LOKO I‘A A Manual on Hawaiian Fishpond Restoration and Management (2007) - page 2

 

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LOKO I‘A A Manual on Hawaiian Fishpond Restoration and Management (2007) - page 2

 

 

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Water pH
A pH meter measures the electrical potential of a so-
lution and converts this data into a pH reading. This
meter is sometimes used instead of the reagent/sample
container method. The unit is portable and can be used
in the field for an unlimited amount of time or until the
battery needs replacing.
This water quality test kit (made by LaMotte) is used
to analyze nine parameters: NH3, NO2, pH, alkalinity,
carbon dioxide, chloride, dissolved oxygen, hardness,
and temperature. Note: the kit comes in fresh and salt
water versions.
Sample handling
Food mills or food grinders crush feed to appropriate
sizes for the various sizes of fish in the pond. Take large-
pelleted feed and grind it to a smaller grain if smaller-
pelleted feed is unavailable. Use scoop nets with different
size netting material as sieves for separating ground feed
into fine, medium, and coarse fractions. Keep the various
sizes of feed in different food containers.
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In-pond transport
A barge provides a platform for group viewing, feeding,
carrying supplies and materials around the fishpond, and
transfering and harvesting fish. The barge in this photo
is constructed of six plastic floats, is 8 ft by 12 ft, and
can carry approximately 2000 pounds.
A small dinghy is a useful vehicle for transportation
to and from pen culture systems for feeding and water
quality testing. The boat also services the production
operations by transporting supplies and materials. The
boat in this photo is also equipped with a small, 12-volt
electric motor (not pictured).
Tide calendar
A tide calendar shows daily tide predictions for specific
areas. These calendars are essential for fishpond opera-
tions, because the monthly projections help in scheduling
activities. By understanding tidal heights and durations
at various stages, pond operators can determine the best
scenarios for harvesting, transporting fish, and other
tasks. Tide charts need to be adjusted for each locality,
as they differ slightly in timing from one site to another.
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Net-Pen Production
awai‘i’s land, ocean, and cultural environment
These systems are not without risk, however, and
H
has changed irrevocably since the times when fish-
if production is too intensive, negative impacts (such
pond aquaculture flourished, and the conditions under
as high stock densities and feeding rates and increased
which those marvelous innovations were traditionally
levels of animal waste pollution) can result. In ancient
managed are gone.
times, a fishpond’s natural productivity was carefully
Managers of the ancient fishponds could call upon
nurtured rather than overly exploited. Traditional fish-
the entire populace of an ahupua‘a for assistance with
pond production was “extensive,” meaning fish culture
construction, repair, and maintenance. Today, significant
was conducted with a minimum impact or expense to the
effort is required to rebuild fishpond walls and renew
system. This resulted in low yields (somewhere between
pond ecosystems, but the social structure that once pro-
400 and 600 pounds per acre per year). By comparison,
vided that labor is also generally gone.
in today’s “intensive” systems, the practice would aim
In ancient times the shoreline ecosystem that was
to produce over 2000 pounds per acre per year, with in-
modified by Hawaiians to create an environment to raise
creased labor, capital, and system impacts, both physical
fish and other seafood products was relatively pristine.
and biological.
Today, environmental factors such as invasive plant and
Traditional Hawaiian production utilized mullet
marine species, land development for agriculture and
and milkfish as the primary culture species. These two
urban uses, and redirection of freshwater streams have
herbivores are, at the same time, the most important
contributed to degradation of shoreline conditions to
biological maintenance tools of the fishpond. Feeding
various degrees.
directly into the primary productivity level of photo-
synthetic and benthic (ocean bottom) organisms, these
Modern net-pen technology
species maintain the fishpond’s environmental integrity.
The methods illustrated in this guidebook utilize modern
The mullet/milkfish production rates proposed in
net-pen materials in fishponds and combine traditional
this guidebook are conservative and would appear to
pond management methods with applicable contempo-
be a feasible starting point within a typical fishpond
rary technology.
system, ocean and weather conditions considered. More
Net-pens for aquaculture enclose areas within a
site-specific variations in chosen culture species, water
fishpond and confine fish to a particular location. Their
character, water quality, and management style should
use is about as old as aquaculture itself, starting with
be equally assessed throughout the production run and
carp growers in China 2000 years ago. Today, net-pen
adjusted where applicable.
production in the open ocean and bays makes a sub-
Net-pen culture within a protected area can func-
stantial contribution to the total amount of farm-raised
tion well with other aquaculture activities that may go
seafood, thus proving the success of the methodology.
on in adjacent locations within fishponds, such as the
The benefits of net-pens include the
cultivation of limu, coral, or even aquarium species.
ability to culture species within ponds that can no
The materials to be used in construction of the net-pen
longer provide a secure, safe enclosure for the fish
are readily available, and the methods of construction
ease of production management (e.g., stocking, sam-
require only hand tools and basic construction skills.
pling, harvesting)
transportability of materials to almost any desirable
Net-pen design parameters
site for construction
The fundamental purpose of any net-pen is to provide
manageability of invasive and predatory species.
a secure, safe enclosure for the species being cultured.
Developing a diagram on paper is recommended before
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doing any work in the water. The diagram should take
into consideration measurements and parameters such
Considerations before building a net-pen
as pen height, surface area, stocking density and water
When building a net-pen, the following practices
depth. Special consideration should be given to plan for
should be followed or taken into account:
the highest possible tide, because the top of the net-pen
wear solid footwear to protect feet
wear shirt, hat, gloves, eye protection, and long-
should never go below the water level, which would allow
lasting sunscreen to reduce sun exposure
fish to escape. The average water depth in a fishpond is
wear a back brace for support when lifting
approximately 4 feet. Tide fluctuations can range another
two or more people are needed, depending on
212
feet once or twice annually. The net-pen can be as
pen size
large as the total pond area will allow, but using a size
size of final pen depends on projected production
that serves production “workability” is most practical.
Before building a net-pen, gather the following
Two types of net-pens have been used in production
equipment and materials:
trials on Moloka‘i. Rectangular net-pens were con-
rolls of 14-1-inch plastic mesh (11 guage)
structed for nursery culture, from the initial stocking to
boat, raft
post pounder
about 14-12 pound size. Then the fish were transferred to
rope, 14 inch or more thick and about 20 ft longer
large, round pens for growing out to a harvestable size
than the radius of the circle
of over 1 pound. Thus there were two different net-pen
ultraviolet-resistant plastic cable ties, 11 inches
shapes and production management styles.
and 7-8 inches (for example, a 300-foot cir-
As a general rule, net-pen culture requires a total
cumference pond needs about 1000 ties, 300
11-inch ties and 700 7-9-inch ties)
pond area approximately 10 times the area in which the
wire clippers
fish are confined. For example, a rectangular net-pen
T-posts (“T-stands”), 8-ft or 10-ft; 58-inch rebar
50 by 100 feet has an area of 5000 square feet. A single
to extend posts if necessary
net-pen of 5000 square feet requires approximately one
acre (45,600 square feet) of water surface area. In other
words, in a pond one acre in size, one net-pen of 5000 sq
ft area could be constructed. In a pond 10 acres in size,
up to 10 net-pens of that size could be constructed.
Circle calculations
A circular net-pen with an 85-foot diameter has an
area of 7,880 square feet. In terms of the area confined
circumference = 2 π r = π d = 3.1416 d
within a given length of net, a circular net-pen is more
economical and efficient because it provides 36 percent
area = π r2
more pen area than a square one.
r = radius, d = diameter, π = 3.1416
circumference
Rectangle calculations
area = a x b
perimeter = 2 (a + b)
if square, a = b
r
diagonal =
a2 + b2
area (shaded)
a
area (shaded)
b
d
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Check the site for level floor (step 1).
Net-pen construction
Net-pen construction usually takes place in water that
can be as much as chest deep, and it is very difficult to
Drive in the center post (step 2).
illustrate the actual process as it takes place underwater.
Therefore, we constructed a demonstration net-pen on
land to better show the details of this process.
Step 2
Step 1
With the net-pen area chosen, drive a T-post in where
If possible, identify an area within the fishpond that is
you want the center of the pen to be.
112-2 times the size of the planned net-pen, because ad-
justments in the pen’s placement may need to be made.
Step 3a
After identifying a site that may meet the biological
Tie a loop in the end of the rope and put it over the post.
and physical needs for production, make a thorough
Measure the pen radius distance from the center post, and
inspection of the site using a mask and snorkel. Next,
tie another loop in the rope at the length of the radius.
slowly walk over the projected area; for a large area, it
Holding the rope near the center post and gradually let-
helps to have several people, 10-15 feet apart. Although
ting it pass through your hands, walk around the center
bare feet can allow a better feel for the bottom, injuries
post in expanding circles until you reach the circumfer-
are highly likely, so boots or shoes should be worn at
ence, at the end of the radius. This allows you to check
all times. Probe the bottom with a rod or stick to “feel”
the floor area within the circumference for any problems,
depths below any layer of sediment on the pond floor.
particularly for imperfections near the circumference that
The ideal site placement for a net-pen should have
may hinder the flat lay of the pen’s side.
the following characteristics:
bottom contour: flat and level
bottom type: coarse sand
water quality: best possible or high in dissolved
oxygen
water flow: light, consistent flow with tide
wind currents: open to prevailing tradewind
water depth: about 4-6 feet
accessibility: close to the work and storage facility.
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Loko i‘a
Use the rope find the location of the second circumference
post (see diagram).
Step 4
Make a third loop in the measuring rope to define the
chosen distance between circumference posts (10 ft
or less). Using the first circumference post as a start-
ing point, put the “distance” loop over it and pull the
radius loop so that the two parts of the rope are tight,
Position the first circumference post at the limit of the
radius.
loop-to-loop. This will define the location of the next
post on the circumference. Continue clockwise around
Step 3b
the circle, moving the distance loop to each successive
Pull the rope out to the circumference and hold it tight
post pounded in, and using the radius loop to find the
and level. Drive the first circumference post straight
location for the next post.
down to a depth that has a solid foundation and still
provides enough post height to keep fish in at the highest
tide level. Circumference posts should be spaced about
2. Put the “distance” loop on the first circumference post
10 feet apart, at most. Because the ocean bottom and
and pull the radius loop tight to find the next circumfer-
ence post. Then, keep shifting the “distance” loop clock-
netting materials will differ with the circumstances, the
wise to complete the circle of circumference posts.
posts may need to be less than 10 feet apart to provide
the wire mesh with sufficient support. Determine the
number of circumference posts needed by dividing the
Circumference
desired circumference of the pen by 10 feet, or whatever
post #3
other distance is desired between posts.
