Understanding the Dynamics Understanding the Dynamics of Developing a Fish-Basedof Developing a Fish-Based

Co-operative for PerchCo-operative for Perch

Presented by:Presented by:

Bill West, President, Blue Iris Fish FarmBill West, President, Blue Iris Fish FarmForFor

Wisconsin Aquaculture Association, Annual Conference, March 2008Wisconsin Aquaculture Association, Annual Conference, March 2008As part of As part of

Ag Diversification and Development Grant (ADD) Wisconsin DATCPAg Diversification and Development Grant (ADD) Wisconsin DATCP

Base Parameters and Base Parameters and AssumptionsAssumptions

• Individual producers cannot provide Individual producers cannot provide sustainable supply of fishsustainable supply of fish– Producers using ponds have seasonal suppliesProducers using ponds have seasonal supplies– Leads to shortfallsLeads to shortfalls– Leads to erosion of customer base if Leads to erosion of customer base if

attempting to market a limited supply beyond attempting to market a limited supply beyond local saleslocal sales

– Producers using indoor recirculation systems Producers using indoor recirculation systems which could supply year round supplies are which could supply year round supplies are virtually non-existent in Wisconsinvirtually non-existent in Wisconsin

Base Parameters and Base Parameters and AssumptionsAssumptions

• Currently are no standards for productCurrently are no standards for product– Products vary from farm to farm in size, fillet Products vary from farm to farm in size, fillet

yield, qualityyield, quality– We have seen fillet yields vary from a low of We have seen fillet yields vary from a low of

about 38% to as high as about 55%about 38% to as high as about 55%– Product quality can vary depending on water Product quality can vary depending on water

quality conditions and whether a fish is grown quality conditions and whether a fish is grown outdoors or indoors.outdoors or indoors.

– Depending on the system, fish can be expected Depending on the system, fish can be expected to mature (egg to eight inches) in a time window to mature (egg to eight inches) in a time window ranging from just under a year to three years.ranging from just under a year to three years.

What Type of Co-op Should be What Type of Co-op Should be Considered?Considered?

• Growers Co-opGrowers Co-op

• Marketing Co-op (Marketing and Sales)Marketing Co-op (Marketing and Sales)

• Supplier of Peripheral ServicesSupplier of Peripheral Services– Coordinate vet servicesCoordinate vet services– Bulk feed suppliesBulk feed supplies– Bulk fertilizerBulk fertilizer

• Provider of TrainingProvider of Training

Evaluation of Limiting Evaluation of Limiting FactorsFactors• What Processes or Factors Currently Limit What Processes or Factors Currently Limit

the Amount of Fish Available for Market?the Amount of Fish Available for Market?• Evaluation of Individual Segments of “Egg Evaluation of Individual Segments of “Egg

to Market” Processesto Market” Processes– Broodstock managementBroodstock management– Spawning and hatchingSpawning and hatching– Pond fertilization, early life stage feedingPond fertilization, early life stage feeding– Feed trainingFeed training– GrowoutGrowout– ProcessingProcessing

What Does the Co-op Need to What Does the Co-op Need to Make it Viable?Make it Viable?

FISHFISH

What are the Limiting What are the Limiting FactorsFactors

• There are not enough fishThere are not enough fish– Not enough fish in volumeNot enough fish in volume– Not enough fish of consistent qualityNot enough fish of consistent quality

What are the Limiting What are the Limiting FactorsFactors

• There are not enough There are not enough fish fish farmersfarmers who know how to raise who know how to raise

large numberslarge numbers of of quality quality fishfish on a on a consistentconsistent basis basis

What are the Limiting What are the Limiting FactorsFactors

• There is not enough quality training There is not enough quality training provided to current or potential provided to current or potential growers to accomplish production growers to accomplish production requirementsrequirements

Production ExampleProduction Example

• What would it take to bring 10,000 What would it take to bring 10,000 pounds to market?pounds to market?– 10,000 pounds = roughly 100,000 fish10,000 pounds = roughly 100,000 fish– Current market is 10 million poundsCurrent market is 10 million pounds– Need to grow 100 million fish to satisfy Need to grow 100 million fish to satisfy

current marketcurrent market– If each farmer raised 100,000 fish, it If each farmer raised 100,000 fish, it

would take 1000 farmers to satisfy the would take 1000 farmers to satisfy the current marketcurrent market

Other FindingsOther Findings

• Do we have the knowledge to raise Do we have the knowledge to raise fish to meet production goals?fish to meet production goals?– Yes!! But current and potential fish Yes!! But current and potential fish

farmers have not been provided farmers have not been provided information on business and economics information on business and economics of raising fish profitably. Critical of raising fish profitably. Critical advances in both recirculation and pond advances in both recirculation and pond culture have not been taught nor culture have not been taught nor satisfactorily demonstrated.satisfactorily demonstrated.

What Needs to be Done?What Needs to be Done?

• Fish farmers who wish to be in the Fish farmers who wish to be in the business, need to know it is a business, need to know it is a business not a hobby. It is too easy business not a hobby. It is too easy to be distracted by the aura or to be distracted by the aura or novelty of fish farming but unless the novelty of fish farming but unless the business is production-based, it will business is production-based, it will not survive. This business requires not survive. This business requires management and planning.management and planning.

What Needs to be Done?What Needs to be Done?

• It has been many years since anyone in It has been many years since anyone in Wisconsin has presented or given a course Wisconsin has presented or given a course on the economics of raising fish. This might on the economics of raising fish. This might be the most important aspect. Potential fish be the most important aspect. Potential fish farmers need to know that they can make farmers need to know that they can make money if they are in the business of fish money if they are in the business of fish farming. A seminar to provide this farming. A seminar to provide this information will not be a one hour event. It information will not be a one hour event. It will take many hours to days to provide will take many hours to days to provide pertinent economics to farmers.pertinent economics to farmers.

What Needs to be Done?What Needs to be Done?

• Potential growers need to know that Potential growers need to know that they do not have to do everything on they do not have to do everything on their specific site. There are many their specific site. There are many opportunities for growers to share opportunities for growers to share resources. Successful growers may resources. Successful growers may specialize in one or more aspects of specialize in one or more aspects of production.production.

What Needs to be Done?What Needs to be Done?

• We need to turn around the financial side of We need to turn around the financial side of the industry. While most pond systems the industry. While most pond systems have been privately funded, many of the have been privately funded, many of the indoor systems have had capital indoor systems have had capital investments from multiple sources. investments from multiple sources. Reinvestment of capital based on proven Reinvestment of capital based on proven success must be accomplished. However, success must be accomplished. However, success will not come without training and success will not come without training and training must be accomplished by training must be accomplished by competent trainers.competent trainers.

What is the Immediate Role of What is the Immediate Role of the Co-operativethe Co-operative

• There is a genuine lack of product so There is a genuine lack of product so marketing and sales are not immediately marketing and sales are not immediately essentialessential

• A co-operative or group of cooperators can A co-operative or group of cooperators can begin providing peripheral services – begin providing peripheral services – coordinate vet services, feed, fertilizer etc.coordinate vet services, feed, fertilizer etc.

• Foremost need is training – a co-operative or Foremost need is training – a co-operative or group of cooperators must identify who needs group of cooperators must identify who needs what training and, more importantly, identify what training and, more importantly, identify competent deliverables in this area.competent deliverables in this area.