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F or the past 10 years, Hawai`i’s state-controlled waters have been a testing ground
for the industrial ocean fish farming industry. But after a decade and an investment
of millions in taxpayers’ dollars, it is clear that the industry has not lived up to its
promises of both economic and environmental sustainability. Instead, industrial fish
farming has damaged ocean ecosystems, infuriated native Hawaiian rights groups and
contributed little to the local economy.
Economically unsustainable
KBWF has demonstrated that its model of commercial
aquaculture is not profitable. In January 2010, KBWF sold
its ocean fish farm to Keahole Point Fish LLC. 27,28 Despite
Pacific threadfish off the Hawaiian coast. Photo courtesy of $1.8 million in funding from NOAA, nearly $200,000 in
NOAA. federal stimulus grants and contracts, Hawai`i high-tech
tax credits, nearly $10 million from investors and a product
sold only in high-end restaurants and retailers, KBWF did
Three further ventures are in the works for Hawaiian not achieve a level of profitability to sustain its grow-out
waters, including: Hawai`i Oceanic Technology Inc. (HOT), operations.29,30,31,32,33 On January 8, 2010, the Board of Land
Indigo Seafood (IS) and Maui Fresh Fish LLC (MFF). Both and Natural Resources unanimously approved the transfer
HOT and IS are proposing operations off of the north Kohala of KBWF’s lease for 90 acres of Hawaiian waters to a
Coast, Hawai`i Island. 10,11 MFF requested a lease for a site company registered just two months prior as a foreign LLC
off of Lana`i Island in 2007 but met with resistance from in Delaware — Keahole Point Fish LLC. 34,35 The board failed
local fishermen and it is unclear at this time if the venture to question the applicants who were present at the meeting
will move forward. 12 HOT’s goal is the production of 12 about their experience and how they proposed to turn the
million pounds of yellowfin and big eye tuna annually at failing KBWF into a profitable enterprise.36 KBWF will
a 247-acre proposed ocean lease site, using 12 enormous continue to manage sales and marketing of Kona Kampachi
cages.13 Two contested cases filed by native Hawaiians as well as conduct research at their land-based hatchery at
against the Board of Land and Natural Resources decision Natural Energy Laboratory of Hawai`i Authority.37
to award HOT a Conservation District Use Permit are
awaiting judgment.14,15
Economic comparison between ocean fish farming
Should the HOT operation move forward, it would expand and land-based aquaponics
the industry’s current overall production by 530 percent.16 Because the existing ocean fish farms in Hawai`i are private
Factoring in the projected increase in production at ventures, their financial records are not accessible to
Hukilau Farms, industry production would increase by the public. Therefore, the total amount required to fund
780 percent.17 Given the demonstrated negative impacts one farm is unknown. However, what is known is that
of operations at the current production capacity, such $13 million is being invested in the expansion of Hukilau
a drastic increase is cause for great concern and should Foods.38 This number does not account for the money
be addressed by the legislature. But, because permitting invested in starting HOARP or Cates International.
is done on a case-by-case basis, the overall cumulative
impacts of increased production on ocean ecosystems are Viable alternatives such as recirculating aquaculture
not being considered. systems could provide a better investment. A comparison
between the Premier Organic Farms’ recirculating 11 times as many jobs and more than twice the amount
aquaponic system in Memphis and Hukilau Foods shows of fish — plus 43 million pounds of produce. It will also
that the ventures expect to have similar sales in fish be far more profitable, recuperating start-up costs within
products (with Premier Organic expecting 9 percent more the first year and perhaps achieving over 11 times the
in sales).39 However, Premier Organic Farms will provide revenue that Hukilau Foods will in year one.
1
Information drawn from: Aquaculture Planning & Advocacy, LLC. “Final Environment Assessment: Proposed Expansion of Hukilau Foods Offshore Fish
Farm, Mamala Bay, Oahu, Hawai`i.” July 29, 2009. Sales, Jobs, Fish Production and Initial Capital Investment at p. 22; Space Used at 8; Water Use at 3
(volume of cages) and 28 (current speeds) with calculations conducted by Food & Water Watch for gallons of water based on volume of cages. 1 cubic
meter = 264.172052 U.S. gallons
2
Information provided by Susan Bedwell, CFO, Premier Organic Farms, September 15, 2009. Information on file at Food & Water Watch.
