Aquaponics Mission – Aquaponics is a method of food production which combines the best aspects of aquaculture and hydroponics, to create a highly productive living ecosystem for sustainable agriculture.
Organic Aquaponics seeks to bring aquaponics to our local market through the use of commercially viable strategies, allowing us to grow nutritious vegetables using the most sustainable agriculture systems available.
Problem- Today’s agriculture is vastly different to that practiced by our grandfathers. Threatened by problems related to water shortages, pest infestation, theft, cold snaps, natural disasters, topsoil loss, reliance on fossil fuel inputs, and a changing climate, the productivity and reliability of our food systems and ecosystems are at stake. Alternatives are needed which are more efficient in use of resources, sustainable, resilient, and better a mesh with our communities. Aquaponics is an agricultural technique poised to meet our current and future needs for locally raised healthy and sustainable produce.
Market- There is a growing and diverse clientele for medicinal cannabis, as well as healthy, local, and delicious vegetables. Within the greater area of the Australian Nation and World Markets, we will supply a range of crops to our community through sales to produce distributers, specialty markets, local farmers markets, and Community Supported Agriculture (CSA) farms.
Competition- Currently, many competitors who exist, sell organic and conventional leafy greens. Market differentiation can be demonstrated by showcasing the great taste of aquaponics produce, the ‘living’
produce we will sell, which stays fresh longer as it keeps growing until used, and the sustainability of Organic Aquaponics agriculture. By focusing on local and regional markets as well as boutique restaurants we will provide superior produce within our community and expand the crops available within the living produce niche.
Potential- The potential for aquaponics and low-food transport miles to capture a large share of the fresh produce market in any one location will be difficult, due to the extensive and established food
distribution network. However, similar to an electrical grid which relies too greatly on far off electricity sources, the inclusion of local and sustainable supplies is desirable to consumers and local economies.
AUSTS Agriculture Organic Aqua-ponics plans to supply the growing market share with seasonal and out of seasonal vegetables, (from our spring/summer modified environments), servicing the demands of local communities all year round.
Our aquaponics system is both water and energy efficient, has low labour costs and requires minimal inputs. It can also run OFF-GRID and is fully sustainable.
This resource efficient and cost-effective alternative to traditional agriculture is well positioned to advance to commercial production. Aquaponics has faster production cycles times three, and increased planting densities compared to traditional agriculture, providing aquaponics with a distinct advantage over any competitor .
Goal- AUSTS Agriculture Organic Aqua-ponics goal is to grow healthy food for our region, optimize water and energy efficiency of aquaponics operations, demonstrate the commercial viability of aqua-ponics farming, and promote the sustainability of aquaponics as an alternative to existing food production systems. We will strive to educate others as we develop techniques that are scalable from backyards to large commercial farms in order to lighten the impact of modern agricultural practices.
AUSTS. Agriculture Organic Aquaponics.
Business Plan
General Company Description
Aquaponics is a method of food production which combines the best aspects of aquaculture and hydroponics to create a highly productive living ecosystem for sustainable agriculture. By cultivating fish, prawns, crayfish and plants in a re-circulating system, fish waste can be converted to plant food using natural bacterial cycles (nitrates and nitrites). AUSTS Agriculture Organic Aqua-ponics seeks to utilize cutting-edge aquaponics techniques to grow organic vegetables for our community, educate others about aquaponics potential, and demonstrate the sustainable nature of our aquaponics food production.
History- Aquaponics is most well known in Australia, where recent droughts have transformed the way water is used. Aquaponics though has its earliest roots in ancient Mayan traditions, when combined fishponds and crops grew on rafts floating above the fish. Recent advances in aquaponics have improved the overall system’s productivity, reduced water use and wastewater pollution, and improved nutrient cycling, all of which vastly improve the sustainable nature of the practice.
While there are still advocates for many different methods of aquaponic production, The Hanging Baskets of Babylon has shown significant advantages for many crop species in production density, labor requirements, and overall simplicity over gravel bed systems, nutrient film, and other techniques.
