k Bulletin 596 February 1989 Alabama Agricultural Experiment Station Auburn University Auburn University, Alabama Lowell T. Frobish, Director t},:P ,,,f ; fs if, A I a p CONTENTS Page INTRODUCTION ...................................................................... 3 8 8 11 16 18 20 24 24 25 25 25 26 26 26 27 Market Channels for Catfish ............................................. 4 The Survey ....................................................... 5 RESULTS .................... ............................ ....................... ............. Catfish Share of Retail Market ........ .... ......... Product Form ............................. .... Acquisition of Seafood Supplies ................................... .......... Promotion ..................... .... Observed Customer Characteristics ............................. MARKET ALTERNATIVES FOR CATFISH PRODUCERS .............. Supermarkets and Grocery Stores ................................ ......... Seafood Restaurants ........................... Seafood Markets ................................. ........ W holesalers ..................................................................... Fishout Operations ...................................... SUMMARY AND CONCLUSIONS ............................................... ACKNOWLEDGMENTS ............................................................ LITERATURE CITED .............................................................. FIRST PRINTING 3M, FEBRUARY 1989 Information contained herein is available to all without regard to race, color, sex, or national origin. Marketing Alternatives for East Alabama Catfish Producers CAROLE R. ENGLE, UPTON HATCH, SCOTT SWINTON, and TARON THORPE' INTRODUCTION ' ONSUMPTION OF FISH and seafood products has increased in recent years. Since 1967, per capita consumption of fish in the United States has increased by 20 percent (10). Production of aquacultural products such as catfish has also increased dramatically. Acreage devoted to commercial catfish production has grown from 400 acres in 1960 to over 130,000 acres in 1988 (5,9). Market information for catfish and other seafood products has been limited in the past because seafood has comprised only a small proportion of the U. S. consumer's diet. Recent increases in demand for seafood and expansion of the catfish industry have generated interest in marketing seafood products. Aquaculture has made it possible for fish consumption to increase without adding to the strain on natural fishery resources. U. S. commercial catfish production has soared from 5.7 million pounds in 1970 to 21.1.7 million pounds in 1986 (8,11). Supply has expanded so fast that real wholesale prices offered by processors have fallen steadily since 1973, except for brief reversals in 1976-77 and 1984-85 (4,11). As the limits Respectively, Former Graduate Student, Department of Fisheries and Allied AquacuItures, now Associate Professor of Agricultural Economics, University of Arkansas at Pine Bluff; Assistant Professor of Agricultural Economics and Rural Sociology; Former Graduate Student, Department of Agricultural Economics and Rural Sociology, now Research Assistant, Department of Agricultural Economics and Applied Economics, University of Minnesota; and Student Aid, Department of Agricultural Economics and Rural Sociology. 4 ALABAMA AGRICULTURAL EXPERIMENT STATION of traditional markets are reached, fish farmers have shown greater interest in marketing information and strategies. Catfish farming is the largest sector of U. S. aquaculture (9), and catfish farmers currently show a strong interest in seafood marketing issues. Following the 1987 annual meeting of the Catfish Farmers of America, the Catfish Institute demonstrated a growing concern with marketing by announcing a $2 million advertising campaign to promote consumption of Mississippi farm-raised catfish (3). The present marketing study was undertaken as a first step toward understanding seafood markets in a 13-county area of east-central Alabama and west-central Georgia. Surveys were conducted of grocery stores, supermarkets, seafood restaurants, retail seafood markets, seafood wholesalers, and fishout (pay lake) operations. The study zone encompassed the city of Montgomery, Alabama, in the west, Eufaula, Alabama, in the south, Columbus, Georgia, in the east, and Alexander City, Alabama, in the north. The primary purpose of this study was to characterize the relative importance of grocery store, supermarket, restaurant, seafood market, seafood wholesale, and fishout segments of the catfish market. The prevalence of various product forms currently available on the retail market was determined for catfish and other related species. Information on current seafood suppliers was collected to determine processing, packaging, and volume requirements for different market outlets. Recommendations were developed on marketing opportunities for catfish farmers within the study area. Although the study area was limited geographically, it included all major market channels for catfish. Comparisons between market channels in terms of product form and relative volume and price requirements should apply to other geographic areas. This information should be useful for catfish farmers in providing general guidelines for marketing in different types of market outlets. Market Channels for Catfish McCoy (7) identified processors, grocery stores, restaurants, seafood markets, individuals, live haulers, and wholesalers as market channels for farm-raised catfish. In 1978, 81 percent of catfish produced were sold to processors. However, for continuous sales, producers must be located within 50 miles MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 5 of the processing plant (7). Although there are over 100 catfish producers in east Alabama (approximately 16 percent of Alabama producers), there are no processing plants. These farmers must develop alternative market outlets. Studies of catfish marketing channels have been conducted at both Mississippi State University (2)and Kentucky State University (1). The Mississippi State University survey began by interviewing firms representing six principal market channels for catfish. The study found that "chain grocery distributors, fish distributors, and poultry distributors handled mostly fresh fish, while food service distributors, food brokers, and catfish specialty restaurants handled mostly frozen fish (2). The study also found that only 24 percent of chain groceries handled catfish, and that those selling fresh catfish sold an average of 61 pounds per week. Since 1981, when the survey was conducted, the proportion of U. S. chain supermarkets carrying catfish and volumes sold have no doubt risen. The Kentucky State study focused on both catfish and trout, and was limited to marketing in Kentucky. This study found that most retail grocers sold catfish (55 percent sold fresh, 60 percent sold frozen), but fewer sold trout (25 percent sold fresh, 30 percent frozen). A much smaller proportion of restaurants sold these fish. Only 14 percent sold fresh catfish, while 21 percent sold frozen catfish. Twenty-nine percent of the eating establishments carried fresh trout and 22 percent sold frozen trout. Among wholesalers, 28 percent carried frozen catfish and 14 percent frozen trout, but less than 10 percent of them carried fresh fish of either