Draft National Aquaculture Development Plan

DRAFT NATIONAL AQUACULTURE DEVELOPMENT PLAN
of 1996 Joint Subcommittee on Aquaculture National Science and Technology Council

1. INTRODUCTION

1.1 Vision for U.S. Aquaculture: To develop a highly competitive, sustainable aquaculture industry in the United States to meet consumer demand for cultivated aquatic foods and products that are of high quality, safe, competitively priced, and nutritious and are produced in an environmentally responsible manner with maximum opportunity for profitability in all sectors of the industry.

1.2 Purpose of the Plan: To identify high priority Federal government actions, over the next 3-5 years, to support a sustainable, internationally competitive U.S. aquaculture industry, and to lay out a realistic, achievable strategy for undertaking these actions. The Plan addresses only the Federal government role in U.S. aquaculture development; it does not describe activities and strategies that are the responsibility of the private sector, State government, universities and non-Federal research institutions, or other involved parties.

1.3 Benefits of a Competitive, Sustainable U.S. Aquaculture Industry: o Jobs creation and contribution to long-term economic growth. o Alternative, but compatible economic opportunities in rural and coastal areas. o Expansion of domestic and export markets for U.S. aquaculture products and supporting equipment, supplies, and services. o Decreased pressure on threatened capture fisheries. o Reduction of the U.S. trade deficit. o Assurance of high quality, safe, competitively priced, and nutritious seafood. o Continued U.S. leadership in fundamental science related to aquaculture.

INSERT BOX: What is Aquaculture?

The Food and Agriculture Organization (FAO) of the United Nations has defined aquaculture as "the farming of aquatic organisms, including fish, molluscs, crustaceans, and aquatic plants. Farming implies some form of intervention in the rearing process to enhance production, such as regular stocking, feeding, protection from predators, etc. Farming also implies individual or corporate ownership of the stock being cultivated..." (3)

1.4 Background: Further development of U.S. aquaculture is in the national interest. Commercial fisheries are being harvested at or above their maximum sustainable yield. The U.S. is heavily dependent on imported seafood. A consensus is developing that a dramatic increase in aquaculture is needed to supply our growing seafood needs.

1.4.1. Decline of Commercial Fisheries. The worldwide harvest of fish and shellfish increased from 92.8 million metric tons (MT) in 1986 to 100.2 million MT by 1989 but has remained essentially unchanged since 1989 (3). Approximately 17 percent of landings now come from aquaculture, whose global production is increasing. In contrast, capture fisheries harvests appear to have peaked. Nearly 70 percent of the world's conventional commercial species are now fully exploited, overexploited, depleted, or recovering from depletion (3). FAO scientists have determined that "...overfishing and destruction of habitat have caused alarming drops in marine populations..." and that "in some cases, some heavily fished species are approaching not only commercial, but biological extinction." (12).

1.4.2 U.S. Dependence on Imported Seafood. The U.S. is, after Japan, the world's largest importer of fisheries products (3). The value of imported fisheries products increased by more than 79 percent between 1985 and 1994 to a record level of nearly $12 billion in 1994 (9). This accounts for a U.S. fisheries trade deficit of $4.6 billion for all fisheries products and $3.5 billion for edible seafood (1994 figures). In 1994, nearly half of all U.S. fisheries supplies were imported (45.8 percent of all edible and industrial fisheries products and 42.1 percent of edible seafood). (9).

1.4.3 Future Demand for Seafood. FAO projects that worldwide demand for edible seafood will increase over 25 percent, from 72.3 to 91 million metric tons, between 1993 and 2010 (4). The U.S. Department of Commerce predicts that U.S. demand will increase by 1.4 million metric tons (round weight) by the year 2000, due to population growth alone (10). Per capita consumption of edible seafood by Americans increased from 12.5 pounds in 1980 to 15.2 pounds in 1994 (compared to a global average of 41.8 pounds); demand peaked at 16.2 pounds in 1987, declined to 14.8 pounds by 1992, and has increased slightly since (9).

1.4.4 The Opportunity for Aquaculture. Between 1984 and 1992, aquaculture's contribution to world food fish supply increased from 12 percent to 17 percent; aquaculture's contribution to animal protein supply increased by 50 percent during the same period, from 1.8 percent to 2.7 percent (4). The future potential is even greater; FAO has projected that, to meet global seafood needs by 2010, aquaculture production will have to double over the next one and a half decades (4). In this context, the United States has a major opportunity to strengthen its domestic aquaculture industry to serve both national needs and a global marketplace. Opportunities are not limited to the production of edible fish and shellfish. The U.S. aquaculture sector can also provide other outputs for national and international markets, including non-edible products such as ornamentals, baitfish, and specialty chemicals; goods, supplies, and services for the industry; value-added processing; and technological products.

