To Fund, or not to Fund....

There are times I feel like a broken record.  However I am beginning to believe the Recirculating Aquaculture environment has to be one of the harder items to get funded.  Not because it isn't a viable option, but because people tend to believe what they initially read on the internet, and not actually research the field. (or believe what is put in front of them).  We all know that if it is on the internet then it must be true.

I will say up front that like any venture RAS has it's liabilities.  Maybe more than most.  However, these can be overcome quite easily.  Unfortunately what happens so many times is if we have potential investors or lenders that go to the internet to do their own research; they will actually look into the wrong information.  (remember, if it's on the internet it must be true).

What I mean by that is with the RAS field, it has moved so quickly in the last couple of years in the United States that if you are looking at anything prior to maybe 2011 anything you find is pretty much outdated.  I say the United States as countries in Europe such as Norway and Denmark have actually been successfully using RAS systems for upwards of 15+ years.  So when they look at information they will look at reports written in early 2000's which will tell you that RAS is not viable for one reason or another.

There are also a few authors that write that as recently as 2012 there are x number of RAS shrimp facilities that have gone out of business for whatever reason and they give those reasons.  Now, of course I am an RAS proponent.  So I started to look up the names of those facilities as there is no data base in the U.S. of RAS facilities.  These authors state it was because of fluctuation in shrimp prices, it is a niche market, etc...  Well, the truth of the matter is of the four companies they reference in the articles, 3 of them actually went out of business in the 90's or early 2000.  Of those, one company was a scam.  The two who set it up were actually tried for securities fraud.  Recently they tried to set up another company in California and were stopped before they could do it again.  Another company went out of business in a manner of speaking.  They sold to another company who turned it from a shrimp farm into a research center.  Another company started a huge facility where they were $4 million in debt from the beginning.  Had their shrimp facility in one state, a research facility in another state and received their larvae from another state.  Pretty much sunk from the get go.  The 4th, I couldn't even find the name so it's hard to tell when they went out of business.

So I think you see the point.  I have a list of 9 current companies that have been in business from 12 years to current.  Those are never listed.  One of those companies who has been around the longest is actually expanding.

Now, I'm not giving up on my search for lenders or investors, but I always wonder what they find on the internet.  It is filled with articles as I mentioned.  But you don't find articles with successes unless you actually go to the sites dealing with the seafood industry.

Hopefully I won't have to continue to sound like a broken record for long.  So onward we go asking To Lend or not to lend.....

We are still here

There are times where you get so side tracked by other things that you forget about the other important things that you need to be doing.  That would include keeping up on the blog to let you know what we have been up to.

In the last month we have been working on our final push to pick up our final funding through our Community Funded project.  Although it was a great effort we fell short.The staff of the Community Funded are great. They worked tirelessly to try to help me reach our goal.

We have also been working on a new package for our new Farm Services Agency loan package. Our last submission did not get denied we just ran out of time is the submission from the never ending request for more information. Next week we will be meeting personally with the Farm Service Agency to review our loan package to ensure we have everything we need before we submit for final review.

Although this does not seem like much,  it has taken several months to get things lined up. We will get back to a regular routine of keeping you up to date on what we're doing, and we hope you will continue to follow us on our journey.

Lastly, thanks to all of you who have been contacting us lately. It has been great hearing from you and getting to know such great people. For all of you who do have questions please feel free to e-mail me and I will get right back to you. This is has been an exciting time  and will continue to be one. Please make sure you continue to follow us.

Scott

Monterey Bay Aquarium Seafood Watch Report

Every once in awhile we will go in to the Monterrey Bay Aquarium Seafood Watch web site to check and see where we will stand as far as their recommendation for shrimp consumption goes.  This is as far as for the environment and for the health of you and I is concerned as well.
Today we have posted the page from the section for U.S. Farmed Shrimp.  We are proud of the fact that we will be in their "Best Choice" category, but when you get past the chart to the consumer notes, the first line you will see is "For the most sustainable product, look for shrimp raised in fully recirculating systems or from farms located inland using tanks or ponds."  We are quite proud of the fact that we are going to be a sustainable product where our shrimp will be raised in fully recirculating systems.

Yet even with recommendations like these there are still those (in the financial world primarily) that can't possibly imagine that recirculating farming facilities can be productive, or produce a shrimp that has a taste close to that of an ocean shrimp.

