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An article at the MoneyAndMarkets.com Website led me to 3 recent stock buys: Omega Protein (OME) and HQ Sustainable Maritime Industries (HQS). in my Microcaps fund and Martek Biosciences (MATK) in my Strategy Lab fund. Although the current food shortage has led to many articles and blogs about fertilizer and grain, How to Profit from "Live Gold" was the first one I'd seen on aquaculture. Yet, worldwide demand for seafood is growing while global aquatic populations are drastically declining.
The "Live Gold" in the title referred to goldfish (i.e. carp) which the Chinese have farmed since around 2,500 BC! Is it any surprise that a lot of today's aquaculture stocks are Asian? Combine that with the fact that many aquaculture companies are quite tiny and it is difficult to find many you can trade at Marketocracy.
Searching the larger world of aquaculture, I found Martek which produces nutrients from microalgae, fungi and other microbes.
Algae is great stuff. It is "fishfood" in the sense that it is important as a nutrient in many marine ecologies. Unfortunately, when you get too much of it, as has happened in many coastal areas, it can actually smother other species. Although there are companies which make biofuels out of algae, they seem to be farming their own rather than gathering it up from coastal areas. The algae biofuel industry is in a very preliminary, experimental stage but bears watching.
It doesn't look like we will have many industrial-size aquaculture operations in the US anytime soon. A year-old article in "Fortune" magazine revealed that the US mostly farms fish in small ponds and lakes and has limited ocean shellfish farming. Some growing US aquaculture companies, faced with impossible red tape here, are expanding their operations to other countries instead.
Not everyone in the US is in favor of aquaculture due, not only to competition, but also to environmental concerns. Of course I am looking for a specialty company which could make money helping aquaculture firms to develop safer "farms". Here's a good niche for an experienced marine biologist wanting to go into business for herself!
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