1.4.5 The Federal Role in Aquaculture Planning and Development. The National Aquaculture Act of 1980 (P.L. 96-362) established a national policy for aquaculture "to encourage the development of aquaculture in the United States". The Act recognized that the principal responsibility for aquaculture development lies with the private sector; however, the Act also affirmed that Federal government policies and programs in research and development, education, information, other services to the industry, and interagency coordination could significantly enhance the development of the industry.

Given the large number of Federal agencies with programs and interests related to aquaculture, the National Aquaculture Act of 1980 established the Joint Subcommittee on Aquaculture (JSA), a Federal interagency coordinating group whose mission is to "increase the overall effectiveness of federal research, transfer, and assistance programs in aquaculture". One of the first mandated activities of the JSA was to prepare and publish a National Aquaculture Development Plan in 1983 (7).

Since the publication of the original Plan, a number of factors, including declining capture fisheries stocks, U.S. dependence on imported seafood, and a burgeoning global aquaculture industry, necessitated that the JSA update the Plan to identify Federal actions and strategies to support U.S. aquaculture development in the 21st Century. The new Plan has been developed with substantial input and involvement from individuals, organizations, and institutions throughout the nation that have a stake in the Plan's implementation and outcomes.

2. U.S. AQUACULTURE IN A GLOBAL CONTEXT

U.S. aquaculture has expanded steadily in the 1980's and 1990's. Production increased from 308.4 million pounds in 1983 to 665.6 million pounds in 1994, while farm-gate value increased from $260.8 million to $751.1 million during the same period (2; 9). Aquaculture accounts for approximately 181,000 jobs in the U.S. and its total economic impact has been estimated at $5.6 billion annually (1).

Over 84 percent of the increase in production and 53 percent of the increase in value between 1983 and 1993 was attributable to one species -- catfish; the development of other sectors of U.S. aquaculture has lagged behind (9). Despite recent growth, domestic aquaculture presently supplies only 5.9 percent of the nation's seafood needs (9). In contrast, aquaculture worldwide accounted for 17 percent of global seafood harvests (4).

The U.S. is a relatively minor player on the world aquaculture stage and many sectors of the U.S. aquaculture industry are challenged to compete in the global marketplace. The U.S. ranks only ninth in the world (1993 figures) in the value of its aquaculture products (4). Other nations, including China, Japan, Thailand, the Philippines, and Norway, have made aquaculture a national priority with substantial investments in research and development. Cultivated seafood from foreign nations is capturing a growing share of the U.S. seafood market. The U.S. now imports nearly $1.5 billion of farm-raised seafood, including virtually all of its Atlantic salmon imports and more than half of its shrimp imports (6, 14).

3. THE FEDERAL GOVERNMENT AND AQUACULTURE

3.1 Mission and Roles of Federal Agencies in Aquaculture

Approximately 30 Federal aquaculture-related programs are carried out by 12 Federal departments or agencies. Programs include research, development, and demonstration; extension education; information services; marketing assistance; health services; inspection and certification services; loans and other financial assistance; management assistance and training; export assistance; seafood safety and quality assurance; emergency crop loss assistance; and policy/program coordination.

The Joint Subcommittee on Aquaculture (JSA) coordinates Federal research, technology transfer, and assistance programs in aquaculture, reporting to Congress and the Executive Office of Science and Technology Policy through the cabinet-level National Science and Technology Council (NSTC), chaired by the President. The JSA also interacts closely with the aquaculture industry and other stakeholders to assure that Federal programs meet the needs of the industry and the American public.

As mandated by the National Aquaculture Act of 1980 and amendments, the JSA membership consists of representatives of the following Federal agencies: Department of Agriculture (USDA); Department of Commerce (DOC); Department of the Interior (USDI); Department of Energy (DOE); Department of Health and Human Services (DHHS); Environmental Protection Agency (EPA); Department of Defense (DOD); Small Business Administration (SBA); Agency for International Development (USAID); Tennessee Valley Authority (TVA); National Science Foundation (NSF); and the Farm Credit Administration (FCA). Other agencies can be added, as appropriate. The JSA is chaired by USDA. A JSA Executive Committee is comprised of representatives of USDA, DOC, and USDI.

3.2 Principal Federal Aquaculture Support Programs

Federal agency involvement in aquaculture takes four primary forms: Research; Federal Hatcheries; Other Support; and Regulation. In FY 1994 $121.7 million was directly expended by 25 Federal agencies for aquaculture-related programs and activities (Table 1). Of this, about 41 percent was in support of research and approximately half was expended to support Federal fish hatcheries and salmon enhancement programs.

USDA, DOC, and USDI support most Federal aquaculture research. Research is conducted in Federal laboratories as well as in partnership with Land Grant universities and Sea Grant institutions, Regional Aquaculture Centers, industry, and other public and private universities and research institutions. Research is directed toward the development of private, commercial aquaculture and to support enhancement of natural fishery resources. The National Marine Fisheries Service (NMFS) of the National Oceanic and Atmospheric Administration (NOAA) of DOC and the U.S. Fish and Wildlife Service (USFWS) of USDI also operate Federal fish hatcheries to enhance natural populations of commercial and sport fish.