1. Drive the first circumference post at the end of the
Circumference
radius.
Center
post #2
Center
post
“Distance”
post
Radius
loop
loop
~10 ft
between
Center
posts
loop
Center
Circumference
loop
post #1
“Distance”
Circumference
Radius
Rope with
loop
post #1
loop
three loops
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Finish driving in the circumference posts (step 5).
Lay out the mesh near the circumference posts (step 6).
Step 5
Repeat Step 4 to find the place to drive each successive
circumference post. Continue until the circle of circum-
ference posts is complete. Don’t hesitate to adjust the
distance between circumfrence posts if you hit a problem
area and the post is hard to drive into the pond bottom.
In general, putting the posts closer together is preferred
to their being farther apart, because it increases the net’s
stability. However, when adjusting post-to-post distance,
it is best to keep the radius rope tight so the circumfer-
ence remains circular. Don’t worry about having the
distance between the last and the first posts be the same
as between the other circumference posts, because it
Start lifting the mesh up and wrapping it against the posts
should always be shorter.
(step 7).
Step 6
Collect the materials for attaching the plastic-coated
wire mesh to the posts. This outer screen, of about 11
gauge plastic with a 1 x 1 inch mesh and 4 feet wide, is
a heavy-duty material to keep out crab and eel predators
and to add integrity to the pen structure. It may be ad-
Step 7
vantageous to have a few people assisting in this activity.
Do not try to lift the wire mesh upright until its bottom
Also useful is a boat, raft, or other water vehicle to carry
edge is brought as close as possible to the circumference
materials and supplies to the net-pen site.
support posts. If a level site has been chosen, the top
Start to unroll the wire mesh next to the net-pen site.
edge of the wire mesh will be level. If an uneven site has
The wire mesh will partially sink when this is done in
been chosen, the wire mesh will either lean in or lean
the water. Pull the front edge of the wire mesh and lay
out. Level the site bottom manually, using a shovel; if
it along one side of the pen circumference. If not many
the bottom cannot be made level, it may be necessary to
people are helping, hold the mesh upright as it unrolls;
move the pen to a better location. Continue to adjust the
otherwise it will tend to lie flat on the pond floor.
wire mesh around the circumference posts.
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Loko i‘a
Bring mesh upright against the circumference posts
Tie mesh to the circumference posts (step 9).
(step 8).
Step 8
Starting on one side of the pen, stand the wire mesh up
against each circumference post and continue around
the pen until the mesh is upright and tight against all
the circumference posts. Recheck to make sure the wire
mesh is flush against the circumference post from top to
bottom. Use plastic cable ties to attach the wire mesh to
the post, placing one every 8-10 inches.
Step 9
Shown at right above is the appropriate method for at-
taching the mesh to the post with plastic cable ties. When
attaching the cable ties, one person is needed to stand
inside the net-pen to help secure the cable tie, which is
Overlap the mesh together to complete the pen (step 10).
inserted through the wire mesh and around the post by the
person standing on the outside. Start from the bottom and
secure ties about 8-10 inches apart, moving upward. If
another panel of wire mesh will be added to increase pen
height, leave the top of the lower panel loose (no cable
Step 10
ties) to allow for the upper panel to be tucked in between
Pull the wire mesh ends together and overlap them a
the T-post and the inside of the lower panel. Now, if it is
minimum of 112-2 feet on the last post. The overlap
necessary to increase the height, attach the plastic mesh,
should be level along the top and bottom, then secured
rebar, and additional upper panels to the T-posts using
tight to the circumference posts. It is important to have
11-inch ties. Continue this process until all posts but the
posts at the area of overlap for strength; if a post is not
last one has mesh on it.
there already, add one.
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Pound rebar into the ocean bottom to add height to the
Add mesh to increase pen wall height (step 12).
mesh wall (step 11).
Step 11
Step 12
Often an additional panel may be needed to add height to
Any mesh panel needed to extend the height of the pen
the top of the net-pen for periods when tides are at their
should be inserted between the rebar and T-post sup-
highest. To increase the net-pen height, the circumfer-
ports and the lower mesh panel. Cable ties should be
ence post must be tall enough so that the wire mesh can
connected only to the bottom half of the support post
be securely connected at the top. If the post is not tall
during the first wiring. The extension panel is slid down
enough, a piece of 58-inch rebar longer than the post can
between the T-post and the lower mesh panel until it is
be attached to raise the overall height of the post. To at-
at the desired height. The two panels need to be as tight
tach the rebar to the post, the post must first be embedded
as possible so as not to leave gaps at the overlap where
in the ocean bottom about 8-10 inches. With the post
animals can enter or exit the net-pen. Working on two
pounder over the rebar, carefully pull the post out of the
to three posts at a time, always be vigilant to maintain
way and pound down the rebar. Note: if it is known that
the top edge of the extension panel as level as possible
additional height is necessary, this step can be also done
all the way around the net-pen. The lower mesh panel
when the original T-post is driven into the ocean bottom
can usually be used as a guide when the pen is on a level
and before the first mesh panel is attached.
location, because the lower panel should already be level
and even with the ocean bottom. Continue securing the
top panel, as described, until the net-pen is completed.
Additional lengths of extension panel that need to be
added are “spliced” in at the side edges first, then secured
to the bottom panel.
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Loko i‘a
Add more ties to bind the layers of mesh.
Finishing up
Initially, cable ties are used to loosely secure the shape
of the net-pen and all its parts. Follow the initial tying
with additional cable ties, making sure there are no gaps.
When the water is clear, check the pen’s “attachment” to
the ocean floor by diving to see if there are any gaps be-
tween the mesh panel and the ocean bottom. These gaps
can be easily closed with small stones and sand. Perform
all checks well in advance of stocking the net-pen. It is
essential to re-check the net-pen for holes, broken ties,
etc., every few days, because fish can escape quickly
through holes in the net-pen.
Shown here are two mesh panels being secured
laterally. A two-person cable-tying team is needed
Here a cable tie is being pushed through for connection.
to poke the ties through the wire mesh to wrap them
At this depth underwater, connecting is done mostly by
around the T-posts. Use ties that are at least 7 inches
feel because, even with a mask, the water will be turbid
long. Each section, from one post to the next, will need
from the work activity. Bending the tie in half will keep
between 20 and 40 cable ties. This will depend on mesh
it in a “U” shape while poking it through. Attach the ties
size, pen height, a good top-to-bottom panel seal, and
as close to the post as possible from both sides.
desired strength. It is most economical to purchase ties
in packs of 250-500 per package. Heavy-duty 11-inch
ties in black (UV resistant) are preferred for post ty-
ing, because the ties connect both post and mesh at the
same time. 7-8-inch UV-resistant cable ties are used to
secure panels to one another where no post is available.
Expect to use three to four times as many small ties as
big ones. A 300-foot circumference pond needs about
1000 ties, 300 of the 11-inch ties and 700 of the shorter
ties. Always have plenty of extra ties in both sizes for
general maintenance and in case of emergencies.
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Gap to
Once the outer mesh is installed, an inner mesh needs
avoid
to be installed in the same manner using 7-inch cable
ties. Appropriate mesh sizes range from 14 to 1 inch,
depending on the size of the animals to be contained.
Begin with a 14-inch inner mesh material for fry (fish
12-1 inch long) then change to a 12-inch or 34-inch mesh
for fingerlings (fish 3-4 inches long). Final grow-out
The final net-pen placement should be carefully surveyed
should be conducted in net-pen material that is 1-inch
for flatness and any obstructions in the path of its edge.
mesh, assuming it is appropriate for the species. The
It is common to overlook dips or depressions along the
interior PVC netting will need to be changed periodi-
bottom edge of the mesh panel. Try to avoid this as much
cally. As the fish grow, they produce more organic matter,
as possible. If a gap is unavoidable, fill it with small rocks
which accumulates more rapidly on the tighter-weaved
and sand. The fill should cover the gap and more, along
netting material. Changing the mesh size allows more
its length and beyond its sides, and be mounded above
water filtration, decreases the potential for biofouling,
the depression itself. These spots need to be checked
and promotes better water conditions.
often to ensure the fill does not wash away.
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Net-pens at ‘Ualapu‘e: rectangular pens in the foreground; two circular pens in the background.
Seedstock acquisition and pond seeding
through May. Milkfish fry occur in late summer to fall.
Cultured seedstock may be available from aquaculture
Equipment for fry collecting includes 18-inch seine nets,
facilities such as the Oceanic Institute at Makapu‘u
18-inch mesh throw nets, scoop nets, a small battery-
on O‘ahu, the Natural Energy Laboratory in Kona, or
powered aerator, and 5-gallon buckets (see the chapter on
the state’s Anuenue Fisheries Research Center in Ho-
Equipment for Pond Operations). Experienced fishpond
nolulu. The fry stock should be about 12-1 inch long
operators claim that it is easier to capture 100 1-inch fry
at a minimum. Researchers at Oceanic Institute have
than one 3-inch fingerling. The larger fish tend not to
always experienced better transfer and survival rates
school like the younger fry, making it more difficult and
with larger fish.
time consuming to capture enough to stock a net-pen.
Animals are boxed, transported in insulated contain-
Limu culture should be included in the production
ers, and transferred from their source to neighboring
strategy both for water quality benefits and economic
islands via air cargo. A small truck and trailer takes
return. Limu seedstock has been developed and can ob-
shipments to selected fishponds for acclimation and
tained from Ke Kua ‘Aina Hanauna Hou at Pūko‘o on
stocking. Initially, between 10,000 and 15,000 fry can
Moloka‘i. Limu “patches” of sporulated stones can be set
be stocked into a nursery pen system, then transferred
up inside and outside pen enclosures. Production areas
to larger-mesh pens as they grow.
can be visually monitored for growth (see the chapter
Natural recruitment, or collecting fry from the wild,
on Limu Production).
is economical but must be done with a collection per-
mit from the Hawaii Department of Land and Natural
Fish food
Resources, Division of Aquatic Resources, Aquaculture
High-protein fish foods manufactured by companies such
Development Program. Mullet fry can be found around
as Moore-Clark are excellent for fish, but these feeds are
brackish water riverbeds and estuaries from February
expensive and may be difficult to obtain. Rangen and
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Limu seedstock on mesh “pillow.”
