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 BLACKCOD (SABLEFISH) OVERVIEW
Unique Hatchery Technologies
As a leader in marine hatchery technology for almost 20 years, the Company has developed proprietary hatchery techniques for a number of marine species, most notably the hybridization of the Pacific Scallop. It was also the first to product commercial quantities of sablefish (or Black cod) in the marine fishery environment. This breakthrough required over eight years of research and considerable investment. In addition, the company has produced commercial quantities of seed for a wide variety of shellfish species, including oysters, clams, geoducks and others.
Sablefish Overview
Management believes that sablefish (or black cod) will be the next species, after salmon, for successful large-scale commercial farming. Sablefish is a premium-quality whitefish whose delicate texture and moderate flavor make it an ideal substitute for Chilean sea bass (currently over-fished in all oceans). To date, Island Scallops has marketed a limited number of live sablefish into the Vancouver market. Initial response was excellent for a small 1-kilogram live sablefish (~$11/kg).
Sablefish Market Overview
Worldwide "non-farming" sablefish catches are struggling to meet the international demand according to Canada's Department of Fisheries and Oceans and the U.S. Pacific Fishery Management Council. Currently, there are only two hatchery facilities - Island Scallops Ltd. and Sablefish Hatcheries Inc. - that have produced sablefish juveniles. Current production is limited.
Based on our analysis of present market conditions, increasing worldwide hatchery production tenfold (to roughly 1 million 3 kilo sablefish) would fill less than 10% of the current world demand shortfall.
Business Plan for Sablefish
If we are able to locate suitable funding and/or partners, Island Scallops intends to construct a new sablefish hatchery to produce 3 million sablefish annually. Even this will fill less than 30% of the current overall shortfall. The economic potential for sablefish is therefore considerable.
Develop new sablefish facility. Island Scallops has already demonstrated the feasibility of onshore sablefish farming and plans to develop a new onshore sablefish facility that could produce at least 500,000 sablefish in the first year of operation. Subject to available funding, we plan to capitalize on ISL's sablefish hatchery technology by constructing a new sablefish hatchery with:
- Expanded capacity and a new state-of-the-art water treatment system;
- An incubation and larval rearing facility with improved tank design and seawater systems;
- An upgraded zooplankton culture facility with improved handling and enrichment techniques;
- An expanded and improved juvenile rearing facility incorporating proprietary recirculation system designs.
As part of this possible expansion, we also intend to construct a new onshore tank farm consisting of large and small ponds and tanks complete with associated recirculation systems. This onshore facility will be used to augment the juvenile rearing area and will house and grow juvenile fish to harvest size. Tests have shown that sablefish prove to be very hardy when grown in ponds. Pond culture has the added advantage of causing sablefish to be free of parasites that can be transferred to humans. (Wild sablefish can carry a parasite that does not allow the fish to be eaten raw.)
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 SCALLOPS BLACK COD  OVERVIEW GENERAL FISHERIES |
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