species (1). The Survey Budgetary considerations limited the geographic scope of the study to the 13-county area of eastern Alabama and western Georgia identified in the map on page 6. The sampling universe of grocery stores, supermarkets, restaurants, and seafood markets was developed using telephone directory commercial listings for 1985-87. Supermarkets were defined as regional and national chain grocers and those that used "supermarket" in the store name. Groceries were identified by the word "grocery" in the name of the store. Due to the large number of restaurants, it was decided to restrict the sample to restaurants specializing in seafood sales, as defined by the mention of seafood in their yellow-pages advertisements or in the 6 ALABAMA AGRICULTURAL EXPERIMENT STATION Alabama and Georgia counties included in the study area. restaurant name. Fishout operators were identified through personnel of the Alabama and Georgia Cooperative Extension Services. A stratified random sample was drawn from the universe of grocery stores, supermarkets, and restaurants. During the first stage of sampling, outlets were telephoned to determine if they sold fish. Those that did not sell fish were replaced to obtain a final sample of 25 outlets in each category. Ultimately, 125 groceries were contacted, of which 79 did not sell seafood products, 20 were closed, 1 refused to be interviewed, and 25 were interviewed about their seafood sales, table 1. Of 33 supermarkets sampled, 1 did not sell seafood, 2 had closed, and 30 were interviewed. Because restaurants were preselected to be seafood sellers, all those contacted which were still in business sold seafood. There were 9 seafood markets, 6 seafood wholesalers, and 33 fishout operations in the study area. All were contacted and 7 seafood market managers, 5 seafood wholesalers, and MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 7 TABLE 1. SAMPLING FRAME FOR GROCERY STORES, SUPERMARKETS, SEAFOOD RESTAURANTS, SEAFOOD MARKETS, AND FISHOUT OPERATIONS SURVEYED IN EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Retail outlet Sampling Sample No seafood Outlet RefusedInterviewed universe sales closed interview No. No. No. No. No. No. Retail grocers Supermarket'. ........... . 136 33 1 2 0 30 Groceries 2 .. .. . . . 493 125 79 20 1 25 Restaurants ................ 84 48 0 9 9 30 Seafood markets ........ 9 9 0s 2 0 7 Seafood wholesalers . .... ... 6 6 n.a. 0 1 5 4 .. ... .. . Fishout ....... 33 33 0 1 1 26 'Supermarkets were defined as regional and national chain grocers and those that used 'supermarket" in their name. 2 Groceries were identified as stores using the word "grocery" in the name of the store. 3Not applicable. 4Five fishout operators could not be contacted for lack of a phone or an incorrect address. 26 fishout operators were still in business and granted interviews. The survey instrument was pretested in each type of market outlet. Direct personal interviews were conducted in grocery stores and supermarkets from January to March, 1987; in restaurants from April to June, 1987; with fishout operators from June to August, 1987; and with seafood markets and wholesalers from January to March, 1988. The survey instrument was divided into two parts. The first part elicited general store information, including perceptions on trends in seafood marketing, promotional tactics utilized, desired improvements to increase seafood sales, perceptions of seasonality in consumer demand, desired changes in supplies, and incidence of purchases from local suppliers. The second part of the questionnaire recorded prices and quantities of fish and seafood sold by level of processing and product conservation. Records were not kept by either the grocery store managers or the supermarket meat managers. Supermarket meat managers send invoices to regional offices that maintain data on sales of different products. Although requested, these regional data were not made available to the researchers. The data, with the exception of prices, were based on memory recall and current invoices of managers. Retail prices were recorded from the displayed products at the time of the interview. For the restaurants, data were gathered on the types of dishes sold and their prices. 8 ALABAMA AGRICULTURAL EXPERIMENT STATION Respondents were also asked the origin of their supplies and the age, race, and income levels of customers for each seafood product. The pilot test of the survey instrument indicated that the managers were only willing to divide age into "young" (under 35) and "old" and income into "high" and "low." Interviews were directed to store employees familiar with seafood sales (in groceries, typically the owner; in supermarkets, the meat and frozen foods managers). Although the present study was motivated by an interest in catfish marketing, it began with the assumption that focusing on catfish sales alone is insufficient to thoroughly understand the market for catfish. Because other species of fish can substitute for catfish, the demand for catfish can only be understood in the context of demand for fish and seafood in general. Therefore, it was decided to survey all sales of seafood which had not been breaded or precooked. RESULTS The study described the distribution of catfish and other seafood sales among grocery stores, supermarkets, restaurants, seafood markets, wholesalers, and fishout operations. Results shed light on monthly sales volumes, levels of processing, and types of seafood most commonly sold by these outlets. Profiles of the types and locations of principal seafood suppliers to retail outlets were developed. Finally, the results gave a profile of customer characteristics and promotional tactics utilized by different types of outlets. Catfish Share of Retail Market Table 2 presents mean monthly quantities and retail value of catfish by market outlet. Mean monthly quantities of catfish sold ranged from 36 pounds in grocery stores to 3,523 pounds per fishout operation. These quantities corresponded to mean monthly sales values of $81-$4,200. Depending upon the specific market channel, catfish sales ranged from 7 percent to 95 percent of total seafood sales (both value and quantity). Market outlets with highest average sales of catfish were different from the market segment having greatest total sales. For example, fishout operations and seafood wholesalers moved the greatest retail value and quantity, respectively, of catfish per outlet. Seafood restaurants and supermarkets, when sales MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 9 TABLE 2. MEAN MONTHLY QUANTITIES AND RETAIL VALUE OF CATFISH BY MARKET OUTLET TYPE (ALL PRODUCT FORMS) FROM RETAIL EAST-CENTRAL ALABAMA MARKET SURVEY OF AND WEST-CENTRAL GEORGIA, 1987-88 Mean price per lb. Market outlet Number of outlets Mean sales Per Pct. of month seafood Mean quantity Per Pct. of month seafood Dol. Pct. Lb. Pct. Dol. Retail grocer Supermarket' .......... 30 571 11 246 12 2.32 .. Grocery store..2.. ... .. .. ..... 25 81 12 36 8 2.25 . . Restaurant ...... 30 1,215 10 456 16 2.66 Seafood4 market.. .......... 7 1,184 8 525 7 2.26 .... . . . . ... Fishout ....... 12 3,603 95 3,523 95 1.05 Seafood wholesaler ..... 5 4,200 19 2,320 22 1.81 'Supermarkets were defined as regional and national chain grocers and those that used 'supermarket" in the store name. 