Fish stock finglerings in bag.
Purina are proven brands of fish food that are generally
bottom substrate and the net-pen fenceline. Observations
available at reasonable prices. Fish food with high soy
of fish shape, size, and condition, and periodic weight
or grain meal content is not recommended. We have
sampling, allow the operator to adjust to lower feed
found that the grain feeds, although cheaper, are less
amounts through the grow-out phase. This saves money
nutritious. In some cases we also experienced the feed
and helps creat less organic waste.
going rancid quicker in Hawai‘i’s humid climate. It is
not recommended to ever give fish food that you think
Data recording
may be going rancid.
The net-pen’s production activities should be recorded
Purina Trout and Salmon Starter, #00 to #3 size pel-
in two separate log books. One log should be designated
let, can be fed to fry and fingerlings. Purina 350 floating
specifically for recording water quality, feeding, weather
feed can be used for feeding larger fish to market size.
conditions, and animal observations. A second log should
Newly stocked fry can be fed twice a day, with the daily
record the day’s work, such as maintenance and repair,
feed ration weighing five percent of their total body
sampling, predator control, fish transfer, limu harvest, etc.
weight, as determined at the previous monthly sampling.
Basic water quality parameters to monitor twice
Determine this by taking a few random samples of the
daily are dissolved oxygen, tide, temperature, and water
animals, weighing each sample, and dividing by the
salinity. Other water quality parameters such as ammo-
number of animals in the sample; take the average of
nia, nitrate, nitrite, and pH should be monitored weekly
the samples measured. Multiply the average weight per
using a test kit designed for salt-water aquaculture farm-
animal by the estimated total number of animals in the
ers. This type of test kit can be purchased for under $50
culture pen to obtain the “total standing biomass” (TSB).
and includes several months worth of testing materials.
The TSB is then multiplied by 0.05 to give a daily feed
Animals should be sampled monthly for growth and
amount which is divided by the number of feedings.
general health. Feed rates can be adjusted based on size,
Re-check this monthly during sampling activities. For
weight, and total standing biomass calculations.
growing out fish, feed once to twice a day at three percent
Data and recordkeeping become an important man-
of their total body weight.
agement tool for the pond operator and should indicate
It is important to note that these feeding rates are
seasonal, biological, or cyclical trends. These trends,
for a closed system, without the benefits of supple-
once determined, allow the operator to make production
mental foods. Fish cultured in net-pens often obtain a
decisions that may impact business profitability, fish
large amount of supplemental foods, such as micro- or
culture management, and operational methods.
macro-phytoplankton and zooplankton, from the pond
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Optimizing Pond Health
The biological environment
Food web and food pyramids
To better understand how to optimize pond health in ac-
Although a traditional fishpond may have had a diversity
tive fishponds, it is useful to study the aquaculture meth-
of species, the dominate species of fish were milkfish and
ods developed by the ancient Hawaiians. Their fishpond
mullet. These fish are herbivores, feeding on phytoplank-
site choice was often based on freshwater input, as the
ton. Other fish, such as barracuda, a predator, depend for
brackish water environment caused by mixing fresh and
survival on a more complex web of interactions among
ocean water created a natural fish nursery environment.
other species—barracuda eat lizardfish that eat shrimp that
The use of mullet and milkfish, species adapted to brakish
eat polychaete worms that eat phytoplankton. This type
conditions, as the main cultured species was an efficient
of web has much interdependency and less independence.
way to maximize productivity. The naturally occurring
Herbivores, on the other hand, have only one step from
currents and seasonal tides of the location defined times
the primary productivity of algae.
for stock recruitment or harvesting.
Using this subsystem, traditional Hawaiian fishponds
The complex aquatic food web begins with a pri-
made a great leap in production yield by eliminating
mary chain of productivity that transforms organic and
biomass inefficiency and excess links in the food web
inorganic detritus and other “nutrients” into some form
in order to seek their end products. In a food pyramid
of plankton (i.e., phytoplankton, unicellular algae, mi-
there is a normal energy loss of 90 percent for respira-
crobenthos, etc.). This primary productivity depends on
tion and body functions, which leaves only 10 percent
sunlight and the photosynthetic process for its growth.
for the next level. Therefore, a system using milkfish
Green and blue-green filamentous algae found in Hawai-
and mullet, which feed at the bottom of the food chain,
ian fishponds are also light-limited. Turbidity and light
enabled more productivity of the food pyramid (i.e.,
play an important part in this growth, which is the base
1000 pounds of algae and detritus makes 100 pounds of
for the food chain and also determines the productivity
herbivorous fish, which makes 10 pounds of humans).
of fish that are feeding on the algae.
Therefore, the greatest yield in pounds of fish is
Animal plankton (zooplankton) is also another key
harvested from the herbivorous links of the food chain.
factor adding to the pond biomass. Zooplankton feed on
Early Hawaiians exploited this and knew to increase
production of microbenthos and larger benthic algae by
bacteria or phytoplankton, and in turn are fed upon by
applying organic fertilizers (i.e., greenery or starch foods)
larger fish and crustaceans. This food chain goes through
and making shallow ponds for maximum light penetra-
many intermediate steps as it progresses until it reaches
tion. This system, applied through practical conservation
humans.
and management techniques, set Hawaiians and their
Because the species raised in ancient Hawaiian
fishponds apart as early pioneers of aquaculture.
fishponds were mostly autotrophic (depending on self-
nourishment) their productivity depended on what was
Traditional water quality environment
happening at the base of the food chain—plankton and
Water quality in traditional Hawaiian fishponds was
algae. And because fishponds are estuary-like, they
somewhat static, in that there was little fluctuation. In a
have high yields of primary productivity. The traditional
totally controlled monoculture system, most parameters
Hawaiian fishpond operators were able to efficiently
of importance, i.e., dissolved oxygen, water exchanges,
exploit this high productivity by “cultivating” milkfish
temperature, nitrogen, etc., are monitored and manipu-
and mullet, both herbivorous fishes. This was how the
lated to some degree to meet the desired conditions for
traditional fishpond operation allowed a consistent yield
the species cultured for harvest. By comparison, a
of fish with little or no need for fertilization or supple-
traditional Hawaiian fishpond had very little room for
mental feeds.
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water quality control and manipulation, which forced
clays and coarse suspensions of soil particles
traditional aquaculturists to better understand the “total
suspended organic materials: living phytoplankton,
system.” This big-picture approach looked at
zooplankton, fungi, bacteria, and colloidal or sus-
the interrelationship of species cultured in the pond
pended remains of organisms in stages of decay.
the cultured species’ life cycle in relation to seasons,
moon phases, and other animals
Current water quality environment
water flow and exchanges resulting from moon phases
There are dozens of biological and physical factors
and changes in tides
(“parameters”) that can be sampled and monitored in a
seasonal recruitment of new stocking material and
fishpond. Of these, and in general, most fishpond moni-
harvests timed to moon phases
toring should look at the most “impactful” parameters.
polyculture of complementary and beneficial species
It would be beneficial in the initial start-up year to regu-
for pond health and fish food production.
larly test as many parameters as possible and to develop
site-specific baseline data and records of the fishpond
Today, as modern pioneers of this traditional art form,
over a production season or year. If the fishpond is the
we have the ability to better understand and tradition-
receptacle of industrial or urban upland run-off, being
ally culture fish using modern technology and sciences.
able to test for fluorocarbons, pesticides, agricultural
run-off, etc., is important.
The basics
The most important parameters to monitor regularly,
The basic life needs of any cultured species, plant or ani-
as often as daily, are temperature, dissolved oxygen, sa-
mal, need to be available in the environment they live in.
linity, and pH; the ions ammonium (NH4+), nitrite (NO2-),
Therefore, the quality of water and the understanding of
and nitrate (NO3-) can be checked weekly. Changes in
various physical and biological properties or parameters
these parameters happen quickly and will impact the
is a primary concern. These properties must be tested and
system quickly due to the interrelationships among them.
measured regularly to assist the aquaculturist in main-
For instance, high oxygen and temperature will cause
taining a healthy growth environment for the cultured
more respiration by animals, which then cause chemical
species. In addition, any physical or biological changes
changes in the system that impact the fish. Less important
that happen in the culture will directly affect the cultured
water parameters include hardness, phosphates, carbon,
species and the system itself, as they are interconnected
suspended solids, and dissolved solids.
via the water interface.
For each parameter there is an optimum level for
the cultured species to thrive. Range of tolerance is the
Disclaimer: The aquaculture instruments identified
limit within which the cultured species can survive. Toxic
in the section Equipment for Pond Operations are the
levels are lethal. Note that not all species have the same
instruments used with our project, but they are not the
culture needs and ranges. If a polyculture situation is
only instruments available. Ours choices were based
desired, the culture parameters of the primary species
in part on economic considerations; some high-priced,
should be cross-checked and noted.
multi-parameter testing meters cost as much as a new car.
Temperature is one of the prime factors affecting
growth. Each species has a specific temperature range
Physical and biological components
it can tolerate and an optimum range for growth. For
gases: oxygen (O2), carbon dioxide (CO2), nitrogen
efficient conversion of food to fish weight, water tem-
(N2), hydrogen sulfide (H2SO4) and methane (CH4)
perature must be kept as close to optimum as possible.
minerals: calcium (Ca), manganese (Mn), sodium
Water temperature affects feeding, reproduction, im-
(Na), potassium (K), magnesium (Mg), aluminum
munity, and metabolic rates in aquatic animals.
