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NUMBER AND TITLE OF ASSIGNMENT SUBMITTED: The social
relevance of farmed corals to South African reef aquarists

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STUDENT NAME: Adrian Fynn

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The social relevance of farmed corals to
South African reef aquarists
By

Adrian Fynn

A Research Proposal submitted in fulfilment of the requirements for the

B-Tech Degree in Business Management

For the
Department of Business Management
Durban University of Technology
Supervisor: Andrew Pampallis
May 2011

A. M. Fynn

I.D. 7109105065082
“Our reefs are literally disappearing before our eyes. I cry as I dive on reefs
once awash in splendorous displays of colour with fishes, corals and
invertebrates that have since been overfished, bombed or polluted. I have
placed my hands upon the dead majesty of enormous Elkhorn corals, thinking
of days when I swam between their vibrant structures and my body parted
shoals of fish dwelling amongst their branches as I moved amid the coral
forests.”
Source: Eric Borneman, (Foreword from the Book of Coral Propagation, Calfo
2007)
Table of contents
1 INTRODUCTION........................................................................................1
2 RATIONALE...............................................................................................2
3 THE PROBLEM STATEMENT..................................................................3
4 THE RESEARCH QUESTION...................................................................4
5 THE AIM OF THE RESEARCH.................................................................4
5.1 THE OBJECTIVES OF THE RESEARCH.......................................................4

6 ASSUMPTIONS.........................................................................................5
7 LIMITATIONS OF THE RESEARCH STUDY............................................5
8 VALUE OF THE RESEARCH STUDY......................................................5
9 LITERATURE REVIEW..............................................................................6
10 RESEARCH METHODOLOGY..................................................................8
10.1 NATURE OF THE RESEARCH...................................................................8
10.2 RESEARCH DESIGN...............................................................................9
10.2.1 Sampling......................................................................................9
10.2.2 Data Collection Methods............................................................11
10.2.3 Questionnaire.............................................................................11
10.3 ADMINISTRATION.................................................................................12
10.4 DEMARCATION OF STUDY.....................................................................12
11 RESEARCH OUTLINE.............................................................................13
12 REFERENCES.........................................................................................14
APPENDIX A...................................................................................................15
APPENDIX B...................................................................................................17
List of figures

Figure 1 – The author’s reef tank (Source: author derived)..............................1

Figure 2 – Acropora Secale (Source: author derived).......................................3

List of tables

Table 1: Data collection method......................................................................11

Definition of terms

Term Meaning

Coral frag A small cutting taken of a live coral. Typically, a new coral colony
can be grown from this.

Frag plug A small base normally made of a mixture of cement and crushed
coral sand. A coral fragment is affixed to the plug by means of
glue. Over time the coral grows onto the frag plug.

Mariulture Mariculture is a specialized branch of aquaculture involving the

cultivation of marine organisms for food and other products in the
open ocean, an enclosed section of the ocean, or in enclosed
tanks, ponds or raceways which are filled with seawater
Abbreviations

Abbreviation Meaning

CITES Convention on International Trade in

Endangered Species (organisation)

MASA Marine Aquariums of South Africa, on online

aquarist forum dedicated to keeping marine
animals.

SARK SA Reefkeeping, an online aquarist forum

dedicated to keeping marine animals.
 The social relevance of farmed corals to
South African reef aquarists

1 INTRODUCTION

The keeping of live sea organisms in a closed eco system, in particular that of
corals, can be what bests describes the hobby of being a marine reef
aquarist. The hobby itself has been around for many years although much of it
has only grown in popularity in the last decade or so. Limited information was
available in previously on this pastime. The pace of technological
advancements and information sharing has enabled us to admire a piece of
the ocean within the comfort of ones living room.

In terms of the level of difficulty, a reef aquarist can be described as the

pinnacle within the aquarist hobby. One would not only have to successfully
keep corals alive but also ensure that they are able to successfully grow
within their closed systems. Being a somewhat niche hobby, it is not
surprising that is comes at a cost to the hobbyist. Keeping a marine tank can
be both taxing in terms of time and patience as well as on one’s wallet. Fig 1
below is a earlier picture of the author’s then 8 year old reef tank, taken in
December 2010.

Figure 1 – The author’s reef tank (Source: author derived)

Coral collection for the ornamental reef aquarist trade is a very small
component in terms of impact, albeit still an impact on our natural resources.
Corals are collected from the wild as whole colonies or as cuttings from the
mother colony in what is termed a frag. These frags are attached to a frag
plug so that it may encrust making it easier to transport and finally affix into
one’s reef tank. Coral farmers operating out of tropical, natural reef inhabited
waters are the ones that practice a form of coral mariculture. Here the frags
are grown in shallow lagoons and harvested when they are appropriately
sized for the reef aquarist ornamental industry. Alternatively corals are also
collected from the wild where they are simply removed from the reefs and
supplied to local wholesalers who then handle the exporting process.