'Groceries were identified as stores using the word "grocery" in the name of the store. SFor restaurants, seafood value was calculated as raw quantity purchased times mean grocery retail price of the same product. 4 Fishout operations with weekly sales less than 100 pounds were excluded. of all individual outlets were aggregated, sold far more than other market segments. There were many more seafood restaurants and supermarkets than fishout operations or seafood wholesalers in the study area. Volume sold in individual outlets seemed to reflect the inverse price/quantity relationship of demand. Mean price of catfish in the higher volume fishout operations was substantially lower than price of catfish in the lower volume retail grocer segment, table 2. Mean wholesale price of catfish paid by restaurateurs exceeded other prices, but the volume moved per store was lower than the volumes moved by seafood markets, seafood wholesalers, or fishout operations. Catfish and shrimp were the only species to be in the top five seafood varieties of all market outlets (excluding fishout operations that primarily sold catfish), table 3. Other than catfish and shrimp, different varieties predominated in different market segments. While shrimp generated the largest sales volume for both supermarkets and seafood restaurants, restaurants sold more than twice as much as supermarkets; mean monthly sales totaled $2,813 versus $1,329 for supermarkets, table 3. If seafood products are divided into price per pound of groups over $4.00, $2.00-4.00, and under $2.00, seafood restaurants led in sales for all four of the higher valued seafood species (oysters, blue crab, red snapper, and clams), as well as shrimp. 10 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 3. MEAN MONTHLY RETAIL VALUE OF TOP SEAFOOD VARIETIES BY MARKET OUTLET FROM MARKET SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Retail value, by market outlet' Grocery' Restaurant Seafood Wholesale store market Dol. Dol. Dol. Dol. Dol. Blue crab ...................... 17 0 543 0 0 Catfish ...................... 571 81 1,215 1,184 4,200 Mullet ........................... 91 154 34 3,414 3,632 Ocean perch ............. 874 58 148 0 0 Oyster ................... 264 16 1,457 1,045 813 Red snapper ..............80 24 337 1,063 4,702 Shrimp .... ........... 1,329 41 2,813 1,712 4,085 Speckled trout .............. 48 8 48 1,598 376 ... . . . ... ... ... ... Whitefish4 ... 6 0 1,340 0 0 Whiting ...... ....................... 552 108 166 333 182 'Fishout operations sold $3,603 of catfish per month per operation during a typical season from April to October. 2Supermarkets were defined as regional and national chain grocers and those that used 'supermarket" in the store name. 'Groceries were identified as stores using the word "grocery" in the name of the store. 4 Two restaurants accounted for all restaurant sales of whitefish. Variety Supermarket 2 Sales of mid-priced species were divided between restaurants and supermarkets, with supermarkets leading in ocean perch sales and restaurants leading in sales of catfish, whitefish, and flounder. Whiting and mullet, two low-valued varieties, were sold chiefly through seafood markets and wholesalers, although they comprised a large proportion of grocery sales. Shrimp sales, overall, comprised 23 percent of total seafood monthly dollar sales per retail grocer. Ocean perch followed with 15 percent and catfish and whiting each comprised 11 percent of monthly dollar sales per store. Varieties important to seafood market sales were primarily those caught in the nearby Gulf of Mexico. In addition to catfish, shrimp, and oysters, the following varieties all had sales over $1,000 per month per store: mullet, red snapper, and speckled trout, table 3. Review of quantities sold indicated that the seafood restau- rants vend certain species which are rarely sold through the grocery stores. Table 4 shows that whitefish and blue crab were sold almost exclusively through restaurants. However, this is partly due to survey bias which excluded prepared frozen crab dishes from the supermarket and grocery survey yet accepted them in the restaurant survey. By contrast, the low-cost species mullet and whiting were sold in large quantities MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 11 TABLE 4. MEAN MONTHLY QUANTITIES SOLD OF TOP SEAFOOD VARIETIES BY MARKET OUTLET FROM RETAIL MARKET SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Sales/month, by market outlet t Variety Supermarket 2 Grocery Restaurant Seafood Wholesale Lb. Lb. Lb. Lb. Lb. Blue crab... ............... 0 0 125 0 0 Bream4 . .... . .. .. ... .... 19 11 20 700 314 Catfish ..................... 246 36 456 525 2,320 Croaker ................... · 41 3 7 464 160 Mullet ...................... 145 134 29 3,586 4,520 54 0 0 Ocean perch ........... 348 21 Oyster ................. 51 5 299 151 63 Red snapper ........... 27 3 68 250 820 485 303 770 Shrimp ....................... 312 8 Speckled trout ........... 31 4 18 621 120 5 . .. . . .... ... Whitefish .... .. 1 0 390 0 0 Whiting ................... 572 137 91 200 140 'Fishout operations sold 3,523 pounds of catfish per month per operation during a typical season from April to October. ISupermarkets were defined as regional and national chain grocers and those that used 'supermarket" in the store name. 'Groceries were identified as stores using the word "grocery" in the name of the store. 4Bream includes tilapia, bluegill, and similar fish. 'Two restaurants accounted for all restaurant sales of whitefish. through groceries, supermarkets, and seafood markets. On a volume basis, whiting comprised 27 percent of the total monthly quantities moved per supermarket, followed by ocean perch at 14 percent, shrimp 13 percent, catfish 11 percent, and mullet 10 percent. Seafood markets sold far greater volumes of mullet than any other seafood item. Bream (which included tilapia), speckled trout, catfish, and croaker were among the top five products sold in terms of volume. Product Form Results indicated that catfish primarily were sold fresh in the study area, table 5. More catfish were sold whole-dressed than filleted in all outlets studied. Restaurants sold slightly less fresh than frozen catfish. Differences were found in form of product conservation. As mentioned above, catfish primarily were sold fresh (84 percent), as was mullet (80 percent), table 5. On the other hand, 82 percent of ocean perch and 93 percent of whiting were sold frozen. Over half (55 percent) of the fresh mullet sold was also dressed (eviscerated, headed, scaled), but 45 percent was sold 12 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 5. PERCENTAGE FREQUENCY OF PRODUCT FORM OF CATFISH PRODUCTS BY MARKET OUTLET FROM RETAIL MARKET SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Product form Retail groceries' Pct. Frequency, by market outlet Seafood Restaurant market Pct. Pct. 40 60 0 70 20 10 100 0 0 91 0 9 0 0 0 0 Fishout Pct. 7 0 93 100 0 0 0 0 0 100 All Fresh .............. ..... ......... 84 Frozen ................................... 16 Live ........................................ 0 Fresh Dressed 2 ......... ... .... ... ... . ... ... .. 76 Fillet ....... ........................................ 24 . . ... ... . . . . . . . ... ... .... Other ........... 0 Frozen/IQF4 Dressed 2 ............... ... .. . . . . . . ... ... . 43 Fillet .............. .......................... 