Farmed oyster sales, profits on the rise

It appears pearls are possible when investing in oysters.

As New York Oyster Week kicks off Sunday, top New York chefs and raw bars are featuring the bivalve mollusks on their menus.

Kevin Joseph, founder of Oyster Week and an expert on the shellfish, says cultured oysters sales are substantial — $50 million on the East Coast and another $50 million to $60 million on the West and Gulf Coasts. The overall industry totals more than $1 billion, including wholesale and restaurant sales.

Most oysters are cultured, meaning farm grown — not wild harvested.

Joseph, who grew up in East Hampton, where his family had a seafood restaurant, says there’s money to be made in farming.

A $500K investment can produce $500K in revenues in three to five years, yielding a 5-year return on investment and 20 percent annual revenues.

Here’s the bad news: Oyster farming is hard work.

His investment plan is to offer investors a chance to get in on existing successful farms producing more than 1 million oysters a year, and to vertically integrate farmers/distributors and operators in the restaurant business.

“This model has proven to be very successful and profitable for Island Creek Oysters, Taylor Shellfish, Rappahannock River Oysters, Hog Island Oysters and Matunuck Oysters.”