Florida Shrimp Industry Analysis Essay

What if it were lucid and profitable to merge 2 of the fastest growing pewit industries in the United States today? That is exactly the idea behind crotchet prawn production, the latest development in the combined evolution of the worth(predicate) locomote going take to task peewee assiduity and the continual evolution knowledge base of aquaculture. Farm-raised devil pewee is a very appropriate compounding of the two businesses both entertain a historical development in Florida for all over forty courses.Florida has been pro chartered the Fishing Capital of the World with its 1,197 statute miles of coastline hosting 3.4 one million million million anglers annually. The statistics regarding the recreational fish patience in Florida argon astounding. The Florida Fish and Wildlife conservation Commission (FWC) cut throughsThe economic honour of recreational fishing to Florida is $7.0 billion and supports 75,000 jobs. unpaid fishing is the second heavy(p)st magnetic declinations industry in Florida with over 700 world-record fish caught. spanking slang half-pint is the nucleus around which evolves Floridas saltwater sport and recreational fishing. It is the favorred turn on for fishing near shore species much(prenominal) as snook, sea trout, redfish, snapper, cobia and mackerel. The business of catching and provide put out gravel wood pewee began with a fewer individuals suming themselves, and a few remonstrate shops in the 1950s to becoming a multi-million dollar industry with exports by means ofout the Southeast United States. This growth is a testimony to the pre-eminence of fish as the most popular last bait among saltwater anglers in Southeast United States.The message is clear the recreational/sport fishing industry and spirited bait half-pint argon well naturalised in Florida. And their popularity is growing amongst the14 million people (75% living within 10 miles of the coast) and the 40 million tourists wh o visit each year.Commercial fishermen before long supplying 100% of the bait shrimp trade experiences regulatory restrictions, seasonal declines in wild stocks, and unreliable labor ca development unpredictable shortages and as much(prenominal) atomic number 18 unable to meet the increase in the grocery store demands. The FWC and Florida division of Agriculture and Consumer service reports As the tourist and recreational fishing industry continues to increase in Florida so go out the bait shrimp business. Fishermen do to practice live bait shrimp and retailers argon always speed out of bait before they run out of clients. The retailer wants coherent deliveries of bait shrimp in verse that go forth keep the customers go finished the door of their shop Although the fishing effort has increased 50% over the past ten years, the live bait crawers cannot meet the market demands.This increase in demand without an increase in supplies has resulted in an extremely superior dollar value of live bait. This increase in demand, meek supply and high dollar value has attracted the attention of shrimp arousers.at once for the other half of the combination shrimp aquaculture. As the demand for live bait shrimp has expanded without an increase in supplies, the inevitable has begun to tear place culturing Floridas endemic penaeids for bait size shrimp employ hatchery and production technologies developed for other economically important penaeids.Wholesale distributors cannot get adequate supply of bait shrimp certain clips retailers are forced to eat up inaccurate counts and variable sizes of wild bait, which they forget on the loose(p) almost 30% in mortalities during the course of the day. Retailers cannot consistently provide the customer with the desired size and often sell mixes. Fishermen are reliant on the seasonal migration, molting periods and life cycles of the natural population as such(prenominal) they cannot guarantee quality or volume.S hrimp spawn in April/ whitethorn releasing eggs that move with the tides and currents into estuaries, where they spend their postlarval and juvenile stages before migrating back off to deeper waters. Bait size shrimp are virtually impossible to harvest in June, July, and August due to this natural life cycle and are in short supply September by dint of December. It is the winter months January through April that suppliers, in large quantitiesrs and retailers can experience marketable size bait shrimp. However, even during this time period, harvesting of small animals causes immediate stress and holding them in live haul tanks for long distance deliveries results in high mortalities.Enter the growth industry, Aquaculture, dedicated to providing consumers what they need healthy, quality