Mission Markets Spring 2013 Newsletter

Q) What is Mariculture? What inspired you to enter this market and what are some of your past accomplishments?

A) Mariculture (mari =sea in Latin) is the science or art of sea farming of plants and animals. The word is used interchangeably with aquaculture, which includes both marine and sea farming or cultivation.

Inspiration was an evolution over time for both of us, from sport/recreational diving youths to either a commercial marine archeologist/pearl farmer/business entrepreneur (Tom Roberts) or a qualified marine biologist/commercial aquaculturist (Robert Rose, PhD). Independently, Tom through observations and working underwater on pearl farms and Bob’s research/aquaculture on the reproductive ecology/life cycles of pearl oysters and sea cucumbers discovered both species share the same marine habitat and thrive together in open-sea, polyculture systems. 

Both of us were aware through colleagues from the seafood industry and scientific literature that an ever-increasing global demand for sea cucumber was due to a rapidly growing human population in combination with a plethora of collapsing regional fisheries. Readily available buyers in close proximity to major markets across the South China Sea, made the practicality of entering market with aquacultured produce cost-effective; hence, our partnership commenced.

Q) What is a sea cucumber and how does this product fit your expertise?

A) Sea cucumbers are marine invertebrates belonging to a large diverse, primitive marine group or phylum called Echinodermata that inhabit the ocean’s shallow-to-deep seafloor sediments. There are over 1,100 species of sea cucumbers belonging to the class Holothuroidea (Greek meaning “holos”: whole and “thurios”: rushing), which are part of a diverse marine phylum or group of marine organisms called Echinodermata (Greek meaning spiny skinned). These worm-like animals are related to sea urchins, sea stars and brittle stars but with their skeletons reduced to microscopic ossicles or calcareous spicules embedded in a collagen-protein body. Sea cucumbers can be long and thin (up to five meters) like a snake or short, thick oval-shaped (20-40cm or one foot+) like a loaf of bread. They are mostly omnivorous, detrital feeders that burrow and graze on the seafloor.

Our expertise rests in understanding sea cucumber ecology (who eats whom), developmental biology (life cycle) and their husbandry. We have the biotechniques to routinely fatten broodstock to spawning healthy eggs, rear large quantities of larvae and juveniles, and sea ranch (growout) the sub-adults to a harvestable size cost-effectively and renewably. Equally, important we have developed and/or experience with the hygienic biotechnology required to produce premium seafood.

Q) Please give us a broad overview of the sea cucumber market.

A) Sea cucumbers (or trepang as commonly referred to in the Indo-Pacific Region) have been collected as food from the South Asia and Indian subcontinent for more than a thousand years and traded with the Chinese. The sea cucumber fishery is based on 52 species found in sub-tropical and tropical waters that belong to the Holothuroidae and Stichopodidae families. They are collected for meat, which when processed and dried is traded as beche-de-mer.

The three major, contemporary beche-de-mer trade markets today are Hong Kong SAR (China), Singapore, and Taiwan; these centers also involved in a well-established global network that re-exports sea cucumber products (eg, to Japan and Korea). The majority of trade figures originate from these centers. 

FAO catch and trade statistics available April 2011, indicate the two most productive sea cucumber regions are Asia and the Pacific with and estimated combined harvestable catches ranging from 20,000 to 40,000 tonne per year.

The price per unit of dried meat varies according to quality and size of the product. The price of dried meat for two species to be farmed at the Philippine farm for their nutraceutical/pharmaceutical properties ranges between $80 and $95 per kilogram (the raw powder product per kg can be $300 plus depending on the purity). The price of dried meat for the two food species ranges between $130 and $280 per kilogram.

Q) How is the meat used as a medical product and what does this market look like?

A) The nutritional profile of sea cucumbers makes it an ideal tonic and health food. The meat and entrails are high in essential amino acid proteins, vitamins, trace elements, and in fatty acids. Thus, the demand for sea cucumber products in traditional Chinese medicine continues to remain strong. They are not only valued for their antifungal and antibacterial properties but also as an aphrodisiac and cure for osteoarthritis, some lung cancers, whooping cough, gastric ulcers and high blood pressure. 

