How Kwahuu Ocean pioneers Sustainable Aquaculture through Squid Farming

From contemporary artist to CEO of a squid farming startup—Kwahuu Ocean‘s Ryuta Nakajima has taken an unconventional path. Originally a professor of fine arts at the University of Minnesota specializing in contemporary art, Nakajima began developing an interest in cuttlefish behavior, particularly their color-changing abilities in 2008.

Initially, he intended to use these characteristics to create art pieces, but he faced difficulties in obtaining and raising octopuses and squid. The breeding system blueprints sent from Kasai Rinkai Aquarium (a major public aquarium in Tokyo) were beyond the reach of an artist like himself. As he deepened his research, he became a visiting researcher at the University of Texas Medical Branch / National Resource Center for Cephalopods (NRCC), stepping into the world of science.

Nakajima reflects on his journey.

I was someone who came from the art world into the scientific world.

After conducting research at the Okinawa Institute of Science and Technology Graduate University (OIST) Physics and Biology Unit led by Dr. Miller, he achieved a world record in 2022 as a team member by successfully breeding bigfin reef squid through 10 generations in captivity. The previous record was 7 generations, but the team broke this by developing a more efficient and compact breeding system. This achievement drew requests from across Japan for applying the technology to commercial squid farming. Following this trajectory, he received technology transfer from OIST and launched the new company Kwahuu Ocean to pursue commercial aquaculture possibilities.

Research Born from Chance and Breakthrough at OIST

The path to squid research began with a series of coincidences. “It was all coincidental,” Nakajima recalls. When he tried to obtain cuttlefish for art creation, he made contact with a cephalopods research institute at the University of Texas and was invited to their laboratory.

After serving as a visiting researcher at the NRCC, he spent six years conducting research at the Ikeda Laboratory at the University of the Ryukyus, known for cephalopod research. In 2015, he participated in the Cephalopod International Advisory Council meeting held in Hakodate (a city in northern Japan’s Hokkaido). During this period, OIST researchers began showing interest in cephalopod research, building relationships with the University of the Ryukyus.

In 2017, a project began at OIST’s Marine Science Station to monitor squid behavior and create mathematical models. A research team was formed bringing together experts from various fields, including behavioral science, neuroscience, genomics, AI, computer programming, and physics.

Okinawa is home to over 140 species of squid and octopus, making research materials vastly easier to obtain compared to Texas. The research team initiated studies to “try breeding various squid and octopus species to find model animals,” closing the life cycles of more than 10 species of squid and octopus.

Among these, bigfin reef squid proved particularly suitable for continuous breeding. These squid have lifespans of one year, but in Okinawa they mature into individuals exceeding 1kg in just 3 months during summer and 6 months even in low-temperature winter periods, demonstrating remarkable growth rates and characteristics well-suited for research.

However, breeding bigfin reef squid required extremely advanced techniques. Collision with tank walls was a major cause of death, necessitating large tanks. Additionally, as voracious predators requiring live fish, they generate waste at an extraordinary rate, rapidly degrading water quality, requiring high-performance filtration systems and daily water changes.

According to Nakajima, successfully understanding these ecological characteristics and establishing appropriate breeding environments for continuous breeding was possible because of OIST’s unique research environment, which has three main features:

First is OIST’s trust system. At typical universities, researchers spend much time writing grant applications and can only pursue conservative research with predictable outcomes. However, at OIST, sufficient budget and freedom were provided, allowing the research team to continue their work even after five years without publishing a single paper.

Nakajima explains,

Normally, this would be absolutely impossible—to be properly supported and funded without publishing a single paper. It was an environment where you could keep trying until you succeeded.

Second is diversity. In Japanese fisheries departments, there’s a tendency for careers to develop within the same specialized field, but at OIST, researchers from different backgrounds gathered, enabling research free from fixed preconceptions. The research team was led by Dr. Jonathan Miller, who came from a physics background, with researchers from various specialties collaborating.

