ABSTRACT
Aquaculture in the United States has proven economic potential, yet many challenges remain. Competition from imports and capture fisheries, externalities associated with pond effluent, ground water depletion, and governmental trade policies and regulation are becoming increasingly important as aquaculture becomes integrated into the US economy. Market development will be an important source of growth as the aquaculture industry matures. In general, there will be a continuous attempt to increase supply so as to take advantage of larger market opportunities. Market growth has permitted increased specialization and improved scale economies in production and processing. Aquaculture generates, and is affected by, a number of externalities that could have profound impacts on aquaculture's sustainability. Quality control and consumer apprehensions concerning the source of fish and seafood supply may become an important comparative advantage for US aquaculture. Market development can proceed along two broad fronts: domestic and foreign.
