Homebred Tilapia producers are best positioning themselves for the paradigm shift already under way
BONITA, CA - (NewMediaWire) - December 23, 2015 -- Few realize it, but the United States’ seafood market is worth a whopping $60 billion, mostly shrimp. Even more amazing, most consumed seafood in the U.S. is imported. This is good news for New Global Energy Inc. (OTCMKTS: NGEY), who seeks to close the loop on fully sustainable fish farming that's safe and healthy for Americans.
With greater oversight and greater scrutiny of the seafood industry falling into place, however, United States consumers are understandably hesitant to consume more fish. Not only is the quality of this foreign seafood being increasingly questioned, safety concerns are now the norm.
Perhaps no other sliver of the seafood market has been held back by quality and safety concerns as much as tilapia has. That concern is creating opportunity for American providers, however, which can verify and validate their fish, is not only of the highest quality, but meets the highest safety standards.
It’s this aspect of the maturing U.S. tilapia market in fact, the SmallCap Network research staff believes could provide a potentially compelling opportunity for investors in 2016.
In spite of the country’s capable seafood production business, more than 90% of the seafood eaten in the United States is imported. Tilapia is no exception. The majority of the tilapia eaten in the U.S. comes from China, Indonesia, Ecuador, and Honduras, just to name a few. Not all of these countries necessarily have the same safety and quality standards the U.S. may have. And, perhaps worse, even where standards are strong, the enforcement of those standards may or may not be consistent.
As an illustration of the concern, a 2009 report from the U.S. Food and Drug Administration, noted that over the course of the eight prior years, a great deal of the tilapia imported from China had been banned from being shipped to the U.S. because those "fish are often raised in ponds where they feed on waste from poultry and livestock."
Of course, even where farm-raised tilapia isn't consuming waste, mercury consumption is an ongoing and valid concern.
It's not to say all Chinese fish farms are guilty of breeding tilapia in conditions that make them unsafe for consumption, and to the country’s credit, enforcement of minimal standards is improving. But, with 200 million small, independent aquafarms of less than two acres per farm coupled with the fact that China produces a whopping 40% of the world’s tilapia supply, regulatory oversight is still tenuous at best.
It’s unfortunate tilapia’s reputation has been damaged too, as it’s a particularly good source of protein. Aside from being a source of omega-3 fatty acids (which are important for brain function), one serving of tilapia can provide half the daily recommended amount of protein intake.
It’s this convergence of growing demand for tilapia and fear of consuming it that has presented an opportunity for U.S.-based providers, who can breed the fish safely and effectively, and in a venue that’s easy for consumers and regulators to verify is safe and clean.
Individual companies like New Global Energy Inc. (OTCMKTS: NGEY) are quietly working to lead the charge.
Those who know New Global Energy well likely know it as a Moringa farm. Moringa is the world’s newest superfood, rich in nutrients and full of antioxidants. However, the Company’s entry into the Moringa business was actually fueled by New Global’ s aim to grow its own fish feed, so it would know exactly what its tilapia were consuming.
New Global Energy, through its subsidiary Aqua Farming Tech, has also gone to great lengths as well as expense, to ensure the water it breeds its fish in is properly filtered, safe, and clean. This new found process of full sustainability is receiving rapid growth adoption across many industries.
The bulk of New Global Energy’s aqua farming growth plans are in front of it. As was recently noted in seafood industry publication Undercurrent News, the company aims to produce 27,500 pounds of tilapia per week by the first quarter of 2017, and the potential addition of a third and possibly even a fourth fish farm could ramp up that level of output. That translates into a few million in annual tilapia sales, making NGEY a potentially exciting prospect for investors.
For more on New Global Energy, visit the company’s website (www.newglobalenergy.net) or the SmallCap Network NGEY research hub (www.smallcapnetwork.com/New-Global-Energy/s/quote/p/s/NGEY/).
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