Nakajima explains.

When you follow the orthodox path, you inevitably develop a sense of what’s normal. You think things must be this way or should be done that way. This becomes very strong, making it harder to see other possibilities.

This enabled flexible approaches unconstrained by conventional methods and thinking in traditional fisheries research. While heated debates sometimes arose from differing views within the lab, this became fertile ground for innovation.

Third is abundant funding. When conducting research with limited budgets, everything must be made efficient, but at OIST, necessary equipment and materials could be adequately procured. The research team continuously recorded squid behavior 24 hours a day for five years, collecting massive amounts of data.

Nakajima continues,

Just running video recording continuously costs considerable money for hard drive space alone. This would have been absolutely impossible in the past. But by collecting data this way, we could see parts that had been overlooked before.

Bigfin reef squid are also known as premium food ingredients, raising high expectations for commercial aquaculture applications. With all these favorable conditions in place, the team finally achieved their breakthrough: a world record of 10 generations in captive breeding.

A New Vision: Small-Scale Distributed Aquaculture

Kwahuu Ocean is currently building facilities on Miyagijima (an island in central Okinawa) to test commercial aquaculture feasibility. The difference from typical startups is explained as follows:

Normally, you have a product and figure out how to sell it, but in our case, we don’t even have a product yet, and we don’t know if we can really make one.

The first hurdle is whether technology developed in OIST’s privileged environment can be reproduced in general conditions. “It must be technology that anyone can use. It must work without expensive facilities.” This represents a considerably early-stage startup.

The company plans to verify whether squid can be produced in current facilities by 2025, then confirm if they taste good and have commercial value. Only then will they understand how many squid can be produced in what area and at what cost. Subsequently, they aim to spend 4-5 years solving problems and reaching profitability levels.

Nakajima proposes not the conventional “mass production, mass consumption” aquaculture model, but a new “small-scale distributed” model.

Local production for local consumption through small-scale distribution. Small-volume production scattered across various locations, producing just enough squid for consumption in those regions. No matter how much you eat, if one family can consume three squid per year, that’s enough. There’s no need for massive production.

This thinking stems from questions about applying conventional industrial mass production methods to living organisms. Biological systems have various variable factors, making complete control and mass production like industrial products inherently limited.

The small-scale distributed model offers advantages including improved food self-sufficiency, reduced foreign exchange risk, and decreased carbon footprint. Compared to the current situation where Chinese fishing vessels travel to Chilean waters to catch fish, freeze them, and import them to Japan, regional production and consumption would have far less environmental impact.

Nakajima adds,

The future model will be many compact communities, each improving their self-sufficiency to some degree.

The market strategy for farmed squid also takes a unique approach. There’s a need to change the deeply rooted Japanese perception that “wild products are wonderful and farmed products are cheap.” In reality, aquaculture costs significantly more, making it important to communicate this value to consumers.

The key is not price competition but promoting added value achievable only through aquaculture. For example, safety features like freedom from parasites should be highlighted as strengths of new products. Kwahuu Ocean’s strategy is to differentiate farmed squid as completely different products from wild squid.

Some analysts suggest that aquaculture may need to be repositioned as a form of public infrastructure, similar to public works projects. Mass production aquaculture creates distortions somewhere, leading to food safety issues and environmental destruction. How to change aquaculture’s future direction is one aspect of the project.

The Serious Reality of the Fishing Industry and New Possibilities

The market environment surrounding squid is serious. The global squid market is worth approximately 8 trillion yen and expanding annually, while catch volumes are drastically declining. Visiting the famous morning market in Yobuko (a town in Kyushu known for squid), which has been famous for squid since ancient times, there isn’t even enough squid to ship to nearby Hakata, with local restaurants scouring fishing cooperatives across Kyushu to gather supplies.

Nakajima says,

Even in Yobuko, squid can no longer be eaten. That’s how little squid is being caught.