Other agencies, including NSF, USAID, DOE, EPA, the Food and Drug Administration (FDA) of DHHS, DOD, TVA, and the Bureau of Indian Affairs (BIA) of USDI support aquaculture directly and indirectly. In addition, a number of Federal agencies and programs have the potential to support U.S. aquaculture development, but do not presently do so.

Table 1. Direct Federal Aquaculture Expenditures in FY 1994 (values in millions of dollars). Source: Office of Technology Assessment, 1995.

Agency Research Hatcheries Other Support(a)Regulation(a)

USDA 25.2 2.3 0.5 USDOC 13.9 18.6 1.5 USDI 7.0 39.0 0.03 BIA 2.9 FDA 6.0 USAID 1.5 USDOE 1.2 NSF 1.1 EPA 0.5 TVA 0.5 DOD-COE (b) (b) Other (c) (b) -------------------------------------------------------

TOTALS 50.4 60.5 3.8 7.03

NOTES: (a) Figures for "Other Support" and "Regulations" may significantly underestimate aquaculture-related expenditures by Federal agencies which do not generally separate out aquaculture expenses in these areas. (b) Amount not available or amount is less than $0.1 million per program/agency. (c) Includes Community Development Block Grants Program (administered by HUD); Farm Credit Administration (independent agency); Office of Job Training Program (Department of Labor); and Rural Housing and Community Development Service (administered through USDA).

4. A STRATEGIC PLAN FOR FEDERAL ACTION

4.1 Guiding Principles

o It is the national policy to encourage the development of aquaculture in the U.S.; therefore aquaculture development shall be a priority of the U.S. Federal government. o The principal responsibility for aquaculture development lies with the private sector. o The principal goal of U.S. aquaculture development shall be to improve the international competitiveness and sustainability of the U.S. aquaculture industry. o Aquaculture is a legitimate user of land and water resources in the U.S. o The development of a sustainable and competitive U.S. aquaculture industry should incorporate compatible economic, environmental, and societal goals (see Insert Box). o U.S. aquaculture products must be of high quality, safe, nutritious, and competitively priced for consumers. o Federal investment in aquaculture research, development, demonstration, technology transfer, extension, education, and training programs is strongly justified. o Substantial reductions in Federal spending required to balance the budget make it unlikely that significant new Federal resources will be available for aquaculture. A Federal aquaculture plan must recognize this and propose cost-effective activities that are realistic and achievable in the future fiscal climate.

INSERT BOX: Aquaculture, Communities, and the Environment Aquaculture can be a contributor to strategies to revitalize rural and coastal economies, providing alternative income and challenging, rewarding jobs while preserving environmental quality, natural fisheries, and water resources. Once aquaculture is established in a local economy, citizens have a vested interest in protecting community water resources. Aquaculture production can stimulate other, related economic development including feeds manufacturing, fish processing, manufacture of supporting supplies and equipment, and other agricultural and marine trades.

The integration of aquaculture with other forms of agriculture or with commercial fishing activities can have economic and environmental benefits. Aquaculture effluents and solid wastes can fertilize agricultural crops, hydroponic operations, and natural or constructed wetlands. Conversely, aquaculture can take advantage of societal "waste" materials. Agricultural and fisheries processing wastes can be incorporated into aquaculture feeds; nutrients from manures can stimulate primary productivity in aquaculture systems; cultivated aquatic crops can provide advanced treatment of sewage wastes, and discharged heat from power plants can reduce costs of heating water in aquaculture systems. Carefully planned aquaculture activities can establish artificial wetlands and provide habitat for natural species. Aquaculture can also convert non-productive land into economic assets; for example, reclamation of abandoned mine pits for fish farming. Commercial aquaculture can also reduce the cost of maintaining recreational and commercial fisheries. Private sector production of eggs, fry, and juveniles to enhance fish stocks in public waters can reduce reliance on expensive and aging public hatcheries. Private aquaculture can also help preserve biodiversity through programs to raise and stock threatened or endangered species.

4.2 Goals

o Establish and maintain world leadership in fundamental science in support of U.S. aquaculture development. o Develop and transfer new scientific knowledge to make the U.S. aquaculture industry profitable and competitive in a global marketplace. o Reduce the fisheries trade deficit and increase exports of U.S. aquaculture products. o Through aquaculture development, enhance job creation and economic growth. o Ensure that the industry's long-term development is sustainable and compatible with responsible environmental stewardship. o Provide American consumers with domestically produced, high quality, safe, competitively priced, and nutritious aquaculture products.

