Will land-based aquaculture and AI seafood DX become the next food infrastructure? 2027 Aquaculture Deep Tech Investment Theme

[Summary]

The global aquaculture market is transforming into a deep tech market due to constraints on natural marine resources, climate change, food security, and increasing protein demand.

Of particular note are the

Land-based aquaculture *RAS (closed circulation terrestrial aquaculture) *AI feeding
Water quality sensor *Energy saving water treatment *Alternative feed

It is.

However, land-based aquaculture is not a dream technology.

The biggest wall is

Electricity bill
Feed cost
Difficulty in large-scale mass production
Disease and water quality management
Weight of initial investment

It is.

In this article, we will summarize precedent cases from around the world, important points for Japanese companies, and scenarios for reorganization of the fisheries sector toward 2027.

Why aquaculture tech now?

The seafood industry is at a major turning point in the long term.

While there is a limit to the amount of wild fish caught around the world, demand for protein, including seafood, is expanding due to population growth and rising incomes.

In this environment,

How many fish can you catch?

than,

How consistently can fish be raised, processed, and delivered?

becomes important.

In the 20th century, the fishing industry depended on the intuition of fishermen and the bounty of the sea.

The fishing industry after 2027 will be

Algorithms, tanks, sensors, feed, energy control

industry.

What is land-based aquaculture?

Land-based aquaculture is a system in which fish are raised in facilities on land rather than in the sea or rivers.

In particular, RAS is a method that circulates water while filtering, sterilizing, and reusing it.

The main benefits are:

Benefits	Contents
Stable production	Less affected by weather and sea conditions
Proximity to consumption area	Easy to shorten transportation distance
Reducing environmental impact	Easier to manage wastewater and prevent diseases
Quality control	Data management of water temperature, oxygen, and bait
Import substitution	Domestic production leads to food security

On the other hand, the disadvantages are also clear.

*Large initial investment

High power consumption
High risk when equipment stops
High degree of difficulty in water quality management
It takes time to become profitable

In other words, terrestrial aquaculture is more like a plant operation than an "agriculture for raising fish."

Precedent cases around the world

Atlantic Sapphire

Atlantic Sapphire is a leading company engaged in large-scale land-based salmon farming in Florida, USA.

Under the brand "Bluehouse," the company promoted a model for growing salmon close to consumption areas.

However, the company's journey is not all about success.

Large-scale RAS also involves equipment troubles, costs, mass production stability, and difficulties in financing.

What is important for investors is

Land-based aquaculture is not a dream technology, but an equipment industry that is difficult to commercialize.

It's about understanding that.

UMITRON

UMITRON is known as a Japanese seafood DX startup.

We are developing technology that utilizes AI and IoT to optimize feeding while monitoring the feeding status of fish.

In aquaculture, feed costs account for a large portion of the cost.

Therefore, techniques to reduce feed waste and optimize growth impact both profit margins and environmental impact.

FRD Japan

FRD Japan is a company that is attracting attention in land-based aquaculture in Japan.

Mitsui & Co., Ltd. has invested in a company that is promoting the commercialization of land-based salmon farming in Kisarazu City, Chiba Prefecture.

The company's unique feature is that it uses artificial seawater instead of seawater and its unique filtration technology.

If salmon can be produced close to the metropolitan area, there will be advantages in terms of shorter transportation distance, freshness, and stable supply.

The two major costs are electricity and feed costs.

When considering investment themes for land-based aquaculture, the most important factor is the cost structure.

Especially big is

Electricity bill
Feed cost

It is.

RAS requires pumps, water treatment, oxygen supply, sterilization, and temperature control.

Additionally, raising fish requires a large amount of feed.

In other words, companies that win in land-based aquaculture are

Companies that raise fish

rather than

A company that can control power and feed

It is.

Technology to lower electricity bills

The following technologies are important in reducing electricity costs.

1. Waste heat utilization

The idea is to use waste heat from factories, data centers, waste treatment facilities, power plants, etc. to control water temperature.

If the energy to heat or cool water can be obtained externally, operating costs can be significantly reduced.

2. Groundwater/groundwater

Groundwater and underground seawater have a characteristic that the temperature tends to be stable throughout the year.

This can be a great advantage for some fish species as it reduces the burden of adjusting water temperature.

3. Energy-saving pump and fluid design

RAS requires water to keep circulating.

Companies that can optimize tank geometry, piping design, pump efficiency, gravity utilization, etc. will have long-term cost competitiveness.

This is where the technology of air conditioning, plant, fluid control, pump and sensor companies becomes important.

Technology to reduce feed costs

In aquaculture, dependence on fishmeal and fish oil is an issue.

