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View Full Version : Regulatory Uncertainty Drives Fish Farmer to Foreign Waters



Chris
11-26-2012, 10:18 PM
The subject keeps coming up, about how it's unfair for business to move offshore or overseas, but what exactly drives it?


...Open Blue farms a fish called Cobia, also known as black salmon, ling, or lemonfish. It's a tasty, fast-growing species especially amenable to being raised under controlled conditions. The economics are compelling-a mere 1.85 pounds of feed can yield a pound of Cobia. Compare this to the 2:1 ratio for poultry and anywhere from 5:1 to 20:1 for cattle, not to mention the thousands of gallons of water it takes to grow a pound of beef.

It took a while to figure out the proper siting, anchoring, and operating parameters required to run a fish farm so far from shore, but Brian, like any dedicated entrepreneur, was persistent. Resistance from local fishermen slowly turned into support when they realized they could get steady work delivering feed and materials to the farm sites while transporting harvested fish back to shore on a scheduled basis. But where did Brian set up shop, and why?

Panama. The reason? Regulations.

"Panama has a small and limited government, which made it easier to navigate the business and permitting process," explained Brian. "Deep water fish farming is so new that we wanted to work with agencies that were responsive and flexible. This was just not possible in the U.S."

Getting the required permits and licenses to operate a deep-water fish farm in the U.S. would require running the gantlet of dozens of federal and state regulatory agencies....

And all of this is before the courts get involved.... The cost and uncertainties introduced by dysfunctional crony capitalism, pay-to-play politicians, and misguided environmental activists would be deadly to any entrepreneur.

Hence Panama, which is great for Panamanians, as they get the jobs, the fish, and the export revenue, but not so great for us....

...for now, Brian is focused on making his venture a success in a country that still understands the value of economic freedom.

@ Regulatory Uncertainty Drives Fish Farmer to Foreign Waters (http://www.realclearmarkets.com/articles/2012/11/26/regulatory_uncertainty_drives_fish_farmer_to_forei gn_waters_100008.html)

Peter1469
11-27-2012, 05:29 PM
Large business has lobbied Congress to create these regulatory burdens precisely to harm their small business competitors.

shaarona
11-27-2012, 05:50 PM
Large business has lobbied Congress to create these regulatory burdens precisely to harm their small business competitors.

Who are the big business Cobia fish farmers in the US?

Peter1469
11-27-2012, 06:46 PM
Think broader- factory fish farming in general, not just a specific fish breed.

Chris
11-27-2012, 08:24 PM
Think even broader, the fishing industry.

Peter1469
11-27-2012, 09:39 PM
Think even broader, the fishing industry.

Right. And the big corporations are trying to drive out the small businesses.