29 s .. ... ... . . . .... ... .. Other ......... 28 Live ........... .............................. 'Retail groceries includes both supermarkets and 2 Skinned, gutted, without head. 3 Includes whole, breaded, or nuggets. 4Individually quick frozen 60 33 7 0 grocery stores. as a whole, undressed product. Frozen whiting was generally (75 percent) sold dressed, but frozen ocean perch was sold as a fillet 100 percent of the time. Most shrimp was sold headsoff when fresh, versus heads-off and peeled when frozen. Oysters were mostly sold fresh shucked, although fresh oysters in the shell made up 38 percent of restaurant sales. Blue crabs were usually sold stuffed and frozen. TABLE 6. MOST FREQUENTLY OCCURRING PRODUCT FORM OF TOP SEAFOOD VARIETIES BY MARKET OUTLET FROM RETAIL MARKET SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Most frequent form, by market outlet' Restaurant Seafood Retail 2 groceries Restaurant market fresh dressed n.a.3 Blue crab .................. n.a.3 n.a.3 fresh fillet Bream ...................... fresh dressed frozen dressed fresh dressed Catfish ...................... fresh dressed fresh whole frozen dressed Croaker .................... fresh dressed fresh whole fresh whole Mullet ...................... fresh dressed frozen fillet n.a.3 Ocean perch ............. frozen fillet fresh whole fresh shucked fresh shucked Oyster ............ fresh dressed/whole frozen fillet frozen fillet Red snapper ......... frozen peeled fresh peeled frozen peeled Shrimp ........... IQF fillet fresh dressed Speckled trout .......... frozen fillet frozen fillet fresh dressed/whole Whiting ..................... frozen dressed 'Fishout operations sold catfish live. 2 3Retail groceries includes both supermarkets and grocery stores. Not applicable. Seafood variety MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 13 Although most of the types of seafood surveyed was sold fresh or frozen, some was also "individually-quick-frozen" (IQF) or salted. Percentages of seafood products reported as IQF products underestimated the actual amount, since some respondents referred to IQF products as "frozen." IQF fish included in the responses were turbot, red snapper, cod, ocean perch, flounder, and grouper. Of these, ocean perch was most often packaged IQF. Salted fish (4 percent) included mullet, cod, mackerel, and herring. Processing of seafood sold through restaurants was similar to that of retail stores with a few exceptions. Restaurants tended to use more frozen seafood than the groceries and supermarkets, especially where shrimp and catfish, the two largest-volume sellers, were involved. Certain forms of seafood were sold only through restaurants. For example, whole oysters comprised 38 percent of sales by restaurants, versus only 4 percent of retailers' sales. Restaurants sold blue crab mostly as a stuffed or breaded frozen product. A close look at restaurant menus showed that two-thirds of all seafood dishes were filleted, table 7. Fillets (including peeled and shucked shellfish) comprised over 90 percent of the shrimp, whitefish, clams, and mixed platters offered on menus, as well as 70 percent of the oysters. Among the nine most popular dishes, only catfish and blue crab were not usually filleted. Catfish was sold whole-dressed but not filleted in 67 percent of cases, while most blue crab dishes were either crab legs and claws (46 percent) or stuffed (39 percent). TABLE 7. FREQUENCY OF PRINCIPAL RESTAURANT SEAFOOD DISHES BY LEVEL OF PROCESSING FROM RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Frequency, by level of processing Seafood dish Number' Dressed/ headless Pct. Pct. 7 46 67 0 0 0 16 16 0 30 20 27 4 3 0 0 0 0 19 8 specific restaurant. Whole Fillet (peeled) Pct. 7 30 100 47 70 53 90 100 100 66 Other Pct. 392 3 0 162 0 0 3 0 0 6 28 Blue crab .................................. 30 Catfish ....................................... 14 Clam s ........................................ 19 Flounder ................................... 37 Oysters ...................................... .. 15 ................ Red snapper 95 Shrimp ...................... 12 W hitefish ................................... 41 Mixed platters .......................... 391 All seafood ............................... 'An observation is an entree type of a 2 Stuffed. 14 ALABAMA AGRICULTURAL EXPERIMENT STATION Most restaurant seafood dishes were fried (53 percent), table 8. Whitefish, catfish, and clams were primarily sold fried. Just over half of red snapper and flounder dishes were broiled or grilled (the rest being fried). Half of shrimp dishes were boiled, while 48 percent of oyster dishes were raw, steamed, or boiled. Blue crab dishes which were not fried (62 percent) were divided among baked, stuffed, boiled, and broiled dishes. Table 9 presents average price and price range data for retail grocer outlets. Fresh, whole-dressed catfish had a price range per pound of $1.49 to $2.79, whereas fresh fillets varied in price from $1.99 to $3.69. Whiting and mullet were generally priced lower than other fish products. Fresh, dressed catfish and ocean perch average prices were comparable, $2.25 and $1.96 per pound, respectively, although fresh catfish was more widely available. Shrimp prices varied primarily by size. Jumbo shrimp (1620 count, or 16-20 shrimp per pound) were the most expensive ($7.99-$10.65 per pound), with 60-70 count shrimp being the least expensive ($2.99-$3.99 per pound), table 10. A large percentage (40 percent), however, was sold as "frozen peeled" without specifying the size of the shrimp. Prices for this group ranged more widely than for all other size groups ($2.59$10.65), with a mean of $5.46 per pound. Most shrimp were sold frozen (42 percent) or IQF (23 percent). Of these, 85 percent of the frozen shrimp and all of the IQF shrimp were sold peeled. Fresh shrimp, on the TABLE 8. FREQUENCY OF SEAFOOD PRODUCTS BY FORM OF FOOD PREPARATION FOR PRINCIPAL RESTAURANT SPECIES FROM RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Frequency, by form of preparation Baked/ stuffed Pct. Pct. Pct. Pct. Blue crab ................................... 38 15 19 27 Catfish ....................................... 93 7 0 0 Clams ......................................... 71 0 29 0 Flounder .................................... 42 54 0 4 Oysters' ..................................... 50 0 17 3 Red snapper ................ 48 .............. 52 0 0 Shrimp ....................................... 38 13 50 0 W hiteish ................................... 100 0 0 0 .. ... ... .. . . . ... .. All seafood ............. 53 18 23 3 1Thirty-one percent of oysters prepared in restaurants were raw or steamed. 'Three percent of all seafood prepared in restaurants was raw or steamed. Seafood Fried Broiled grilled Boiled MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 15 TABLE 9. AVERAGE PRICE AND PRICE RANGE FOR MAJOR PRODUCTS BY VARIETY AND PRODUCT FORM, RETAIL GROCERS', FROM RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Species and Product Number pre ran b., condition Catfish formper lb. Dol. 87 Dol. 1.49-2.79 1.99-3.69 1.99-7.99 1.99-4.79 0.59-1.69 1.07-1.49 2.29-4.99 Fresh ...................................... Flounder dressed fillet 28 8 2.25 3.04 Fresh ..................... ....................... 