Indonesian coral farming will never be the same!

[Reef Builders]

After a few days of euphoria, with every one, thinking that the unlimited supply of cheap maricultured coral from Indonesia is back. We are feeling a bit hangover. Because, well, not exactly! We tried to send the message through, in last week post. But looks like nobody got the point. THE INDONESIAN MARICULTURE INDUSTRY IN […]
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[Reefcowboy]

Still better than it is now though!
Thanks for the article Jake

 

[sixty_reefer]

Still better than it is now though!
Thanks for the article Jake

Time will tell, I believe they will stay were they are price wise, only difference be that more will be available.

 

[EMeyer]

This article is an important reminder that adding regulations, even with the best of intentions, hurts just about everyone* involved in the market.

Local collectors will still struggle to support their families, since the new regulations won't allow them to collect new stock and will severely limit the amount of farming that can be done.

Retailers will still face limited supply, and won't be able to switch to a low-margin, high-volume model that would increase their sales and ultimately their net profits.

Hobbyists will still face artificially high prices for corals and newcomers will still face an unnecessary barrier to entry (which in turn hurts retailers).

* but a few workers at government regulatory agencies will earn comfortable white-collar salaries pushing paperwork around as they "save the reef".

 

[mfollen]

Or artificially high prices arent artificial as the price involves providing a living exotic animal that’s harvested and grown in a sustainable manner from the other side of the world? This review then ensures that the business model can continue in the future without depletion of resources for low prices that the marketplace wants or feels is right?

 

[Joe's 220 Reef]

I actually think that this is a good thing. Previous to the shut down Indonesia produced some spectacular corals and the market looked at it like it was an unlimited resource. Although I am against over government involvement in just about everything, I think that strict oversight is needed to make sure that Indonesia's reefs will be healthy for ever. No I don't want to pay more or have a limited choice for corals but is something I would do as a trade off to ensure that the reefs will be round for many generations past me. I think that this is a good start, we have to learn from it, and look forward to the future of the Indonesian coral market

 

[EMeyer]

Or artificially high prices arent artificial as the price involves providing a living exotic animal that’s harvested and grown in a sustainable manner from the other side of the world? This review then ensures that the business model can continue in the future without depletion of resources for low prices that the marketplace wants or feels is right?

Well, when increased prices are driven by the cost of complying with regulations rather than the actual cost of production, IMHO thats a pretty clear cut case of an artificially high price.

I suppose we could agree to disagree on what constitutes an artificially high price rather than a naturally high price but if prices driven by regulation arent artificial, what is?

 

[mfollen]

Cost of production of a living animal and natural resource should include the maintaining of that resource and oversight of that maintenence so that can continue to exist. Just my opinion though

 

[EMeyer]

Cost of production of a living animal and natural resource should include the maintaining of that resource and oversight of that maintenence so that can continue to exist. Just my opinion though

That's a statement I can 100% agree with. The question pretty quickly comes down to who should be making the decisions about the details. And what evidence is available to support those decisions.

In particular, I think it's too extreme to ban wild collection entirely. Corals are a renewable resource on a much shorter timescale than trees, but the US has increased tree numbers while maintaining a profitable industry and without banning logging. That is absolutely the standard that coral exporting regions should be looking to match and then exceed. IMO

And I very much doubt the local collecting industry (people trying to feed their families) supports a ban on wild collection.

But I do agree that some costs of protecting the resource can be argued as part of the cost of production. It's a good point.

 

[Broodude]

This whole ordeal is eerily similar to ticket scalping. The source don’t wanna miss out on payment the reseller is getting!

 

[sde1500]

but if prices driven by regulation arent artificial, what is?

De Beers diamonds

 

[Hersheyb]

look like coral prices won't be dropping anytime soon.

 

[EMeyer]

De Beers diamonds

Sure, but through a very similar mechanism: restrict the supply.