Sunday''s Soapbox

The world is in dire need of protein and perhaps more in need of marine protein than any other.  

Just look at few of the facts: 

Seafood is humanity’s most important food source after cereals, accounting for 20% of consumed protein; yet it’s the primary source of protein (as much as 60%) in the world’s fastest growing regions (Africa, Asia-Pacific, Latin America).

Herbivorous fish convert feed into protein much more efficiently than cattle, pork or poultry (which already consume 40% of global grain production), seafood must supply an increasing share of global protein requirements. 

Global per capita consumption of seafood reached historic levels in 2012 (>17 kg), exceeding 160 million total tons. 

Experts predict 50% more is required  by 2020 to meet rising human demand. Yet wild harvests and traditional aquaculture cannot do it. Overfishing has depleted global stocks by nearly 90% since 1950, leading to rapid extinction of marine species. 

Total extinction of all fish stocks is predicted by 2048 based on current trend. 

For the first time in history, farm-raised seafood accounts for more than half the seafood consumed globally due to rapidly declining wild harvests; yet neither traditional aquaculture nor land-based animal agriculture (chicken, beef, lamb, pork) can meet rising human demand for protein, creating looming shortages.

In the USA alone we import 91% of our marine protein at a value in the billions of dollars and our average per capita consumption is increasing. 

That is just a sampling of the dire news. There is much, much, more and none of it is positive. 

In 2011, after 12 years and millions of dollars invested in creating, envisioning, designing, building, operating, and perfecting a system capable of sustainably producing enormous amounts of marine protein on 1/14 of the footprint farmed shrimp and fish require for the same production in the traditional open pond system we were ready to build our first production system here in the USA. 

The question was no longer "can we do it ?" (we have done it several times over each time to a better production and performance outcome) but where can get the funding to take the company to a profitable status.

The banks will not help you. You are a "start up", they say, "there is risk", and as they tell you ad nauseam, "they are risk adverse". Go figure. 

Or my favorite comment from the bankers, "Come back when you are showing positive cash flow and we can help" Why the hell would I come back and take out a loan with its over inflated interest (can you spell usury?) fees once I have positive cash flow?

The "vulture (excuse me, I mean venture) capitalists" after pouring up every orifice of your business decide "hey, these guys may really have something", " and they then realize this may be the real deal", can get you the money you need. 

Oh yeah, these guys are more than willing to give you the money you need to get your company to a positive cash flow position, provided you give them 80% of the returns and they get theirs ($$) back first, and they are on your board of directors, and they have operational veto power and " oh, by the way", now that you are very successful and the business is making real money, they force you to resign as they intend to "go public" and "you should be happy" after all, with your 2 % share (that was all of your company you still owned after ten years of hard work and innovation on what was largely your idea and vision), because you will get a good return on your 2 %, far more than when they helped you get started back when. 

So, how do you do it? How do you afford the expensive start up costs that come with building a new business? 

The answer for us was to look back before World War 2, or even just back to the 50"s and early 60" when America was still a manufacturing and production power and normal people, not the Wall Street and banking elite, supported innovation and emerging technologies through small investments.

You take a page from the past successes of business men and women who believed in capitalism and the power of individuals. 

You go to family and friends and to friends of friends and to acquaintances of friends and you show them in detail what you are trying to accomplish. 

I call it the "six degrees of separation" strategy. 

Through these contacts and acquaintances you find average, hard working, tax paying, bill paying people, who as Ben Franklin supposedly once said, " the merchants and the farmers who will be the back bone of this grand experiment we will call a nation". 

And you ask for their help and their trust. 

You offer a good return on their investment. 

You tell them to come down and take a look at what you are doing. 

And then they decide for themselves. 

As this project unfolds here in Texas the enormity of what we are doing can be a bit intimidating. 

Our first phase of production expansion which should be completed late in 2014 or early 2015 will make us one of, if not the largest producer of farmed shrimp in America. 

And we plan to grow aggressively to ten million pounds of annual production here on Copano Bay over the next five years.

We also know our technology can and will work for fin fish production as well.

Think of it, a system that has a chance of producing the copious amounts of seafood the world's population is demanding. 

As the construction phase is unfolding and the ordering of materials and equipment on an industrial scale are being sourced it is with great pride and a smile that I can say that of all of the funding to date for this operation in Texas, not one cent has come from a venture capital firm or a bank, or some egotistical billionaire. 

In fact, every dollar invested has come from your average "Joe's and Jane's" that in my mind, do indeed comprise the back bone of this country.

Individuals who have been and who are successful based on their own skills and motivation and their own sweat. 

Individuals who are willing to take chance on something new. 

Who unlike banks, are willing to take a reasonable risk to see something new succeed. 

To see something develop that is grown and produced here in America as well as abroad.

Individuals who want a fair return on their investment but that are not motivated by greed and gluttony. 

We will most certainly develop production capabilities overseas in the months and years ahead. The climates and the infrastructure and the work force in certain countries are ideal for our system. And the truth is many nations needs marine protein and job creation. 

But this time when we build overseas it will be with our flag ship operation solidly entrenched here in the USA.

We will be successful because a lot of what the financial types disdainfully call "small investors" made the choice to make the investment(s) necessary to make it happen.  

Hard working folks with a willingness to "take a risk".

That seems like a pretty unique and pretty important species these days.