The practice of aquaponics is experiencing significant growth among backyard gardeners and Perma culturists as they embrace the opportunities of space saving and sustainable food production.
Commercialization at this time has been limited despite the incredible opportunity it presents, and the improved economy of scale it offers over the more common backyard systems. By producing high quality and nutritious vegetables in amounts 8-10 times greater than in soil, we believe aquaponics presents tremendous opportunities for commercial and urban farmers.
To ensure the success of AUSTS Agriculture Organic Aqua-ponics , we will establish a highly productive and stable ecosystem and demonstrate the superior taste and shelf life of aquaponics vegetables in order to differentiate ourselves from traditionally grown produce, in which 50-90% is wasted, because size regulation and shelf life.
Balanced Ecosystem- The underlying key to aquaponics system stability and production, is maintaining a Proper Computer controlled balance within the living ecosystem between fish feeding rates (inputs) and plant uptake of nutrients (outputs). Similar to organic farmers who nurture the soil to ensure the ideal nutrient balance plants require, aquaponics systems must achieve a balance between nutrient availability to maximize plant growth and proper water quality for the fish, bacteria, and plants within the system. To effectively maintain nutrient balance, it is important to balance the ratio of pounds of fish to plant grow space, achieve efficient nutrient cycling, and continually start new vegetables to replace harvested produce.
The ability to use rapidly growing vegetables as a form of filtration for fish waste is a game changer for the idea of sustainable aquaculture. Even today, most aquaculture operations waste a tremendous amount of water in order to dilute the nutrients which build up in the system. Aquaponics systems rely on micro-organisms which convert dissolved and solid fish wastes into forms readily available to plants, preventing the buildup of nitrate and eliminating the need for regular water changes to maintain fish
health. This efficient nutrient cycling possible by combining aquaculture and hydroponics results in a stable and incredibly productive ecosystem without the high water use and wastewater pollution, typical of aquaculture. Furthermore, aquaponics avoids the nitrogen loss from soil to runoff and percolation into the ground, preventing contamination of surface and groundwater.
Organic by Design- Organic Aquaponics will follow closely in the footsteps of the pioneering work of Friendly Aquaponics, located on the Big Island of Hawaii. While the substantial water savings, efficient nutrient cycling, and other sustainable methods we will use are marketable, the organic label is what the customer trusts and what allows farmers to charge a premium price for our quality produce.
Market Differentiation- It will be important to establish differences between our products and existing local organic and ‘living’ produce. While traditional organic or hydroponic farms offer significant improvements on modern industrial agriculture, Aquaponics goes further towards addressing sustainability of food systems, thanks to the benefits of organic and hydroponic production. To define our sustainability, it will be important to document how aquaponics reduces water and energy use, highlight the incorporation of renewable energy to maintain ideal production, water temperature, and perform a carbon footprint and/or Life Cycle Analysis on aquaponics. The goal is to prove to industry and the consumer the sustainable nature of aquaponics.
Existing aquaponic farms highlight the superior taste and shelf life of their produce. Since we will be using the same materials and methods of Friendly Aquaponics on Hawaii, a commercially successful organic aquaponics farm, we have every reason to expect improved taste and shelf life compared to
traditional produce.
Marketing- Aquaponics methods of growing food are not yet well known by the general public. Therefore, we do not expect large initial sales volumes at the retail level. While we do expect to raise delicious produce, initially it will be important to build relationships with wholesale produce markets who understand our value and unique niche we fill. Initially, we expect them to be our largest customers and partners in gaining market exposure. For retail sales, we envision promotions to get customers to taste the difference between aquaponics and regular produce in order to secure an initial sale which can establish customer loyalty. Regular exposure at Farmer’s Markets and securing valuable shelf space at supermarkets are critical to making the first connection with customers, after which we hope the product quality will speak for itself. Likewise, the creation of a logo which simply explains the unique
nature of aquaponics will be important for defining what is Organic Aquaponics.
