Indoor shrimp farming presents unique challenges and opportunities, especially as demand for sustainable and locally produced seafood grows in the United States. Atarraya, a Mexican company specializing in indoor shrimp farming in the US, has taken a unique approach to overcome these challenges and establish a foothold in the U.S. market. In a recent interview with Contain, Atarraya’s CEO, Daniel Russek, shared insights into the company’s technology, operations, and future expansion plans.

The Need for Indoor Shrimp Farming in the U.S.

The U.S. is heavily reliant on imported shrimp, with approximately 95% of its shrimp supply coming from abroad (NOAA, 2023). The U.S. shrimp market is substantial and growing. Americans consume over 1.5 billion pounds of shrimp annually, making it the most popular seafood in the country (Statista, 2023). This dependence on imports poses several challenges, including supply chain disruptions, concerns over seafood quality, and environmental impacts. Traditional shrimp farming practices in countries like Ecuador and Thailand are often associated with severe environmental degradation, including mangrove deforestation and water pollution. Additionally, these farms often rely on antibiotics and preservatives, leading to health concerns for consumers.

Acknowledging Past Challenges in U.S. Shrimp Farming

Indoor shrimp farming offers a solution to these issues. However, the history of shrimp farming in the U.S. has been challenging, with several closures.  These farms faced difficulties such as high operational costs, disease outbreaks, and technological failures that led to unsustainable business models. By producing shrimp locally, indoor farms can reduce transportation emissions, provide fresher products, and eliminate the need for harmful chemicals. Moreover, local production supports food security and creates economic opportunities in underserved areas. Atarraya has recognized these needs and is addressing them through both its technology and business model.

Atarraya’s Innovative Approach to Shrimp Farming

Traditional aquaculture methods depend on large-scale water exchanges to manage waste and water quality. Atarraya instead utilizes a biotechnological approach called biofloc technology. This method leverages microbial communities to maintain water quality within the shrimp tanks. It reduces the need for continuous water exchange and minimizing environmental impact.

Russek explained that traditional recirculating aquaculture systems (RAS) often fail because they require complex engineering and are susceptible to system-wide failures if any component malfunctions.  Some approaches require considerable capital investment.  In contrast, Atarraya’s biofloc-based system is designed to maintain a stable ecosystem within each tank, reducing risk and enhancing sustainability. The system promotes nitrogen management within the tanks, where microbial communities process waste into fertilizer. This further contributes to sustainability by producing a secondary product useful in agriculture.

Atarraya’s technology is designed to be not only innovative but also highly scalable. The company has developed a modular system called “Shrimpbox,”. They says this allows them to rapidly deploy new farms with reduced construction time and cost. The approach contrasts sharply with other indoor shrimp farms that often take years to build and are prone to going over budget. Atarraya says its farms can be operational within months. Their Indianapolis facility began operations just two months after securing the lease.

Current Operations and Expansion Plans

Atarraya currently operates a facility in Indianapolis, Indiana, where they have successfully demonstrated the viability of their technology and business model. The Indianapolis farm, which consists of 40 tanks, is already showing promising results. It has a consistent harvest schedule and growing demand from local and regional markets. Each tank produces approximately 25 pounds of shrimp biomass per week.

Building on their success in Indiana, Atarraya is now expanding into New York. The company plans to establish a new facility in New York City by the end of the year. This expansion is part of Atarraya’s broader strategy to establish a presence in major U.S. markets. It expects the New York facility to start operations in December. Atarraya aims to reach full production capacity shortly after. Rapid expansion is made possible by the company’s modular approach and their ability to control all aspects of the farm’s construction and operation internally.  It is targeting 100 tanks at the facility, though says it has demand for 150.

Funding and Future Growth at Atarraya

Atarraya says its growth has been supported by a mix of angel investors, primarily from the tech sector.  The company recently extended its Series A funding round. It is currently raising an additional $2.5 million to support its expansion plans. Russek mentioned that while the company is focusing on existing investors for this round, they are open to new partnerships to accelerate their growth.

Looking ahead, Atarraya plans to transition to an asset-light model. This would involve partnering with local operators to set up new farms using their technology. This model could significantly reduce capital expenditure and allow for faster scaling. Atarraya is also in discussions with the USDA to develop financing programs for new farmers interested in entering the shrimp farming industry.

Conclusion

Atarraya’s approach to indoor shrimp farming addresses critical challenges in the seafood industry, from sustainability to local production and scalability. Their use of biofloc technology and modular farming systems sets them apart from traditional aquaculture methods.  By leveraging their unique technology, strategic partnerships, and a clear focus on sustainability, Atarraya aims to pave the way for a more sustainable future in aquaculture.

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