(Al), zinc (Zn), copper (Cu), molybdenum (Mo),
Factors that affect water temperature include: am-
cobalt (Co), carbon (C), phosphorus (P), and others
bient air temperature, direct sunlight, depth of water,
soluble organic compounds: sugars, fatty acids, hu-
mic acids, vitamins, amino acids, peptides, proteins,
urea, plant pigments, and others
Temperature Conversion
°F = (9/5 °C) + 32
°C = 5/9 (°F - 32)
suspended inorganic materials: suspended colloidal
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Loko i‘a
circulation and currents. Abrupt changes in temperature
day sunlight causes photosynthesis, and at night O2 is
can stress fish and even result in disease problems. It is
used for respiration. Signs of low DO levels affecting
important to monitor and record temperature on a regular
fish include
basis, usually first thing in the morning and again in the
sluggish movement
afternoon. Temperature can be measured using a ther-
not eating
mometer; either Celsius or Fahrenheit will do. To prevent
gasping for breath
breakage, purchase a thermometer with an encased body.
grouped near water inlet
Also, many dissolved oxygen instruments already have
slow growth
a temperature function.
disease and parasite problems.
Dissolved oxygen (DO) is the amount of gaseous
oxygen dissolved in water and is measured in milligrams
Salinity is the concentration of dissolved sodium
per liter (mg/l) or parts per million (ppm). All fish need
chloride (NaCl) measured as grams (g) of salt per kilo-
oxygen to survive, and monitoring this parameter is the
gram (1000 g) of water or parts per thousand (0/00). Pure
most important daily activity a pond operator should
seawater in Hawaii varies from 32 to 34 ppt, although
perform. The DO meter is any pond operator’s best
some systems can become hyper saline at 40 ppt. A
friend. These instruments cost from $400 upward.
refractometer is the simplest and quickest method to
A DO concentration of 5 ppm is considered opti-
measured salinity.
mum. Fish begin to experience stress when DO levels
pH is a measure of the acidity or alkalinity of the
fall below 4 ppm, and they die after prolonged exposure
water, expressed on a scale of 1 to 14. It is based on the
to levels of 1 to 0.3 ppm. Under certain conditions water
number of active hydrogen ions, (H+) in solution. A pH
can become supersaturated with oxygen, above 15 ppm,
of 7.0 is neutral, values below 7 indicate acidity, and
and this also will cause stress in fish.
values above 7 indicate alkalinity. Pure water is neutral,
Temperature and salinity both affect the oxygen-
tap water is 7.7-8, clean rainwater is about 5.6, “acid
holding capacity in water. As temperature and salinity
rain” is 3.5-5.5. pH is an important parameter affecting
of the water increases, the amount of available D.O.
several key changes in chemical processes and param-
decreases. Other factors influencing DO levels include
eters, such as the nitrogen cycle. Most fish survive over
stocking density, weather and climate, fish activity (feed-
a pH range between 6 and 10, but each species has its
ing and respiration), photosynthesis by algae, run-off,
ideal pH level for optimum growth and good health.
decomposing organic material, etc.
pH can be measured quickly and precisely using a
Oxygen comes into the water when molecules of
handheld, battery-powered pH meter. Less expensive but
oxygen (O2) gas from the atmosphere diffuse into the
less accurate measurements can be attained using litmus
water, and through photosynthesis. In outdoor culture
paper. Other methods include pH test kits (See section
systems DO can fluctuate greatly, because during the
on Equipment for Pond Operations).
Ammonia (NH4) is a waste product of protein me-
tabolism or breakdown by aquatic animals, but it is also
naturally present in small amounts in water bodies. In
certain forms and concentrations it can be toxic and can
Dissolved Oxygen Chart (ppm)
increase in proportion to pH and/or temperature. It can
0
5
10
15
20
be measured with a basic saltwater chemical test kit.
Nitrite (NO2) is the basis of organic matter de-
composition by nitrifying bacteria oxidizing ammonia.
Nitrite levels above 0.55 ppm can be toxic to “oxygen-
Legend
to-blood transfer” processes in fish. Nitrite levels may
1.0-0.3 ppm - fish die with prolonged exposure
also increase due to over-feeding, high fish density,
5 ppm - optimum
phytoplankton “crashes,” etc. Nitrite can be measured
< 4 ppm - fish stressed due to low DO
with a basic saltwater chemical test kit.
> 15 ppm - supersaturation stress
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Nitrate (NO3) is the final product in the nitrification
allows several months’ worth of testing.
process and does not typically have any toxic effect on
Animals should be sampled monthly for growth and
culture animals, but it will influence plant growth by
general health. Feeding rates will be adjusted based on
acting as a fertilizer. It can be measured with a basic
size, weight and total standing biomass calculations,
saltwater chemical test kit.
which are reviewed by analyzing data. At the end of
Turbidity is a term used to describe suspended sol-
this section are four samples of logs and worksheets
ids, such as silt. These small particles prevent sunlight
that can be easily duplicated and used to keep records
from reaching phytoplankton that produces oxygen
for managing a fishpond.
and food. Wind, bottom-feeders, run-off, inorganic silt,
phytoplankton, erosion, rain, etc. can cause turbidity.
Summary
Turbidity can be measured with a turbidity meter, but
Over time and with diligent recordkeeping, a fishpond
the more common and cheaper method is using a sec-
operator will see that conditions in a fishpond are some-
chi disk. The depth of the water surface to the point in
what constant and predictable, much like the coastal
which the disk is not visible is measured in cm from the
conditions outside of it. Natural seasonal changes, as
surface. A measure of 80 cm is not very turbid whereas
well as tide and moon phases, provide cycles for pro-
a measure of 15 cm and less is turbid.
duction management. Unpredictable storm weather or
other climatic phenomena are less probable and are not
Important Things to Remember
a good gauge for anything other than crisis and catas-
Records and data keeping become an important man-
trophe planning.
agement tool for the pond operator and will indicate
It is important to monitor the water quality, as it af-
seasonal, biological or cyclical trends. These trends,
fects the fish. It will be valuable also to integrate other
once determined, allows the operator to forecast produc-
“natural mechanisms” that provide clues and insights
tion decisions that may impact business profitability,
about pond conditions. Ancient Hawaiians had no instru-
culture management and operational methods. Keep
mentation, yet they produced a sufficient food supply over
daily records of the day’s work, such as maintenance and
centuries using similar systems and culture methods.
repairs, sampling, predator control, fish transfer, limu
Step back and take a big-picture approach to connect
harvest, etc. A daily log identifies routine tasks, such as
relationships between instruments, production animals,
water quality, feeding, weather conditions, and animal
observed daily fishpond conditions, and your five senses.
observations. Basic water quality parameters to monitor
Over time, and with keen observation, these rhythms and
twice daily are DO, tide, temperature, and salinity.
patterns will become more obvious and expected. You
More specific water quality parameters such as
will find less need for the rigors of daily water quality
ammonia, nitrate, nitrite, and pH should be monitored
collecting and will “depend on your fish or the weather
weekly using an aquaculture farmer’s saltwater test kit.
to tell you how things are.”
This type of test kit can be purchased for under $50 and
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Loko i‘a
Suggested monthly growth and feeding log: stocking and other information
1
2
3
4
5
6
7
8
Stocking date
No. fish stocked
Species
Where obtained
Sample no.
Total weight
Average weight
% body weight gained1
Average weight
Length:weight ratio
Type of feed
Total weekly feed2
Average wt. feed daily2
1[gain / previous weight] x 100; 2kg or lb
Overall system grid
Pen 1
Pen 2
Pen 3
Pen 4
Control
Traditional
Pond size
Production
Harvest size
Market price
Production cycle
No. fish harvested
Culture species
Interest rate
Fish marketing style
Death loss
Labor needed
Fingerling size
No. fish stocked
No. fingerlings needed
Feed conversion est.
Feed amount:
Feed cost
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Record of harvest sample
Record of harvest
Date of harvest:
Start time of harvest:
Method of harvest:
Duration of harvest:
Number of fish harvested
Condition of fish
Total weight of fish harvested
Sold to
Sold for $/lb
Total weight sold
Number and weight of fish given away, if any
Number and weight of fish used for marketing/promotions
Notes for future harvest:
Notes and other comments:
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Loko i‘a
Suggested weekly routine (WQ = water quality)
Monday
Tuesday
Wednesday
Thursday
Friday
Sat./Sun.
8:00
Management
Feed,
Feed,
Feed,
Feed,
Weekend
meeting
check WQ
check WQ
check WQ
check WQ
feeding duty
8:30
Limu loa
Production
Fish
Fish production
Check WQ
systems
production
or market
9:00
Feed,
check WQ
9:30
10:00
10:30
11:00
L U N C H B R E A K
11:30
12:00
Limu loa
Limu loa
Production
Fish
Fish
systems
production
production
12:30
1:00
Market limu
1:30
2:00
2:30
3:00
Clean beach
Clean-up,
Clean beach
Clean-up,
Clean beach
Weekend
and nursery
put away
and nursery
put away
and nursery
feeding duty
supplies
supplies
3:30
4:00
4:30
Check WQ
Check WQ
Check WQ
Check WQ
Check WQ
Check WQ
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Troubleshooting Fish Culture Problems
The working fishpond
Changes to the fishpond’s environment and water
One of the biggest challenges for any fishpond opera-
quality, along with weather conditions, are usually con-
tion is to identify a problem and be able to remedy it.
sidered external impacts. The animals’ health is the next
Preferably, the fishpond operator will be proactive and
obvious condition to monitor. Lastly, there are a number
avoid as many problems as possible. Unlike land-based
of other ways to manage potential production losses,
agriculture, aquaculture occurs under water, making it
including checking for the following occurrences:
difficult to regularly “inspect” production, as would be
feed that is rancid or moldy, not fresh
possible on land. For example, trade winds stir up par-
predators in the pond, such as barracuda, eels, and
ticulate matter from the pond floor, and activities such
crabs
harvesting or cleaning also create turbidity that makes the
fencelines with holes or split seams
pond water less clear. Add to this the typical shy nature of
evidence of poaching, which can be detected by
fish, and observation for any purpose becomes difficult.
checking for bruises on the fish caused when escaping
Several natural opportunities aid observation of the
capture nets.
health of the operation. These opportunities occur
under weather conditions with no wind
Behavioral observations
in the early morning before the daily wind starts
Observable indicators of healthy feeding behavior in-
during extremely low tides
clude fish that
after a phytoplankton “crash” (die-off).
“swarm” close to the feed site
“hit the surface” as soon as feed is tossed
By far the best and most consistent times to observe
actively feed together as a school (group)
fish are when they feed. They need to eat, are conditioned
display a feeding pattern that is consistent over time.
to a feeding schedule, and should readily come to the
surface at feeding times.