4.20 fillet 7 Frozen ..................................... fillet 19 3.58 Mullet Fresh ............... ...... .................. Ocean perch Fresh ................................ whole dressed fillet 8 10 9 0.99 1.40 3.49 Frozen ........................ fillet 54 2.65 1.00-4.52 Whiting Frozen ......................... ....... dressed 43 1.03 0.59-4.99 fillet 9 1.83 0.99-3.99 'Retail grocers include both supermarkets and grocery stores. 2 An obervation is a product form in a supermarket or grocery store. SThe following product forms (with prices in parenthesis) were found in less than 10 percent of the surveyed population: frozen dressed ($2.52) and filleted ($3.39) catfish; fresh dressed ($2.99) and IQF filleted ($5.85) flounder; frozen whole ($0.76), frozen dressed ($1.39), salted dressed ($1.09), salted fillet ($0.97) and salted steaks ($0.59) of mullet; fresh dressed ocean perch ($1.96); and fresh dressed ($1.09), fresh dressed filleted ($2.59), and frozen whole ($0.97) whiting. TABLE 10. AVERAGE PRICE AND PRICE RANGE OF SHRIMP BY SIZE', RETAIL GROCERS , FROM RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 2 Size, no. per pound Frequency of product occurrence Average price/., Price/lb. ran1987b., Pct. Dol. Dol. 16-20 .............................. 19 9.96 7.99-10.65 6 6.35 4.69- 8.00 26-30 ............................. 5.86 4.99- 6.99 36-42 ............................. 11 50-60 ............................. 13 4.64 2.99- 6.99 3.49 2.99- 3.99 60-70 ............................. 4 4 2.59-10.65 Unspecified size .............40 5.46 'Sizes listed are those found in the sampled stores. Some sizes, such as 21-25 and 31-35, were not observed in any of the stores studied. Retail grocers includes both supermarkets and grocery stores. 2 3Two percent of shrimp sold were butterfly shrimp ($5.46 per pound). 4 Labefed "frozen peeled" in stores. 16 ALABAMA AGRICULTURAL EXPERIMENT STATION other hand, were sold mostly unpeeled with the heads off (76 percent). Only one store handled heads-on shrimp. Acquisition of Seafood Supplies How and where retailers acquire their supplies should be of particular interest to local aquaculture industries. Groceries appeared to be linked most to local suppliers; table 11 indicates that virtually all grocers purchased their seafood supplies from local sources. However, all grocers interviewed worked in independently owned establishments which may have lacked access to national and regional warehouse suppliers. Sixty percent of supermarkets obtained their seafood supplies locally, including all independent supermarkets and 37 percent of the chain stores. However, an additional 26 percent of chain supermarket outlets claimed that with authorization from central management they were permitted to make local purchases. Seventy-five percent of restaurants interviewed obtained their seafood supplies locally. The highest percentage (83 percent) was represented by independent restaurants versus 60 percent for chain-owned or franchised restaurants. Seafood market managers in the study area generally traveled to fishing ports to purchase supplies. Fish sold through these outlets were primarily wild-caught fish purchased directly from fishermen at boat landings or from fish wholesalers located near boat landings. Even the majority of catfish sold TABLE 11. PERCENTAGE OF OUTLETS THAT BUY SEAFOOD SUPPLIES LOCALLY' BY FORM OF OWNERSHIP IN RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Market outlet Buy seafood locally, by form of ownership Independent Overall mean Chain No. 2 Pct.' No. Pct. No. Pct. Retail grocer ... .... Supermarkets 4 ................. ...... ... ... ... .. . . . . 19 37 11 100 30 60 ... . . . . . ... Grocery stores' .. ....... 1 0 24 100 25 96 Restaurant ................................................ 10 60 6 19 83 29 75 Seafood market ........................................ 0 n.a. 6 7 43 7 43 Seafood wholesaler .................................. 0 n.a. 5 0 5 0 'All the fishout operators interviewed produced their own fish. 2The total number of outlets surveyed with that type of ownership. 'The percent of surveyed outlets of that type that purchased seafood supplies locally. 4 Supermarkets were defined as regional and national chain grocers and those that used 'supermarket" in the store name. 5 Groceries were identified as stores using the word "grocery" in the name of the store. 6 Not applicable. MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 17 was wild-caught river catfish. Only 43 percent of the seafood markets in the study area purchased seafood supplies locally, table 11. None of the seafood wholesalers interviewed purchased seafood from local suppliers. Three of the five interviewed indicated they would buy locally if supplies were available. TABLE 12. DISTRIBUTION OF MEAN MONTHLY RETAIL SALES VALUE FOR PRINCIPAL SEAFOOD VARIETIES CARRIED IN RESTAURANTS AND RETAIL GROCERIES' BY TYPE OF SUPPLIER FROM RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Sales distribution, by supplier Seafood eafod variety Chain warehouse warehouse wGneal Seafood wholesale/ Independent Direct Other/no e wholesale food broker jo bers purchase response General Pct. Pct. Pct. Pct. Pct. Pct. Restaurants Blue crab ......... 20 45 24 11 0 0 2 2 5 20 33 0 4 Catfish ............ Clams .......... 16 63 21 0 0 0 Flounder .......... 5 82 7 2 4 0 28 1 50 4 16 Oysters ............. 1 5 10 48 8 0 30 Red snapper .... 1 6 9 20 7 57 Shrimp .......... Retail groceries Catfish ............ 34 28 23 0 11 0 1 27 1 70 0 0 Flounder .......... Mullet ........... 7 91 2 0 0 0 0 1 3 38 0 Ocean perch .... 58 Oyster .......... 49 24 35 0 1 0 0 1 0 91 7 1 Shrimp ......... 0 0 1 7 53 Whiting ......... 40 'Retail groceries include both supermarkets and grocery stores. 2 Thirty-six percent of the catfish supplied to restaurants was obtained from catfish processors. processors. 3Three percent of catfish purchased by retail grocers was purchased from catfish Restaurants bought from a fairly wide range of supplier types. Table 12 presents the distribution of mean monthly retail sales value by type of supplier. Seafood and general wholesalers along with chain management controlled the largest part of seafood supplies. Other than these three, most seemed to specialize by species. For example, 36 percent of catfish were supplied by catfish processors and 48 percent of red snapper by independent jobbers acting as intermediaries between fishermen and the restaurants. General merchandise wholesalers tended to handle only frozen products. Most store managers surveyed were satisfied with their cur- 18 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 13. PERCENTAGES OF RETAIL MANAGERS THAT EXPRESSED DESIRE FOR CHANGES IN SEAFOOD SUPPLIES BY OUTLET TYPE IN RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-881 Change Managers desiring change, by market outlet Grocery store Restaurant Total Pct. 44 23 17 3 7 3 3 and 25 Supermarket Pct. Pct. Pct. Diversity ............... ................ 61 40 30 Steady supplies ................. 19 40 10 Better quality ....................... 0 20 30 Better packaging ............. 10 0 0 Greater freshness ............... 0 0 20 Delivery by wholesalers ....... 10 0 0 Smaller catfish ..................... 