Open AccessIMPROVING MARKET COORDINATION FOR DEVELOPMENT OF AN AQUACULTURAL INDUSTRY: A CASE STUDY OF THE CATFISH INDUSTRY IN ALABAMA
Author(s) -
Mims Steve D.,
Sullivan Gregory M.
Publication year - 1984
Publication title -
journal of the world mariculture society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.655
H-Index - 60
eISSN - 1749-7345
pISSN - 0735-0147
DOI - 10.1111/j.1749-7345.1984.tb00174.x
Subject(s) - catfish , business , production (economics) , marketing , industrial organization , fishery , fish <actinopterygii> , biology , economics , macroeconomics
A major criterion for successful development of an aquacultural industry is to achieve sustained and smooth expansion. Orderly growth can be accomplished through improved coordination of information and product flows from producers to consumers. This study focuses on the catfish industry in Alabama as an example of ways to improve market coordination beneficial to development of the industry. The Alabama catfish industry has grown rapidly over the last decade and is concentrated in six West Alabama counties. Two large processing plants currently operate in close proximity to each other, obtaining catfish from approximately 200 producers. A “mirror image” field survey was designed to obtain information from both processors and producers. Three management personnel from each plant were interviewed. A cross section of 39 large‐ to small‐scale producers were interviewed who own 70% of the total catfish production pond acreage in five of the counties. The study of market coordination between catfish producers and processors in West Alabama reveals areas of agreement and disagreement in operation of the current system. Producers and processors were in agreement on preferred sizes of fish and the importance of “on‐flavor” taste of catfish. Establishment of a producers' cooperative feed mill and increased market promotion were agreed upon as critical prerequisites to expansion of the catfish industry. Producers and processors disagreed on the following major points: pricing mechanisms and agreements, time lag for payments to producers by processors, advance scheduling of harvest, elimination of “hold‐over” fish, liability for catfish at harvest, pricing contracts and communication. Lack of communication was agreed to be the most common reason for most differences of opinion. A bargaining association could improve coordination between producers and processors without jeopardizing a firm's ability to do business.