Observed indicators of animals under stress or problems
If there is no supplemental feeding with a prepared
include fish that are
pelleted feed, then much of the feeding observed will
not feeding at all
not take place. If you are not going to feed, a periodic
eating less than the normal amount
fish sampling will show how well or fast the animals
dead or separated from the larger group
are growing. Observation can be done during sampling,
“gulping air” at the surface
as well as when there are sunny, windless days. Also,
showing discoloration or spots on their scales
polarized sunglasses can greatly enhance visibility of
swimming erratically and quickly (predators inside pen)
fish from above the water surface.
display other non-typical behaviors.
As an observation method, sampling fish has some
limitations. A sample group represents a small number
These are general indicators of something wrong
of the total, and it may not truly be representative of
within the system. In the beginning, problem-solving
the conditions of the population. The act of sampling
will be complex and will need to be addressed as soon
(i.e., handling) is very stressful to the fish and may lead
as possible. In general, allowing a problem to occur for
to diseases being contracted or spread. Therefore, it is
too long will result in catastrophe. In your log book,
best to learn how to make close observations and to
write down your analysis of the problem and list solu-
start recognizing behavior and changes at feeding times.
tions or reasons for solving your problem. Don’t hesitate
In general, these changes in behavior are indicators of
to consult someone knowledgeable—your stock may
something else happening to the animals.
depend on it.
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Loko i‘a
behaviors are usually signs of disease or parasites. A
few dead fish each day usually indicates some type of
slowly spreading disease or parasite problem. Progres-
sively more dead fish each day is a sign of a very seri-
ous disease problem. Dying fish or fish with suspected
diseases or parasites should be diagnosed, or sent for
diagnosis, immediately.
Hawai‘i is supportive of aquaculture and the state
has facilities to assist with diagnostics through its state-
run fisheries, disease diagnostics lab, and University of
Hawai‘i aquaculture extension programs. Contact your
nearest aquaculture extension office or state fisheries
specialist for information on the proper way to package
and ship fish samples. Take a live sample of fish and a
Active swarming indicates a healthy feeding population.
water sample to the nearest fish disease diagnostic lab
and have it tested. Besides diagnosing the problem, the
extension agents may be able to suggest treatments for
your problem. In some cases, as with internal diseases,
a medicated feed could be purchased and fed to the
Over time, and with good recordkeeping, problems
animals.
will be easier to identify. The following sections give
some common answers to typical situations. This is by
Water quality problems
no means a comprehensive discussion, as these issues
Excessive nutrients in the water, possibly caused by
are complex in nature and there are site-specific, animal-
too much feed, can create an unhealthy or toxic water
specific, and weather-specific conditions that must also
quality situation in your culture system. This is usually
be accounted for.
identified by visual changes in the water’s color. Rapid
color changes, surface scum, intense color, odors, and
Non-instrumental observations
extreme weed growth are associated with water quality
If there has been a period of heavily overcast and wind-
problems. These conditions are symptomatic of exces-
less days, phytoplankton production will be reduced,
sive nutrients from feed, sediment in runoff from the
creating a situation of low dissolved oxygen (DO) levels.
land, or overstocking. Monitor water quality and try
If there are cloudless days for some time without wind,
to keep readings of nitrogen (ammonia and nitrate) at
phytoplankton may “crash,” consuming oxygen in the
acceptable water quality parameters. If need be, reduce
process. This may be temporary but is stressful none-
feeding, transfer overstocked fish to another pen (if pos-
theless. If this occurs, stop feeding, wait for the tide to
sible), and continue to monitor water quality. Be careful
bring in new water, and avoid DO levels below 3 ppm.
not to transfer sick fish.
Fishpond operators will find that the animals them-
Strong odors are an indicator of decaying plant
selves provide the best information on how they feel
material, which consumes oxygen as part of the decom-
and what they want. This intimate connection between
position process. Other than reducing feeding, adding
operator and animal will be the best relationship to
oxygen to the system may be warranted. When aeration
develop. Again, for example, fish that do not eat when
is extremely necessary but not readily available, a small
they normally would suggests an oxygen problem. Fish
outboard motor can be used to create propeller aeration.
that are “gulping for air” early in the morning suggest
Another solution is introducing new water via tidal ex-
critically low DO levels. If this occurs, do not feed, check
changes, with the highest exchanges occurring with the
the tide charts for the next high tide for water exchange,
new and full moons.
and monitor the DO level.
Dissolved oxygen stress is the primary cause for fish
Diseases and parasites are other problem areas that
culture problems. Make it a habit to measure DO levels
may be detected during feeding. Skin discolorations,
twice a day. Testing first thing in the morning measures
spots, fin erosion, erratic swimming, or other strange
DO availability without photosynthesis. Testing again at
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Scrubbing netpens reduces biofouling.
Scum growth on the pond walls indicates water quality
problems.
the end of the day, before sunset, can provide an indica-
tion of the level of DO as a result of photosynthesis.
The critical concern for any fishpond operator will be
to recognize and prevent potential problems before they
arise. This will happen over time and with familiarity
with the site and culture systems. In general, it will take
a full year of observation, because every season has its
own characteristics. Learning this will assist in formulat-
ing culture schedules based on the animals’ spawning,
growing, and maturation rates.
Various water quality monitoring instruments and test kits.
Other problems and observations
Biofouling is a common cage problem. Biofouling is
the growth of algae and bryozoans (soft-bodied, jelly-
like animals) on the sides of the mesh. These creatures
restrict water flow through the netpen, thereby causing
water quality problems, including low dissolved oxygen.
Periodic scrubbing may be necessary to remove biofoul-
ing. Scrubbing should be done at high tide when there
is higher DO.
Regular observation is needed. It is always a good
practice to dive or snorkel in the netpen once or twice
a week, more if necessary. Keep good records, as they
often can provide clues leading to solutions to problems.
Learn from your mistakes, and don’t hesitate to get help
when you don’t know the answer.
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Loko i‘a
Limu Production
imu (edible seaweed) can be cultured in the ocean,
L
in a fishpond, or in a netpen. The typical Hawaiian
fishpond is capable of sustaining many types of edible
and saleable animal and plant species, often at the same
time. Many fishponds in Hawai‘i may already be home to
various limu species. Limu production can be a profitable
enterprise when cultured in netpens along with fish. In
general, the limu in a limu-fish system uses the nutrients
from unconsumed fish feed as fertilizer. At the same time,
the limu consumes much of the nitrogen that is excreted
when the fish discharge waste products. As a result, the
entire limu-fish production system is “cleaner” than a
system with only fish.
Basic requirements for limu production
Ogo—harvested, cleaned, weighed, and bagged to be sold
Biological and physical parameters vary according to the
at a local market.
species cultured, but the following general conditions
and practices should help to grow limu successfully:
observe areas where limu is already found
with the ocean bottom where the limu production
salinity varies, so know your species and their salinity
might take place; look for other competing species
ranges
or animals that might eat the limu.
have a source of nitrogen, either added ammonia or
scout a number of locations to find the best site within
from land runoff
a fishpond or net-pen.
there should be a consistent tidal exchange for suf-
ficient nutrient supply, oxygen, and carbon dioxide
Establishing growth tests
the water should be free of pollution and excessive
Once the basic biological and physical needs of the de-
fresh water (in the case of ogo, Gracilaria)
sired limu species have been met, it is time to run a few
have a clean water supply
small-scale production tests. It is important to create and
ideal temperature of 81-86°F and salinity of 30-35
provide various growing media for spores to attach and
parts per thousand
new plants to take hold. Microscopic cystocarps (seeds)
water should be moving rather than stagnant
can attach to almost anything, but a secure substrate is
a rocky, coral bed substrate is best for seed attachment
best. Substrates that have been tried include enclosed
have a water depth not less than 18 inches at the lowest
coral plastic mesh “pillows,” wire mesh, floating PVC
tide to prevent direct exposure to air.
trays, floating baskets, and stones. The best success so
far has been with fist-sized stones.
To find out if a particular area is suitable for limu pro-
Like many land plants, limu is a seasonal grower
duction it is important to
in the wild. The best growth occurs during the spring
do water quality tests to understand daily and seasonal
through fall months when the days are long and water
variables; begin testing twice a day (early morning and
temperatures warm. “Seeded” stones (pieces of rock
late afternoon) over a period of two weeks followed
that have a little piece of limu firmly attached) are col-
by several times a week for several months
lected from lagoons and transferred into fishponds and
use a mask and snorkel or diving gear to get familiar
net-pens. It should not take more than 100 “seeded” limu
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A basket of stones ready to be “seeded.”
A production rack brought to the surface for harvest.
stones to start a limu production bed if the water quality
Hints for seaweed production in a fishpond
is right. Some limu varieties will develop sexually and
or net-pen
seed the netpen continuously throughout the growing
Study the subject and make a plan.
season, while other limu will need to be restocked with
Consider the site-specific parameters of the area
where you plan to produce.
new seeded stones.
Do a physical and biological assessment.
Keep your production plan more extensive (as
The business of limu
opposed to intensive) to reduce stress and impact
While fish production is typically the primary focus for
on the pond ecosystem and environment.
a fishpond and netpen system, limu sales can generate
Keep accurate production and sales logs and
records to assist in decision-making and problem-
cash flow in a short period of time. This is due to limu’s
solving.
fast growing, grass-like characteristics. In season, limu
can limit its own growth if left to grow too long, and, like
grass, it grows better when periodically cut for harvest.
It is possible to be marketing limu weekly within the
will be spent on processing and picking out unwanted
first production season and every season thereafter if the
types of limu that grow within the main crop. Expect to
system is maintained in optimal condition.
market weekly, or if the limu is a slow grower, biweekly.