0 0 10 'Half of all managers interviewed did not express desire for any changes percent also indicated a desire for lower prices of seafood supplies. rent supply of seafood products. Of those expressing desire for change, 61 percent of the supermarket managers wanted increased diversity in the form of different products, table 13. Greater availability of fresh tilapia, mullet, oysters, salt water fish, snapper, hardtail, and bluetail were mentioned. Grocery managers were as concerned with diversity (40 percent) as with steady supplies (40 percent). These same grocery stores relied more heavily on local suppliers than did supermarkets that arranged supplies through regional warehouses. Others expressed a need for steady supplies, packaged fresh shrimp, better quality, and delivery by wholesalers. Thirty percent of restaurant managers would like improved quality and increased diversity. Restaurant managers were the only managers to express a desire for greater freshness. Given that their current supplies are largely frozen, there may be potential for introducing fresh products. Overall, greater diversity, steady supplies, and improved quality were the primary changes managers would like to see. Promotion Promotions were used by over three-fourths of supermarkets and seafood restaurants, but by only 28 percent of groceries, table 14. The advertising practices used by supermarkets and groceries appeared to differ significantly from those used by seafood restaurants. In-store signs and discount specials (advertised in newspapers by supermarkets) formed the basis of retailers' promotional efforts, and were used by 63-70 percent of all supermarkets. Thirteen percent of supermarkets oper- MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 19 TABLE 14. PERCENTAGE OF OUTLETS EMPLOYING SPECIFIC PROMOTIONAL TACTICS (BY OUTLET TYPE) FROM RETAIL SEAFOOD MARKETING SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-88 Employing tactics, by outlet type Promotional tactic Groceries' (n= 25) Pct. Advertisements Newspaper ........... Radio ................. Television ............ Billboard on highway ............ In-store Sign in store/on road .............. Recipes .............. Discount special ... Fish market section .............. Announcement over P.A. system ............ Taste tests ............ Coupons Direct ................... Newspaper ........... .. Other4 .... . . . . . .. ... ... .. No promotion used 4 8 0 0 Supermarkets2 (n=30) Pct. 70 3 0 0 Restaurants (n=30) Pct. 47 50 20 20 Seafood rs Fishout (n= 12) Pct. 42 17 8 0 Pct. 14 14 0 0 28 0 12 4 0 0 63 13 67 13 10 7 0 0 6 17 13 0 30 0 0 3 10 13 10 30 14 0 0 n.a.3 n.a.3 0 0 0 57 0 33 0 0 n.a.3 0 0 0 0 0 50 0 0 72 'Groceries were identified as stores using the word "grocery" in the name of the store. 2 Supermarkets were defined as regional and national chain grocers and those that used "supermarket" in the store name. 'Not applicable. 4Including: for supermarkets, a seafood newsletter and lectures to school children; for restaurants, flyers, yearbook advertisements, musical entertainment. ated fish market counters. These were often accompanied by the distribution of seafood recipes, announcements over the store public address system, and taste tests. Restaurants relied more on broadcast media, with 50 percent using radio ads and 20 percent using television ads, compared with 47 percent using newspaper ads. Close to a third used discount specials, usually in the form of an all-you-can-eat buffet special rather than discounts on specific dishes. Smaller numbers of restaurants used road signs or billboards and discount coupons in newspapers or direct-mail solicitations. Seafood markets relied on in-store signs and newspaper and radio advertisements. 20 ALABAMA AGRICULTURAL EXPERIMENT STATION Observed Customer Characteristics Knowledge of customer characteristics is important in designing promotional strategies. Retail-managers were asked to describe age, income, and race of customers who purchased different species. Of the responses obtained, 71 percent indicated that people over 35 years of age are the primary purchasers of catfish and 92 percent said the same for whiting, table 15. Twothirds of the managers indicated that young people (under 35) buy more shrimp than older people. Both younger (48 percent) and older (52 percent) people were the perceived purchasers of ocean perch. Retailers responded that both high (56 percent) and low income people (44 percent) purchased catfish. Whiting and ocean perch, however, were viewed as products bought by TABLE 15. RETAILERS' PERCEPTIONS OF FISH AND SEAFOOD CUSTOMER CHARACTERISTICS BY SEAFOOD VARIETY FROM RETAIL MARKET SURVEY OF EAST-CENTRAL ALABAMA AND WEST-CENTRAL GEORGIA, 1987-881 Species and retailer retailer Retailers' perceptions, by customer characteristics Age Income Race Over 35 Under 35 High Low White Black Pct. Pct. Pct. Pct. Pct. Pct. 62 44 n.a.2 80 94 n.a. 2 80 81 n.a. 2 20 n.a. 2 80 18 n.a. 2 80 34 51 71 36 7 0 36 44 n.a. 2 83 93 36 44 95 36 66 49 29 64 93 100 64 56 n.a.2 17 7 64 56 5 64 Catfish Fishout ..................... 74 26 38 Retail grocers ........... 71 29 56 Restaurants ............. 89 11 n.a.2 29 20 Seafood markets .......... 71 Mullet Retail grocers ........... 85 15 6 Restaurants ............. 50 50 n.a. 2 20 Seafood markets .......... 71 29 Ocean perch Retail grocers ........... 52 48 19 Restaurants ... ......... n.a. 2 n.a. 2 n.a. 2 Oysters 54 80 Retail grocers ........... 46 Restaurants ............. 50 50 n.a. 2 71 29 20 Seafood markets .......... Shrimp Retail grocers ........... 66 34 82 51 49 n.a. 2 Restaurants ............. 29 20 71 Seafood markets .......... Whiting 92 8 6 Retail grocers ........... n.a. 2 n.a. 2 Restaurants ... ......... n.a. 2 'The percentages indicate the frequency of responses by characteristics of customers of different varieties. 2 Not available. 90 94 10 n.a. 2 n.a. 2 n.a. 2 retailers of the observed MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 21 low-income people by 94 percent and 81 percent of respondents, respectively. Shrimp was perceived as a product purchased by high-income customers (82 percent). Retailers observed that both whites and blacks purchased catfish, ocean perch, and shrimp. However, whiting was perceived as a black customer's product (90 percent). Seafood market managers indicated that their clientele was primarily older, of low income, and black. In general, they could not differentiate customer purchases by these categories. Patrons of fishout operations tended to be older, middlelower income blacks from urban areas. Most patrons lived within a 30-minute to 1-hour drive of the fishout operation. Few lived within 5-10 minutes or over 1 hour from the fishout operation. Market Characteristics Supermarkets were more likely to handle seafood than were grocery stores. Of the 125 grocery stores contacted, only 20 percent sold any type of seafood, while 94 percent of the 32 supermarkets sold seafood. Supermarkets also handled a greater variety of products (78 different products) than groceries (only 38 different products). Both supermarkets and groceries commonly handled products like catfish, whiting, turbot, red snapper, croaker, mullet, and some oysters and shrimp. Only supermarkets, however, handled haddock, sole, grouper, monk, rainbow trout, shark, amberjack, scallops, mussels, lobster, king crab, or caviar. Two Asian groceries handled Oriental specialty seafood, such as walking catfish, snails, eel, and snakehead, as well as unidentifiable fish labeled "yellowfish," "wingfish," "hairtail