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Production and Marketing University of Reading Department of Agricultural Economics & Management v11. RAINBOW TROUT: `14, PRODUCTION AND MARKETING M.R. LEWIS. Miscellaneous Study No.68 1980 Price £1.25 University of Reading Department of Agricultural Economics and Management RAINBOW TROUT : PRODUCTION AND MARKETING M. R. Lewis Miscellaneous Study No. 68 1980 Price £1.25 ACICNOWLE WIEN TS would like to adknowledge the assistance of the First, the Ministry of Agriculture, Fisheries and Food for financially supporting this study. Secondly, the many farmers who responded to the postal survey and the farmers, wholesalers, retailers, restaurateurs and caterers who gave so generously of their time in personal interviews. Thirdly, colleagues in the Department of Agricultural Economics and Management for their constructive criticisms and advice during the preparation of this report. I would particularly like to acknowledge my gratitude to Kr. Tony Giles for his guidance and encouragement through- out the research project and to Mr. Jim Burns for his insight and advice concerning the marketing aspects of the study. Special thanks are also due to Mrs. M. E. Owen for typing the report. Readers will appreciate that the views expressed in this report are those of the author and not necessarily to be regarded as those of the above-mentioned institutions or individuals. CONTENTS INTRODUCTION CHAPTER I THE POSTAL SURVEY — (A) TROUT PRODUCTION Introduction Survey response and number of table trout farms Annual output according to geographical areas Distribution of farm size New entrants CHAPTER II CASE STUDIES ON FARM EXPANSION CHAPTER III THE POSTAL SURVEY — (B) TROUT MARKETING Introduction Market outlets . Size and form of trout sold Seasonality of production and sales Future marketing plans CHAPTER IV TROUT CONSUMPTION AND DISTRIBUTION Fish consumption and distribution The distribution system for trout Trout consumption in the United Kingdom Retail and producer trout prices CHAPTER V AN EXAMINATION OF ATTITUDES TOWARDS TROUT Introduction Fishmongers and other fresh fish retail outlets Hotels and restaurants Other agents in the fresh trout market Processers, wholesalers and retailers of frozen trout Consumer studies CHAPTER VI CONCLUS.IONS BIBLIOGRAPHY APPENDIX List of Tables Table Page 1. Classification of survey response according to type of activity. 2. Estimated production of table trout, 1977-1981. 3. Estimated production of table trout, 1974-1981. 4. Estimated production of table trout from previous co-operators. 5 5. Estimated production of table trout from new entrants. 5 6. Table trout production according to geographical areas. 7. Estimated production of table trout in Europe. 8. Classification of farms according to size of production. 8 9. Production methods of new entrants. 9 10. Distribution of farm size of new entrants. 11. Farm production: actual and planned. 12 12. Distribution of table trout according to market outlets in 1979. 20 13. Size distribution of trout sold in 1979. 21 14. Type of trout sold ex-farm in 1979. 22 15. Pattern of monthly trout sales ex-farm in 1979. 23 16. Great Britain landings of fish, 1971-1978. 26 17. Estimated U.K. consumption of fresh, frozen and cured fish, 1964-1978. 26 18. Fish consumption in the home per capita. 27 19. Consumption of trout in the United Kingdom, 1974-1979. 34 20. U.K. trade in trout, 1977-1979. 36 21. Producer prices for trout, 1977-1979. 38 22. Retail fresh trout sales. 40 Appendix 1. Distribution of table trout according to market outlets in 1979. 67 2. Classification of market outlets used according to size of production in 1979. 67 3. Pattern of monthly trout sales according to size of farm in 1979. 68 4. Estimates of apparent U.K. human consumption of marine fish by retail outlet. 68 Figure 1. Distribution system for fresh trout. 31 2. Distribution system for frozen trout. 32 3. Retail prices for Rainbow trout in the United Kingdom. 37 INTRODUCTION In 1979 we published a report on fish farming in Great Britain* which provided, for the first time, comprehensive data on the size and structure of the industry and also presented the results of a detailed enquiry into the economics of table trout production. The study concentrated largely on the process of production and the results raised important questions concerning, amongst other -things, the rate of growth of the industry. This report presents the findings of a subsequent twelve months? research project designed to examine the marketing of and the demand for trout and to provide up-to-date information on production and thereby answer some of the questions that had arisen earlier. A postal survey was carried out in the autumn of 1979, two years after the initial survey, of all known trout producers in order to examine their actual and intended production levels. These results are presented in chapter I along with production data for the major European