The concept of growing limu is similar to growing
a land vegetable crop. The initial setup of the system
Limu on Moloka‘i
and its resources will take some effort. There will be
Moloka‘i is known for its Gracilaria parvispora. To
on-going maintenance in terms of weekly weeding of
many consumers it is known as limu ogo or limu loa.
unwanted limu and checking limu areas for any prob-
This limu, along with many others, grows well along
lems. As the limu starts to become harvestable, gathering
the coastal areas of Moloka‘i. In many fishponds, this
and preparing the product for market becomes one of the
limu is not only able to grow but can actually flourish.
most labor-intensive parts of the operation. Many hours
The ‘Ualapu‘e fishpond project on Moloka‘i is
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Loko i‘a
An ogo spore, attached to a rock, sends out its first
Ogo on a plastic mesh “pillow.”
branches.
culturing two limu, limu loa (Gracilaria parvispora)
ages and supports backyard growers through training and
and limu ‘ele‘ele (Enteromorpha species). Limu loa is
buy-back initiatives. Their role is to provide the grow-out
already integrated into netpen fish production systems,
training and to provide seedstock (seeded stones). The
and limu ‘ele‘ele is in commercial research and develop-
most difficult steps of hatchery, nursery, and maturation
ment.
are done at their farm. The backyard grower then takes
The Moloka‘i community was very fortunate to have
the seeded rocks home to grow out in protected areas
had the support and assistance of Ke Kua‘aina Hanauna
such as fishponds and net-pens. KKHH then buys back
Hou (KKHH), a local limu ogo wholesaler, who has
the final product for resale.
conducted production and market research and encour-
Further reading about limu production
This section is just a primer on limu production. The resources below provide additional information and details.
To order copies, contact:
Ke Kua‘aina Hanauna Hou
HC-01 Box 741
Kaunakakai, HI 96748-0741
Phone: 808-558-8393
or 808-558-8933
Fax: 808-558-8453
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An Outline for Writing a Business Plan for a Fishpond
evitalizing a fishpond is exciting because the po-
Outline of a general fishpond business plan
R
tential impact is significant. Yet without a “road
map” to guide the business aspect of the project, it is
Cover page
easy to get lost. While not all revitalization projects will
1. Title of project
require outside funding, having a business plan can help
2. Contact information
guide many decisions by illustrating the best choices for
uses of limited resources.
Table of contents
The plan helps to organize costs and benefits, risks
1. Index to the business plan sections
and rewards, and inputs and outputs so that the potential
worthiness of the idea is conceived with a high level of
Executive summary
clarity. A business plan is an organized, written document
Briefly summarize, in short sentences, what is being
that allows the testing of ideas before the first stone is
proposed. Subsequent sections of the business plan will
moved or the first fingerling is placed in the pond. The
provide more details.
plan is an inexpensive way to “test the water” of an idea
1. What are the objectives or projected outcomes for
before a lot of effort and expense goes into it. Unfortu-
using the fishpond?
nately, writing a plan is often not as much fun as getting
2. Which species will be cultured in the pond? Which
outdoors and working to see a dream come true, so it
production techniques and management methods will
requires the pond operators to be diligent and focused
be used to culture those species?
on the plan phase for a period of time while putting the
3. What and where is the market or markets for the final
ideas down on paper. It is this writing process that reveals
product? Is there room in the market for the product,
the true strengths and weaknesses of an idea, and this is
and how was this conclusion reached? Is the market
the time to find ways to compensate for any weakness
sustainable over the long run? What is the competition
in the grand vision.
in the target market?
Today, business plans are very common and gener-
4. Describe relevant skills and experiences of yourself
ally have the same format. Of course, the type of busi-
and the others involved in the venture.
ness discussed in the plan will provide the plan with its
5. Provide a brief description outlining the following:
uniqueness. Generally, a business plan contains:
a. start-up costs
cover page
b. operational costs
table of contents
c. investment capital needs (for start-up and opera-
executive summary
tions)
business description
d. projected gross revenue and profit for every year
marketing factors
for five years
management and accountability
e. rewards and benefits beyond financial gains.
project schedule
identification of critical risks
The introduction
financial information
The introduction page “introduces” the business plan
conclusion
to the reader and provides the following information:
appendixes.
1. Introductory statement about what topic the document
This section provides a guide for developing a
will cover.
typical fishpond business plan. Each plan component is
2. Date the document was written.
followed by the types of information typically included.
3. Author of the document.
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Loko i‘a
Business description
3. Mention specific market targets, such as ethnic groups;
1. Describe the fishpond site (use maps, photos, etc.)
seasonal variability advantages; and plans for devel-
a. Ownership status
oping new markets or products
b. Infrastructure (access road, water lines, power, etc.)
4. Describe pricing and estimated sales
c. Biological, physical, and environmental description
5. List specific sales outlets—get a letter of commitment
of the fishpond
6. List transportation options and calculate the cost to
d. Critical risks with fishpond site (e.g., potential li-
get products to market
ability issues)
2. Permit status
Management and accountability
a. Necessary permits, licenses, etc. to operate as the
This section identifies the personnel involved with the
business plan describes
project and their duties, responsibilities, and time re-
3. Facilities and equipment
quirements. Sometimes the pond operators do everything
a. Status and condition of fishpond
from feeding to selling to banking. In other situations,
b. Repairs required and estimated costs
a spouse, partner, or employee will assist with certain
c. Equipment and supplies and their costs
aspects, and those individuals need to be identified, their
d. Other needs as project commences
jobs described, and the time requirements identified.
4. Operations plan
a. Describe in detail the products that will be cultured,
1. Identify the personnel involved and their relevant
their life cycle, the duration of culture to market
qualifications
size, etc.
a. Pond owner
b. Identify the capacity of various production subunits
b. Pond manager
and potential growth of the entire project
c. Others
c. Describe the recordkeeping for each species, re-
2. Develop a production schedule and identify respon-
quired feed and care, monitoring and sampling plan,
sible person(s) for each task; i.e., who, what, when,
potential problems with the system, and potential
where, how, and how long
remedies
3. Identify training needs
d. Describe the production schedule for the short and
4. Discuss records and bookkeeping accountability
long term
e. Describe the harvest, postharvest, and processing
Project schedules
procedures, and the plans for transport to market
This section looks at the flow of operations from the
f. List any remaining aspects of the operations.
beginning. It should include a sequential list of tasks and
timelines from the starting point to expected completion.
Market factors
A flow or gant chart is sometimes helpful to “see” the
This section describes the market and marketing aspects
whole flow of how the transformation and implementa-
of the business plan. This important section should pro-
tion process will take place.
vide the pond operator with the ability to understand the
Start-up tasks include the things necessary to start:
economic potential of the marketplace before actually
permits, pond revitalization, acquisition of fry, the prepa-
investing time and money.
ration of nursery systems for fry, transport of fry to pond,
and so forth. Depending on products to be cultured, some
1. Describe the product(s) and how they will be marketed
steps may be different. Estimated dates of starting and
a. How shipped off-island?
ending should be clearly identified on a calendar, even
b. Packaging needed
if these dates are tentative.
c. Wholesale or retail?
Ongoing tasks will be those that are expected to be
d. Value-added product—smoked, dried, etc.
routinely performed once the start-up tasks are complete.
e. Off-season availability
It may be simpler to address these issues in distinct phases.
2. Describe the market analysis for the products to es-
For example, operations, fry/nursery, grow-out, harvest-
timate if it will be a viable undertaking; what are the
ing, and restocking. Again, tasks should be set to timelines.
best, worst, and middle estimates?
This will be useful in management decision-making.
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Some business resources available from UH-CTAHR.
Quick revenue and costs estimates can be made using
For more guidance on business plans and help with some
this handy poster, Easy Profit Estimator.
of the content needed for them, consult This Hawaii
Product Went to Market.
Identification of critical risks
struction, supplies, office, equipment, maintenance,
This section identifies critical risks that may go wrong
marketing, general excise tax, land taxes, permits
and mitigation measures, if any, to remedy the situation.
and fees, etc. The pro forma will identify bottom-line
Probable risks factors include weather conditions, dis-
profitability based on expenses, revenues, and net
ease, vandalism, changes in the market, new competition,
income.
etc. Describe, as best as possible, how to address these
4. Financial need—from the pro forma and other consider-
risks and minimize production losses.
ations, the costs for this operation will surface, allowing
identification of the level of financing needed to initiate
Financial information
and potentially complete the business plan. This need
This is an important section because it specifies the
will be listed under capital costs and working capital.
amount of investment someone is willing to make and
predicts whether and when a profit will be realized at
The summary
some point in the future.
The summary is a brief analysis of what the business
1. Forecast of production—this section identifies the
plan entails. If done well, the business plan acts as a
product in terms of amounts produced and sold and
justification of whether the pond operator should proceed
the timing of such activities.
or not, and why. Some attention should be paid to listing
2. Capital costs—includes all cost factors involved in the
the qualifying factors indicating why this is a prudent
proposed plan, such items as materials and supplies,
undertaking.
permits or licenses, processing, packaging, transport,
marketing, labor, salaries, etc.
Appendices
3. Pro forma—describes the ability to seek a profit,
Appendices include any additional information to
minus all costs. This should be developed for a 3- to
promote the business plan, especially if one is seeking
5-year projection. Included in this section will be the
outside financial assistance. Included in this section are
dscription of revenue generation—assumed yield,
letters of interest, resumes, news reports, market studies,
price per pound, etc. Costs of production will be listed
photos, diagrams, market commitments, etc.
under expenses and should include items such as con-
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Loko i‘a
References and Further Reading
Apple, R.A. 1975. Ancient Hawaiian Shorezone Fish-
Hiatt, R.W. 1947. Food-Chains and Food Cycles in
ponds: An Evaluation of Survivors for Historical
Hawaiian Fishponds. Cooperative Fisheries Research
Preservation. U.S. National Park Service, Department
Staff, Honolulu. Research paper no. 2-3. Reprinted
of the Interior. 157 pp.
from Transactions of the American Fisheries Society
74(1944):250-280.
Aquaculture Magazine. 1982. April edition.
Hlawati, I.H.
2002. Loko I‘a: a Legal Guide to the
Ashdown, I. (McPhee). 1960. Kahana Pond. Mimeo-
Restoration of Native Hawaiian Fishponds Within
graphed document.
the Western Paradigm. University of Hawai‘i Law
Review 24:657-692.
Bardach, J.H.R., and McLarney, W.O. 1972. Aquacul-
ture: The Farming and Husbandry of Freshwater and
Hawaiian Fishpond Revitalization: A Manual. 1993. Ha-
Marine Organisms. John Wiley and Sons, Inc. 868 pp.
waiian Fishpond Revitalization Project and Oceanic
Institute, Waimānalo, Hawai‘i.
