Do farmers need to change their ideas about diversification?

Dave LittleJames Young, Andrew Watterson, Kathleen Boyd,

Francis Murray & William Leschen

3 Departments / (Faculties)University of Stirling

Presentation Outline

• Approaches to diversification• Radical approaches – fish in a barn• Farmer to fish farmer issues • Lessons learnt – adopting radical & pragmatic

approaches

Entrepreneurial: Making your cake and selling it

Laggards: Stonewalling diversification decisions

The Scotsman, 23rd October 2007

Radical diversification…could it end in tears of joy or sorrow?

"Indoor fish farming is, however, one of the most "Indoor fish farming is, however, one of the most extraordinary potential routes to diversification I extraordinary potential routes to diversification I have ever come across!“have ever come across!“

Sarah Anderson, Spokeswoman 'The National Farmers Union Scotland’, October 2007

A Radical approach• Look to the water - uniqueness of fish

– Current aquaculture industry is specialised & mainly coastal areas• scope for land based expansion & integration with conventional agriculture

• New perceptions on diet, health and the environment– Where, when, how and what food people buy & consume

– The evolving & varied types of food people wantwant

The concept - warmwater fish on conventional farms

• Use on-farm resources: labour, buildings, feeds, surplus energy & know-how

• Insulate buildings, create simple fish culture facilities & learn how to grow fish

• Understand, develop

& service new markets

& new products

Eco-friendly: local food, local recycling

• Ecologically beneficial production methods• Sustainable livelihoods, local communities• Important perceived ‘quality’

Evolutionary change

• building on husbandry expertise

• productive value of farm infrastructure enhanced

• food production maintained as the core business

• comfort zones?

Emerging niche markets

• Urban and rural opportunities to sell

• …but do farmers understand the market, public health and legal issues?

• ”What concerns me most is how to sell!” Scottish farmer, October 2007

•People are eating more fish

•Availability of ethical choices

•USP's -tasty, fresh & local

…the story so far…..?

• ‘doing it properly’ i.e. diversify immediately at a significant scale?...

• But…– high risk, high capital, high failure (technology &

markets) – Even livestock farmers underestimate husbandry

learning curve!

• Or… low-cost, incremental, integrated ??• …rather than stand-alone business opportunity

What motivates tilapia-based diversification?

LifestyleDistress

Technical familiarity

Ideology

Geographical: Urban Rural

RegulatoryNovelty

Poor understanding of post-harvest... & markets

• Typically farmers focus on technology, market is not considered

• Unrealistic views• Post harvest issues

– it’s different to jam and juice

Moving away from subsidies……

• Aquaculture falls between business & agricultural diversification

• and aquaculture tied to fisheries policy

“The new Scottish farming rural development scheme is just coming out…so I’m looking for ideas….

…the first in get the money - no subsidies if you don’t farm!”

Scottish farmer, October 2007

Policy implications• Attuned to current policy drivers

– healthy eating, environmental sustainability, local food & supply chain integration…BUT

…government grants to support pilot activities do not include markets within their scope!

In summary…..

• Clear evidence that farmers’ need marketmarket AND technicaltechnical information…

• Is it farmers or promoters of diversification that need to change their ideas?