If we think about that for a moment, the water the shrimp are going to be raised in will have the same salinity as the ocean.  The food will actually be healthier than what they are eating in the ocean if you think of the fact that shrimp are bottom feeders.  Our water is clean and remains that way where as the water our shrimp is currently coming out of, either from the ocean or ponds is more likely going to be polluted in one way or another.

So they may be right.  The taste may be different.  It may be different in a good way wouldn't you think?   A healthier diet, a healthier environment, yet still the same salinity as what their wild raised cousins are living in?

So take a look at the chart and keep reading.  We hope that you will continue to support us and you know as usual we are currently still looking for investors.

We appreciate all of your support.
Scott

SHRIMP SEAFOOD RATING MARKET NAMES WHERE CAUGHT HOW CAUGHT Freshwater Prawn Giant River Prawn, Malaysian Prawn U.S. Farmed Northern Shrimp Bay Shrimp, Cocktail Shrimp, Salad Shrimp, Ebi U.S., Canadian Atlantic Wild-caught Pink Shrimp Bay Shrimp, Cocktail Shrimp, Ocean Shrimp, Salad Shrimp, Ebi Oregon Wild-caught Rock Shrimp Rock Shrimp U.S. Wild-caught Shrimp Brown Shrimp, Pink Shrimp, Rock Shrimp, White Shrimp, Ebi U.S. Gulf of Mexico, U.S. South Atlantic Wild-caught Shrimp Black Tiger Shrimp, Tiger Prawn, White Shrimp, Ebi Imported Farmed in Open Systems Shrimp Black Tiger Shrimp, Tiger Prawn, White Shrimp, Ebi Imported Wild-caught Shrimp Pacific White Shrimp, West Coast White Shrimp, Ebi U.S. Farmed in Fully Recirculating Systems or Inland Ponds Shrimp Pacific White Shrimp, West Coast White Shrimp, Ebi U.S. Farmed in Open Systems Shrimp Pacific White Shrimp, West Coast White Shrimp, Ebi Thailand Farmed in Fully Recirculating Systems Shrimp Pacific White Shrimp, West Coast White Shrimp, Ebi Mexico Farmed in Open Systems Spot Prawn Prawn, Spot Shrimp, Amaebi U.S. Pacific Wild-caught Spot Prawn Prawn, Spot Shrimp, Amaebi Canadian Pacific Wild-caught SHRIMP, U.S. FARMED Shrimp from U.S. farms are produced under strict environmental laws, making them a better choice than imported farmed shrimp. However, all U.S. farms are not equal. While most U.S. farmed shrimp are a "Good Alternative," a small percentage is ranked "Best Choice." These farms have further reduced their impact on the environment by raising shrimp in fully recirculating systems or inland ponds, away from sensitive coastal habitats. CONSUMER NOTE For the most sustainable product, look for shrimp raised in fully recirculating systems or from farms located inland using tanks or ponds. The terms "shrimp" and "prawn" may be used interchangeably. Shrimp is known as ebi when prepared for sushi. SUMMARY Shrimp is the world's most valuable seafood and the most popular among U.S. consumers. Almost half of the shrimp consumed worldwide is farmed, with the majority from Asia and Latin America. The U.S. produces less than 1% of shrimp consumed by Americans. All large-scale farms require wild fish to feed the shrimp. U.S. farmed shrimp require 1.35 pounds of wild fish per pound of shrimp produced. The larger the shrimp, the more wild fish feed is required for it to grow. Pollution, disease and escapes from shrimp farms are all concerns, but U.S. shrimp farmers have begun to address these problems. Farms that use fully recirculating systems and those located away from the coast don't release effluent into sensitive ocean habitats. By treating and recycling the water or using it for agriculture, these farms reduce pollution and lower the risk of escapes and disease transfer to wild stocks. Unfortunately, the majority (87%) of shrimp farms are located in or near coastal waters and openly release effluent. This can impact natural habitat and increase the risk that the shrimp, and any disease they carry, may escape and impact wild populations. Look for shrimp or prawns raised in fully recirculating systems or inland ponds as a "Best Choice." If you can't confirm this, assume the shrimp is farmed in an open system and is a "Good Alternative." U.S. farmed shrimp is also a much better alternative for consumers concerned about the bycatch of seahorses, sea turtles, fish and invertebrates that occurs in warmwater shrimp fisheries.Scientific Reports About Our Ratings U.S. Farmed Shrimp Seafood Watch Report Print a pocket-size Seafood Watch guide to take with you. Download a guide now Mobile phone users log on to mobile.seafoodwatch.org. iPhone and iPhone touch users, you can get the most up-to-date Seafood Watchrecommendations on your iPhone or iPod touch. How fish are caught or farmed makes a difference. Learn more

Are you that one company.....

and no we aren't.

