Future Outlook

The opportunity for kelp farming in Alaska is significant, yet mirrors challenges similar to those other regional industries face, such as high transportation, labor, and energy costs. Success depends on effectively addressing and managing these cost factors, which could involve implementing pricing strategies and finding innovative ways to navigate and mitigate these challenges. The current surge of interest in kelp farming highlights the potential for growth and innovation in this dynamic sector, pointing towards a promising path for local development and expansion.

Future of farming

We asked each farmer about their ambitions to expand and the main factors that limit their farm’s potential growth. Farmers were also asked to list the major production challenges they face and changes that could help improve farming outcomes.

Farm challenges

• Labor shortage and costs
• Consistency of high-quality seed production
• Lack of local processing facilities (drying, biorefineries)
• Scalability 

Farming wishlist

• Market maturity and demand
• Commercial scale drying capacities
• Advanced local biorefineries
• Economic viability - attracting more companies and investments

Broader challenges

The answers paint a picture of the industry in real-time and provide valuable insights into technology gaps and innovation opportunities.

1. Geographic and logistical obstacles

   Alaska's remote locations, harsh weather, and high operating costs pose significant challenges for the seaweed sector. The vast distances and difficult terrain make scaling operations complex and costly. Many coastal communities, accessible only by air or boat, face additional logistical hurdles, further increasing operational costs.

2. Lack of processing infrastructure

   The limited availability of nearby processing facilities and specialized equipment constrains the industry’s ability to process seaweed locally. The existing seafood processing infrastructure in Alaska is not fully equipped to handle the unique demands of seaweed.

3. Market development and consumer adoption

   Western consumers are largely unfamiliar with seaweed as a staple food, unlike in some Asian countries. This cultural gap presents a barrier to the widespread adoption of seaweed products. Additionally, the market for seaweed products is still emerging.

4. Labor shortages:

   The seaweed industry is experiencing difficulties in attracting and retaining talent. The ongoing trend of people moving to larger cities or leaving Alaska, combined with the seasonal and labor-intensive nature of the work, has resulted in a shortage of people willing to work in the seaweed industry.

Innovation needed

1. Localized processing and scalable biorefineries

   There is significant potential for developing localized processing technologies that local communities can easily maintain and operate. Establishing scalable biorefineries capable of processing various seaweed species into food-grade, animal-grade, and industrial products would significantly enhance the value chain. This would not only reduce operational costs but also support the local economy by keeping more processing within the state.

2. Market development and cooperation

   The industry could expand its market development efforts by understanding consumer preferences to bridge the cultural gap. Creating products that appeal to Western tastes and establishing a national marketing board could help build brand recognition. Moreover, diversifying the potential markets into, for example, biostimulants, pet food and animal feed can further drive demand and market growth.

3. Leveraging existing infrastructure and workforce

   The seaweed industry in Alaska could use the established infrastructure and workforce from the fishing industry. During the off-season, when fishing activities decrease, the boats, equipment, and skilled workers typically involved in fishing can be repurposed for seaweed farming and processing. This would not only maximize the use of available resources but also provide fishermen with additional income streams.

The future of the industry

Local perspective

Mariculture in Alaska shows potential for providing year-round employment and supporting local communities. This offers a sustainable alternative to the state's heavy reliance on seasonal tourism and declining oil revenues. By promoting a robust mariculture industry, including kelp and oyster farming, Alaska can establish a more resilient economy with increased tax revenues benefiting local communities and the state. Embracing this shift to a year-round economic model would encourage residents to stay in the state, creating steadier job opportunities and contributing to financial stability.

The global perspective

Anchorage has historically been a significant freight hub and a gateway to the Far East, making Alaska well-positioned to market mariculture products internationally. Leveraging this strategic location, Alaska can efficiently export premium seafood to meet the constant demand in global markets. Furthermore, the state's vast and underutilized coastline offers ample space for sustainable mariculture development, setting Alaska apart from regions facing overcrowding and limited opportunities for ocean-based activities. This combination of transportation advantages and abundant coastal resources presents a substantial opportunity for Alaska to serve worldwide markets and drive economic growth by expanding its mariculture industry.

With a comprehensive view of the entire value chain, we incorporated feedback from various stakeholders and the study's findings to emphasize strategic actions that can harness the innovative efforts of local players to overcome crucial bottlenecks in the Alaskan seaweed industry.

Scaling

• With over 30,000 square miles of shoreline, authorized shellfish and seaweed farms currently occupy merely ~1,200 acres, approximately 2 square miles, highlighting the state's vast ocean space compared to other states for diverse marine activities like mariculture to flourish.
• The strategic placement of farms in proximity to regional transportation hubs and populated areas is crucial. Clustering farms together can foster cost-efficient collaborations and valuable business partnerships, offering significant economic benefits.
• Expanding the industry while maintaining the balance between family operations and full-fledged corporation farms can sustain supply to meet the rising demand for seaweed products.

Diversification

• The combination of seaweed and oyster production shows promise for increasing the profitability of aquatic farms in Alaska. Farmers who can cultivate multiple species could make more efficient use of their investments in infrastructure, equipment, and labor.
• Regulatory and permitting procedures should consider and support diverse farm operations and innovative research and development efforts aimed at overcoming the technical and technological challenges of growing these aquatic species in Alaska.

Fisheries and farming

• In Alaska, the seasonal rhythms create a unique connection between farming and fishing. Kelp farming mainly occurs during the off-season of commercial salmon fisheries (planted in the fall and harvested in the spring), while oyster farming is mainly a summer activity, complementing winter fisheries.
• Commercial fishing vessels are well-suited for kelp farming and can be repurposed for harvesting and primary processing, as shown by Mothers of Millions.
• Since most aquatic farmers continue with their commercial fishing activities to maximize income streams, fishing operations can also take advantage of their vessels, skilled workforce, established waterfront properties, and processing facilities to overcome some logistical challenges in kelp and oyster production.