Customers- Initially we plan on establishing relationships with wholesalers to focus our energy on build out and refining the production process. This will be very important to ensure an initial revenue stream and quickly gain sales volume. While volume sales at the wholesale level are important, significantly less revenue is generated per item produced. By month 6, we will establish relationships and contracts with grocers, and Farmer’s Market customers to capture a larger percentage of the non-wholesale market. Currently there is a waiting list for some of the better Farmer’s Markets in our county, but the unique produce and approach of Organic Aquaponics may allow us to obtain prime space and better retail volume and exposure. As our products become established with the community and retail sales expand, we will be able to earn more revenue per unit.
Location- The AUSTS Agriculture Organic Aqua-ponics greenhouses are in the process of being transformed from a nearly abandoned bare land to a vibrant farming community. Anchored by Farmer’s Wholesale Produce, a sustainable produce distributor, numerous greenhouse bays are being revamped for organic farming operations and plant research through the University. This facility offers an excellent physical platform to cost effectively build a commercial organic aquaponics facility. Greenhouse bays are roughly 10,000ft² and upon project initiation, we will secure an option on adjacent greenhouse bays for possible expansion should market conditions and growth projections allow.
Traditional greenhouses- High build costs (Glass & steel) and running expenses:-
Labor & fossil fuels. No Airlocks for sterile environment.
Products and Services
Fish- Aquaponics grows both fish and vegetables but to the majority of people, the fish are seen as the most intriguing and valuable side of aquaponics. It turns out that for Friendly Aquaponics and other aquaponics farms, over 90+% of revenue from vegetable sales thanks to the fast growth of plants and large market for organic vegetables. We envision the value of fish primarily as the ‘engine’ to provide balanced organic nutrients to the vegetables and will manage our fish stocks for growth in the first few
years to allow system expansion rather than sales.
We plan on utilising rainbow trout, silver perch and barramundi as the main fish species within the system, and believe they are ideal due to their tolerance for variable water qualities, especially seasonally cold temperatures. Other reasons include rapid growth, ease of breeding, and marketability with local boutique restaurants.
To offset high initial purchase costs for Trout, we will purchase ~1000 2” fingerlings from local breeders, enough to begin operation of two troughs. As the fish grow, the number of pounds of fish in the system grows, providing the nutrients necessary to connect more large troughs or pools, and scale up the vegetable grow area as we maximize organic vegetable production. As we scale up, we will separate some fish for future brood stock and sell a limited number with good markings but keep the vast majority for our fish ‘engine’. Only after successful breeding and rearing of fish and expansion of the aquaponics system has occurred, will we begin a larger scale marketing of fish, likely at the end of year two.
Once fish sales begin, our fish will have an inherent advantage as unlike other commercially available fish, these fish will have been part of an innovative and sustainable agricultural venture and raised in local water quality conditions.
Vegetables- The majority of expected revenue will come from the organic vegetables we produce. Fish produce a nearly continuous source of dissolved nitrogen in the form of ammonia, which is readily converted to the available form, nitrate. These nutrients are continuously available to plants as water flows past their roots, enabling plants to grow faster than they could in soil. Aquaponics has a faster time to harvest, resulting in more harvests per year. Combined with the higher crop densities possible with the hanging baskets, each square foot of grows space can annually grow 8-10 times the number of vegetables in soil. For these reasons, we will maximize grow space for vegetables to achieve larger production and an excellent return on investment.
Our use of deep-water culture aquaponics systems can produce a wide range of crop types, but leafy green vegetables and small herbaceous plants have been shown to be ideal in these types of systems.
These plants, which are harvested before flowering, benefit from the stable nitrogen levels fish provide in aquaponics systems. Flowering plants such as tomatoes, peppers, broccoli, etc., prefer a shift from
nitrogen inputs to phosphorous and potassium inputs when flowering, which is difficult to manage if these are the dominant crops in an organic aquaponics system. While we plan on growing a variety of vegetables, including some flowering plants, our plan focuses on leafy green vegetables and other similar nitrogen loving plant species which have proven to thrive in aquaponics.
