Marketing Options for Small Aquaculture Producers

1. Marketing Options for Small Aquaculture Producers Presented By: David Cline Extension Aquaculturist Alabama Cooperative Extension System

2. Marketing • Often an after thought. • Most difficult part of small-scale production • Plan, what plan?

3. Why do you need a marketing plan

4. Marketing Plan • Know your customers • What species? • What is the competition like? • What product form? • What price? • What kind of promotion? • Where will you sell it? • Regulations?

5. What Species? • Choose a marketable species • Make sure production information is complete • Provide a variety of species

6. Catfish Tilapia Trout Koi Crawfish Bass Bluegill Bait minnows Freshwater shrimp Aquatic plants Goldfish Turtles Eels Carp Ornamentals Alligators Potential Species

7. Bighead Carp

8. Plants Aquatic

9. The Culture Species Koi Carp

10. 8 to 10" Fish $49.95

11. Competition • International • Regional • Other Species Compete or Cooperate You Decide

12. Other Seafood

13. Local Competition

14. Regional Competition

15. Other Protein Sources

16. 4 “P’s” of Marketing • Product • Price • Promotion • Place • 5th “P” Planning

17. Product Form • Live • Fillets • Headed and gutted • Dressed • Nuggets • Steaks • Deboned • Smoked

18. What price will be charged? • Lowest: equal to your costs including fixed and variable costs • Highest: what you could talk a few people into paying • Reality: somewhere in-between

19. Questions to ask yourself • How will the product be positioned in the market? • Who are the customers and what do they expect? • What species and prices are the competition offering? • What quality associations are associated with the product?

20. What type of promotion will be used? • Generic • Personal • Example of a newspaper Ad Farm-Raised Hybrid Striped Bass: Raised Free of contaminants, highly nutritions, priced to sell. Saturday, 8 a.m. - 12 noon, State Rd. 38 and 900 East, Tipp City. What, Why, When, Where **Clear, focused and to the point**

21. Generic Promotion

22. Personal Promotion

23. Local customer base Roadside market Fish fry fundraiser Office building sales Fairs and festivals Value added market Pond draining sale Live hauling Restaurant sales Supermarkets Specialty Stores Where will you sell the product? “PLACE” Direct Retail Sales Direct Wholesale Sales Skip Photos < Fee Fishing >

24. Local Customer Base

25. Farm Sales

26. Roadside Sales Take it to the streets

27. Or down the road, catering

28. Roadside Market

29. Fish Fry Fundraiser

30. Office Building Sales

31. Fairs and Festivals

32. Processing adds value

33. Value Added Packaging

34. Quintessential value added

35. Pond Draining Sale

36. Cage Harvest Sale

37. Live Haul

38. Local Live Haul

39. Restaurant Sales

40. Grocery Store

41. Ethnic Specialty Market

42. Live Market

43. Fishouts and Fee fishing

44. Fishing Gear

45. Check the prices

46. Fishout Processing adds value

47. Expected Prices Outlet $/pound • Processors .55 - .80 • Live Haulers .65 - .90 • Roadside Market 1.00 - 1.75 • Fish-out 1.00 - 1.75 Price goes up as you get closer to the end user

48. Regulations HACCP - Mandatory seafood inspection • Hazard Analysis Critical Control Points Contacts: • Local Health Department • Chamber of Commerce • City Hall • Game and Fish Commission • Department of Transportation

49. Summary • Know your customer, meet their needs • Keep the 4 “P’s” in mind • Create a written plan • Work hard to establish a reputation for QUALITY and DEPENDIBILITY • BE PERSISTENT

50. Now that’s a lot to think about