1. Understanding the Dynamics of Developing a Fish-Based Co-operative for Perch Presented by: Bill West, President, Blue Iris Fish Farm For Wisconsin Aquaculture Association, Annual Conference, March 2008 As part of Ag Diversification and Development Grant (ADD) Wisconsin DATCP

2. Base Parameters and Assumptions Individual producers cannot provide sustainable supply of fish Individual producers cannot provide sustainable supply of fish –Producers using ponds have seasonal supplies –Leads to shortfalls –Leads to erosion of customer base if attempting to market a limited supply beyond local sales –Producers using indoor recirculation systems which could supply year round supplies are virtually non- existent in Wisconsin

3. Base Parameters and Assumptions Currently are no standards for product Currently are no standards for product –Products vary from farm to farm in size, fillet yield, quality –We have seen fillet yields vary from a low of about 38% to as high as about 55% –Product quality can vary depending on water quality conditions and whether a fish is grown outdoors or indoors. –Depending on the system, fish can be expected to mature (egg to eight inches) in a time window ranging from just under a year to three years.

4. What Type of Co-op Should be Considered? Growers Co-op Growers Co-op Marketing Co-op (Marketing and Sales) Marketing Co-op (Marketing and Sales) Supplier of Peripheral Services Supplier of Peripheral Services –Coordinate vet services –Bulk feed supplies –Bulk fertilizer Provider of Training Provider of Training

5. Evaluation of Limiting Factors What Processes or Factors Currently Limit the Amount of Fish Available for Market? What Processes or Factors Currently Limit the Amount of Fish Available for Market? Evaluation of Individual Segments of “Egg to Market” Processes Evaluation of Individual Segments of “Egg to Market” Processes –Broodstock management –Spawning and hatching –Pond fertilization, early life stage feeding –Feed training –Growout –Processing

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

7. What are the Limiting Factors There are not enough fish There are not enough fish –Not enough fish in volume –Not enough fish of consistent quality

8. What are the Limiting Factors There are not enough fish farmers who know how to raise large numbers of quality fish on a consistent basis There are not enough fish farmers who know how to raise large numbers of quality fish on a consistent basis

9. What are the Limiting Factors There is not enough quality training provided to current or potential growers to accomplish production requirements There is not enough quality training provided to current or potential growers to accomplish production requirements

10. Production Example What would it take to bring 10,000 pounds to market? What would it take to bring 10,000 pounds to market? –10,000 pounds = roughly 100,000 fish –Current market is 10 million pounds –Need to grow 100 million fish to satisfy current market –If each farmer raised 100,000 fish, it would take 1000 farmers to satisfy the current market

11. Other Findings Do we have the knowledge to raise fish to meet production goals? Do we have the knowledge to raise fish to meet production goals? –Yes!! But current and potential fish farmers have not been provided information on business and economics of raising fish profitably. Critical advances in both recirculation and pond culture have not been taught nor satisfactorily demonstrated.

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

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

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

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

16. What is the Immediate Role of the Co-operative There is a genuine lack of product so marketing and sales are not immediately essential There is a genuine lack of product so marketing and sales are not immediately essential A co-operative or group of cooperators can begin providing peripheral services – coordinate vet services, feed, fertilizer etc. A co-operative or group of cooperators can begin providing peripheral services – coordinate vet services, feed, fertilizer etc. Foremost need is training – a co-operative or group of cooperators must identify who needs what training and, more importantly, identify competent deliverables in this area. Foremost need is training – a co-operative or group of cooperators must identify who needs what training and, more importantly, identify competent deliverables in this area.