The structure of raising farmed fish using wild fish as feed has limitations in terms of both sustainability and cost.

The following alternative feeds are attracting attention.

1. Insect protein

This is a method of converting food residue into protein using insects such as black soldier flies.

You can aim to reuse waste and reduce feed costs at the same time.

2. Microalgae

Omega-3 fatty acids such as DHA and EPA are originally derived from microalgae.

If we can cultivate algae and use it as feed, we can reduce our dependence on fish oil.

3. Microbial proteins

This is a method of producing protein through fermentation and microbial culture.

Its strength is that it is less dependent on farmland and weather.

In the future, this may contribute to the stable supply of aquaculture feed.

Points to note when looking at Japanese companies

Fisheries DX and terrestrial aquaculture are areas that tend to get overheated in the stock market because of their strong themes.

On the other hand, "demonstration experiments" for IR purposes and "commercial operations" that actually generate profits are completely different.

Investors need to look at three things:

1. Do you have a track record of shipping?

It is not enough to just "start an experiment."

What you should see is

How many tons can be shipped per year?
Where are they sold to?
Is continuous supply possible?

It is.

2. Are the assumptions for electricity and feed costs disclosed?

The profitability of land-based aquaculture depends on electricity prices and feed prices.

Companies that remain vague on this point and only talk about ``growth markets'' should be viewed with caution.

3. Do you have patents, unique technology, and sales network?

If you just want to buy an aquarium and raise fish, the barrier to entry is not high.

The important thing is that

Unique filtration technology
AI feeding algorithm
Exhaust heat utilization network
Own brand
Sales network to major retailers and restaurants

It is.

There are investment opportunities in surrounding industries

Fisheries companies are not the only candidates for land-based aquaculture.

There are also investment opportunities in surrounding industries.

Area	Expected role
Plant engineering	Design and construction of large-scale RAS facilities
Air conditioning/heat exchange	Water temperature management and waste heat utilization
Pumps and valves	Water circulation and fluid control
Sensor	Measuring water quality, oxygen, and fish condition
AI/image analysis	Feeding optimization, disease detection
Feed/Fermentation	Alternative proteins and microbial feed
Refrigerated logistics	Maintaining quality after shipment

In other words, aquaculture tech is not just a theme for "fish farming companies."

It is a wide-ranging food infrastructure industry that includes electricity, water treatment, sensors, chemicals, and logistics.

Fisheries sector restructuring scenario in 2027

Looking ahead to 2027, there is a possibility that restructuring will proceed in the fisheries sector.

Scenario 1. Capture of technology companies by major players

It is faster for major and semi-major companies like Nissui, Umios, and Kyokuyo to partner with startups and specialized companies that have the technology, rather than developing everything themselves.

Companies in aquaculture, water treatment, AI feeding, and alternative feed will be more likely to be eligible for partnerships and investment.

Scenario 2. Entry of trading companies and infrastructure companies

For general trading companies, energy companies, and plant companies, land-based aquaculture represents a new food infrastructure investment.

This is because it is easy to combine with existing assets such as power plants, factories, ports, and cold storage warehouses.

Scenario 3. PBR reform theme for medium-sized companies

There may also be cases where medium-sized companies with low PBRs enter aquaculture tech by utilizing the land, warehouses, piping, and former factory sites they own.

However, this requires discerning between authenticity and theme precedent.

Investors are

Not announcements, but equipment, shipping, profitability, and sales destinations

You should check.

Checklist for investors

When looking into fisheries DX/land aquaculture related matters, the points to look at are as follows.

Check items	Reasons to watch
Is there commercial shipment?	Check if the demonstration experiment has ended
How to reduce your electricity bill	See if you can manage RAS's largest cost
Measures to reduce feed costs	See if you can break away from dependence on fishmeal
Sales destination	Check contracts with supermarkets, restaurants, and trading companies
Equipment utilization rate	Check whether production is being performed as planned
Funding	See if you can continue the huge capital investment
Uniqueness of technology	See if it has competitiveness that is difficult to imitate

Summary

Land-based aquaculture and AI seafood DX will become important food infrastructure themes toward 2027.

However, what investors should be looking at is not a sense of the future.

What's really important is

Can you lower your electricity bill?
Can feed costs be reduced?
Can we continue shipping?
Can you secure a sales partner?
Can you recover your capital investment?

It is.

The fishing industry is

Weather-dependent volatility stocks

From,

Predictable defensive infrastructure assets

may change to.

The keys to achieving this transformation are RAS, AI feeding, alternative feed, and energy-saving water treatment.

2026-2027 is likely to be a turning point when the perspective on seafood stocks changes from ``fish prices'' to ``technology and supply networks.''

Source/Reference

This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.