4.3 Critical Success Factors

The successful development of a sustainable and competitive U.S. aquaculture industry will depend on a number of factors within the jurisdiction of the Federal government: o An appropriate and harmonized Federal regulatory framework.

o Effective coordination among Federal agencies to maximize efficiency of program development and delivery. o Federal investment in high priority aquaculture research, development, demonstration, technology transfer, extension, education, and training programs. o Effective Federal promotional, marketing, and international trade efforts. o Effective partnerships among Federal agencies and with external stakeholders.

4.4 Principal Challenges and Opportunities

4.4.1 Research and Technology Development

Challenges. The competitiveness and profitability of the U.S. aquaculture industry will be directly related to Federal investments in research and technology development. The major research needs and opportunities for aquaculture are not unlike those of other agricultural technologies; however, the state of the science may not be as well advanced. The diversity of species cultured, environments utilized, and production systems employed present added challenges. Research and technology development priorities for aquaculture must be practically-based, foster sustainability, and be developed cooperatively with industry.

Opportunities. A coordinated national investment in aquaculture research and technology development, closely linked to the private sector, would be a strong stimulus to the developing U.S. aquaculture industry. There are opportunities to substantially improve production efficiency and reduce costs through research in the areas of genetics, aquatic animal health, reproduction and early development, growth biology, and nutrition. Research is also needed on improving management of water and wastes, development of sustainable systems and practices, economics and marketing, and improving quality, safety, and variety of aquaculture products. The U.S. can also benefit from research and technologies generated and adopted in foreign countries through international scientific exchange programs.

4.4.2 Technology Transfer.

Challenges. For maximum impact, Federal aquaculture programs should constitute a continuum, from basic and applied research to ultimate commercial adoption. It is not enough to develop the new knowledge that can help the industry compete in a global marketplace; the knowledge must be harnessed and effectively transferred to the private sector for its benefits to be fully realized.

Opportunities. There are substantial opportunities for the Federal government to facilitate and help accelerate the commercialization of promising aquaculture research and technologies. Federal laboratories are good facilities for cooperative technology development and transfer activities with industry partners. The Federal government can undertake joint aquaculture research, development, and demonstration ventures with the private sector. The Cooperative Extension Service and Sea Grant Marine Advisory Service can work directly with industry in commercializing promising new technologies.

Collaborative industry-extension technology transfer opportunities include carefully managed field tests, commercial trials, and demonstration projects.

4.4.3 Education, Extension, and Training.

Challenges. There is a need to provide accurate, objective, and realistic information about aquaculture to the general public, consumers, and policy makers. A variety of Federal programs provide education, extension, and training in support of U.S. aquaculture. To provide maximum benefit to the evolving aquaculture industry, these programs must be well coordinated and be conducted in collaboration with the industry and other stakeholders. As U.S. aquaculture continues to develop, its success will depend, in part, on a reliable supply of well educated and well trained employees to perform the technically challenging tasks required for advanced aquaculture systems. Aquaculture education and training programs should be conducted in close cooperation with the industry and allow opportunities for practical, hands-on experience.

Opportunities. Federal agencies can expand and improve public education, including in elementary and secondary schools, about aquaculture and its benefits. This should generate greater public support for U.S. aquaculture development and should contribute to an improved regulatory framework for aquaculture. There is also an opportunity to improve coordination of aquaculture education and extension programs across Federal agencies. Working with the industry and other stakeholders, the Federal government has an opportunity to identify and support education and training programs for future employees that include practical, hands-on experience. Use of computer-based technologies can enhance programs.

4.4.4 Information Systems.

Challenges. Rapid advances in knowledge and a burgeoning global aquaculture industry necessitate that U.S. companies have immediate and continuous access to a variety of information sources to compete effectively in a global marketplace. The latest research, technology, and marketing information must be readily available to the industry.

Opportunities. The U.S. should be the world leader as the repository for global information and technology, using modern technology for communication and dissemination. The Aquaculture Information Center of the National Agricultural Library should continue to be the primary repository for U.S. aquaculture information. Development of international information retrieval networks and partnerships could improve access to important technology. The development of appropriate data bases linked to electronic delivery systems would enhance information exchange and facilitate timely communication and implementation of the latest research results and technological advances to the industry. There are particular opportunities in the areas of text retrieval, bibliographic services, interactive video, including multi-media expert systems, and distance education, including satellite teleconferencing.

4.4.5 Sustainability and Environmental Compatibility

Challenges. As U.S. aquaculture continues to expand, it must be sustainable and environmentally compatible. We need substantially better knowledge about possible interactions between aquaculture and natural environments to minimize the potential for habitat degradation, disease transmission, genetic dilution of wild stocks through interbreeding with cultivated strains, introduction of non-indigenous species into natural waters, and discharges of wastes, toxins, and excess nutrients.

