How Many Geoduck Are Being Grown on My Tidelands? (An old post - but still popular)

Trust - but verify.

[Originally posted in 2013 this still generates

a large number of views. For those who have

leased out tidelands to geoduck growers

consider spending some time on your tidelands

during the current and upcoming

minus tides of June. It's your money.]

Why you should have remembered your math.

(well, maybe not this one)

A large percentage of intertidal geoduck farms are on tidelands leased by private tideland owners to  a few shellfish companies. These owners are approached by company representatives with promises of a large check at harvest time. The amount ranges from 10% to 15% of the gross revenues, determined by the pounds of geoduck harvested and the current "market" price. With planting densities of three per square foot, a 60' X 100' tideland parcel could result in a check of up to $50,000 every 4 to 5 years. (After expenses the shellfish grower could easily net over $200,000 in profit.)

However, some tideland owners are finding that the check received is far less than what they had expected. There are a number of variables which weren't made quite clear enough at the signing of the contract, in some cases lasting for over 15 years. One of the most important is that you should be aware of what you have.

How many geoduck are there?

 

For example, as in timber harvesting there are a variety of log types and densities, some worth more than others. Not all geoduck harvested are considered "#1" grade which receive the higher prices which have ranged up to $14/pound, sometimes far higher (the Seattle Times reported last year prices up to $24/pound) . A short dark "neck" or a discolored shell will quickly drop the price Chinese are willing to pay. But an important variable is how many pounds of geoduck are harvested.

Not all geoduck are created equally.

Variables impacting density range from the survival of the seed planted to poaching. Whatever the case, a prudent tideland owner should be aware of what is planted and growing on their tideland parcel. This coming weekend presents a prime opportunity for those tideland owners who have leased their tidelands to a grower to inspect their "crop" and set their expectations.

(it's not rocket science)

[total square feet planted]*[average/square foot]*[1.5 pounds]*[$/pound]*[15%]

 

While digging a geoduck for sampling would most likely not be allowed by the grower (they'll claim ownership), sampling the area to determine the density of geoduck currently growing is a wise step all tideland lessors should take and an easy process.

1. Determine the total area in square feet where geoduck have been planted. This area should be easy to find from permit applications submitted by the grower. If you don't have it you may ask the grower for it or simply measure the area. A 60' X 100' area would equal 6,000 square feet.
2. Using a yard stick, lay out a number of 3' X 3' squares (each being 9 square feet) in different areas for sampling and count the number of "show"(siphons) which are within each square. If survival is high, you may have up to 27 geoduck within that square. If survival is low, or poaching is occurring, it may be much less.
3. When you have determined what the average number of geoduck per square foot is, then it is simply a matter of multiplying that number times the number of square feet the grower has planted on your tidelands.
4. After you had determined the number of geoduck growing, multiply that number times 1.5 or 2.0 (the latter if your harvest time is longer than 5 years) to determine the number of pounds.
5. Call your grower or Taylor Shellfish and ask them what the landed price for geoduck is then multiply that times the number of pounds growing, then that number times your lease %.

Using the 60' X 100' example above:
[60*100=6,000 square feet]
3X3 areas showed an average of 27 geoduck growing in each area, or 3 geoduck per square foot.
[27/9=3]
Total number growing is 18,000.
[6,000*3=18,000 geoduck]
Harvest time at 4th year should result in a 1.5 pound geoduck, or 27,000 pounds.
[1.5*18,000=27,000 pounds]
Landed price is $14*, or a gross amount of $378,000, of which the owner gets 15%, or $56,700.
[27,000*14=$378,000*15%=$56,700]

*6/2/2018: Best to assume the price received now is far higher than it was in 2013. Using a more realistic $20 per pound - 27,000*$20=$540,000*.15=$81,000.