Ching, F.K.W. et al. 1973. The Archaeology of Puna,
Kaua‘i, Niumalu Ahupua‘a Loko Kuapa O Alekoko.
Hamre, C.J. 1945. A Survey of Nine Commerical Fish-
Prepared by Archaeological Research Center Hawaii
ponds. Cooperative Fisheries Research Staff, Hono-
for Kanoa Estate. Hawaiian Archaeological Journal
lulu. Progress report no.1. 11 pp.
73-1. 123 pp.
Kamakau, S.M. 1964. Ka Po‘e Kahiko: The People of
Cluff, D.F. 1971. Archeological Survey: Honokahau
Old. Special Publication no. 51, Bernice P. Bishop
#1 and 2, North Kona. Department of Anthropology,
Museum, Honolulu. 196 pp.
Bernice P. Bishop Museum, Honolulu. 21 pp.
Kelly, M.A. 1971. Kekaha: Aina Malo‘o: A Survey and
Cobb, J.H. 1901. Commerical Fisheries of the Hawaiian
History of Kaloko and Kukio, North Kona, Hawaii.
Islands. U.S. Bureau of Fisheries, Commissioner’s
Department of Anthropology, Bernice P. Bishop Mu-
Report. pp. 433-512.
seum, Honolulu. 65 pp.
Ertekin, R.C., Sundararaghavan, H., and van Stiphout,
Kelly, M.A. 1971. Loko I’a O Heeia: Heeia Fishpond.
A.T.F.M. (Sander). 1996. Molokai Fishpond Tidal
Department of Anthropology, Bernice P. Bishop Mu-
Circulation Study. Department of Ocean and Re-
seum, Honolulu. 65 pp.
sources Engineering, Univ. of Hawai‘i at Mänoa,
Report no. UHMOE-96203. 95 pp. Also, Sea Grant
Kikuchi, W.K. 1971. Examination and Evaluation of
Report no. UNIHI-SEAGRANT-TR-96-03.
Fishponds on the Leeward Coast of the Island of
Hawaii. Hawaii County Planning Commission.
Farber, M.J. 1997. Ancient Hawaiian Fishponds: Can
Restoration Succeed on Moloka‘i? Neptune House
Kikuchi, W.K. 1973. Hawaiian Aquacultural Systems.
Publications, Encitas, Calif.
Thesis, University of Arizona. 229 pp.
Gosline, W.E., and Brock, V.E. 1960. Handbook of Ha-
Kikuchi, W.K. 1976. Prehistoric Hawaiian Fishponds.
waiian Fishes. University of Hawai‘i Press. 372 pp.
Science 193:295-299.
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Lagler, K.F., Bardach, J.E., Miller, R.R., and May
Pukui, M.K., Elbert, S.H., and Mookini, E.T. 1975. The
Passino, D.R. 1977. Ichthyology. Second edition. John
Pocket Hawaiian Dictionary. University of Hawai‘i
Wiley and Sons, Inc. 506 pp.
Press. 276 pp.
Maciolek, J.A. 1974. Aquatic Survey of the Kona Coast.
Ricklefts, R.E. 1979. Ecology. Second edition. Chiron
Sea Grant Advisory Program. UHIHI-SEAGRANT-
Press, Inc. 966 pp.
AR-74-04. 73 pp.
Scott, W.B. 1973. Freshwater Fishes of Canada. Bul-
Madden, W.D., and Paulsen, C. 1977. The Potential for
letin of Fisheries Research Board of Canada, no. 184.
Mullet and Milkfish Culture in Hawaiian Fishponds.
996 pp.
Hawaii Department of Planning and Economic Devel-
opment. Prepared for Oceanic Institute, Waimānalo,
Summers, C. 1964. Hawaiian Fishponds. Bishop Mu-
Hawai‘i. 54 pp.
seum Press, Special Publications no. 51. 196 pp.
Magruder, W., and Hunt, J.W. 1976. Seaweeds of Hawaii.
Wyban, Carol A. 1992. Tide and Current: Fishponds of
Oriental Publishing Company. 115 pp.
Hawai’i. University of Hawai‘i Press.
Malone, T.C. 1968. Community Metabolism in a Hawai-
Yang, L., Sundararaghavan, H., and Ertekin, R.C. 1999.
ian Fishpond Environment and its Relationship to
Hawaiian Fishpond Studies: Web Page Development
Selected Environmental Factors. Thesis, University
and the Effect of Runoff from the Streams on Tidal
of Hawai‘i. 72 pp.
Circulation. Department of Ocean and Resources
Engineering, University of Hawai‘i at Mänoa, Report
Min, J.E. 1975. Hawaiian Fishponds as Coastal Re-
no. UHMOE-99210. 60 pp. Also, Sea Grant Report
sources: An Overview. Unpublished manuscript.
no. UNIHI-SEAGRANT-TR-99-02.
Nash, C. 1979. Fish Farming in Hawaii: A Lost Tradition
Yang, L. 2000. A Circulation Study of Hawaiian
Revived. ICLARM Newsletter. p. 4
Fishponds. M.S. thesis, Department of Ocean and
Resources Engineering,  University of Hawai‘i at
Norris, K.S., and Crouch, J.J. 1972. Refurbishing a
Mānoa.
Hawaiian Fishpond. Oceanic Institute, Waimānalo,
Hawai‘i.
Oceanic Institute. 1965. Proposal for Brackishwater
Fish Culture Laboratory in Hawaii. Waimānalo,
Hawai‘i. 95 pp.
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Loko i‘a
Economics of Revitalizing Hawaiian Fishpond Production
Kent Fleming, Graydon Keala, and William Monahan
warding, however it is difficult to quantify these social
ishpond construction in Hawai‘i started about 1,000
benefits. The present analysis focuses on the profitability
F
years ago and reached its zenith in the early 19th cen-
of operating a revitalized fishpond.
tury. The ravages of great waves and storms combined
with the decline of the native population left most of the
Economic considerations
ancient ponds unused by the end of the 19th century. To-
Some observers have characterized the ponds as being
day, however, there is an opportunity to revitalize these
“dormant ocean farms.” This analogy helps one to view
ponds and perhaps to make them productive, profitable,
fishponds as another component of the overall agriculture
and culturally rewarding once again. Fishpond produc-
economy. As in many other areas of Hawai‘i’s diversi-
tion has the potential to be the largest component of
fied agricultural economy, fishpond successes have
Hawaiian aquaculture. We describe here an economic
often been small, family owned and operated farms,
model of fishpond production. The model shows fish-
businesses which do not require a substantial cash flow
pond aquaculture to be profitable in some circumstances.
to pay hired-labor or high ownership costs for land and
Archeological and historical evidence suggests that
capital investment.
Hawaiian fishponds were constructed as early as AD
Fishponds in a high state of disrepair may never
1000 and continued to be built until the 1820s. Fishpond
become profitable if the capital required for restora-
construction intensified beginning in the late 1500s and
tion, including the extraordinarily complex permitting
early 1600s when the Hawaiian population was rapidly
process, is excessive. (Proceedings of Hana Symposium
expanding and sociopolitical systems became more com-
II, 1993) There is a significant cost in time and money to
plex. Various estimates place the number of fishponds
obtain the many permits and reviews currently required.
at one time from 300 to 500, ranging in size from less
Restoration costs can be somewhat mitigated if greater
than an acre to over 100 acres.
flexibility in the use of modern construction machinery
The products of the original ponds were primar-
and materials is permitted in building and repairing
ily reserved for the chiefly rank, the ali‘i. However, as
fishpond walls and gates. However, the annualized costs
Hawai‘i became increasingly democratized in the late
of this long-term investment must be justified by the
19th-century, the ponds became a valuable food source
potential income.
for all of the people. For complex social and physical
The economics of fishpond production is further
reasons, today there are only a dozen ponds actively
complicated by the absence of a well defined market.
farmed and properly managed. However, the potential
The potential production is enormous. For example, Paul
now exists for economic revitalization of neglected
Bienfang of the Oceanic Institute reported that fishpond
ponds. Revitalization involves applying modem aqua-
production on Moloka‘i alone (300 acres) could produce
culture technology to ancient pond management skills.
five times the entire 1992 aquaculture output in Hawaii.
The challenge of fishpond revitalization is to create
(Proceedings, p. 15) However, the market for this level of
an economically viable and environmentally sustain-
production must be clearly defined and carefully devel-
able aquaculture enterprise which also provides cultural
oped. Individual consumers, fish markets, and restaurants
benefits to society. Productive fishponds are culturally,
expect a reliable supply of a quality product at a reason-
educationally, environmentally and aesthetically re-
able price. Fishpond operators may find it particularly
profitable to supply the out-of-season demand. There
are also other potential markets that growers may wish
to develop. For example, with the depletion of Hawaii’s
Initially published in February 1995 as AgriBusiness no. 9, Coop-
erative Extension Service, University of Hawai‘i at Mānoa, Kent
reef population, there may be an opportunity to supply the
Fleming (editor).
state with fish for “stock enhancement,” i.e., for restock-
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ing the native fish populations. Mullet and milkfish can
If one needs to obtain financing or evaluate a proposed
also be used as live baitfish. Fishermen find mullet and
investment, the fishpond economic analysis functions
milkfish as attractive as traditional bait and more hardy
only as the first step in the process of a complete finan-
(Hawaiian Fishpond Revitalization: A Manual, 1993).
cial or investment analysis, an example of which is well
Hui O Loko I‘a, an association of fishpond owner-
articulated by the shrimp model.
operators, has been established to share management
Producers need to decide which variety or varieties
knowledge and expertise, to encourage cultural and
of fish to raise and how often and to what degree to stock
historical awareness, and to cooperate on market develop-
the pond. The varieties raised will usually include one
ment. In light of the successful models of smaller-scale
or more of the highly desirable traditional species: mul-
production systems in other enterprises and recognizing
let (‘ama ‘ama), milkfish (awa), and moi. The different
the inherent cultural value of traditional fishponds, eco-
feeding habits of mullet and awa make them a compatible
nomic development efforts directed toward restoration of
combination for our example pond. The pond is stocked
fishpond production will likely concentrate on the scale of
two times a year at the rate of 1,000 fingerlings per acre/
a “cottage industry” operated by a “multiple-income farm
stocking. We are assuming a 60% survival rate (i.e., a
family” in close cooperation with other similar families.
