Florida Organic Aquaculture LLC retains M and A specialist
Antonio Garza de Yta
For true progress it is important to level the playing field! Today I want to concentrate on a very important subject, the subsidies. In past days I talked with a good friend who gave me the subject of this column. His request was simple, yet difficult: "Please, somehow make the federal and state government understand that subsidies, instead of boosting aquaculture, are plunging it. Do not give more support to the bottom, better help us to get credits to good cups!" Obviously we had a long talk after that, impossible to summarise in 600 words, but his points were clear. He, like many other producers in the country have never asked for support, however, many times they have been affected because the moment a subsidy is given to a producer in the region; Whether for infrastructure, food or livestock, it can go out to market at lower prices and this encourages unfair competition. It is obvious that someone who does not have an input or who does not have to pay the initial investment in infrastructure can handle a different structure of prices, and this is not fair for someone who somehow invested in an aquaculture company. In addition, these producers generally go on the market for a few years and leave the aquaculture activity, since it did not cost them anything the project and often they do not have vocation of aquacultores, only generating instability in the local markets and negatively impacting the established producers. It is better to offer many billions of pesos in credits to good mugs to those who are willing to invest in aquaculture, to give away some hundreds in projects that may work for a few years but that do not really impact in the long run. Another clear example that I could observe is a fishmonger that opened with
drums and saucers less than a year ago and offered only top quality Mexican products. Within the same area a fishery financed by the state government opened offering aquaculture products at farm prices, obviously causing the first to lose market and profitability, therefore forced to close its doors. In this case we are not against supporting producers, but they are not supported at all if they are not taught to be entrepreneurs. The state fishmonger had to have increased the sale price of its products by at least 30 percent, because otherwise, instead of promoting the opening of points of sale, it is inhibiting them! When someone opens a business of these, you have to pay light, rent, staff, telephone and other expenses; and where will the money go to pay for it? If this model wants to franchise, it will have to have considered this increase in the sale price, or else the State will be condemned to be the only one that manages these points of sale. This is neither its function nor historically proven to do so efficiently. This type of “support” and subsidies in general can hurt the sector more than it helps. What we have is to promote competitiveness! Facilitate credits, permits and encourage micro, small, medium and large companies. We have to level the playing field because otherwise lucky individuals or influences will have an advantage over others who do not have them. It is time to redesign the supports that are given to aquaculture and think about a vision of long-term progress. Let’s end with the people who live on subsidies and generate entrepreneurs.
Antonio Garza de Yta, Ph.D in Aquaculture from Auburn University, President of Aquaculture Global Consulting, Director World Aquaculture Society and creator of the Certification for Aquaculture Professional (CAP) Program. He is currently Rector, Universidad Tecnológica del Mar de Tamaulipas Bicentenario
10 | September 2017 - International Aquafeed
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lorida Organic Aquaculture LLC (the “Company”) has retained Equity Partners HG to seek an investor, partner or buyer for the state- of- the-art, technology-driven shrimp farming operation. Located on 100 acres in Southern Florida, the Company breeds, processes and sells all-natural shrimp for the US domestic market in a scientifically advanced, indoor and bio-secure aquaculture facility. Florida Organic Aquaculture has focused their research on alternative shrimp dietary approaches and developing successful cultivation processing techniques. A water treatment methodology and emergency back-up devices maintain perfect growing conditions year-round. The Company’s technological advantages have eliminated the limitations faced by competitors allowing production yields of approximately 20 times more shrimp than traditional pen and pond farms. These production methods enable faster grow out, making it practical to sell shrimp that command up to twice the price of commodity sizes. Finished products are currently sold directly to a tier-one grocery chain, seafood wholesalers and several prominent seafood restaurants. Future opportunities include franchising out the Company’s technology and know-how, to become the leader in the shrimp farming market. To date the company has had inquiries to create sister projects in California, Hawaii, and Wyoming, as well as from Europe, China, and the Middle East. The Company is also developing a value add component to leverage their shrimp and create additional revenue. Hank Waida, a Managing Director at Equity Partners HG commented, “This is an excellent opportunity to invest in or purchase a state-of-theart shrimp farming operation with infrastructure in place to quickly expand as needed.”