By year two, we will create value added products as an important area of growth for Organic Aquaponics.
By partnering with local chef’s and renting commercial kitchen spaces, we can use many crops we grow to make other products, such as pesto and dressings, kale chips and flakes, and countles other possibilities. Careful consideration of value-added products can become a highly profitable line and make good use of peak season harvests.
The greenhouse space we are considering will be significantly larger than we will initially convert to aquaponics. In order to allow our juvenile fish to grow and prove the system design works for our location, we will have some space where we plan on growing vegetables using traditional methods. This will be a good method for us to generate revenue in years one and two with minimal capital expenses.
Over time, as we confirm and expand the aquaponics system design, the area available for traditional soil crops will be phased out to allow for more profitable aquaponics operations.
Renewable Energy- To produce optimal growing conditions year-round, maintaining water temperatures around 27C or 72° F has been shown to be the most important environmental factor besides light availability. To accomplish this, we will utilize an existing greenhouse, insulated tanks, solar thermal water heating, and ground source heat pumps. The use of insulation and renewable energy to heat and cool water will help maintain these optimal conditions with significantly reduced reliance on fossil fuels such as natural gas or propane. We anticipate these actions will extend our growing season and give us a market advantage over our local competitors. We expect our results will demonstrate our leadership in sustainable agriculture while also improving our bottom line.
Greenhouse Management- Greenhouses provide an effective method to control environmental conditions and improve plant growth and extend growing seasons. Proper operation of a greenhouse is
critical to ensure temperature, humidity, light, and other factors fulfil the crop’s needs.
Existing greenhouses at competitor’s companies have manually operated ridge vents and large openings on either end for cross ventilation. Unlike standard greenhouse operations, our system will involve over 50,000 gallons of water within the troughs, which act as a large thermal mass to minimize daily temperature extremes for the fish and plant roots. We will employ air and water temperature monitoring strategies which will maintain ideal growing conditions, and work best for our specific crops and the particular season. Similarly, we will actively monitor for and manage pests in order to reduce the frequency and severity of pest infestations within our controlled greenhouse environment. Put simply, we will employ good design, perform careful observation, and take swift action to maintain ideal environmental conditions for our crops.
What’s in the Name- AUSTS Agriculture Organic Aqua-ponics greenhouses strives to live up to its namesake both in what we produce, and the lifestyle of our target customers. The ability to greatly expand into the organic produce market makes Organic Aquaponics immediately recognizable among our competitors. Our Organic certification will be ingrained in our business name, showcasing the
phrase most understood by consumers to symbolize a better and more sustainable product. And Aquaponics will proudly recognize and educate consumers to this innovative approach to sustainable agriculture. While aquaponics is virtually unknown to the average consumer, we anticipate once they have had the ability to taste our produce, aquaponics will be recognized as a superior method to grow a wide range of vegetables. Organic Aquaponics will connect with the lifestyle and members of our community who want the fresh and delicious produce, care about what they put in their own body, and promote the health of their community and planet. Our goal of promoting Organic Aquaponics as a lifestyle choice can help our customers affirm how their purchasing decisions can positively impact the social, economic, and environmental issues they care about.
Competitive Advantages and Disadvantages- For wholesale distributors and retailers, the competitive
advantages of our products include; being a desirable local organic product, produce orders that requires less lead time from seedling to harvest, and our ability to provide living produce they do not currently have access to.
Competitive advantages for the consumer include the delicious taste of aquaponic produce, the availability of ‘living’ produce which improves the shelf life of the produce in their fridge, and the organic certification and superior sustainability of our product.
Aquaponically grown produce has been found to be much sweeter and less bitter than crops grown in soil or hydroponic solution, resulting in a significant taste advantage, critical for repeat sales and marketability.
