Value Chain Analysis of Australian Farmed Barramundi

During the past 5 years Australian farmed barramundi production has increased from 2,700 tonnes in 2003/04 to an expected 6,000 tonnes in 2008/09 while average farm gate prices have fallen. This coupled with the current global recession is impacting significantly on the profitability of barramundi farmers. As a consequence, the Australian Seafood CRC funded a large project to develop repositioning strategies for the domestic market to enable Australian farmed barramundi product to be differentiated from its competitors and to deliver on consumer expectations for quality and price. A key component of the project was a value chain analysis. The research objectives sought to (i) map the current value chain for Australian farmed barramundi, (ii) identify areas for potential improvement, and (iii) develop repositioning strategies based on the above analysis. In-depth interviews were undertaken with thirty stakeholders in the industry (farmers, regulators, suppliers, wholesalers, distributors, value added product developers, chefs, and retailers) on various aspects of the farmed barramundi value chain. Mapping of the value chain and analysis of results lead to the development of a series of combined issues and possible repositioning strategies. A supply chain map was developed based on the results of the interviews. Specific volumes/percentages were not collected as part of this study because those interviewed were generally reluctant to supply such specific data in the formative stages of the project. Key issues identified included the inability of farmers and other chain stakeholders to work together collaboratively, inconsistent product quality and a lack of consumer knowledge of sources and types of barramundi. Recommended strategies included greater collaboration between farmers, the development and enforcement of quality standards, the development of alternative channels for lower quality product and branding and consumer education initiatives