Tissues of the body wall are composed of insoluble collagen (a gelatinous substance found in the meat) similar to soft-shell turtle and deer-horn collagen making it suitable for treating anaemia and as a nutrient supplement for haematogenesis. With high levels in two essential amino acids (lysine and arginine) and one non-essential (tryptophan), makes the gelatin in sea cucumber more valuable than other gelatins.

Pharmaceutical companies recognize the importance of two mucopolysaccharides, holothurian glucosaminoglycan (HG) and fucan (HF), found in the body wall tissues as compounds that can be used in drugs to inhibit some cancers, such as, lung and galactophore cancers, enhance the immune system and reduce blood clotting. Since the 1990s, sea cucumbers have been used as a source of chondroitin sulphate (‘sea chondroitin’) to produce anti-inflammatory drugs for osteoarthritis, rheumatoid arthritis and ankylosing spondylitis. Collagen is being used to help produce artificial skin. In Japan, there is a patent for sea cucumber chondroitin sulphate in HIV therapy. 

Western medical industry has begun to appreciate through scientific verification that sea cucumbers belonging to the Holothuroidea class have an impressive profile of valuable nutrients and a number of unique pharmacological compounds with therapeutic properties and medicinal benefits. In recent decades, the medicinal properties of sea cucumbers have gained enormous popularity. Further, sea cucumbers by the nutraceutical industry as a valuable food source with physiological benefits for human health is becoming increasing apparent. In summary, given the predicted increase in size of the global middle class to reach approximately 5 billion people by 2030, the demand for sea-cucumber-derived medicines should remain buoyant.

Q) Why did you choose the Philippines? How do you incorporate local Filipino cultural values into your business practices?

A) The location of the project is ideal environmentally, logistically and socially. The eco-system in the Busuanga archipelago is a biodiverse community with large expanses of seagrass and seaweed, mangrove intertidal shores that are protected from rough seas. The meadows are natural, shallow water nurseries for sea cucumber juveniles which extend subtidally into gentle, sloping seafloors, littered with coral outcroppings to form large-basin channels with soft mud/sand sediments rich in interstitial flora and fauna that create natural paddocks for adult sea cucumbers. 

Although the area is on the southern boundary of the cyclone/hurricane corridor for the Philippines, the monsoonal weather generated is not generally destructive, acting as a “nutrient pump” to pervasively replenish the marine environment with organic and inorganic particulates essential for primary plant production (that underpins a vibrant eco-system). The archipelago’s reefs are well preserved due to the custodial efforts of the tourist diving industry, pearling companies and local/federal government marine park reserves and no-take 

The proximity to major markets of Hong Kong, Singapore and Taiwan is fortuitous. Locally the businesses surrounding the farm site are environmentally low-impact (eg tourism, pearl farming, village-scale farming, fishing and light industries).

The local ethnic groups are all peaceful predominantly Christian with Muslim and indigenous minorities. Villages nearest to the site have many families that use to work on Tom Roberts pearl farm and are experienced mariners keen to become involved in the venture. The project will blend seamlessly into the pre-existing, subsistent sea-cucumber trading activities of the area providing employment and business opportunities related to all marine seafoods produced in the area.

Q) What sort of legacy do you hope to foster through this venture?

A) The venture illustrates that ethical and sustainable aquaculture profitably produces premium seafoods, and important medicines and health foods for future mankind without having to “mine” the sea and exhaust all its treasures.

Q) Any closing thoughts?

A) Investors interested in the Mariculture industry must appreciate a number of concepts:

1. The farming/propagation/marketing of seafood and medicinal products are and will be renewable, and underpinned on evidence-based science and biotechnology.

2. All production plans are founded on ecological principles and established reproduction models for each organism farmed.

3. Our research motto is to innovate, adapt and adopt.

4. Production is not linear but geometric.

5. Expansion is measured and step-continuous.

6. Profits/ecological sustainability/cultural satisfaction must be balanced, and achieved honestly and fairly.

7. “80/20” principle is modified to imply: to produce a renewable product, 80% of the effort must emanate from nature with only 20% derived from human blood, sweat and tears.

Thank you and please join us April 11th, 2pm EDT to learn more.