Hawai'i's aquaculture industry flourished last year with record sales of $34.7 million despite the dramatic downturn in the economy.

Sales for 2008 represented a 38 percent increase from 2007's $25.1 million and a 63 percent jump from $21.3 million in 2006, according to the National Agricultural Statistics Service. The 2006 and 2007 sales figures represented sharp declines from two previous years of more than $28 million in sales.

Last year, algae was the aquaculture industry's largest product with a value of $15.7 million, up from $10.9 million a year earlier. Algae sales accounted for 45 percent of the total sales in 2008.

Earlier this month, Cyanotech Corp., a leader in the production of nutritional products using microalgae technology, reported that its shares rose 28 percent on the Nasdaq Market. The company's shares have risen 71 percent since the start of the year.

In addition to algae, finfish production jumped 146 percent to 1.3 million pounds in 2008 when compared with 2007. Sales by weight were valued at $7 million, or 20 percent of the total sales last year.

Sales of ornamental fish, as well as items such as seed stock and brood stock that aren't sold by weight, also showed improvement in 2008. Ornamentals rose 38 percent to $3.3 million, or 10 percent of the year's total, and seed and brood stock increased from 6.6 million in 2007 to $8.3 million last year.

Hawai'i County continued to lead the state in aquaculture sales with $27.8 million, up from $20 million in 2007. The county's sales accounted for 80 percent of the total value.

Two local companies are hoping to ride the wave of popularity of aquaculture products by proposing large fish farms off O'ahu and the Kona Coast of the Big Island.

Grove Farm Fish & Poi LLC, formerly known as Cates International, is seeking to expand its ocean fish farm off 'Ewa Beach from 28 acres to 61 acres. The company, the state's first commercial open-ocean fish farm, is hoping to boost production of moi from 1.2 million pounds to 5 million pounds.

Meanwhile, Hawaii Oceanic Technology Inc. is proposing a 247-acre tuna farm off Kawaihae in West Hawai'i to raise bigeye and yellowfin tuna. The company said the farm could produce 12 million pounds of fish per year.