Opportunities. The Federal government has an important opportunity to support programs that can improve knowledge about interactions between aquaculture and natural systems. The Federal government can also provide strong leadership to reduce conflicts between aquaculture and other agricultural, industrial, residential, and recreational users of land and water resources. There are continuing opportunities to support development of sustainable aquaculture technologies and systems that minimize use of land and water resources and that are economically and environmentally compatible with other uses. The Federal government should encourage and support programs that improve management of water resources and aquaculture wastes, increase understanding of environmental risks associated with aquaculture, and foster development of environmentally sound design and operating guidelines.

4.4.6 Aquatic Animal Health

Challenges. At least 50 diseases affect cultivated aquatic species in the U.S. Unfortunately, the U.S. government's ability to prevent and control aquatic animal diseases is presently inadequate. The government's effectiveness is impaired by a fragmented, uncertain, and incomplete Federal regulatory framework, often characterized by disagreements among agencies with roles and responsibilities in aquatic animal health. A principal challenge is the difficulty of reconciling the historical authorities of agencies, including FWS and NMFS, that have responsibilities to protect, conserve, and manage natural fisheries resources, with the needed authorities of agencies, such as USDA's Animal and Plant Health Inspection Service (APHIS), that have an inherent responsibility to encourage and protect farmed aquatic animals. As a result, there is a paucity of aquatic animal health services, and no comprehensive national statutory authority to regulate importation or interstate movement of aquatic animals and products to control diseases detrimental to aquaculture.

One consequence is that some States have had to negotiate their own trade agreements with foreign trading partners. Foreign governments, particularly the European Union (EU), have expressed dissatisfaction with the U.S. aquatic animal health infrastructure. The EU has only provisionally included the U.S. on the list of third countries permitted to export to Europe. Without marked and rapid improvement, U.S. aquaculture will not remain competitive in international markets.

Opportunities. There is a major opportunity, indeed a necessity, for a national strategy for a comprehensive aquatic animal health management program. Such a program must assure the protection of both cultivated and natural aquatic animal resources, clearly delineate the responsibilities of agricultural agencies and natural resource agencies, and effectively address the coordination and uniformity of Federal policies and standards for import and export of both cultivated and wild aquatic animals. Historical experience indicates that the successful development and implementation of a national aquatic animal health strategy and program will not occur without strong intervention and leadership at the highest cabinet levels, particularly from the Departments of Agriculture, Commerce, and the Interior.

4.4.7 Product Quality, Safety, and Variety.

Challenges. Since the early 1980s, U.S. consumers have increasingly recognized the health and nutritional benefits of eating fish. This contributed to a 30 percent growth in per capita consumption of seafood between 1980 and 1986. Fish and shellfish are comparatively low in calories, fat, and harmful forms of cholesterol, and comparatively high in protein, vitamins, and Omega-3 fatty acids which are implicated in the prevention of heart disease; however, despite recognition of these health benefits, adverse publicity about seafood safety in general contributed to a decline in per capita seafood consumption between 1987 and 1992 (9). Clearly, the development of future national and international markets for U.S. aquaculture products will depend on consumer confidence and satisfaction. Aquaculture products should be unquestionably safe and of superior quality.

Opportunities. There are opportunities to help assure safety and enhance quality of aquaculture products through innovative processing technologies and new product development. Research can lead to new techniques to improve the freshness, color, flavor, texture, taste, nutritional characteristics, and shelflife of cultivated fish and shellfish, as well as new or improved, value-added products. Research and technology development can also improve packaging, accessibility, and ease of preparation of farmed seafood products for consumers. Practical technologies can be developed to detect, assay and reduce toxins, contaminants, and residues. Development and adoption of uniform quality standards throughout the aquaculture industry and assurance of product safety and high quality will improve consumer confidence in farmed U.S. seafood, both in the U.S. and throughout the world. There are also opportunities to develop and deliver programs to educate consumers and retailers about the safety, quality, and handling of aquaculture products, and to educate the aquaculture/seafood industry about quality assurance practices for production and processing of these products.

4.4.8 Federal Regulatory Framework.

Challenges. The complex, fragmented, and uncertain regulatory environment affecting aquaculture is a deterrent to the development of a profitable and competitive U.S. aquaculture industry. Because aquaculture involves land and water use as well as the production, processing, and distribution of food for human consumption, a number of Federal, State, and local government agencies are involved in regulating the industry (8). As a result, aquatic farmers may either be required to comply with a daunting and expensive array of regulations or, as exemplified by offshore marine aquaculture initiatives, be forced to operate in a highly uncertain regulatory framework.

Opportunities. The Federal government has a responsibility and opportunity to develop alternative, rational approaches to the Federal permitting, licensing, and regulatory requirements now in place. This can include clarification, streamlining, and consolidation, wherever possible, of the regulatory process, while simultaneously ensuring protection of the health and well-being of the population and environment.

4.4.9 Marketing and International Trade.

Challenges. Even as global demand for aquaculture products expands in the 21st Century, U.S. aquaculture will face strong competition from foreign producers, from imports of seafood, and from producers of other domestic livestock, including poultry, pork, and beef. To compete effectively, the development of sound marketing and international trade strategies will be crucial to the orderly and progressive development of the U.S. aquaculture industry.

