In view of increasing ocean pollution and diminishing yields of U.S. ocean fisheries, there is a clear need for alternative sources of seafood. In fact, a recent United Nations study predicts that unless something changes, nearly all commercial fisheries will be producing less than 10% of their onetime potential by the middle of this century. Already, almost 30% of the world’s fish stocks fall into that category.
Today the U.S. imports about 90 percent of its seafood, only half of which is wild caught. U.S. seafood imports, which accounted for only 63 percent of U.S. seafood just a decade ago, are steadily increasing.
New Global Energy, through its wholly owned subsidiary, Aqua Farming Tech (www.aquafarmingtech.com), is at the forefront of developing and implementing the most advanced, sustainable methods of producing seafood; its operations are conducted on 120 acres of Company owned farms located just east of Palm Springs in the heart of the prolific Coachella Valley, California. Aquaculture operations primarily produce tilapia for delivery to the Los Angeles, San Diego and San Francisco markets.
Currently tilapia is the 4th most popular fish consumed in the U.S. (outselling trout since 1995), and the market demand is steadily growing in part because the consuming public is becoming more aware of the potential pollutants contained in less expensive frozen tilapia filets imported from China.
Each year, the average American consumes about 16 pounds of fish and shellfish. The U.S. is the third largest consumer of fish and shellfish, behind China and Japan. Shrimp remains the top choice for seafood in the United States at 4.1 pounds per person per year.
During the second quarter of 2016, New Global will commence shrimp farming. The demand for day fresh premium shrimp in Los Angeles County alone, with a population estimated to be 9.8 million, is virtually limitless from the standpoint of Aqua Tech.
Aquaculture (fish farming), the fastest growing segment within the global agribusiness category, is steadily growing at a compound annual growth rate of 9%. In the 1970s, aquaculture represented only 6% of total seafood consumption. Today, it represents 40% and is expected to rise to 50% by 2024, representing a market size of $100 billion. A recent article in Time Magazine reported, “Part of the reason for aquaculture’s growth is the increase in global demand for seafood coupled with a flat or declining supply from wild harvesting.”
Through our aquaculture business, we are planning to acquire additional farmland, which provides current income as well as the other benefits of hard assets. There is a growing consensus that farmland will benefit from the increase in demand for grain, environmental pressures for alternative energy, and the impact of globalization. We believe farmland is an attractive long-term investment that offers current income, capital appreciation, an inflation hedge and favorable diversification that is negatively correlated with traditional asset classes. History demonstrates that over the years, investors with an allocation in agriculture have benefited from less volatility and more positive returns to offset losses from the other asset classes.
Our technical team is working to meet the challenges of aquaculture through the development of groundbreaking solutions, including harnessing solar energy, manufacturing our own fish feed, cultivating algae for fish food, the use of pro-biotics to purify water, advancements in aeration and re-circulating our water. These sustainable, self-sufficient solutions, comprise a tremendous body of proprietary “know how” that positions our Company to become the dominant leader in Southern California tilapia farming. Moreover, we are poised to buy or lease other California fish farms that have closed and bring our technical team and innovative practices to those facilities.
Through innovation we’ve solved the problems that have damaged the profitability of other farms and we are moving forward with a program to cultivate shrimp which is projected to further increase profitability and market edge.
Aqua Farming Tech operates around the clock, monitoring the fish, their populations, breeding habits, hatchery process, growth rates, feeds, water circulation, and oxygen (aeration levels).