2 RATIONALE

The supply of inexpensive cottage industry styled propagated corals would be

a boon to a hobbyist wishing to add more life and colour to his reef system.
These coral frags are traded regularly on local online reef aquarist forums
between hobbyists. The two online forums dedicated to marine aquarists are
SA Reefkeeping or SARK (www.sareefkeeping.com) and Marine Aquariums
of South Africa or MASA (www.marineaquariumsa.com). Here corals are
offered at a fraction of the costs typically sold from pet stores.

Figure 2 below is a picture of a 1.5 cm coral frag (acropora secale) belonging

to the author, that was recently sold for R60 to a fellow hobbyist. This coral
fragment was grown by the author in his nursery tank, far removed from its
natural habitat in the ocean. A market potentially exists where reef aquarists
can chose to rather purchase locally propagated corals instead of corals
harvested from the wild. Such is the rationale that has given rise to this
research study.
Figure 2 – Acropora Secale frag (Source: author derived)

3 THE PROBLEM STATEMENT

South African reef aquarists are faced with purchasing wild corals, harvested
from the earth’s natural reefs.

Corals are mainly harvested in regions such as Bali, Fiji, Indonesia,

Philippines and Australia. Corals are removed from the reef as simple as
breaking them off by means of a hand chisel. From there they are transported
to a local wholesaler, ready for the export market. Much of the overhead costs
comes from the shipping costs and change of hands from the coral farmer
who could be based in Bali, to a local wholesaler/exporter who would in turn
supply a South African wholesaler/importer, who in turn would distribute and
supply to local and regional pet stores.

Typically transportation would also need to be in the shortest time possible so

as to not to stress the corals or risk them being dead on arrival. The cost to a
local hobbyist for a small colony purchased from a pet store could range
depending on size and rarity, from R450 to as much as R2000 for a fist sized
colony.
4 THE RESEARCH QUESTION

Is there a social relevance within the reef aquarist community, in purchasing

farmed corals as opposed to wild collected corals?

Reef aquarists would need to be probed in terms of understanding if the

purchasing of wild vs. locally propagated corals, has any bearing on them
deciding on an industry they would rather support. Analysis of reef aquarists
supporting either of these two environments in terms of social relevance
would need to be done to ascertain this.

5 THE AIM OF THE RESEARCH

The aim of the research is to critically explore within the South African reef
aquarist community, if reef aquarists would prefer to purchase local
propagated corals as opposed to wild harvested corals.

5.1 THE OBJECTIVES OF THE RESEARCH

The following objectives need to be explored within the reef aquarist
community in South Africa:
 To determine within the local reef aquarist community if price would
matter more than if corals are farmed or wild collected.
 To identify if reef aquarists will rather purchase locally propagated
corals above that of wild collected, imported corals.
 To identify if reef aquarists agree that land based coral farming has
less of an impact on the earth’s natural reefs.
6 ASSUMPTIONS

It is assumed that the SARK and MASA moderators will allow for the website
to be used as the communication platform in which to discuss this study and
to gain feedback via the posting of a link to the survey website in terms of this
research study. It is also assumed that the pet store owners will partake in this
survey and offer attentive feedback.

7 LIMITATIONS OF THE RESEARCH STUDY

Listed below are the possible limitations to this research and have been
identified as follows:
 Access to information in terms of quantities of corals sold from pet
stores
 Access to information in terms of quantities of corals imported from
overseas coral wholesalers
 Survey respondents not providing accurate data
 Expert local knowledge around land based coral farming
 Expert knowledge around the coral importation process
 Honesty within the questionnaire survey process

8 VALUE OF THE RESEARCH STUDY

The research is important not only to establish if there is a local market for
farmed corals, but also to indicate if there is impact to the planets natural
occurring reefs, in terms of land based coral farming. The planet is already
under pressure in terms of the effects of global warming which is destroying
our reefs around the world. There could come a time where aquarists and
propagators (coral farmers) are the only ones that have remaining live corals.
These corals are slowly disappearing from their natural occurring areas. This
social relevance is critical if we are to ensure the survival of one of the earth’s
oldest living organisms.

