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

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

Why do you need a marketing plan

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

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

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

Bighead Carp

The Culture Species

Competition n International n Regional n Other Species Compete or Cooperate You Decide

Other Seafood

Local Competition

Regional Competition

Other Protein Sources

4 “P’s” of Marketing n Product n Price n Promotion n Place n 5th “P”

Product Form n Live n Fillets n Headed and gutted n Dressed n Nuggets n Steaks n Deboned n Smoked

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

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

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

Generic Promotion

Personal Promotion

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

Local Customer Base

Farm Sales

Roadside Sales

Or down the road, catering

Roadside Market

Fish Fry Fundraiser

Office Building Sales

Fairs and Festivals

Processing adds value

Value Added Packaging

Quintessential value added

Pond Draining Sale

Cage Harvest Sale

Live Haul

Local Live Haul

Restaurant Sales

Grocery Store

Ethnic Specialty Market

Live Market

Fishouts and Fee fishing

Check the prices

Fishout Processing adds value

Expected Prices Outlet$/pound n Processors n Live Haulers n Roadside Market n Fish-out Price goes up as you get closer to the end user

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

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

Now that’s a lot to think about

Formula for Success

Made in the Shade!