Numbers support the seriousness of the situation. Nationally, total squid catch decreased by approximately 73% in the 10 years from 2012 to 2022 (Ministry of Agriculture, Forestry and Fisheries Marine Fisheries Production Statistics Survey). At Hachinohe Port (in northern Japan), which had Japan’s largest squid catch, annual landings plummeted from approximately 200,000 tons around 2000 to just 8,000 tons in 2023—a mere 4% of peak levels (data from Hachinohe City Agriculture, Forestry and Fisheries Department Fisheries Office).

Behind this situation are problems with Japan’s marine resource management. As a result of catching everything available while resource management remained sloppy, resources in Japanese coastal waters are in a state of depletion. Furthermore, “losing the buying competition” with China has become serious. With increased domestic consumption and market expansion elsewhere, China no longer needs to sell to Japan. If this trend continues, there’s even danger of seafood disappearing from Japanese dining tables.

A fundamental transformation in fishing methods is needed. Particularly in Okinawa Prefecture, almost no fishing remains except for tuna and mozuku seaweed. This is where attention turns to environmental conservation-type fishing like blue carbon credits (carbon offset programs focused on marine ecosystems).

If activities protecting the ocean, such as producing eelgrass and mangroves, become fishing industries with monetary value, this could be a more promising business than catching and selling tuna from distant waters. Expanding marine tech and food tech is also urgent.

A Regionally-Rooted Startup Model

In current typical startup scenes, investment amounts tend to be viewed as success indicators. As a result of receiving large-scale investment, personnel and cost reductions become unavoidable to maximize profits, with the burden falling on general workers. Consequently, Nakajima fears that Silicon Valley-style growth models become pumps that suck energy from Okinawa.

Capitalism and democracy were all transplanted to Japan from elsewhere as follow-up measures. If we, who didn’t make the rules, play games created by rule-makers, we’ll definitely lose.

Nakajima points out that in Okinawa’s culture of “sharing,” activating sharing culture is more suitable than forcing competitive concepts. In fact, what Kwahuu Ocean values most is trust relationships with communities. Building relationships across multiple levels—with the OIST community, local fishermen, and Okinawa as a whole—is central to their business model.

I think trust relationships with communities are most important. Creating and sustaining these properly is our greatest asset.

This philosophy appears in the company’s facility construction. Initially envisioning 2 billion yen facility construction, budget constraints led them to explore new approaches, ultimately achieving construction at less than one-tenth the cost through DIY methods with regional community cooperation.

If we had received 10 billion yen in investment, we would have just built a 2 billion yen facility using that money, with no learning from there

With abundant funds, they would have taken conventional approaches relying on expensive equipment, but constraints led to discovering new methods of regional collaboration. In reality, facility construction proceeded with support from local facility-owning managers, fishing cooperatives, and surrounding residents. This episode exemplifies the company’s philosophy: how financial constraints can drive innovation.

Nakajima’s trajectory from contemporary artist to scientist to entrepreneur is underpinned by thinking beyond existing frameworks and deep contemplation of sustainable society.

Making and selling squid is important, but looking toward the future, it would be good to create model cases where people can live with peace of mind regarding food culture, food safety, and security.

Kwahuu Ocean’s challenge extends beyond superficial technical development issues to fundamental questioning of social systems. Lessons learned from OIST research—the value of diversity, breaking free from fixed preconceptions, and the importance of sufficient resources—are also applied to business management philosophy.

The transition from conventional mass production and consumption models to regionally-rooted small-scale distributed aquaculture is an ambitious attempt to achieve both environmental impact reduction and food security. Moreover, questioning Silicon Valley-style investment-driven models connects to universal challenges of maintaining regional identity amid globalization.

Questioning society’s future through squid farming—this contemplation and practice presents one insightful answer to complex contemporary social challenges including the relationship between technology and society, harmony between economy and environment, and balance between globalization and regionality.