trout farming countries derived from other sources. Previously, in the summer of 1979, a series of case studies was carried out on a sample of trout farms that were known to be in the process of expansion. These results are described in chapter II with particular emphasis on the constraints that determine both the rate of expansion and the intended level of output. The postal survey was also used to obtain information covering the marketing outlets for trout, the size of fish produced and the seasonality of production and these results are described in chapter III. The general trends in the consumption and distribution of fish are outlined in chapter IV, along with a diagrammatic presentation of the distribution channels for trout. Estimates of U.K. trout consumption levels in recent years are given based on our own production figures and net imports. This chapter concludes with an examination of retail and producer trout prices. The attitudes of consumers, fishmongers, hoteliers and restaurateurs, wholesalers and other agents in the fresh and frozen trout markets are discussed in chapter V. This information has come from our own research except the section concerning consumers? attitudes which has been based on the results of three other studies * Fish Farming in Great Britain, Miscellaneous Study No. 67, University of Reading that have been undertaken in this field. The research projects reported on in this chapter are of a very exploratory nature and, in some cases, may be criticised for a lack of vigour. Nevertheless, they represent the first important steps in constructing a picture of the marketing situation with regards to trout in this country. The concluding chapter draws out some of the more salient points of the report and is followed by a bibliography which we hope will be useful to those who wish to pursue further research in this field. It is not exhaustive but, in conjunction with the bibliography contained in our previous report, it does contain most of the relevant references to be found in the North American and United Kingdom literature. CHAPTER I THE POSTAL SURVEY — (A) TROUT PRODUCTION IVTRODUCTION • In the autumn of 1979 we carried out a postal survey, the main objective of which was to update the results of our first national survey undertaken two years previously. Whereas the first survey had sought information concerning all types of fish farming we were now restricting our attention to those farms producing trout for the table. In 1977 we had collated over 440 addresses primarily from the Regional Water Authorities (in England and Wales) and the River Purification Boards (in Scotland). From our previous results we were able to identify 166 addresses for inclusion in our second survey. These related primarily to farms that were known to be engaged in table trout production but also to farms about which we had no informa— tion at all. We also contacted our previous sources of addresses in order to update our list and this resulted in a further 119 addresses or •tnew entrants'. Thus we sent out 285 questionnaires in total. The high response to the 1977 survey illustrated the point that, despite the plethora of surveys and official forms that farmers in general and fish farmers in particular have to complete, it is still possible to obtain a good response and, therefore, collate meaningful results. Consequently, as in 1977, a short and easily comprehensible questionnaire was constructed with the primary objective of collecting production data for the five years 1977-1981. We also took the opportunity to collect information on the seasonality of sales, the type and size of fish sold, the relative importance of different marketing outlets and also the future marketing intentions of respond— ents. Those who had not participated in the first survey received a slightly longer questionnaire which also covered the type of fish farming they were engaged in and the production methods they used. SURVEY RESPONSE AND NUMBER OF TABLE TROUT FARMS Table 1 gives a breakdown of responses according to the type of activity engaged in and it is gratifying to be able to report a very high response rate of 77%. This means that we can analyse the results relating to table trout production with a considerable degree of confidence. -2- Table 1 Classification of surve res onse accordin to type of activity England and Wales Scotland Great Britain No. No. No. Table trout 96 39 135 47.4 Restocking 29 5 34 11.9 No activity 10 7 17 6.0 'Gone away' or 4 7 2.4 rAddress not known' 3 Others 17 11 28 9.8 Total returned 155 66 221 77.5 Nil response 45 19 64 22.4 Total 200 85 285 100.0 The table shows that just under half of those surveyed were engaged in the production of table trout (135 respondents). Wbilst for the majority this represented their sole fish farming activity, those farms selling to both the table and restocking markets are also included in this figure.
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