If you aren't sure what we are talking about yet, let me enlighten you.  If you type the wrong series of words into a search bar, you may come up with a company in Loveland Colorado by the name of Rocky Mountain Shrimp.  This is who we would be referring to.  And no, we are not them.

Why am I so emphatic about this?  It depends on who is asking.  For the normal person on the street it probably doesn't matter much other than the fact that for the information you can find on them, they would wonder why we are attempting to try to start an indoor shrimp farm here in the Fort Collins area.  If you are a company that we would like to do business with, and you look them up, you might wonder the same thing, and if you go by the power point type presentation they have listed on line, you are probably going to wonder why (if you think we are them) we have been around for the last 4 years, we are producing  around 4000+ shrimp a month and you have never heard about us until now.  And lastly, if you are someone that we are wanting to fund us, private or banking wise and you type in the wrong search words and get Rocky Mountain Shrimp, and then do a search through the state, unless something changed just recently you will see that their LLC is no longer valid, etc...

So why am I stating this?  We really don't want to have our name associated with their company name.  We ended up choosing the name Premier Rocky Mountain Prawn for the simple reason that prawn and shrimp really are interchangeable.  Prawn are known more for being freshwater, however they are known as shrimp as well.  We put the premier in front of Rocky Mountain to hopefully give people a second chance at getting a general search done and finding us, and not the other guys.

So if you can spread the word that we are PREMIER ROCKY MOUNTAIN PRAWN... not rocky mountain shrimp, we would appreciate it.  From what we can tell there isn't a company in Colorado right now producing 800-1000 pounds of shrimp per week.  When we have checked on them at least the state doesn't know about them, not does Larimer County, Loveland, Fort Collins, etc...

So keep that in mind when you are looking for us.  Premier Rocky Mountain Prawn, not .................

Thanks for passing the word.

Scott

The Local Farmer

In 2005, as a nation we imported $250 Million of produce from Mexico.  I believe we had 1.5 greenhouses to every 1 of their greenhouses.   Jump ahead to 2011.  The amount of produce imported from Mexico was $1.8 Billion and the greenhouse ratio was 3 in Mexico to every 1 in the U.S.

I'm not saying there is anything wrong with Mexico having an economy that is healthy.  And you know, more than likely a large share of that produce is Organic.  We love our organic vegies here in the states don't we?  So we are importing $1.8 Billion in produce from Mexico every year.  How the heck are they getting here?  Trucks of course.  Where ever they are being raised in these green houses they are then put on trucks and shipped across the U.S. one way or another.  So even if they are organic, I am just not sure if it ultimately works out if the carbon footprint is HUGE!!

So I hear that it is just to expensive to set up a greenhouse.  Or the climate I live in just isn't conducive to growing year round.  And I respond that excuses are a lot easier than action.

You can rent a warehouse in your area.  In this area you can get a 4000 sqft warehouse for around $2200.00 a month, and that is with your utilities included.  Suddenly you don't have to have a facility built.  Take classes on hydroponics.  You will find out how simple and inexpensively you can get started.  You don't have to start off with all 4000 sqft.  Do your market research.  I'm sure there are probably enough lettuce and tomatoes out there.  See what else is in need.  I'm not going to spell it out for you, but you can kind of see where I am going.  Grow vertically.  What would amount to 1 acre of vertically grown hydroponic area is around the same as 10 acres of traditionally grown crop.

So if you actually want fresh food at your table, or at your neighbors table, take a look.  You don't have to do this to become independently wealthy, but you can become wealthy within your own health.

Do something for your own environment, your health and possibly for the economy.

A Shrimp "Farm"? Seahorses and tiny lasso's?

I try to use the word farm as much as I can.  I had a friend tell me he just can't get used to the phrase "shrimp farming".  Living here in Colorado when you say farming everything possible can pop up in your mind but shrimp is a hard one sometimes.  He said he envisions little fish riding on sea horses lassoing shrimp to bring them in to take to market.  (There has to be a marketing piece there somewhere.)

