1. TWENTY-ONE YEARS OF HYBRID STRIPED BASS CULTURE IN THE U.S. (1987-2007) By James M. Carlberg, Michael J. Massingill, and Jon C. Van Olst Kent SeaTech Corporation

2. U. S. Production of Hybrid Striped Bass During 2007 3,031,000 lb 2,698,000 lb 404,000 lb 4,952,000 lb Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers U.S. Total = 11,240,000 lb 155,000 lb

3. Western Region Western Region Production (lb) Ponds3,361,000 Tanks 1,591,000 Cages0 Total4,952000 Western Region Western Region Production (lb) Ponds3,361,000 Tanks 1,591,000 Cages0 Total4,952000 Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers Northeast Region Northeast Region Production (lb) Production (lb) Ponds4,000 Tanks400,000 Cages0 Total404,000 Northeast Region Northeast Region Production (lb) Production (lb) Ponds4,000 Tanks400,000 Cages0 Total404,000 Mid-Atlantic Region Production (lb) Production (lb) Ponds3,031,000 Tanks0 Cages0 Total3,031,000 Mid-Atlantic Region Production (lb) Production (lb) Ponds3,031,000 Tanks0 Cages0 Total3,031,000 Southeast Region Southeast Region Production (lb) Ponds2,176,000 Tanks522,000 Cages0 Total2,698,000 Southeast Region Southeast Region Production (lb) Ponds2,176,000 Tanks522,000 Cages0 Total2,698,000 U.S. Total U.S. Total Production (lb) Production (lb) Ponds8,572000 Tanks2,513,000 Cages155,000 Total11,240,000 U.S. Total U.S. Total Production (lb) Production (lb) Ponds8,572000 Tanks2,513,000 Cages155,000 Total11,240,000 U. S. Production of Hybrid Striped Bass During 2007 Upper Midwest Region Production (lb) Production (lb) Ponds0 Tanks0 Cages155,000 Total155,000 Upper Midwest Region Production (lb) Production (lb) Ponds0 Tanks0 Cages155,000 Total155,000

4. Production of Hybrid Striped Bass (lb) 12,000,000 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers '86 '86 '88 '88 '90 '90 '92 '92 '94 '94 '96 '96 '98 '98 Cages Ponds Tanks '00 '00 '02 '02 '04 '04 '06 '06

5. Production of Hybrid Striped Bass (lb) Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers

6. Changes in Production Methods for Hybrid Striped Bass Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers

7. Regional Production and Sales of Hybrid Striped Bass (2007) NortheastMid-AtlanticSoutheastMidwestWestTotal Fresh (lb)4,0001,830,0002,660,00004,657,0009,151,000 Live (lb)400,0001,201,00038,000155,000295,0002,089,000 Total (lb)404,0003,031,0002,698,000155,0004,952,00011,240,000 Fresh (% of US market)0%20%29%0%51%100% Live (% of US market)19%57%2% 7%14%100% Total (% of US market)4%27%24% 1%44%100% Fresh:Live Sales Ratio1:9960:4099:1 0:100 94:681:19 (within production region) Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers

8. Changes in Regional Production and Sales of Hybrid Striped Bass NortheastMid-AtlanticSoutheastMidwestWest Total 2006 2006 Fresh (lb) 25,0002,225,0002,095,00005,389,0009,734,000 Live (lb) 389,0001,281,00014,000220,000287,0002,191,000 Total (lb) 414,0003,506,0002,109,000220,0005,676,00011,925,000 2007 2007 Fresh (lb) 4,0001,830,0002,660,00004,657,0009,151,000 Live (lb) 400,0001,201,00038,000155,000295,0002,089,000 Total (lb) 404,0003,031,0002,698,000155,0004,952,00011,240,000 Change Fresh (lb)- 21,000 - 395,000+ 565,000 0 - 732,000 - 583,000 Live (lb)+ 11,000 - 80,000 + 22,000 - 65,000+ 8,000- 102,000 Total (lb)- 10,000 - 475,000+ 587,000 - 65,000- 724,000- 685,000 % - 14%+ 28% - 30%- 13%- 6% - 2% - 14%+ 28% - 30%- 13%- 6% Increase Increase Decrease Decrease Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers

9. Changes in Sales of Hybrid Striped Bass During 1996-2007 (pounds/year) Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers

10. Changes in Wholesale Prices of Farmed Hybrid Striped Bass (2006-2007) Farm LocationNortheast Mid-AtlanticSoutheast MidwestWest Average Fresh (FOB Farm)$2.55/3.00 $2.71 /2.90 $2.66/2.92(na) $2.56/2.53 $2.62/2.72 +.45 +.19 +.26-- -.03 +.10 +.45 +.19 +.26-- -.03 +.10 Fresh (Delivered)$ 2.81/3.50 $2.86/3.10 $2.91/3.16 (na) $2.82/2.93 $2.85/3.03 +.69 +.24 +.25-- +.09 +.18 +.69 +.24 +.25-- +.09 +.18 Live (FOB Farm) $3.55/3.75 $3.02/3.00 $3.22/$3.25 $3.00/3.00 $3.54/3.00 $3.18/3.15 +.20 -.02 +.03 -- -.54 -.03 +.20 -.02 +.03 -- -.54 -.03 Live (Delivered) $4.34/4.20 $3.42/3.40 $3.50/$3.60 $3.40/3.40 $4.20/3.51 $3.69/3.32 -.14 -.02 +.10 -- -.69 -.37 -.14 -.02 +.10 -- -.69 -.37 2006Price increase between 2006 and 2007 2007Price decrease between 2008 and 2007 Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers

11. Price-Volume Relationship for Farmed Hybrid Striped Bass During 1984-2007 Fresh Sales Price FOB Farm ($/lb) AnnualVolume(lb) Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 '84 '84 '85 '85 '86 '86 '87 '87 '88 '88 '89 '89 '90 '90 '91 '91 '92 '92 '93 '93 '94 '94 '95 '95 '96 '96 '97 '97 '98 '98 '99 '99 ’00 ’00 ’01 ’01 ’02 ’02 ’03 ’03 ’04 ’04 ’05 ’05 ’06 ’06 ’07 ’07 ’08 ’08

12. Annual Production (lb) SalesPrice($/lb) Price-Volume Relationship for Farmed Hybrid Striped Bass During 1984-2008 2,000,0004,000,0006,000,0008,000,00010,000,000 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50$5.0012,000,000 Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers 14,000,000

13. U. S. Production of Hybrid Striped Bass During 2007 and Projections for 2008 AnnualProduction(lb) 2007 (Actual) 2008 (Projected) 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,00014,000,000 New Production Existing Production 11,240,000 Kent SeaTech Corporation Data from state Aquaculture Extension Programs and a survey of major producers 11,980,000 640,000

14. CHANGES IN THE ECONOMICS OF HYBRID STRIPED BASS CULTURE DURING 1996-2005

16. INCREASES IN PRODUCTION COSTS IN INTENSIVE TANKS AND OPEN POND HSB FARMING

17. Increases in the Costs of Hybrid Striped Bass Culture During 1997-2005 TANKCULTURE PONDCULTURE

18. HYBRID STRIPED BASS FRY AND FINGERLINGS PRODUCED BY SEVEN U.S. GROWERS IN 2007 Kent SeaTech Corporation

19. Cost of Production and Market Price of Hybrid Striped Bass During 2005

20. Worldwide Production of Hybrid Striped Bass in 2005 (million pounds/yr)

21. IMPORTS OF CULTURED HYBRID STRIPED BASS FROM TAIWAN

22. SUMMARY AND CONCLUSIONS MARKET TRENDS: Increased Demand for Center-of-the-Plate, High-Quality Fresh Fish Steady Increase in Demand for Live Fish and Higher Pricing Positive Conditions and Opportunity to Expand Competition with Wild-Caught Striped Bass Competition with Cheaper Live Fish Alternatives Need to Increase Perceived Value of Farm-Raised HSB Concerns about Possible Economic Recession PRODUCTION CONCERNS: Continued Source of High Quality Fingerlings High Cost of Production Inputs (Feed, Electricity, Oxygen, etc.) Regulatory Issues Affecting Water Use and Discharge (Need for BMP’s) Kent SeaTech Corporation