The problem with this industry atm is exchange rates. Competing with known, high quality local product is difficult enough without a strong dollar making returns weaker in the face of increased transport costs. Farmed abalone has enormous potential, but growth is slow and methods are expensive. Farmed sushimi tuna is suffering from increased supply, slowing demand and increased costs. Lobster and prawn prices have collapsed, uncertainity currently exists in many major markets, especially China. But the biggest hurdle is the exchange rate. Since the goldrush days of the mid 90's bottom lines have been revised down in response. Thats not to say that aquaculture wont continue to expand and diversify. More that is a natural part of the cycle of a developing industry. The right product to the right market can succeed in an adverse environment and any improvement in economic conditions (i.e. currency rates) will translate to further short and longer term growth.
AAQ Price at posting:
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