40% mortality rate), thus 2,000 fingerlings would yield
A plantation-scale, industrial-style, centralized approach
1,200 fish for market. These would average about 0.75
to fishpond production would appear to be inappropriate.
pounds each, or 900 pounds per acre per year.
Most traditional fishpond production will not involve
Methodology
feeding a supplement to fish beyond the early “starter”
An economic model of fishpond production was cre-
stage. In our example the nursery stock is fed for 90
ated based on data from currently operating fishponds.
days. Users of this economic model can choose either
Production practices in the operating section are typical
to feed or not to feed, and if feeding, to feed either a
of the well managed fishponds, but the operating input
starter or a grower supplement. Finally, the producer
costs are typical rather than average. In order to use
must decide upon a marketing plan. Some may choose
the fishpond model effectively, one needs to possess a
a batch processing strategy, that is, stocking a pond,
good understanding of fishpond production practices. A
growing and harvesting the entire crop at one time, and
technical description of the various production practices
marketing the fish all at once. The marketing plan will
is beyond the scope of this economic analysis but is
of course depend upon the nature of the market demand.
available in the 1993 manual.
A more difficult although potentially more profitable
Leung and Rowland (1989) have designed a com-
management strategy would be to harvest and market
puter spreadsheet model for the financial analysis of
weekly, and to include fish for both direct consumption
shrimp production. It is flexible enough to accommo-
and bait. This management plan is the strategy illustrated
date the evaluation of other aquaculture systems. The
in the fishpond economic model. The computer program
shrimp model, for example, can include a hatchery
calculates harvest costs based on the yield assumptions
component. By contrast, the fishpond model is specific
and the preferred marketing plan.
to the situations encountered by an operator of a revi-
The ownership arrangements in the ownership part
talized traditional fishpond. Shrimp aquaculture is an
of the model are also meant to reflect a typical situa-
intensive, relatively industrialized production system
tion. Currently, much of the land devoted to traditional
fundamentally different from the extensive production
fishponds is leased. The example pond assumes leased
system of fishpond aquaculture.
land, but any ownership structure can be used. Fishpond
The shrimp model is more comprehensive than the
production is relatively labor-intensive, but there may
fishpond model. For example, the shrimp model takes
be some opportunity for mechanization. The example
into account the time value of money, providing a dis-
farm is not mechanized, but a wide range of production
counted cash flow, the internal rate of return (IRR), and
techniques can be considered. The “bottom line” for
the net present value (NPV) for a proposed investment.
the operations component of the model is gross margin,
The fishpond model, by contrast, focuses on a typical
the gross revenue minus all of the operating costs, the
year of operation before tax. Therefore, the fishpond
amount available to pay for the ownership costs. The
model should be viewed primarily as a management tool.
ownership “bottom line” is economic profit, the gross
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Loko i‘a
margin minus the value of all of the ownership resources
enables a current or prospective fishpond operator to see
(i.e., the management, capital and land resources) and
what kinds of data are needed in order to calculate the
an appropriate adjustment to account for the riskiness
profitability of a specific fishpond operation. With the
of the enterprise.
appropriate data growers can use the economic model,
Most farmers (whatever their business enterprise) do
with a university extension agent, a consultant, or on
not include the full value of their labor, management and
their own, to calculate enterprise profitability and to
owner equity in their profitability calculations. They often
consider the economic impact of proposed or anticipated
think of their “profit” as the residual of their farming ef-
production, marketing, or policy changes, that is, to
fort. However, economic profit includes the value of all
answer strategic “what if?” questions.
productive resources. The return to the farmer should equal
The question most commonly asked of an economic
or exceed the value of his labor, management, and owner
profitability analysis is, “How much money could an
equity. If these returns are at least equal to their values, the
owner/operator typically expect to earn annually from
fishpond can be considered to be “profitable.” (In practice,
this enterprise?” In other words, what is the financial
the actual receipt of these returns may need to be postponed
profit (the returns to owner equity, management, labor
in order to “cash flow” a fishpond operation.)
and risk), given a specific set of assumptions?
Economic profit, as opposed to “accounting” or
(a)
Value of equity: This grower invested 60% of his
“financial” profit, is a better measure of true farm prof-
own money into the total investment of $36,200, that
itability because it is net of all costs, not simply cash
is, $21,720. (This investment allocates only $5,000
costs. In the long run we would expect economic profit
for the permitting process, perhaps an unrealisti-
to equal zero because all “out-of-pocket” expenses will
cally low figure given the high level of regulation.)
have been paid and all productive resources, such as
The grower feels he only needs to receive 5% on
land, labor, management, and the owner’s capital invest-
his equity, therefore his annual return to equity is
ment, will have received a “fair” return, i.e., a return at
$ 1,086. (If any land were owned, an imputed rent
least equal to their value. We would therefore expect
would be included here.)
that significantly positive economic profitability would
(b)
Value of management: He will provide all of the
attract more producers into the industry, and that nega-
management, and the value of management is
tive economic profitability would encourage producers
estimated to be 5% of the total annual gross sales
to exit the industry.
($45,360), which amounts to $2,268 annually.
(c)
Value of labor: It is assumed that he will provide all
Results
required labor, estimated to be 815 hours per year.
The complete results are provided as Tables 1 and 2, the
The annual value of this labor, assuming $7.50 per
computer printout of the model and example calcula-
hour, plus benefits at 33% of the wage rate, is $8,131.
tions. The “basic assumptions” and the bold italicized
Finally, as the risk-taking entrepreneur, he is entitled
figures represent data entries provided by growers.
to the return to risk.
However, any of these entries (variables) can be altered
(d)
Value of risk-taking: This value is the allowance for
to fit another user’s situation. The results are specific to
risk (estimated as 4% of the gross sales or $1,814)
the growers who provided information, and they may be
plus the economic profit, in this case $25. (If the
viewed as fairly typical but not necessarily average. By
economic profit were negative, the returns to equity,
contrast, the non-italicized (i.e., upright) figures indicate
management and labor would be reduced after the
computer calculated results or fixed categories for which
risk contingency was used up.) In our example total
no entry is necessary or possible. The model must be used
returns equal $13,324.
with the appropriate data to obtain meaningful results
for a specific fishpond.
A break-even price is the price required to cover
The summary results (Table 3) are obviously easier
costs given a specific yield; a break-even yield is the
to read than the complete results provided in Tables 1
yield required to cover costs, given a specific price. This
and 2. However, the detailed results have two important
analysis calculates the break-even price (per pound of
advantages. First, the “transparency” of the spreadsheet
fish sold) required to cover the operating costs and the
approach allows one to observe exactly how each of the
total costs, given the assumed yield. It also calculates the
costs were calculated. And secondly, the greater detail
break-even yield required to cover operating and total
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costs, given a specific price per pound. When the gross
operation will depend upon the quality of the owner/
margin equals zero, all operating costs will have been
operator’s management and marketing efforts. The
paid. In the short run, growers will continue to produce
operating costs are quite variable and must be closely
as long as the gross margin is positive. When the eco-
monitored and controlled. The annual ownership costs
nomic profit is zero or greater, all costs of production will
are relatively more fixed because they are largely a
have been paid. We would expect growers to continue
function of the initial capital investment. Therefore, the
producing in the long run as long as the economic profit
start-up costs (which include the costs of completing
is positive. In our example the annual marketable yield
the permitting process and complying with the atten-
per acre is 900 pounds (i.e., pounds of fish sold) and
dant regulations) must be reasonable. The market must
the weighted average price for each pound of yield is
be well defined. Marketing will in most cases involve
$3.15. Therefore, in order to cover all operating costs, a
more than simply providing a commodity. It will include
producer would have to receive at least $2.12 per pound
more creative possibilities, such as meeting the specific
or 606 pounds per acre; in order to cover total costs, he
demands of chefs, of fisherman (for baitfish), and of
would need to receive at least $3.12 per pound of fish
agencies interested in restocking. Finally, these markets
sold or 891 pounds per acre. Since he is receiving 30
must be carefully developed and maintained.
per pound more than his minimum break-even price, we
may assume that he would be inclined to remain in the
References
industry.
Hawaiian Fishpond Revitalization Project. 1993. Hawai-
ian fishpond revitalization: A manual. (Kula, Hawai‘i:
Summary and conclusions
Hawaiian Fishpond Revitalization Project; Honolulu:
Functioning traditional Hawaiian fishponds have cultur-
Oceanic Institute).
al, environmental, educational, aesthetic, and economic
Hawaiian Fishpond Revitalization Project. 1993. Pro-
benefits. Our study focuses solely on the economic profit-
ceedings of the Hana II Symposium (Kula, Hawai‘i:
ability aspects; it does not consider either liquidity (i.e.,
Hawaiian Fishpond Revitalization Project; Honolulu:
cash flow) or solvency. Fishpond production provides
Oceanic Institute).
a highly desirable food source for the community and
Leung, P.S., and L.W. Rowland. 1989. Financial analy-
offers an income for the fishpond operator. Today, a few
sis of shrimp production: An electronic spreadsheet
fishponds are operating successfully, but the current state
model. Computers and Electronics in Agriculture 3:
permitting process forces most to remain dormant, to
287-304.
continue as a part of one of Hawaii’s more important
underdeveloped economic resources.
Acknowledgments
The fishpond model is intended as a management
The authors of this economic study are grateful to the
tool. To the extent that it better enables one to organize
following people and organizations who helped to make
fishpond production data into useful economic informa-
the study possible: the fishpond operators who patiently
tion, it can lead to better economic decision-making. It
explained their production practices and economic
allows one to quantify the actual economic performance
concerns; Drs. Richard Bowen and PingSun Leung for
and to project the potential economic profitability. It is
review and comment; the Hawai‘i Fishpond Revitaliza-
not however a substitute for a full investment analysis.
tion Project for helping to fund the applied economic
While fishpond production is potentially profitable,
research; and the County of Hawai‘i Economic Devel-
profit margins are small, as they often are with agri-
opment Board for helping to fund the study’s original
cultural enterprises. The profitability of any particular
printing as AgriBusiness no. 9 (1995).
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