3
The company plans to invest $13 million, as quoted in Aquaculture Planning & Advocacy LLC, Op cit. This figure does not include the money that
was invested in starting up the Hawaiian Offshore Aquaculture Research and Demonstration Project or Cates International, the predecessors of Hukilau
Foods. $13 million does not necessarily represent the money that would be needed to start Hukilau Foods from scratch.
4
This is a generous calculation. Hukilau Foods projects a total wholesale value of $20 million when the operation is at full capacity, but it does
not actually plan to reach full production until year three. $7 million would be the maximum revenue possible after recuperating the $13 million
investment if the company did reach $20 million in sales that first year (a lower revenue is actually expected). Plus, because financial figures prior to
this expansion were not available, this calculation does not figure in the financial status, or debt, Hukilau was in prior to this expansion.
The “Real Costs” of Ocean Fish Farming warned that dolphin conditioning could “be occurring, or
Ocean fish farming is heavily dependent on natural soon occur, at levels that constitute “take” as defined under
resources. Because of this, any economic discussion the Marine Mammal Protection Act.”45 This could put the
of the industry needs to also account for the costs of facility in violation of federal law.
environmental pollution and resource extraction. In other
Like dolphins, sharks are drawn to aquaculture cages
words, in addition to the basic financial comparison of costs
because of the large number of fish in a confined area
and revenues, we must also consider other environmental
and the accumulation of wild fish that frequent the sites
and social externalities without an easily quantifiable
to take advantage of excess feed. This poses an extreme
price. For example, what is the cost of ocean pollution?
hazard to employee safety, the safety of other ocean users
What are the economic effects of fish escapes on wild fish
near and around the site, and the safety of the shark.
populations? How are ocean fish farms impacting cultural
Additionally, it is problematic due to the significant role
resources and the rights of native Hawaiians? The public
that sharks play for culturally practicing native Hawaiians
bears the burden for these hidden costs of industrial ocean
who revere them as aumakua, a family guiding spirit.46 In
aquaculture in Hawai`i.
2005, KBWF killed a 16-foot tiger shark that repeatedly
visited the site.47 The incident sparked outrage in the native
Conflicts with marine mammals and other sealife Hawaiian community. In September 2009, a Galapagos
The state has documented cases of deliberate interference shark was documented to have bitten through and entered
with bottlenose dolphins associated with KBWF one of KBWF cages, releasing farmed fish into the wild.
operations40; six or seven dolphins are believed to frequent Hundreds of the escaped fish were reportedly eaten quickly
the site daily in search of food.41 Their numbers are by a resident dolphin and school of ulua.48 The shark was
increasing over time.42 The dolphins began appearing removed with the help of local fishermen by using a seine
when the cages were first installed.43 According to the net. 49
Hawai`i Department of Aquatic Resources (DAR), the
animals have begun to exhibit “unnatural behaviors.”44 Use of antibiotics
Conditioning of the dolphins is a major concern. The
Captive fish, held in unnatural, crowded and stressful
alteration of feeding and social behaviors and the increased
conditions, are more likely to fall ill than they would in the
potential for entanglement or foreign-body ingestion can
wild. Indeed, documented cases of stress-related illnesses
all be detrimental to dolphin survival. At KBWF, the DAR
requiring in-situ antibiotic treatment50 and parasites51 have Impacts on coral reefs
occurred at KBWF. The use of antibiotics in aquaculture In Hawai`i, the 100- to 300-foot depth that ocean
has gained attention as a public health concern and aquaculture operations require often occurs directly
ecological threat. Antibiotics can alter the composition of adjacent to the shoreline, and operations may be less than
marine and freshwater bacteria. Evidence suggests that a mile out. 58 For example, KBWF (now operated by Keahole
these antibiotic-resistant bacteria can, in turn, pass on Point Fish) is less than a half-mile off the Kailua-Kona
their antibiotic resistant genes to other bacteria, including shore.59 This poses a unique problem for Hawai`i, because
human and animal pathogens.52 Antibiotic use is a cause many Pacific coral reef habitats are characterized as
for concern for consumers because they, in turn, ingest the occurring in deep waters and often extend well beyond 100
drugs when they eat treated fish. This can lead to allergic feet. 60 Ocean aquaculture sites are likely to be near these
reactions and increased resistance to antibiotics. unique coral reef habitats or other native flora and fauna