Opportunities. There are substantial opportunities for the U.S. government to help identify and develop new domestic and international markets, including specialty markets, import replacement, and export development. Changing demographics, including increased aging and ethnicity of populations, will mean changing markets for seafood that could represent new opportunities for aquaculture. Product diversity can be maintained and specialty and value-added markets can be targeted as well as replacement markets in areas of seasonal decline. The Federal government can support export enhancement programs and international trade missions for aquaculture products. There are also opportunities for the Federal government to support programs that generically promote seafood, in cooperation with the capture fishery. There is a significant market opportunity for private aquaculture in the sale of products to State and Federal agencies, and for export, for enhancement of natural stocks, mitigation, and sport fisheries. The Federal government can also help identify and resolve international trade barriers, including artificial barriers. The Federal government should foster harmonization of international policies and regulations for trade of fisheries and aquaculture products. Finally, there are opportunities to improve marketing education for producers, processors, and consumers related to characteristics and handling of aquaculture and seafood products.

4.4.10 Statistics and Economics.

Challenges. A number of Federal agencies, including the National Agricultural Statistics Service, the National Marine Fisheries Service, and the Bureau of the Census compile and publish statistics on U.S. aquaculture production and value. In addition, regional and State aquaculture statistics are assembled and reported by the Regional Aquaculture Centers, State Departments of Agriculture, Cooperative Extension Services, and other State-level agencies. There are inconsistencies among these data attributable to different definitions of aquaculture, different data-gathering methods, and different interpretations of data.

Opportunities. There are opportunities to improve coordination and efficiency of data-gathering efforts among Federal agencies, to expand the statistical database for aquaculture, and to improve assessment and reporting of the economic impact of aquaculture.

4.4.11 Financial Services and Incentives.

Challenges. In a 1993 study, the General Accounting Office concluded that, for the aquaculture industry, financing is difficult to obtain and that the principal obstacle is the real or perceived high risk associated with aquaculture businesses (5). Related factors, according to GAO, include the lack of understanding of basic aspects of the aquaculture industry by lending and financial institutions in the public and private sector, and the paucity of good data on aquaculture loan histories.

Opportunities. There are opportunities for Federal agencies to thoroughly review Federal financial assistance programs to determine their eligibility for aquaculture; to identify and encourage programs that could, but do not presently include aquaculture; to help educate financial institutions about the aquaculture industry, including realistic assessments of risks and returns; and to improve information-sharing within and outside the Federal government about aquaculture financial programs.

4.4.12 Coordination and Partnerships.

Challenges. The Federal government's ability to effectively support the U.S. aquaculture industry depends on a strong framework for coordination of Federal aquaculture programs and policies. Federal agencies involved in aquaculture must also work closely and collaboratively with the private sector, regional and State programs, the academic community, environmental and consumer organizations, and the general public.

Opportunities. There is an opportunity to improve coordination and linkages between the Federal government and the external aquaculture community, including the aquaculture industry. There is also an opportunity to improve coordination and collaboration among regional laboratories and programs operated or funded by the Federal government. These include the regional Federal laboratories of NMFS, USFWS, NBS, DOE, EPA, DOD, and the Agricultural Research Service of USDA; and regional Federal aquaculture programs, including USDA's Regional Aquaculture Centers and NOAA's National Sea Grant College Program. These laboratories and programs can identify regional needs and priorities and can direct and implement research, development, demonstration, technology transfer, and extension education, in partnership with industry, to address those needs and opportunities.

5. A FRAMEWORK FOR ACTION

5.1 Research and Technology Development. The Federal government will:

5.1.1 Analyze the Federal R&D Base: Conduct a comprehensive analysis of the Federal-wide research and development base for aquaculture. 5.1.2 Coordinate R&D Priorities: Develop a process for regularly sharing and coordinating aquaculture R&D priorities among Federal agencies. 5.1.3 Strongly Support R&D: Support a national investment in aquaculture R&D in areas that will enhance the international competitiveness of U.S. aquaculture. 5.1.4 Support National Research Partnerships: Encourage and support research partnerships among Federal agencies and between Federal agencies and external partners. 5.1.5 Support International Research Partnerships: Encourage and support cooperative research with other countries in areas where there is substantial mutual interest.

5.2 Technology Transfer. The Federal government will:

5.2.1 Support Commercialization Programs: Foster commercialization of promising research and technology through support of demonstration projects and commercial field trials. 5.2.2 Encourage Public/Private Partnerships: Encourage partnerships, including joint ventures, between the private sector and Federal scientists/laboratories in research/technology development and transfer activities. 5.2.3 Support Extension/Industry Partnerships: Support collaboration between extension and the aquaculture industry in technology transfer activities. 5.2.4 Expand International Scientific Exchange: Expand international scientific exchange programs with countries having advanced aquaculture expertise, to enable U.S.aquaculturists to learn more about technological advances worldwide.