fish," and "scomber fish." Store managers of suburban supermarkets perceived seafood sales as generally increasing and planned to increase counter space, in-store fish markets, and varieties handled. On the other hand, rural grocery store managers anticipated declining sales and generally expected to sell less seafood in the future. Store managers were divided on whether demand for seafood was seasonal (44 percent) or not (46 percent). While approximately 60 percent of store managers professed to not knowing if demand was high or low in different seasons, 30 percent indicated demand was low in the summer and 22 percent said demand was low in the spring. Over 30 percent 22 ALABAMA AGRICULTURAL EXPERIMENT STATION indicated that demand was high in the winter and 18 percent said demand was high in the fall. The majority of seafood managers (51 percent) indicated that there was no particular season of high sales, although the rest indicated higher sales in winter. Fish was always readily available, although the availability of specific species varied seasonally. When asked what "improvements" would increase seafood sales, store managers cited: lower prices (21 percent), availability of fresh fish (19 percent), more advertising (12 percent), greater variety of seafood products (12 percent), an ice display case (10 percent), and increased counter space (10 percent). The need for knowledgeable staff (2 percent), fish tanks (3 percent), special fish sales persons (2 percent), more advertised discounted specials (3 percent), elimination of fish smells (2 percent), and a person to dress fish (2 percent) were mentioned less often. Wholesalers Although this study focused on retail market outlets, seafood wholesalers may provide additional marketing opportunities for fish farmers. Six seafood wholesalers were located in the study area and five granted interviews. Although none currently used local suppliers, three of the five interviewed said they would. The predominant (52 percent) source of supply for wholesalers was other wholesalers. The second most important was food brokers. The largest-volume products handled by the wholesalers included red snapper, catfish, mullet, and shrimp. Over half (56 percent) was handled fresh and the rest frozen; only 1 percent was IQF. Fish were purchased fresh, either whole or dressed, on ice. Four of the five wholesalers custom processed fish at no charge. Nearly half (48 percent) of the products sold were dressed without the head, 24 percent were filleted, and 22 percent were sold whole. Red snapper sales had the greatest mean retail value for the wholesalers. In declining order were catfish, shrimp, and mullet. The mean retail value of catfish sold by the wholesalers was larger than for any other outlet. However, total value for the study area, given the small number of seafood markets, was low. The same four varieties accounted for the largest sales MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 23 volume. Mullet sales were greatest, followed by catfish, red snapper, and shrimp. Fishout Operations Fishout operations in the study area were an extremely diverse group. Of the 33 identified in the study area (those that had classified themselves as "fishout" to Alabama Cooperative Extension Service personnel), 5 could not be contacted, 1 refused the interview, and 1 had closed. Of the remainder, only 12 had weekly sales greater than 100 pounds of catfish during the fishing season (spring, summer, fall). Half of these had sales of 100-500 pounds per week and the other half had weekly sales over 500 pounds. The group of firms with sales less than 100 pounds per week included a fishing club, two farms that were initiating fishout operations, and one that had made concrete plans to switch to commercial-scale production for sale to a processor. None of the others had plans to expand operations. This group was composed primarily of retired persons who allowed friends to fish. Typically, this farm would have one to five ponds ranging in size from 0.25 to 17 acres. Fish were fed and, in general, a price per pound charged for fish caught. The most commonly cited problem was theft of fish. The six fishout operators with weekly sales of 100-500 pounds were similar to the first group except that some facilities, such as picnic tables or fishing piers, were provided. Only two of the six had plans to expand, and this group also found poaching to be the major problem. The group with largest sales (over 500 pounds per week) managed their operations as a business. Four of the six sold bait, maintained concession stands, and provided restrooms, in addition to having fishing piers and picnic tables. One also sold ice. Five of the six advertised on radio and television and in newspaper, in addition to placing signs on the road. Both part-time and full-time labor were employed to operate special fishout ponds separate from grow-out ponds. Two-thirds of this group had plans to expand; they cited financing, fish not biting, and inclement weather as major problems. The majority of fishout customers were regular, repeat customers. Firms with sales over 500 pounds per week may have 75 to 350 customers during a weekend. Most of these drove 30 minutes-1 hour. Clients were primarily older, middle- 24 ALABAMA AGRICULTURAL EXPERIMENT STATION to lower-income blacks from urban areas. Saturday was the highest sales day, although some fishout managers remained open all week. Customers preferred fish 1 pound and larger. Demand for fish from retail fishout operations was highest in the spring and autumn. Summer heat decreased interest in fishing and few fishout operations were open during the winter. MARKET ALTERNATIVES FOR CATFISH PRODUCERS Market requirements, constraints, and opportunities should determine the framework within which production takes place. An individual catfish farmer should thoroughly investigate market opportunities available in the area and select the most appropriate market outlets before investing in catfish production. General requirements for each type of market outlet available to catfish farmers in east Alabama are given on the following pages. Supermarkets and Grocery Stores Grocery stores handled little fish and many were being converted into convenience stores. Thus, their potential as a market for catfish was limited. Supermarkets sold, on average, 250 pounds of catfish monthly. The majority of this was fresh dressed catfish. Independent supermarkets purchased seafood from local suppliers. Fewer chain supermarkets do at present, but indicated they would with permission from regional management. The great number and diversity of retail supermarkets offered great flexibility in terms of volume requirements. An individual producer could contract with the number of supermarkets adequate for moving his total production. Independent supermarkets were especially inclined to purchase from local suppliers. The trend towards special fish market sections in supermarkets and an emphasis on the freshness of fish delivered within 24 hours of processing, for example, could be advantageous to the local catfish producer. The supermarket outlet would require processing by the producer and regular delivery. Designs for small-scale processing plants are available (6). Production would have to be planned so as to provide a constant, year-round supply of freshly dressed