The World Resources Institute has indicated the following key findings in their
recent Reefs at Risk Revisited report (http://www.wri.org/publication/reefs-at-
risk-revisited):
 The majority of the world’s coral reefs are threatened by human
activities.
 Local threats to coral reefs are the most severe in Southeast Asia and
least severe in Australia.
 Threat levels have increased dramatically over a ten year period.
 Changes in climate and in ocean chemistry represent significant and
growing threats.
 While over one quarter of the world’s coral reefs are within protected
areas, many are ineffective or only offer partial protection.
 Dependence on coral reefs is high in many countries, especially small-
island nations.
 Degradation and loss of reefs will result in significant social and
economic impacts.

9 LITERATURE REVIEW

There is a growing motivation to take our success with captive systems and
use it to propagate corals that not long ago were thought impossible even to
keep alive (Bourneman, 2001:404). Bourneman goes on to mention that coral
farming in few short years has leapt from a strange fantasy to a very real
phenomenon. Pioneering aquaculture operations are succeeding in producing
cultured corals both in tropical Third World set-ups and in indoor facilities in
developed countries
Bourneman (2001:404) indicates that in North America, numerous commercial
and amateur or hobbyist propagators are taking small cuttings or fragments of
soft and stony corals and growing specimens or colonies that are in great
demand by aquarists. They are typically disease-free and are provided to the
aquarist without the stress of collection, long distance shipping, and traumatic
periods spent in holding facilities. They do not have to endure the many
shocks of long flights and frequent drastic environmental changes. And most
importantly, with captive grown livestock there is no significant impact on
natural occurring coral reefs.

The demand of cultured corals is growing quickly and the potential for profit in
this most rewarding vocation is strong for the dedicated and ambitious
aquarists (Calfo 2007:49). The gap between the domestic demand for coral
and the numbers of cultured species produced is enormous as evidence by
the increasing number of wild harvested corals entering the country (US) each
year. Any amount of coral that a single farmer can produce (in good health
and size at a fair price) will be eagerly consumed by the current market, and
trends seem to indicate that this will be true for many years to come.
Furthermore the threat of legislative restrictions (CITES) could be a boon to a
well-stocked and prepared coral farmer.

A business plan can be very helpful even for aquarists who do not intend to
sell propagated corals for profit (Calfo 2007:49). Calfo goes on to mention that
the process for developing a basic business plan will guide a novice coral
farmer to thoughtfully consider all of the expenses for such a project from
construction through to maintenance and operation. For professional
aquarists inclined to farm coral in a part-time or full-time business, a business
plan is critical. Some of the questions a start-up coral farmer needs to ask
include: how much space do I have to produce the corals; what is the
minimum and maximum estimated quantities of coral I can produce in said
space; once I produce the corals, who am I going to sell them to? Some
successful overseas coral farms that supply not only their local market but
also the international market, include:
  Aneka Tirta Surya based in Indonesia (www.atsindonesia.com)
 Australian Coral Farms (www.australiancoralfarms.com.au/)
 Oceans, Reefs & Aquariums Inc. based in Florida, USA
(www.orafarm.com)

Calfo (2007:49) mentions that for many professional aquarists, the culture and
sale of propagated corals should follow the traditional path of cottage
industries. You begin at home with models on a small scale. Propagated
corals may first be sold or traded at local aquarium society meetings among
fellow hobbyists and to local pet store owners. When an aquarist is later
successful in propagating corals to the extent that the local market becomes
saturated, they look to regional distributor for a wholesale outlet through which
to move the products.

10 RESEARCH METHODOLOGY

10.1 NATURE OF THE RESEARCH

This research study will be qualitative in nature. According to Malhotra
(1996:147), qualitative research is an unstructured, exploratory research
methodology based on small samples that provide insights into and
understanding of the problem. This type of research is widely used and is
based on information findings taken from observation and interaction such as
interviewing subject matter experts in terms of aquarists and pet store owners.

Being exploratory, much of the feedback will be based on interaction and

feedback on hobbyist’s coral farming practices and the coral importing
process. Information will be gathered from various sources including fellow
reef aquarists, online forums, people working within the local marine aquarist
trade, as well as an online survey undertaken by reef aquarist hobbyists.
 10.2 RESEARCH DESIGN

Zikmund (2003:65) states that the research design is a master plan specifying
the methods and procedures for collecting and analysing the needed
information. This study will encompass exploratory research of land based
coral propagation in South Africa. How the customer (the reef aquarist)
interacts with local pet stores in terms of acquiring corals for their home
systems.

According to Zikmund (2003:54-56), he also states that there are three types
of business research processes, namely:
I. Exploratory research – an initial research conducted to clarify and
define the nature of a problem.
II. Descriptive research – research designed to describe characteristics of
a population and phenomenon.
III. Causal research – research conducted to identify cause and effect
relationships among variables when the research problem has already
been narrowly defined.