We will seek to capitalize on this through taste tests with locally available products and if significant, prominently feature taste testing at Farmer’s Markets. While a few firms offer living butter lettuce or basil, they use hydroponic methods which are not certified organic and are not part of a larger ‘living’ product line. Many other local competitors sell organically certified produce but none of them use aquaponics techniques.
As knowledge and demand for aquaponics produce grows, we feel the customer will seek out our products which has a longer shelf life, greater taste, and is organically certified.
Risk Management- Many things can go wrong with traditional farming and aquaponics similarly has risks. Risk management is essential to long term success by reducing the likelihood, frequency, and severity of risks. Our plans take into account good system design, climate control, backup pumps and
generators, security, organic pest management, keen observation, and a rapid and appropriate response to emerging problems, will all play a role in preventing and limiting damage from known risk factors. We will be using aquaponic methods and materials that demonstrate commercial success with an emphasise on energy efficiencies and a labor effective design, allowing us to minimize ongoing costs and reduce the risk of the unexpected.
Potential risks for an aquaponics operation include loss of fish or crops to pests, disease, or vandalism; plumbing or equipment failure resulting in system leaks or water quality emergency; changing markets or competition; loss of key staff or partners; or problems with permitting, health code violations or other regulatory problems. While these risks could lead to either potential short term revenue loss or in some cases more substantial problems, our team will actively consider these risks and continually evaluate other risks and threats to the operation. We plan on operating in a financially conservative
manner to ensure adequate operating capital to provide flexibility to respond to the changing market or other external conditions.
Pricing- Our products will be priced competitively with locally available organic produce but offer the advantages of superior sustainability, taste, and shelf life.
For sales to restaurants where products will serve as part of a meal, live sales will not be necessary as the purchasing turnover will be carried out frequently. For these customers, we will be able to reduce
costs with the use of traditional single cut practices which will simplify processing and avoid the use of individual plastic bags for each head of produce which is necessary for ‘living’ produce.
Marketing Plan
Market Research- Marketing for the primary product, living organic produce, will be done through discussions with wholesale produce distributors, grocery stores, and community groups such as school districts. We will seek to find the best balance between time consuming sales direct to consumers and
retailers, vs. the ease of selling to wholesale produce distributors, such as the onsite Farmer’s Wholesale Produce.
Target Market- Our target market includes eco-conscious consumers who desire fresh, local, and organic products. They desire healthy food, less chemicals, and more appropriate use of resources. This demographic is 15-64 years old, has an income above $50,000, and is socially aware. XxxAccording to data from the Australian Census for 2005-2009 xxx Community Survey, 4,184,351 people in live in our state, or 46% or our target market are between the ages of 25-64, and 800,804 households, or 58% of all households make over $50,000 Based on the available data of age and household income, and the general success of many environmentally and socially minded organizations locally, our locality appears to be an ideal location for Organic Aquaponics. In addition, our proximity to large markets, the Tri-Band
Countries allow room for significant growth through existing distribution networks if local markets cannot support our growth potential. Combined with living produce’s extended product shelf life, we feel the unique attributes of Organic Aquaponics vegetables will provide our customers with a more desirable and competitively priced alternative over traditional produce. We expect our emphasis on raising the bar for sustainability will create excellent product recognition and improve our ability to secure repeat sales.
Market Trends- Our broad target market of consumers seeking organic food had sales quintuple nationally from 1997 to 2008, from $3.6 billion to $21.1 billion. This amounts to 3% of total U.S. food sales in 2008, but in communities such as ours which are health conscious and affluent.
this percentage is likely much higher than 3% of the market. A recent survey in our county revealed a majority of respondents said it was important to buy local produce and nearly half said they purchased local produce at least once a week. As consumer awareness of the harm caused by pesticides and
herbicides grows, the market demand for organic and other more sustainable attributes has increased.
We aim to take advantage of this demand growth and help meet the need for healthier food for ourselves and our planet. God Bless you if read this to the end.
Austs Ecology 