Local Coho to cease operations.
LocalCoho, a land-based salmon aquaculture start-up that aimed to revolutionize American seafood production, will cease operations on January 31, marking the end of its six-year effort to cultivate Coho salmon in Auburn, New York.
The company’s closure, first reported by UnderCurrent News, signals a setback for land-based Recirculating Aquaculture Systems (RAS), an emerging sector that has struggled to balance innovation with economic viability.
LocalCoho, founded in 2019, gained attention for its pilot RAS facility, which used advanced “Mixed-Cell Raceway” technology to produce Coho salmon. The company’s focus on sustainability and quality earned its salmon a place on menus at high-end restaurants like Nobu in New York. The company also secured a distribution deal with FreshDirect, an online grocer, to bring its product directly to retail consumers.
The venture attracted significant investment from seafood industry veterans, including Rodger May, owner of Pan Seafood, and Per Heggelund, a former operator of a land-based Coho salmon farm in Washington State. At the time, May called LocalCoho “front and center of this emerging industry,” citing its commitment to sustainability and quality.
Despite its ambitious plans to expand with up to 12 RAS facilities across the United States, LocalCoho faced significant challenges. The company struggled with high operational costs, regulatory complexities, and market pressures, which ultimately led to its decision to cease operations.
Challenges for Land-Based Aquaculture
LocalCoho’s closure highlights the difficulties facing the RAS industry. While its decision to focus on Coho salmon—a species with little direct competition in the U.S. market—set it apart from the saturation of Atlantic salmon producers, the company struggled to scale its pilot farm into a commercially viable operation.
The closure also raises questions about the broader viability of land-based salmon farming in the U.S. Although RAS technology offers a more sustainable alternative to ocean-based farming, the financial and logistical barriers remain formidable.
Phil Gibson, former CEO of LocalCoho, previously emphasized the potential advantages of Coho salmon in the market, noting that the species doesn’t require a saltwater component during its growth cycle, simplifying production. However, even with this advantage, the company faced an uphill battle in competing with established global producers.
LocalCoho’s exit also serves as a cautionary tale for other RAS ventures. The sector’s high capital requirements and operational costs demand strategic investments, market alignment, and robust risk management to achieve commercial success.
