February 15-18, 2009 Washington State Convention Center Seattle ...

DESIGNING A SUPPLY CHAIN FOR MARINE BAIT PRODUCED IN INLAND WATERS
Robert G. Nelson* and Ronald P. Phelps
Department of Agricultural Economics and Rural Sociology
Auburn University
Auburn, AL 36849 USA
nelsorg@auburn.edu
Baitfish culture in coastal areas is challenged by a number of formidable constraints. Land costs are prohibitively high due to
competition from vacation and retirement properties. Ponds dug in the sandy loam soils leak excessively and need to be lined
with clay or impermeable fabrics to retain water. The threat of hurricanes poses daunting financial risks from catastrophic crop
losses. However, all of these constraints are eliminated by growing marine baitfish far inland in ponds constructed in clay soils
and supplied with saline groundwater from certain widely-distributed aquifers. The technical feasibility of growing marine
baitfish using some saline groundwaters has been demonstrated, but commercial development is lagging.
This project seeks to use supply-chain management principles to coordinate the full spectrum of activities from collecting,
spawning and rearing several species of baitfish, to harvesting, assembling, hauling, holding, distributing, and selling to bait
dealers along the Gulf Coast. The main species being evaluated is the bullminnow (Fundulus grandis), although other candidate
species will be evaluated. The main activity – which makes this supply chain distinctively “demand-driven” – is regular
auction sales to retailers on a semi-weekly basis. All the other activities are programmed to support the marketing study, the
purpose of which is to produce reliable estimates of demand for baitfish species, sizes, quantities and qualities, as well as to
establish cooperative relationships among all the channel partners.
The conditions needed to grow large numbers of bullminnows necessitate additional research to move from demonstration to
commercial scale. Other species, such as spot, croaker, pinfish, and mullet, can also contribute to the enterprise. However,
they will first need to be collected, acclimated to ponds, and artificially spawned to complete their life cycle under culture
conditions.
For production from commercial-scale ponds to be efficient, researchers need to develop systems of inventory estimation and
control, methods for partial harvesting, and procedures for handling, holding and transporting fish in order to minimize stress
and mortality.
Finally, research needs to be directed to developing indoor recirculating systems to hold marine baitfish at high densities for
periodic retail deliveries along the Gulf Coast throughout the year.
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