seafood and aquatic products at market prices. The inability of the fishermen to provide year round live bait shrimp, at that place is a significant gap supplies. From this lack of product will g row the combination of live bait shrimp and aquaculture reside Bait, Inc.Live Bait, Inc. will produce bait shrimp is at high densities in en faithfuld facilities furnish with multi-phase, recirculating systems. Bait size shrimp will be cultured to iii variable sizes, (8,10, and 12 grams) to provide the retailer with desired mixes. Bait shrimp production facilities, unthe likes of shrimp boats, can be located through out Florida in high value areas that support a large volume of recreational fishing and tourism. Live Bait, Inc. will focus on providing existing market channels with high quality bait at market prices, in a consistent and reliable manner through out the year.The first bait shrimp production facility is tell to stick been an offshoot of a Texas A&M project maturation production systems for Gulf of Mexico endemic shrimp. The species of choice for this area are brownish shrimp (F. aztecus) and it is believed that the company, although small scale, Lone Star Fishery, is experiencing continued success. There is a tremendous interest amongst fishermen and in large quantities dealers in developing culture systems for bait shrimp. However, once they realize the capital investment and risk involved, they be uprise concerned in buying from Live Bait, Inc.The market for live bait shrimp is continuing to grow, especially during the summer when local residents and tourists target inshore species. This year-around demand, unreliable supplies and high dollar value ensures a continued market for this commodity.Industry ParticipantsThere are several groups of industry participants, which must come together in order for Live Bait, Inc. to function well.1.Wholesale Dealers. Everything begins and ends with this customer. Wholesale distributors have constituted marketing channels and will be buying presently from the production centers. Each production center must first give away the base of the sellr from which the high volume, high value business will b e drawn. Their attitudes, needs and abilities must be the genesis of each finish in instaurationing the size and location of production facilities.2.The Nuclear spawn Center. For long-term sustainable production and the Florida Department of Aquacultures support and sanctions it is crying that a breeding program for F. duorarum be established from the beginning. Experience has turn out the necessity of SPF stocks in minimizing the incidents of diseases and animal stress from high density, mass production.3.. For Live Bait, Inc to produce, cost-effective, quality bait shrimp it needs outstanding seedstock. Large numbers of seedstock at affordable prices will needed, on a weekly dry land in order to maintain the sequential stocking required by multi-phase systems.4.Management/ labor Team. This is the triangulation point where it all comes together. The team must identify the best locations design the most cost effective facilities and production systems, produce shrimp utilise state-of-the-science technologies to provide high quality bait shrimp available for mundane pickup.Who are the individuals or groups that are likely customers of mature raised live bait shrimp? Fortunately, there are whatsoever marketing surveys that have been conducted Florida state agencies, the US Department of Commerce and Mariculture, Inc. that can provide some answers even in this new concept. The target market for Live Bait, Inc. is the wholesale dealer/distributor, who currently is supplied 100% by the bait shrimp fishery.Currently, wholesale dealers either buy dockside from shrimpers and/or they use their own boats. As such they are located within close proximities of bait shrimping boats and not unavoidably in the high value tourist areas. Each GLBs locations will develop its facility, production numbers, sizes and services around the target audience wholesalers. GLB will target several distinct groups1.Wholesalers, which fit the basic demographic characteristics of su pplying retailers from great distances. These will be wholesalers who either buy dockside from shrimpers and/or they use their own boats. As such they are located within close proximities of bait shrimping boats, which are in five major regions Hernando (Citrus, Hernando, Pasco, Pinellas and Manatee) with 47% of resume bait shrimp landings Pine Island (Lee County) with 33% of hit bait shrimp landings, Biscayne Bay (Dade and Monroe Counties) with 18% of total bait shrimp landings and Jacksonville (Fernandina Beach) with 2% total bait shrimp landings. Wholesalers will truck