I don't think any of this represents much of a change in the way koi are marketed. Kodama is certainly not the only one bringing in mid-grade koi from Japan and selling them into the water garden market. There are also others who hold the fish long enough to put on some growth, albeit Kodama is now be the largest player in this arena. I do not know weather or not Kodama still carries fish which are of the same quality as those they used to sell out of California, but I suspect they still have some very nice fish as well.
Let's face it. The market for high-quality koi is very limited and few are willing to pay the price. If Kodama carried nothing but high-quality fish they would not need the new expanded facilities because those facilities cannot be justified by the demand from the high-grade market segment. Has Kodama's overall (average) koi quality declined. Of course, that is clearly part of their new business plan. Should the Koi Bito crowd and other serious koi hobbyists be offended and upset by this turn of events? No. You can still buy high-grade fish at the price you are accustomed to - if not from Kodama then from another high-end dealer. You should be happy that the water garden folks may be able to get mid-grade koi at a lower price.
It will be interesting to see whether the Kodama production plan for mid-grade koi works over the long run. The advantage they have over producers growing koi out in Japan is the year-round growing conditions in Hawaii. Operating costs will not be lower in Hawaii. Land is a precious commodity in Hawaii, but Kodama's potato field lease is unlikely to have been available at a comparable price in Japan. Shipping from Japan to the US mainland is cheaper than the two-step shipping (Japan to Hawaii, then Hawaii to mainland). However, the fish are smaller on the Japan to Hawaii leg so the shipping cost per individual may be similar. For mid-grade koi, shipping costs become a big deal and a significant factor.
Potential competition would be Japanese joint ventures in Viet Nam, Malaysia, Indonesia, and other parts of Southeast Asia. They have much lower production costs, but higher shipping costs. Fascinating and complex economics.
Is all this good or bad for the koi hobby in the western world? I think it's good. If you can put a mid-grade koi into the US market at a lower cost, then you entice more people to upgrade from the low-grade Ozark koi.
Is all this good or bad for mainland koi producers? I think it's bad or perhaps neutral. It whittles away at what little competitive advantage domestic producers have through lower transportation costs. On the other hand, anything that is good for the koi hobby as a whole is good for domestic producers.
-stevehopk in