10.2.1 Sampling

The type of sampling that will be used is called non-probability sampling. The
sample areas will entail the reef aquarist community. On the supplier side side
it will entail pet store owners. As Zikmund (2003:70) explains, sampling is a
procedure that uses a small number of items or portion of population to make
a conclusion regarding the whole population. So by studying the sample we
may fairly generalise our results back to the reef aquarist population from
which they were chosen.

In this case, the questionnaires and interviews targeted to the reef aquarist
community are made up of local members of the online reef aquarist
communities, namely that of SARK (www.sareefkeeping.com) which has 3400
members and MASA (www.marineaquariumsa.com/) which has 4700
members. Although there are members who are part of both forums, it is
narrowed down to the people with whom the author has contact with via the
online forums. Collectively close to 4000 hobbyists will be targeted, in terms of
being asked to partake in the questionnaire survey thereby soliciting feedback
from a random population group. This target group represents a small sample
population of reef keepers in South Africa.

The pet stores that make up the retail population group that supplies corals to
the reef keepers are the found in the major cities of South Africa such as
Johannesburg, Pretoria, Cape Town, Durban and Port Elizabeth. A list of
twenty pet stores will be asked to partake in the survey spread across these
regions. The list comprises of the MASA forum sponsors
(http://www.marineaquariumsa.com/forumdisplay.php?f=67) as well as the
SARK online shop (http://www.sareefkeeping.com/shopselection.html).

The two basic sampling techniques by Zikmund (2003:71) are explained as

follows:
I. Probability sample – A sample in which every member of the
population has a known, non-zero probability of selection.
II. Non-probability sampling – A sampling technique in which units of the
sample are selected on the basis of personal judgement or
convenience.

10.2.2 Data Collection Methods

For this research study, table 1 below illustrates the method that will be used
to collect the data.

Table 1: Data collection method

Type Details and Sampling

Qualitative The Data collection method will be surveys in the form of
questionnaires and informal interviews. It will be applicable to:
 Reef aquarists within the coral keeping community
 Pet store owners that supply aquarist products and
 livestock to reef aquarist
 Forum (SARK & MASA) members that collectively
numbers approximately 4000 reef keepers
 Approximately 20 pet stores around the country

Source: Author derived

10.2.3 Questionnaire

Refer to appendices A & B to also illustrate the format and layout of the
questionnaires. The questionnaires covers the following variables, viz., that of
the reef keeper and that of the pet store owner. The questioning itself will
focus on the social relevance on the reef aquarist shopping for farmed corals
vs. wild collected ones. Same for the pet store owner, deciding on whether to
stock farmed vs. wild collect corals. The questionnaires ask around the social
relevance around farmed corals versus that of imported ones, that effectivley
have a bearing on the natural reef resources.

The questionnaire will be in the form of a Lickert scale

(www.socialresearchmethods.net/kb/scallik.php) where respondents will be
asked to choose their most applicable answer to the question. The
questioning will not follow any need for biographical data as there is no real
relevance between segmenting the reef aquarist and that of the Pet store
owners.

10.3 ADMINISTRATION

The questionnaires will be compiled online (still to be formulated) on the

Survey Monkeys website (www.surveymonkey.com). As such the website
itself will handle the input from the data capturing done by the respondents.
The link to the online form will be posted on both the MASA and Sark forums
and a link will be emailed to the all the Pet Stores. The processing of the
 information from the respondents will be fed back in various graph formats
and as such will be in a ready state for analysis.

10.4 DEMARCATION OF STUDY

As noted, this study is exploratory and is aimed at investigating the

relationship between the reef aquarist, the coral farmer, the pet stores and the
impact it has on the earth’s natural reefs. It should be noted that the study:
(i) Comprises on the theory and the application in terms of the need around
coral farming, as revealed in the literature review.
(ii) Reviews why corals are expensive to the reef aquarist.
(iii) Reviews a basis for further exploring if coral farming can become a
profitable venture in South Africa.

This study does not investigate what impact coral farming may have on pet
stores and the importation of wild collected corals from overseas suppliers.
This study may suggest changes in the overall supply chain in how corals are
supplied locally to reef aquarists.

11 RESEARCH OUTLINE

The research study is estimated to take approximately four months to

complete. The following describes an overview of chapters that will be
included as part of the final research report.

Chapter 1 – Introduction to the research (Research Proposal).

This chapter outlines the problem statement, objectives, methodology and
limitations of the study.