live bait shrimp 220 miles from Homosassa to Naples or from Miami, which is 107 miles. Wholesalers from these regions supplying the North-Central East Coast, the Keys and Panhandle will be targeted.2.Wholesalers who supply retailers dealing in large volumes. For example marinas that sell 275,000 300,000 or more bait per day during the winter months and 65,000 80,000 per day during the summer months. passel in these areas severely restricted due short supplies and distance from suppliers. Retailers claim they could sell up to 300% more, if the supply were available. Wholesalers supplying large marinas, high-end fishing piers located in metropolitan areas, and retail bait/tackle stores that recruit popular sport fishing tournaments will be targeted.3.Wholesalers who supply high dollar bait to retailers located in areas support high value recreational/sport fishing and tourism. Wholesale prices for live bait go away considerably with location. For example prices in Pine Island will run $30/1,000 shrimp while in Marco Island and Naples, which is just south of Pine Island, will have prices up to $70/1,000. Wholesalers who supply retailers who are willing to redress the higher market price will be targeted.4. Wholesalers who are undefended of farm-raised bait and will promote the product among retailers. Currently, an overwhelming majority of retailers accept the idea of farm-raised bait. Most are willing to pay between 50-100% in a higher place current prices for farm raised bait as long as the supply is consistent and reliable. Wholesalers who are willing to promote our product, pay grant prices for premium farm raised bait shrimp will be targeted.5.Wholesalers who are either currently exporting to neighboring states, or who would like to export to other states. Florida Bait shrimp wholesalers export live bait nine months out of the year to different neighboring states. Currently they supply 60% of the Alabama Market, 20% of the South Carolina and 50% of the Georgia market. Wholesalers exporting to other states will be targeted.6.Bait Brokers dealing in frozen bait are currently importing small frozen shrimp that are severely damaged from outside the United States. The shrimp exotic species, which may or may not be infected with viral diseases. These brokers currently cannot meet the needs of their large contracts such as those with Wal-Mart and Publix. Process them, as most of the brokers also have processing plants.7.Wholesalers who are supplying retailers whose customers would prefer farm raised bait over wild bait for ecological and environmental reasons.These six primary target groups provide fertile fuze for GLB to become a profitable operation within the first year of production. In fact, GLB will become the top producer of farm-raised bait for Florida and the full(a) southeast coastal corridors.Live Bait, Inc. production centers will be established in key locations through out Florida. The marinas, retail bait shops, bait and tackle shops within a thirty-mile radius will match the demographic target profile high volume, high market price, pro-farm raised bait, soft assess to interstate highways and are being supplied by wholesalers from great distances.A marketing survey conducted by the Florida Department of Agriculture and Consumer Services, berth of Seafood and Aquaculture Marketing has documented annual landings (harvests ), volumes of bait sold by retailers, wholesale/retail prices, peak seasonal demands and months of supply shortages.Major harvesting areas are divided Hernando Regions (Citrus, Hernando, Pasco, Pinellas and Manatee) with 47% of total bait shrimp landings Pine Island (Lee County) with 33% of total bait shrimp landings, Biscayne Bay (Dade and Monroe Counties) with 18% of total bait shrimp landings and Jacksonville (Fernandina Beach) with 2% total bait shrimp landings.Annual Landings report to Floridas Fish and Wildlife Conservation Commission by licensed bait shrimpers in 2000 was 2.46 million pounds (246 million bait size shrimp using a 100/1b count). This is 50% above the reported landings for 1991 of 1.23 million pounds 123 million bait size shrimp using a 100/lb count). Fishery managers feel the harvest numbers are under-reported on bumble tickets. And since live bait shrimp is a cash industry gross sales are not accurately reported. Also not all shrimp caught as live bait is so ld as live bait, there are high mortality rates associated with harvesting, holding and transporting. Larger shrimp will often be culled and sold as food. It is likely that the farm production needed to supply current markets will have to be 50% above reported landings to approximately 3.69 million pounds (369 million bait size shrimp using a 100/lb count).