Romanian Trout FarmingA success story?

by Cristian Stoicescu&

Zoltan Pal

AQUAFARM SRL

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Romania – rivers and major trout farming areas

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Romanian aquaculture farms 2014

• 70 ha for trout• 39900 ha ponds and pools• 15 222 ha dam lakes and reservoirs• 34 622 ha local community ponds• 98 232 ha TOTAL (potential)

Source: National Agency for Fishing and Aquaculture, ROMFISH -2014

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Brief History

• First trout farms established around 1900• Little development until 1950-ies• 1950-1989 – development of state farms• State farms-mainly for restocking• First private trout farms - after 1990• Present: 44 state farms, about 600 tons/y• Over 100 private farms, about 2000 tons/y

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Aquaculture production statistics

725 1037 1238 107317051400280027002500230018001500

1000483398781

1313112496

10312

0

2000

4000

6000

8000

10000

12000

14000

2007 2008 2009 2010 2011 2012

Trout (reported)Trout (real)CyprinidsTotal

Sources: National Agency for Fishing and Aquaculture -2014 official statisticsAquafarm 2014: “real “ trout production figures estimated using fish feed sales figures

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Trout production (tonnes)

725

1500

1037

1800

1238

2300

1400

2500

1705

2700

1073

2800

0

500

1000

1500

2000

2500

3000

2007 2008 2009 2010 2011 2012

Trout (rep)Trout (real)

Sources: National Agency for Fishing and Aquaculture -2014 official statistics;Aquafarm 2014: “real “ trout production figures estimated using fish feed sales figures

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Classic, flow-through 50 t/year

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Concrete, flow-through 100 t/year

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Cage farm 100 t/year

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Modern hatchery, 2 mill. Eggs/year(EFF 2007-2013)

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Open recirculation system, 140 t/year

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New flow-through 360 t/year (EFF 2007-2013)

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New, recirculated, 240 t/year (EFF 2007-2013)

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Drum filters (EFF 2007-2013)

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Trout production facilities

• 44 state farms – about 600 t/year• Over 100 private farms – about 2000

t/year• New farms under construction (EFF 2007-

2013) – over 1200 t/year• Potential for 2016: 4000 t/year

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Production limiting factors

• Lack of capital (most of private farmsoperate at 50% or less of their capacity)

• Water quality – a big issue (deforestationand logging)

• Growing season limited to 6-8 months/y• Losses due to disease (mostly poor

hygiene and bad farm management)• Limited supply of fingerlings

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What about sales?

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Sales facts - general

• Romanian farmers still provide only 60%of trout sold on the market

• Retail prices between 4.7-6.5 €/kg• Farm gate whole sale price 2.7-3.2 €/kg• Trout sold live or fresh, at 250-300 g/pc• Smoked trout sold at 10 €/kg• Market controlled by hypermarket and

supermarket chains

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Sales facts – september 2014as we speak…

• Fresh, gutted Turkish trout delivered tohypermarkets at 2.2-2.4 €/kg

• Hypermarket retail prices at 2.8 €/kg

• Farmers are pushed to sell bellow 2.5 €/kg

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Sales & marketing weak points

• Trout farmers have poor marketing skills• Production has a seasonal pattern• Limited negotiation power – no producers

organisation• Market still driven mainly by price• Strong competition from imported trout

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Sales & marketing – some hope

• New production facilities include primaryprocessing

• Demand is increasing• Customers become more aware about

quality• EU funded projects for promoting fish

consumption and market research

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Marketing – some progress

Source: www.nereus.ro

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So, is this a success story?

• If we look to production figures only,YES!

• 300 t in 1989, 3000 t in 2014!• 50 trout farms in 1989, 150 in 2014!• Almost 50% increase in production

capacity only between 2010-2015!

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So, is this a success story?

• If we look to the market and financialfigures, NO!

• Strong pressure from cheap importedtrout!

• VAT of 24% on both fish feed and fish!• Many farmers have gone bankrupt,

including some of the new farms

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So, is this a success story?

• If we ask the farmers, they will definitelysay: NO!

• However, they continue to produce more fish!

• However, new farms are built as we speak!

• So there is hope after all, and brave people whoare willing to take the risks of going forward!

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Thank you for your attention!