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Department
of Commerce Approves $10 Million
IMMEDIATE RELEASE
July 11, 2000
The National Marines Fisheries Service, an agency
of the Department of Commerce's National
Oceanic and Atmospheric Administration, has approved a $10
million loan for aquaculture development to Southern States Cooperative,
Inc., a farmer-owned organization headquartered in Richmond, Va.
Issued under the Fisheries Finance Program, the loan will be made available
to aquaculture growers through Southern States, according to Program
Director Brian Squyars.
"The cooperative will use most of the money
to help farmers finance state-of-the-art
closed systems for tilapia production that we have been developing
for the past several years," Squyars says. "Construction of a
fingerling nursery and a processing plant will
account for the remainder."
Tilapia, also known as St. Peter's fish, is a
high-protein, low-fat fish that is popular
with consumers for its mild, white meat fillets.
NMFS Director Penny Dalton views the accord with
Southern States as a way to encourage
environmentally sound aquaculture.
"Approximately 30 percent of the seafood the
world currently consumes is produced through aquaculture," said Dalton.
"We are looking for ways to encourage
U.S. aquaculture production that expand sources of healthy seafood
and also could help ease the strain on wild stocks."
The world fish catch in oceans and inland waters
has increased more than five-fold since
1950 and reached 93 million tons by the mid 1990s, despite a
demand that will rise to an estimated 115 million tons annually by 2010.
However, only small increases in the wild harvest
are predicted as many of the world's major
fishing grounds are stressed and many stocks of fish over-harvested.
Aquaculture, the controlled cultivation of
finfish, shellfish and aquatic plants, is
already playing a part but will have to take on an expanded role if
demand is going to be met in the next decade.
Southern States, one of the largest farmer-owned
cooperatives in the country, currently has
twenty-eight independent grow-out facilities up and running,
under construction or on the drawing board in southeast Virginia, northeast
North Carolina and southern Georgia.
Through its Farmer's Catch division, Southern
States completed the development work -
biological, technical, operational, business and financial
- to enable farmers to participate in this innovative business approach.
Aquaculture can help protect farm income through crop diversification
and can supplement incomes threatened by low commodity prices,
plummeting demand for tobacco and weather-devastated crop yields.
Under this program, farmers purchase a 6,000
square foot turnkey production facility
that is constructed on a five-acre section of the farm. They supply
the labor (approximately two hours per day) and utilities and are paid
a portion of the wholesale farm-gate price, based on individual
contract terms. Southern States provides the
fingerlings, feed, technical expertise,
training, grow-out facilities, insurance and financing. The cooperative
also handles the transportation, harvesting and marketing of the
fish.
U.S. per capita seafood consumption has been
relatively flat, but aquaculture, at three
pounds per capita, contributes more to American tables
than veal, mutton and lamb combined.
NOAA Fisheries conducts scientific research and
provides services and products to support
fisheries management, fisheries development, aquaculture,
trade, and industry assistance, enforcement, and protected species
and habitat conservation programs. NOAA Fisheries supports the development
of environmentally sound aquaculture in the U.S. through research
within its own laboratory structure and through funding of academic
and industry programs including the Fisheries Finance Program.
Southern States - founded in 1923 - is a
farmer-owned cooperative operating in 16
states stretching from Michigan to Florida and west to Louisiana. This
Richmond, Va., based firm is one of the largest U.S. farmer-owned cooperatives
that purchases, manufactures or processes feed, seed, fertilizer
and fuel. It also sells farm, animal health, lawn, home and garden
supplies through 751 local dealers in its operating territory. In
addition, Southern States gins cotton and markets
livestock, small grains, corn, peanuts and
soybeans. In its fiscal year which ended June 30, 2000, Southern
States had sales of $1.6 billion.
Program experts:
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