5.3 Education, Extension, and Training. The Federal government will:

5.3.1 Identify and Coordinate Federal Missions and Programs: Identify the aquaculture-related education, extension, and training missions and programs of Federal agencies and develop mechanisms for improving interagency collaboration. 5.3.2 Determine Education and Training Priorities: Identify high priority education and training needs, including in-service training, to support the industry's development and recommend Federal actions to address these needs. 5.3.3 Support Infusion of Aquaculture Into Agriculture and Science Curricula: Encourage and support incorporation of aquaculture into agricultural and science education curricula, including at pre-College levels. 5.3.4 Support Education/Training at Commercial Sites: Encourage and support linkage of aquaculture education programs to the aquaculture industry through the use of internships, international exchange programs, use of commercial facilities for specialized training, and fostering work-study opportunities. 5.3.5 Support Public Education: Support aquaculture-related public education programs. Target audiences should include producers, processors, retailers, environmental interest groups, policy-makers, consumers, and the public at large.

5.4 Information Systems. The Federal government will:

5.4.1 Support the National Aquaculture Information Center: Support the National Aquaculture Information Center as the national clearinghouse for efficient access to, retrieval, and delivery of global information on aquaculture. 5.4.2 Develop International Information Networks: Support development of international information retrieval networks/partnerships and interlinked aquaculture data bases. 5.4.3 Develop/Apply Expert Systems: Support development and application of expert systems technologies. 5.4.4 Develop Distance Learning Programs: Support development of national and international distance learning and technology transfer programs via satellite. 5.4.5 Improve Access to Information: Improve access to information about Federal aquaculture programs and services through Internet and the World Wide Web.

5.5 Sustainability and Environmental Compatibility. The Federal government will:

5.5.1 Support Sustainable Systems and Practices: Foster and support development of cost-effective, sustainable aquaculture production practices and systems. 5.5.2 Support Incentives for Industry: Identify and support Federal incentives for industry to develop sustainable and environmentally compatible practices and systems.

5.6 Aquatic Animal Health. The Federal government will:

5.6.1 Develop a National Aquatic Animal Health Strategy: Working with public and private partners, develop a National Aquatic Animal Health Strategy to ensure availability of diagnostic, inspection, and certification services, to facilitate the legal movement of aquatic animals, their eggs, and products in interstate and international commerce, and to protect the health and improve the quality and productivity of public and private aquatic animal resources. 5.6.2 Implement a National Aquatic Animal Health Strategy: With direct, cabinet-level leadership of key Federal agencies, implement a National Aquatic Animal Health Management Strategy.

5.7 Product Quality, Safety, and Variety. The Federal government will:

5.7.1 Support Quality and Safety Programs: Develop and support Federal education and information programs to assist aquaculture producers, seafood processors, and food inspectors to develop and implement seafood safety and quality assurance programs for aquaculture, including compliance with HACCP regulations. 5.7.2 Support Public Education: Support programs to educate the general public about the nutritional, safety, and health-related characteristics of cultivated seafood.

5.8 Federal Regulatory Framework. The Federal government will:

5.8.1 Recommend Improvements to the Federal Regulatory Framework: Review and recommend improvements to the Federal regulatory framework for discharge regulations, permits, and monitoring; fish health inspection; transport and export of live aquaculture products; depredation control; research on and commercial culture of genetically altered aquatic organisms; seafood inspection and safety; cultivation of "non-indigenous" species; testing and approvals of new animal drugs and vaccines; permits and regulations for commercial aquaculture operations in public waters, including Federal marine waters; and other issues as appropriate. 5.8.2 Implement Recommendations to Improve Regulatory Framework: With direct cabinet-level leadership, evaluate and implement recommendations to improve the Federal regulatory framework for aquaculture. 5.8.3 Evaluate Discharge Standards and Discharge Impacts: Support efforts to evaluate existing water quality standards for discharge from aquaculture facilities and the impact of other discharges on aquaculture operations. 5.8.4 Develop Improved Compliance Standards for Public Waters: Develop simplified and uniform standards for review procedures, uniform siting standards, baseline surveys, monitoring protocols, and reporting requirements for aquaculture in public waters.

5.9 Marketing and International Trade. The Federal government will:

5.9.1 Improve Federal Marketing Reports: Develop more comprehensive and consistent Federal crop and marketing reports for U.S. and foreign aquaculture commodities. 5.9.2 Improve Marketing Information: Improve and expand Federal marketing information for producers, processors, and consumers related to characteristics and handling of aquaculture/seafood products; home processing, preparation, and nutritional quality of these products; and new market opportunities. 5.9.3 Expand Export Marketing and Trade: Support expanded marketing and trade of U.S. aquaculture products to international consumers through export promotion programs, international trade fairs/missions, and related activities. 5.9.4 Identify and Overcome Trade Barriers: Identify and evaluate real and artificial barriers to international trade of U.S. aquaculture products and recommend Federal actions to overcome these barriers. 5.9.5 Foster Harmonization of Import/Export Policies: Develop Federal recommendations and foster Federal actions in support of harmonizing U.S. and international policies and requirements for imports and exports of aquaculture products.