Chapter 2 – Coral propagation social relevance investigation

This chapter will focus on investigating within the South African reef aquarist
community; the potential influence that land based coral farming in South
Africa can have to help preserve the earth’s natural reefs.

Chapter 3 – Data collection methods

Examines and discusses the selection of the targeted population of this study.
It will provide an overview of findings and further interviewed feedback from
people in the local coral retail trade.

Chapter 4 – Research findings and data analysis

Comparing information between the findings and data gathered within the
coral aquarist community which includes the Pet stores and the potential
influence of land based coral farming. The findings then will be compared to
literature study in terms of establishing, if reef aquarists would rather support
locally propagated corals rather than imported wild harvested one’s.

Chapter 5 – Conclusion and recommendations

This chapter will focus concluding the research study and making
recommendations. It will conclude if corals can be farmed in South Africa that
will have the full support of the local reef aquarist community.
.

12 REFERENCES

Borneman E.H. (2001). Aquarium Corals, Selection, Husbandry, and Natural

History. Charlotte, USA. Microcosm Ltd.

Burke L., Reytar K., Spalding M., Perry A. (2011). Reefs at risk revisited,
World Resources Institute,
http://pdf.wri.org/reefs_at_risk_revisited_executive_summary.pdf [Accessed:
2011-04-20]

Calfo A.R. (2007). Book of Coral Propagation. Volume 1, 2nd ed. Monroeville,
USA. Reading Trees Publication
Likert Scaling, (http://www.socialresearchmethods.net/kb/scallik.php),
[Accessed 2011-04-22]

Malhotra, N.K. (1996). Marketing research: an applied orientation.

Second edition. Prentice-Hall.

Marine Aquariums of South Africa, (www.marineaquariumsa.com), [Accessed:

2011-04-22]

SA Reefkeeping, (www.sareefkeeping.com), [Accessed: 2011-04-22]

Zikmund W.G. (2003). Business research methods. 7th ed. Ohio: Thomson
Learning.

APPENDIX A

Reef keeper feedback questionnaire

Feedback must be indicated by placing a single cross in the applicable block
below the question that is deemed most appropriate in answering the
question.

1 - How would you rate the affordability of corals in terms of keeping the reef
aquarist community alive?

Not Slightly Moderately Very Extremely

important important important important important
2 - How important is it to you in terms of purchasing corals, does price matter
more to you than knowing if the coral is propagated or harvested from the
wild?

Not Slightly Moderately Very Extremely

important important important important important

3 - Would it matter much to you in terms of importance and social relevance

that the earth’s reefs are slowly dying, in deciding whether you choose to
shop for wild harvest corals as opposed to locally farmed corals?

Not Slightly Moderately Very Extremely

important important important important important

4 – In the long term (10 -20 years), do you agree that coral propagation efforts
will assist in establishing less of an impact to the earth’s natural reefs.

Not at all Haven’t a clue Somewhat Mostly, yes Absolutely agree

5 - In terms of your local pet store, do you see them as only stocking locally
farmed corals, as a strong draw card in getting fellow reef aquarists to shop
at their store?

Not at all Can’t decide for sure Somewhat Mostly, Agree 100%
agree
APPENDIX B

Pet Store owner, feedback questionnaire

Feedback must be indicated by placing a single cross in the applicable block
below the question that is deemed most appropriate in answering the
question.

1 - How would you rate the affordability of corals to your customer base, in
terms of keeping the reef aquarist community alive?

Not Slightly Moderately Very Extremely

important important important important important

2 - How important is it to you in terms of selling corals, does it matter more to

you than knowing if the coral is propagated or harvested from the wild?

Not Slightly Moderately Very Extremely

important important important important important
3 - Would it matter much to you in terms of importance and social relevance
that the earth’s reefs are slowly dying, in deciding whether you choose to
import wild harvest corals as opposed to stocking locally farmed corals?

Not Slightly Moderately Very Extremely

important important important important important

4 – How often do you import wild collect corals where you need to replenish
your store’s coral stocks?

Weekly Bi-Weekly Monthly Bi-Monthly Quarterly

5 - In terms of purchasing your coral stock from a local land based coral
propagator, do you think this practice has a strong social relevance in terms
of protecting our natural reef environment? As such, do you think this practice
will be widely adopted by yourself and other Pet Stores?

Not at all Can’t decide for sure Somewhat Mostly, Agree 100%
agree

6 - In terms of your walk in customer base into, do you see having a locally
farmed coral selection, as a strong draw card in getting reef aquarist to shop
at your store?

Not at all Can’t decide for sure Somewhat Mostly, Agree 100%
agree