Unquestionably, one of the major strategies for economic diversification is the development of the aquaculture industry in Hawaii. According to the recently released report of the Governor's Aquaculture Industry Development Committee, the potential for aquaculture development in the Islands is strong. However, realization of this potential will require both prompt action and long-term cooperative commitment by the public and private sectors. 

The report summarizes the current status of the industry, and notes that, despite occasional setbacks, aquaculture has experienced promising growth. Forty-three commercial aquaculture firms reached $2.6 million in wholesale revenues in 1982, but fell back to $1.6 million in 1983. Research, training, and technology related projects, valued at $3.6 million in project value (exclusive of state funds) in 1982, rose to $5.6 million in 1983. 

At present, aquaculture development in Hawaii enjoys a worldwide reputation due to excellent research and effective international consulting. However, several key issues in aquaculture need to be addressed, including: (1) Management; (2) Technology and Knowledge; (3) Marketing and Economics; (4) Water and Land; and (5) Government Activities. 

In the area of management, the report recommends that management skills be upgraded and management information be increased by expanding extension capabilities and programs in general business management for aqua farmers, as well as developing more practical farm management tools, and organizing a statewide aquaculture association. 

To maximize the impact of limited financial resources, the report recommends that industry development programs emphasize marine species with strong market potential (e.g. marine shrimp, red tilapia, and freshwater prawns), the development of commercial- scale, not subsistence-level, activities, and the development of medium- and high-intensity commercial operations with selected use of Hawaiian fishponds. The report also recommends that inventory control and harvesting technology be improved, as well as management techniques for Hawaiian fishponds. Other recommendations include the development of new sources of stocking material, and the establishment of a virus-free marine shrimp brood stock. Further, Hawaii's movement towards becoming a world center for aquaculture research could be accelerated by holding workshops, and by establishing a large-scale aquaculture research, education, training, and demonstration facility. 

The report then considers marketing, the availability of investment capital, and the cost of doing business: three crucial issues in commercial aquaculture. In terms of marketing, one major constraint to market expansion is inconsistent, unpredictable production. Recommendations to improve productivity include forming a marketing cooperative, while adjusting farm operations to suit the needs of customers. Local and export markets could be developed by concentrating on import substitution, developing unique markets for local aquaculture products, and initiating joint State and private-sector promotional campaigns for aquaculture products. 

Investment capital for aquaculture has been traditionally hard to obtain because of perceived limitations in the industry's track record, financial data, and supply of skilled labor. Recommendations include collecting necessary financial information, providing assistance to investors in securing high- risk capital, and improving the State Aquaculture Revolving Loan Fund. 

The Committee also addressed factors leading to the industry's high operating costs. Recommendations include reducing government red-tape, reducing the cost of the Workers' Compensation Program, and lowering production costs and raising farm yields. 

Regarding water and land resource issues, the Committee saw the need to accommodate aquaculture in water resource planning and management, and to emphasize the recycling and multiple use of fresh water in aquaculture. Hawaii's brackish and saltwater aquifers could also be beneficially utilized by accepting aquaculture as a permitted use. Suitable sites could also be made available, possibly through a statewide aquaculture park program. 

In the area of government policies, communication and coordination between the industry and all levels of government could be improved by providing a forum, such as an industry council, to discuss current development issues. Government could also assist by working to reduce the industry's start- up costs through the use of tax and other forms of investment incentives. The State Aquaculture Development Plan should also be updated.

 The report concludes that the aquaculture industry can readily exploit Hawaii's advantages by sustaining a wide range of production levels and producing a variety of products and services. The industry can also utilize abundant Island resources such as brackish and salt water, and agricultural wastes and lava lands. If existing constraints are successfully handled and sufficient investment capital secured, commercial aquaculture production could top $50 million a year, and research activity attract over $10 million a year by 1990. However, realizing this potential depends on the willingness and ability of decision makers in government, business, and labor to tackle the problems that now confront the industry.

 The report concludes that the aquaculture industry can readily exploit Hawaii's advantages by sustaining a wide range of production levels and producing a variety of products and services. The industry can also utilize abundant Island resources such as brackish and salt water, and agricultural wastes and lava lands. If existing constraints are successfully handled and sufficient investment capital secured, commercial aquaculture production could top $50 million a year, and research activity attract over $10 million a year by 1990. However, realizing this potential depends on the willingness and ability of decision makers in government, business, and labor to tackle the problems that now confront the industry.

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