Local News

A new fish comes to market

By David Volk, Special to JTNews

    It’s not

    difficult to get the fish to bite at this large pond in

    Zichron Yaakov, Israel, a half hour outside of Haifa. All a

    kibbutz worker has to do is step up to the edge and the

    waters churn with brilliant flashes of color as hundreds of

    the aquatic animals surface, all jockeying for attention.

    Today, the fish are goldfish orange and white, banana

    yellow, orange and black as well as yellow with black

    specks, but they could easily be light blue, green and

    bright red tomorrow and they’d still be clamoring to catch

    the kibbutz worker’s eye.

   

    The kibbutznik

    isn’t trying to catch them, though. Instead, he’s busy

    trying to feed the pondful of koi (colorful carp that

    originally come from Japan) as they demonstrate the social

    behavior that has made them popular among hobbyists all over

    the world.

   

    There’s no

    denying koi keepers love the decoratively colored carp, but

    most are also flattered by the attention they receive from

    the fish. All hobbyists have to do is walk up to the edge of

    the ponds and water features they’ve built in their gardens

    and the fish will eagerly swim up to meet them. The owners

    know their pets are just hoping for a handout, but they’re

    happy to oblige, even if they just fed them an hour or two

    before. The animals are eating machines and some in the

    industry affectionately call them pigs with fins because of

    their appetite.

   

    What many

    hobbyists and non-hobbyists alike in the U.S. may not know

    is that many of these Japanese fish may soon be coming from

    Israel—if Mag Noy Ltd. and a network of nine kibbutzim that

    raise them have their way.

   

    That is, now that

    the company has found a way to overcome a stumbling block

    that not only thwarted its first attempt to enter the

    market, it also threatened the well-being of the entire

    industry in Israel.

   

    In order to

    understand how the industry came back from the edge,

    however, it helps to know more about the hobby first.

   

   

    If you haven’t

    heard about koi, you’re not alone. Many Americans and

    Israelis who aren’t involved in the rapidly growing hobby

    aren’t aware of them, either. That doesn’t mean you’ve never

    seen them — if you’ve ever been to the Japanese Tea Garden

    in the Washington Park Arboretum or in a garden and seen a

    pond or water feature filled with large, colorful fish,

    you’ve been staring right at them.

   

    The hobby got its

    start in Japan more than a century ago, when farmers went

    from raising carp for food to breeding them for their color.

    The diversion eventually spread throughout Europe and

    crossed the oceans to America, gaining a serious foothold

    over the last decade.

   

    In fact, many

    industry experts say the sudden spike in American’s interest

    in the hobby is part of a larger nesting instinct that

    became apparent after the attacks on the Pentagon and the

    World Trade Center on Sept. 11, 2001. Instead of taking

    their cash and hitting the road, many people throughout the

    country have opted to spend their free time and

    discretionary income making their houses more attractive,

    according to Robbie Soofer, general manager of Alpine Corp.,

    a Los Angeles-based company that makes pumps for koi ponds.

   

   

    “If you have a

    little bit of money and you don’t want to take a vacation,

    the place you want to spend it is your home. The backyard is

    something that is very, very huge” and it’s where many

    people are putting their ponds, Soofer says.

   

    Israel got into

    the act the same way Japan did, only more recently,

    according to Ofer Carmeli, a product manager for Agrexco,

    the Israeli company that exports koi and other agricultural

    products. A number of kibbutzim throughout the country had

    been farm-raising carp for food when a handful of the

    agricultural collectives decided to breed the colorful fish

    on the same industrial scale in 1981.

   

    The Maagan

    Michael Ornamental Fish Farm is a good example. The facility

    may not be huge, but it includes a packing house, 20 cement

    ponds that hold 800,000 gallons of water and up to 25 tons

    of fish, plus three large mud ponds where hatchlings mature.

    The packing house may be a drab, industrial grey facility,

    but the fish provide the perfect contrast, with colors so

    vivid they seem to have come out of the pages of glossy

    magazines.

   

    While small,

    family-owned operations in Japan generally focus on

    expensive, show quality fish, Israel specializes in

    providing “quality fish at a good price,” according to Uzia

    Linder, Magaan Michael spokesman. Israel’s smaller,

    less-expensive koi have expanded the market by making the

    fish more affordable.

   

    The mix of low

    cost and high quality was such a winner that Mag Noy was

    able to break into markets in France, England and throughout

    Europe. The cooperative was even expanding into the U.S.

    until a fateful day in May 1998 when company scientist Mordi

    Haimi came to work and saw dead fish floating on the water’s

    surface.

   

    “It started in

    one pond and started spreading. Fish [were] dying. A lot had

    clinical signs: hanging on top of the water, gill rot, skin

    hanging off,” Haimi recalls.

   

    It took

    scientists five months to determine that koi herpes virus

    was the culprit, Haimi said. The cooperative had unknowingly

    purchased equipment contaminated with the virus from a koi

    farm owned by an Israeli expat who went bankrupt when a

    number of fish died at his facility in England in October

    1997.

   

    After debating

    the wisdom of closing the entire koi industry and starting

    from scratch, the company decided to expose young koi to the

    disease to build up their resistance to the virus. The

    approach is essentially the same as putting a child in a

    room with a child that has measles, except that the process

    occurs under water.

   

    Young koi are put

    into a concrete pond with a fish that has KHV, then allowed

    to recover in 95-degree water for 21 days. The temperature

    is important because it’s too high for the virus to remain

    active, Haimi says. The fish get a second dose in fall to

    make sure they are fully resistant.

   

    The approach has

    given Mag Noy an edge over its competitors because it now

    claims to be the only company in the world producing KHV-resistant

    fish at a time when suppliers in other parts of the world

    are experiencing outbreaks, Carmeli says.

   

    “The virus is

    spreading all over the world and there’s nothing you can do

    to stop it. You can’t fight it, but you can see how you can

    live with it,” Carmeli says. “This is the basic thing we

    argue about. You can try to avoid it, but everywhere you

    have koi breeders today, you have KHV.”

   

    Now that Mag Noy

    has received renewed acceptance in Europe, it has turned its

    focus back on the U.S., where it currently claims less than

    half a percent of the market. Rather than plunging back in,

    the cooperative has decided to focus on publicizing its

    product through advertising in trade journals, appearing at

    trade shows and distributing information. Haimi has even

    been dispatched to American koi club meetings to discuss the

    company’s new and improved product.

   

    “We think the

    first stage is to get the word out and explain why Mag Noy

    is unique,” Carmeli said, adding, “We believe after the

    first penetration [in the U.S. market], people will realize

    that the product is a good one and that the demand will

    start to grow from that moment on.”

   

    Carmeli admits

    Mag Noy may face a big stumbling block in getting into the

    U.S., but it’s one that any company would love to have.

   

   

    “One of our

    problems is that we [already] sell all our fish,” he says.

    Mag Noy isn’t discouraged, though. “This is a turning point.

    We can produce but I want to go slowly with the U.S.”

   

   

    Six years may

    have passed since the last time Magnoy tried to break into

    the U.S. market, but one thing that hasn’t changed is the

    company’s attitude. As Carmeli puts it, “We will not

    compromise on quality.”