catfish. Access to a delivery truck would be essential. MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 25 Seafood Restaurants Seafood restaurants sold an average of approximately 450 pounds of catfish per month. Although restaurants sold more frozen catfish, 40 percent of catfish sold was fresh dressed. The majority of catfish sold by restaurants was filleted. Restaurant managers were more concerned with freshness and quality than were supermarket managers. Both chain and independent restaurant managers frequently purchased seafood from local suppliers. Most of the catfish purchased was from catfish processors or seafood wholesalers. Restaurant market outlets require a processed product and the steady, constant supplies needed for supermarket outlets. However, since seafood restaurants moved larger volumes per store, less time would be spent in delivery. An emphasis on freshness would be an important attribute. Seafood Markets Seafood markets moved an average of 525 pounds of catfish per store per month, but these markets were not abundant and may not be located conveniently for catfish producers. Seafood markets almost exclusively purchased fresh seafood on ice (whole or dressed), and many then custom processed for consumers. Seafood markets primarily sold lower-valued seafood like mullet and croaker. Catfish sold were river catfish that could be purchased at a much lower price than pond-raised catfish. It may be difficult for fish farmers to utilize seafood markets as a market outlet, because of price competition from river catfish and the income levels of their patrons. Wholesalers Seafood wholesalers moved large monthly volumes of catfish. The average wholesaler sold 2,320 pounds of catfish per month. On a 12-month basis, this would represent production from approximately 8 acres of fish ponds. Marketing, however, would become a year-round activity. Four of the five seafood wholesalers interviewed processed fish. Catfish producers may be able to provide continuous supplies of live, whole fish to selected seafood wholesalers. 26 ALABAMA AGRICULTURAL EXPERIMENT STATION Fishout Operations Fishout operations were generally operated 9 months per year. In contrast to the previously mentioned market outlets, fishout operations do not require processing facilities or delivery trucks. The successful fishout operation was a business that attracted and maintained a regular clientele. Successful fishouts provided amenities such as fishing piers, picnic tables, concession stands, on-site dressing of fish, bait, and ice. Successful fishout ponds were constantly restocked with large fish from grow-out ponds. Success of a fishout operation depended upon location. Clients traveled approximately 30 minutes from a town or city. SUMMARY AND CONCLUSIONS In many respects, it is far easier for a catfish farmer to grow catfish, harvest in the fall, and sell to a processing plant. However, a farmer may not be located close enough to a processing plant, the price paid by the processor may not be attractive, or the sales date may not be for the fall. Other marketing opportunities exist for the catfish producer, but these' entail a greater commitment of time and capital to the marketing process. Supermarkets and restaurants sell fresh catfish, and both purchase from local suppliers. Sales to these market outlets require processing, a high quality product, and timely deliveries. Seafood markets and wholesalers may purchase catfish whole on ice, but catfish producers may have to compete with lower prices of wild-caught river catfish. Successful fishout operations command high prices for catfish without the investment of processing facilities, but require the establishment of a well-suited location that will attract and keep clientele. ACKNOWLEDGMENTS The authors are indebted to Trudy Barnes for her constant assistance in data analysis, to Jeff Bruce for interviews with fishout operators, and to Mrs. Margaret Taylor for her help in the preparation of the manuscript. Jerry Crews, John Jensen, and Curtis Jolly reviewed the manuscript and made helpful suggestions. MARKETING ALTERNATIVES FOR CATFISH PRODUCERS 27 LITERATURE CITED (1) M., D.C. WILLIAMSON, and D.R. WHEELER. 1983. Kentucky Catfish and Trout Market Survey. Aquaculture and Natural Resources Research Program Area Bulletin No. 1. Ky. State Univ. Comm. Res. Ser. Pro., Frankfort, Ky. CREMER, (2) DIXON, D.A., J.S. MILLER, J.R. CONNER and J.E. WALDROP. 1982. Survey of Market Channels for Farm-raised Catfish. AEC Res. Rept. No. 132, Miss. Agr. and For. Exp. Sta., Miss. State Univ., Mississippi State. Miss. (3) (4) E.A. 1987. $2 Million Ad Campaign Makes Splash in March. The Catfish Journal. March 1987, p.3 . FENTRESS, H. 1984. Some Economic Aspects of the U.S. Farm-Raised Catfish Industry. Paper Presented at the Sou. Reg. Sci. Assoc. ann meet. in Orlando, Fla., May 2-4, 1984. KINNUCAN, (5) LEE, J.S. 1981. Commercial Catfish Farming. Interstate Printers, Danville, Ill. (6) R.T., W.G. MUSTIN, and J.W. JENSEN. 1981. Design of SmallScale Catfish Processing Plants in Alabama. Cir. 255. Ala. Agr. Exp. Sta., Auburn University, Ala. LOVELL, (7) McCoy, E.W. 1973. Catfish Marketing and Related Production Factors. Cir. 206. Ala. Agr. Exp. Sta., Auburn University, Ala. (8) J.R. CONNOR, and J.E. WALDROP. 1981. Survey of Commercial Catfish Producers-Current Production and Marketing Practices and Economic Implications. AEC Res. Rep. No. 129. Dept. of Agr. Econ., Miss. State Univ. Mississippi State, Miss. MILLER, J.S., U.S. DEPARTMENT OF AGRICULTURE. (9) (10) 1982, 1988. Aquaculture: Sit- uation and Outlook. Econ. Res. Ser. AS-3. April. .1984. Food Consumption, Prices and Expenditures, 1963-1983. Statistical Bull. No. 1973. Econ. Res. Ser. National Econ. Div. (11) .1984-87. Catfish. Various Issues. Agr. Statistics Board, National Agr. Statistics Ser. USDA. Washington, D.C. 1,labattta 9 .\grai uitural i xp~c rilitcnt ' t AUBURN UNIVERSITY ii)l 'ett- ait With an agricultul-al research unit in ev erx ma )s M il area, Auburn Unixersity serxes the needs of field crop, liestock, foesr, p.c hrtiutua n fortestrx and hor ticultural prcucets in each region in Alaba~ma. Ex ccx\ citi Of the State has a stake in this research program, since .myI advantage from new and more econcomical xxwar s of producing and handling Zen t 0 16 is 1s u 21 rectix henefits the consuming public. Research Unit Identification ® Main Agricultural Experiment Station, Auburn. ' E. V. Smith Research Center, Shorter. Tennessee Valley Substation, Belle Mina. Sand Mountain Substation, Crossville. North Alabama Hr"'culture Substation, Cullman. Upper Coastai Plain Substation, Winfield. Forestry Unit, Fayette County. Chilton Area Horticulture Substation, Clanton. Forestry Unit, Coosa County Piedmont Substation, Camp Hill. Plant Breeding Unit, Tallassee. Forestry Unit, Autauga County Prattville Experiment Field, Prattville. Black Belt Substation, Marion Junction. The Turnipseed-Ikenberry Place. Union Springs. Lower Coastal Plain Substation, Camden. Forestry Unit, Barbour County Monroeville Experiment Field, Monroeville. Wiregrass Substation, Headland Brewton Experiment Field, Brewton Solon Dixon Forestry Education Center, Covington and Escambia counties 20. Ornamental Horticulture Substation, Spring Hill 21. Gulf Coast Substation, Fairhope. 1. 2. 3 4 5. 6. 7. 8. 9. 10 11 12. 13 14. 15. 16. 17. 18 19