protected under state law (such as live rock). Unfortunately,
Stress-related disease and parasites documented at the
according to DAR, offshore aquaculture corporations have
KBWF site include streptococcus and skin flukes. 53,54
often failed to “adequately address potential impacts on
The United States Fish and Wildlife Services of Montana
[these resources] for areas under consideration which
gave KBWF a permit to use the antibiotic florfenicol,
would be necessary for a resource trustee to evaluate
which is explicitly approved only for catfish or freshwater
possible concerns …”61
salmonid aquaculture, as an experimental drug used to
treat streptococcus. 55,56 What is particularly troubling
is that the decision to introduce antibiotic-coated feed Aquatic invasive species
directly into Class AA Hawaiian waters at the company’s “…Alien species issues as they relate to [ocean aquaculture
site in 2007 was not made by Hawaiian officials or even cages] in nearshore waters serving as a major colonization
overseen by Hawaiian veterinary counsel. 57 The impacts refuge, are real, and a threat to Hawai`i’s nearshore natural
of florfenicol on unique Hawaiian marine flora, fauna and marine ecosystems.” – Dan Polhemus, Director of Department
other organisms are unknown. In addition to impacting of Aquatic Resources 62
the environment, the use of antibiotics in seafood poses
a threat to consumers who may experience unexpected The cumulative effects of excessive nutrification of reef
allergic reactions after consuming fish with antibiotic sites from fish feed and feces over the years are not fully
residues, or as previously mentioned, through the public known. According to DAR, “nutrification of coral habitats
health implications of creating drug-resistant pathogens. often results in an ecological shift from coral to fleshy algal
structure resulting in a decrease in reef species’ diversity,
populations, and trophic complexity.”63 In fact, there have biggest catch out of respect. By killing one of these sacred
been documented cases of phase shifts at the site currently animals, Kona Blue has disrespected us and infringed on
owned by Hukilau Farms located off of Ewa Beach, O`ahu, our religious freedom.” – Kale Gumapac, Alaka`i, Kanaka
characterized by the growth of alien soft coral underneath Council73
the cages. 64 Requests by DAR for KBWF to report the
findings of similar, unknown fauna growing on and around The ocean fish farming industry has been opposed by
the cages to prevent such a reoccurrence was dismissed by many in the native Hawaiian community on cultural
the company as “ludicrous” and that the company’s intent grounds. Those bringing contested cases against new
was “controlling biofouling, rather than identifying it.” 65 operations and challenging proposals for expansion of
With known problems of invasive species and phase shifts existing operations have often been members of the native
occurring at other sites, KBWF’s response demonstrates Hawaiian community. Killing animals revered as aumakua,
neglect and an unwillingness to work with state agencies the misappropriation of cultural terms, impacts on natural
to address environmental impacts before they get out of resources needed for cultural and medicinal uses, impacts
hand. on traditional fishing grounds and ceded land issues are all
concerns with offshore aquaculture in Hawai`i.
In 2006, a research team found that the facility now owned
by Hukilau farms had “grossly polluted” the seafloor and Despite this, the industrial ocean fish farming operations in
“severely depressed” certain types of sealife. “Despite the Hawai`i consistently misappropriate the idea of traditional
open ocean location and alongshore currents, the effect Hawaiian fishponds (loko i`a) to validate using Hawai`i as a
of fish feed and waste on the [seafloor] community were testing ground for ocean aquaculture. KBWF, for example,
evident.” The ecosystem had been “drastically changed,” has an entire section on its Web site claiming that they are
leaving the researchers to wonder whether the seafloor located on the site of King Kamehameha’s favorite fishpond
could ever return to normal.66 and continuing the tradition.74 Given the lack of native
Hawaiian involvement in KBWF’s farming operations and
Fish food concerns the fact that some native Hawaiians oppose them,75 such
a statement is an irresponsible portrayal of broad native
KBWF has used a feed ingredient that most consumers Hawaiian support for the open ocean aquaculture industry.
wouldn’t expect the fish on their dinner plate had
eaten: chicken byproducts such as ground feet, heads
and undeveloped eggs.67,68 Using these ingredients in
aquaculture feed could inadvertently introduce the
hormones and other chemicals originally consumed by
industrially raised chickens into Hawai`i Class AA waters.69
The use of preventative antibiotics and the injection of
hormones are widespread in land-based concentrated
animal feeding operations and researchers do not know
the impact poultry byproducts from such farms could have
when introduced into marine waters.