5.10 Statistics and Economics. The Federal government will:

5.10.1 Document/Assess Present Efforts: Document and profile current data-gathering efforts involving Federal, regional, State, and local agencies and industry groups. 5.10.2 Improve Federal Coordination: Improve coordination of data-gathering efforts among Federal agencies. 5.10.3 Develop Standard Methods: Develop standard methods among Federal agencies to compile producer data, survey producers, and report data (including standard reporting periods, units of measure, and product form). 5.10.4 Compile Comprehensive Annual Statistics: Compile consolidated comprehensive statistics on U.S. aquaculture production and report findings annually. 5.10.5 Assess and Report Economic Impact Research: Assess economic impacts of private aquaculture on national, regional, and State levels, and report findings regularly. 5.10.6 Prepare Annual Import/Export Reports: Annually report the value and quantity of imports and exports of aquaculture products by species.

5.11 Financial Services and Incentives. The Federal government will:

5.11.1 Review Present Federal Financial Programs: Thoroughly review Federal financial assistance programs to determine their applicability to aquaculture. 5.11.2 Evaluate Past Federal Financial Assistance Programs: Assemble and analyze pertinent information on past Federal financial assistance for aquaculture including amount, sources, purposes, and results of funding. 5.11.3 Educate Financial Institutions: Support education of public and private financial institutions about aquaculture, including realistic assessments of risks and returns. 5.11.4 Recommend Additional Programs: Consider and recommend additional financial services and incentives as appropriate.

5.12 Coordination and Partnerships. The Federal government will:

5.12.1 Ensure Coordination: Ensure effective coordination and communication among Federal agencies involved in aquaculture. 5.12.2 Encourage Multi-Agency Initiatives: Identify and encourage multi-agency, cross-cutting Federal aquaculture initiatives. 5.12.3 Regularly Assess National Needs: Regularly assess national needs in research, technology development, technology transfer, education, and services to the industry. 5.12.4 Ensure Effective Linkages With External Partners: Ensure effective coordination and communications between the Federal government and external partners.

6. FEDERAL IMPLEMENTATION STRATEGY

This section, to be completed, will address the following:

o Prioritization of action items identified in section 5. o Indication of Federal agencies responsible for completion of action items. o Indication of milestones and timelines for action items. (Note: Milestones would address specific tasks and responsibilities, by agency). o Description of process to complete action items. o Description of performance standards and measurements of outcomes. o Federal resources required to complete action items.

7. REFERENCES

1. Dicks, M.R., R. McHugh, and W. Webb. In Press. Economy-Wide Impacts of U.S. Aquaculture. Oklahoma Agricultural Experiment Station Research Report P-946. Oklahoma State University. 35 pp.

2. Department of Commerce, National Oceanic and Atmospheric Administration Statistics Prepared by the National Marine Fisheries Service Statistics Division.

3. Food and Agriculture Organization of the United Nations. 1995a. Aquaculture Production Statistics, 1984-1993. Rome. 186 pp.

4. Food and Agriculture Organization of the United Nations. 1995b. The State of World Fisheries and Aquaculture. Rome. 57 pp.

5. General Accounting Office. 1993. Report on Financing for Aquaculture. November 10,1993.

6. Harvey, D. and G. Gajewski. 1993. Aquaculture: Lower Costs, Long-term Growth. Agricultural Outlook, May 1993. Pp. 18-22.

7. Joint Subcommittee on Aquaculture. 1983. National Aquaculture Development Plan, Volumes I and II. September 1983.

8. National Association of State Aquaculture Coordinators. 1995. State/Territory Permits and Regulations Impacting the Aquaculture Industry. xii + 297 pp.

9. National Marine Fisheries Service, National Oceanic and Atmospheric Administration, U.S. Department of Commerce. 1995. Fisheries of the United States, 1994. Current Fisheries Statistics No. 9400. Washington, D.C. 113 pp.

10. National Oceanic and Atmospheric Administration, U.S. Department of Commerce. 1995. NOAA's Role in the Development of Marine Aquaculture. 8 pp.

11. Office of Technology Assessment. 1995. Current Status of Federal Involvement in U.S. Aquaculture. September 1995.

12. Pit, David. 1993. The New York Times. August 7, 1993.

13. Strategico, Inc. 1993. Canadian Fishery: Waiting for Godot...? Report Prepared for the Department of Fisheries and Oceans, Canada. September 29, 1993.

14. United States Department of Agriculture, Economic Research Service. 1995. Aquaculture Outlook, March 15, 1995. 8 pp.