Economics of Small-scale Commercial Aquaponics in Hawai'i

Aquaponics, the symbiotic integration of aquaculture and hydroponics, has been touted as a sustainable food production technology. While there is anecdotal evidence, there are only a few studies on the economics of commercial aquaponics. In this study, we collect economic and production information from three aquaponic farms to investigate the economic feasibility of an aquaponics industry in Hawaii. Based on the information supplied by the farms, we develop a model case to analyze (i) profitability, (ii) return on investment, and (iii) input requirements for small-scale commercial aquaponics operation in Hawaii. We find that small-scale commercial aquaponics is economically feasible, but our findings are not as optimistic as those previously published. The modified internal rate of return of the model farm is 7.36%. We conduct sensitivity and decision reversal analysis to investigate how output prices and operational cost parameters affect the overall economic outcome. We find that economic outcome is very sensitive to output price. Investment in commercial aquaponics cannot be supported if annual sales revenue falls by 11%. We conclude by discussing challenges and risks faced by commercial aquaponic farms and the potential economic gain from organic certification and renewable energy implementation.