Aquaponic Systems Profit Margins for Investors
– by Colle and Phyllis Davis
In today’s incredibly competitive and tightly controlled food supply system, competing on price in the local market is a constant challenge for local farmers because factory farming has driven prices down to a very slim margin. Most countries subsidize their farmers and then compete on supply and prices in the world market which means that nearly all food is subsidized by some government somewhere. The result is cheap food for now as long as transportation costs remain low and governments continue to subsidize farmers.
In most countries the local markets draw from the world food supply and their local farmers can often make many times more money by shipping their product out of the area and this drives up the local prices. Better to make more money shipping the vegetables half way around the world because people are smart enough to go where the money is so they themselves can eat, have a nice house and send their children to school.
This scenario is true for most fresh food products including fish. The per capita consumption of fish has remained relatively stable, but the ocean caught and locally caught fish amounts are decreasing and commercial fish farming is increasingly filling in the gap. This means that the control of the fish market has shifted to being controlled by a few food suppliers and that the prices are now that of the world market. Local fish farmers have to compete with those who can produce fish for less and there will always be someone, somewhere who will sell their catch for less.
Competing in the vegetable market has become almost completely a worldwide market and only during the local ‘season’ do local crops have an impact on local prices, the rest of the year the vegetables come from the areas of the earth where it is warm enough to grow huge quantities of vegetables and shipped to markets everywhere. This makes ‘local’ prices the same no matter where the produce is shipped and offered for sale. Local farmers are always at a disadvantage because they cannot compete with the factory farms that ship out vegetables by the thousands of tons each day.
As long as shipping costs are ‘reasonable’ the world will have a single market place. When the transportation costs become prohibitive, the local markets will function again.
Now the GOOD NEWS: Today there is a proven system to overcome the huge disadvantages currently built into local market pricing anywhere in the world. The Portable Farms Aquaponics System’s (patent pending) technology changes the equation back to favor the local food producers for the production of all vegetables and fish especially the ‘out of season’ products, on a year round basis. Fresh, locally grown food is now in hot demand by consumers and markets alike.
The only problem with the technology is that it has a high initial cost. But the ROI on a commercial installation is three to five years and these food production ‘machines’ begin to produce income, using local labor and materials, in less than 60 days. Once the installations are in place, they require very little energy and water, very little maintenance and have no single point of failure. They also employ local semi-skilled labor in permanent full time jobs.
With a bit of planning Portable Farms Aquaponics Systems can also be run to NOT COMPETE with local farmers using ground-grown farming by switching crops during the local farmers seasonal production. These aquaponics systems can compete with ANY PRICING STRUCTURE no matter where the vegetables are grown, even local ground grown. This is true even in today’s world market structure.
Today an investor or a company or a country can be operating a Portable Farms Aquaponics System that is locally controlled and locally operated as a high intensity food production facility and it can be operational in less than three months. Owners will begin receiving an income is less than six months and provide local permanent full time jobs for semi-skilled labor.
Total initial investment for a single 10,000 sq ft (930m2) installation? Less than US$400,000 and in many cases less than half that amount depending on the cost of the climatically adapted greenhouse to house the aquaponic system, see Renting a Greenhouse.
Call today to discuss becoming a commercial grower for locally grown food in your area of the world.