Dr. Addison Lee Lawrence, a professor and regents fellow at Texas A&M University, said: “There has to be government assistance in terms of setting up seed stock facility because the private companies will not consider setting up seed stock production facility here. The reason being is they can’t make money. It’s a Catch- 22. For a commercial company to supply one commercial farm, the seedstock is not going to cost $1-$2 to a thousand. It will cost $10-$15 to a thousand.”
Lawrence cited Tahiti as an example where he said the government recognized the need to subsidize the industry. He said the initial hatchery was made possible through government subsidy.
“For an industry and a nation to be stable, sustaining and long term, the industry almost has to have a production of about 10,000 tons per year. That is enough to justify an economy of size seedstock production facility,” he said.
Speaking before participants to the 2011 Economic Restoration Summit in a session on aquaculture last week, Lawrence acknowledged that the infrastructure has already been set up on island and disease-free seed stocks are availabile on Guam.
“They have the makings of a hatchery over there,” said Lawrence adding that the CNMI is capable of developing the industry on island as evidenced by the success of Saipan Aquaculture Inc.
The visiting professor said for the industry to flourish, there has to be guaranteed supply of high quality, disease-free seedstock.
With regard to capitalization, Lawrence admitted that it is high. He said it can be set up at a minimum capital of $1 million but for an economy-of-size farm, it will need $3 million to $5 million.
However, Lawrence said a major part of the project can be funded by federal grants.
He also said a small-scale shrimp production involving a family can be done. He said a 100-sq.m.-water can yield between 2,500 kg. and 5,000 kg. per year translates to $25,000 annual earnings if shrimp price per kilogram is pegged at the current market price of $10 per kilogram.
Given that the shrimp production is labor intensive, Lawrence said the business will create jobs for the local people.
He added that the CNMI can venture into exporting tilapia and shrimp with the latter as its main export.
A professor at Texas A&M University, Lawrence began conducting research on shellfish in 1957 and shrimp in 1963. He has written more than 350 papers and 500 abstracts for academic journals, books, trade journals and proceedings. He has also received $15 million in contracts and grants.
He developed technology for inland and coastal commercial shrimp farming including shrimp reproduction, production of new-born shrimp, five- to 10-day-old post-larval shrimp, shrimp and sea urchin feed and nutrition.
