatch and provides a responsible and safe source of seafood that will not hurt other marine life in the process of being harvested.
Indoor aquaculture companies have become increasingly attractive to private equity investors considering the industry’s immense growth over the past decade, as well as the ban on ocean-based fish farms in many countries. In 2014, GP Diorasis acquired the Greek-based company Bitsakos, which produces bream and bass indoors. In 2020, the University of Michigan’s endowment fund invested $100 million in the Norwegian recirculating aquaculture system company Atlantic Salmon.
Though the industry is fairly young and unconventional, aquaculture will be necessary to meet the demands of a population that is hungry for seafood ─ a market that is estimated to grow to $235 billion by 2022 ─ and can no longer be met naturally as oceans have been depleted from overfishing.
For investors seeking to diversify their portfolios, aquaculture is a sustainable, profitable solution. Farming aquatic organisms is safe for the environment and provides high-quality protein for individuals on every continent. Aquaculture is expected to continue to be one of the fastest growing food sectors as seafood demand continues to increase. Investors should be on the lookout for aquaculture in 2021.