So with the thought of shrimp farming being a hard one to capture in your mind, at least here at the base of the Rockies, here are some other items that are currently being farmed that you may have never thought about:

These are salt water types:

*Sea Weed
*Several different sea going fish
*There are companies right now working with raising oysters/clams in large tanks, and are being successful with them.
*Lobster
*Blue Crab
*Coral   (this one really isn't as off the wall as it may sound.  Although they are mainly used in aquariums, it is a great way to help protect natural reefs)
*Algae

There are some odd sounding items on that list aren't there?  Here in the inland areas of the U.S. we wouldn't  normally think of farming algae or seaweed, but there is actually a fairly healthy market for it.  Some of these items are still in the beginning stages of being farmed in tanks, so it would be awhile before we tried them.  Others we could attempt at any time.

For fresh water it is the same type of thing.  There are several different species that can be raised.  Colorado's aquaculture market exceeds $15 million annually.  That's not bad.  Most of that is in trout, but there are other fin fish as well.

When we farm our crops in our raceway tanks we are doing a couple of things for the environment.

1) We are actually using less water than pond farmers.  Once we fill our tanks we don't have to empty them. We are able to continually use the same water, only having to replace the water we lose to evaporation.
2) We don't need to use that much land.  The land we do need isn't having to be destroyed.  Here in Colorado we do require an indoor facility but we aren't digging deep enough 1 acre ponds that we destroy the landscape of the land.  What we would use in 5 acres it is estimated that a normal pond shrimp farming facility could take between 300 and 500 acres to accomplish the same thing.
3)  We don't require heavy machinery to operate our facilities.
4)  In the past where our carbon fuel output would have been quite significant, solar power has made it so fossil fuel use is cut back by more than 1/2.

There are more positives to this shrimp farming at the base of the Rockies   Even if it doesn't involve sea horses and tiny lasso's herding the shrimp in to take to market.  (Still a cute idea)

So just keep telling your self Shrimp Farming, Shrimp Farming, Shrimp Farming.  Better yet:  Premier Rocky Mountain Prawn, Premier Rocky Mountain Prawn, Premier Rocky Mountain Prawn.......

What is our status?

I know that we have several faithful followers on our web site (www.premierprawn.com) as well as those who read our blog on a regular basis.

It dawned on me yesterday that there have to be a handful of you that must wonder if we are an actual company, a working company or exactly what the story is.

So here is who and what we are.  We are a legal entity.  We are Premier Rocky Mountain Prawns, LLC.  Registered in the state of Colorado.  We initially registered in November 2012.

Even before we registered I had started working on my business plan, researching, looking for ways to receive education  etc.. in the aquaculture field.  When I decided I was going to pursue shrimp farming as a business, I decided to register the name and trademark with Colorado.

Since then, with a small break for the holidays, I have been working with the Small Business Development Center here in Fort Collins, writing my business plan, re-writing my business plan and re-writing my business plan.  If you have never pursued starting a business, the whole re-writing a business plan may sound like I'm not quite sure which way is up.  If you have pursued a business, you know what I am talking about.  Re-writing a business plan before you go searching for money is not an uncommon thing to do.

In the meantime I created my website so that I can let people know what is happening and what is coming up.  Let's just say it is an informative site at the moment.

To date I have finally submitted our loan paperwork to the FSA (A USDA program) for them to review and hopefully find that I am suitable to gain their backing.  For lack of a better description it is kind of like an SBA program but for agriculture ventures.  I don't know if they would necessarily agree with that description, but it is a pretty simple way to put it.  They are the backers of agriculture loans. They don't necessarily provide the money.  So they are taking the risk out of the hands of the banks in a way.  So they are reviewing my package right now, and I am waiting to hear what else they need from me.  Once I get that information and get it back to them, then they will go from there.

Once we get approval that they feel the program is viable (notice I said "we get the approval", not if... we'll then find a bank and we'll be set to go.

In the meantime we will keep updating our blog and web site.

We are always looking for investors.  This is a very viable business.  If you or anyone else you know is possibly interested in investing, please let me know and I will be happy to meet with you and give you a run down.

In the meantime, please keep checking back in.

Scott Hays
premier_prawns@comcast.net