On the demand side, trout is not commonly consumed in most Chinese regions, but there is a shortage of high value aquatic products in China. On the supply side, with the exception of Qinghai Province, which is far away from the main markets in China, there is a shortage of cold water resources which could be available for trout production. The present trout production in China is therefore on one hand too small to meet the market demand, but on the other hand it is also too small to base a marketing system on. In Qinghai the lack of financial support is also a major constraint on expansion of the industry.
The Qinghai trout industry feels cautious satisfaction in the results of its efforts over the last few years. At present the local trout business faces the following problems:
Long distance from the main cities inside China and from overseas markets, so that all products must be processed except for local sale.
Lack of a proper processing system where fish can be killed, gutted, packed and kept fresh on ice. For this additional know-how is still needed.
Potential damage to the environment is possible if effluent parameters are not kept within limits. Production of low pollution feeds would be an advantage.
Marketing is the biggest problem in the immediate future, and expertise in this field is lacking in the province and indeed the country.
Chinese trout producers are currently too small to tackle all these problems effectively on their own.
Generally chinese consumers only accept fish products in two forms: ungutted whole fish either alive or frozen. However, for trout the best way to maintain quality at market is by presenting the fish gutted and fresh on ice. Therefore there is a need to persuade the consumer to accept this kind of product.
Concerning the main problem of marketing Qinghai trout, a fazed introduction of processing is recommended:
In the near future, producers can supply the market with trout products fresh on ice. An ice packaging facility should be installed immediately. Procedures should follow the schedule:
Harvesting operations must be planned in advance to ensure the fish are in the condition required by the purchaser and that a production line capable of handling the quantity to be sold is available. The first condition is met by ensuring that the size of the fish and their fat content meet the purchasers' specifications and that feeding ceases some time prior to harvesting. This latter point ensures that the alimentary canal is devoid of feed and residues and greatly simplifies the gutting procedure. It has also been demonstrated that the iced shelf-life of gutted and ungutted fish is similar if the ungutted fish have been properly starved.
Chilling of harvested fish must be commenced immediately after death.
It is now common practice to transport fish in foam polystyrene boxes. Such boxes provide superb insulation and will keep chilled fish cool for long periods, although the addition of ice is always recommended.
Quality control is vital to achieve a high standard of product, and a top-class product deserves a well designed and attractive package.
For the more medium term future, a complete processing plant and marketing system should be constructed according to western standards. Various products (e.g. fillets, smoked, marinades etc.) could be produced by local trout farmers depending on customer requirements.
There is a continuing need for new product development whether this is in products, packaging or distribution systems, to ensure that the products remain interesting to consumers and that they compete effectively with other fish and food products available. There are considerable opportunities for the development of new recipe dishes, where trout is not yet represented in China. There is a need to raise standards of quality in the trout products themselves and in the way they are handled by the Chinese trout industry. There is also a need to promote the product. Compared with many other sectors of agriculture in China, the trout industry has a poor record in this area. It has done little in terms of improved quality and marketing because the business is small. It therefore cannot afford more professional staff or better planning systems, but has higher marketing costs per unit of output.
These problems are also associated with the structure of the industry, which is made up of many small producers who work independently. They are often high cost producers because they cannot benefit from economies of scale. The difficulties are compounded by poor marketing.
There is additionally a need for provision and use of marketing information. At present each producer is working “in the dark”, with no knowledge of outside market conditions, requirements or opportunities.
The marketing strategy for the Qinghai trout industry is based on the survey of the Chinese market for fish. Taking into account the present production and market situation it is planned that the market should build up step by step as follows:
The 1994 production of 300 tonnes will still concentrate largely on the local market, by supplying live trout to the provincial capital and other population centres. At the same time trial marketing will be started in some major cities, probable Shanghai and Beijing, using gutted or round fresh fish on ice. These can be processed and packaged using existing facilities. Contact between Qinghai trout producers and marketing companies has already been established. Most notably, a contract has been signed between the Qinghai Provincial Rainbow Trout Company and Shanghai 3T Food Supply Company, with the aim of opening the Shanghai market to Qinghai trout products.
The 1995 production of about 500 tonnes will be used to keep the local market supplied with live or fresh whole fish and increase the supply to one big city which the previous year's experience has shown to have good potential for development of markets for new fish products. An improved ice packaging facility will also be installed in Qinghai and further market intelligence be collected from major cities.
The 1996 production, estimated at around 600 tonnes, will supply more products for the above markets. In addition, based on market intelligence, a processing factory with equipment and facilities to produce fillets, smoked trout, or other products for which a potential market has been identified, will be built.
1997 trout production will depend on market development. If the first steps in marketing outlined above go well, production could easily be expanded to 800 tonnes. Simultaneously the fish farming technology can also be improved to ensure a production line is available capable of handling the fish in the condition required by the purchaser. At this time a chilling system should be installed at the processing factory.
1998 production could reach 1,000 tonnes. The processing factory could be fully operational to produce all kinds of added value products for market supply, and introduce these items to other markets in China.
Within this five year marketing development, it is planned that a complete processing plant should be built up. A lot of equipment and facilities are needed for this:
A machine to cut the fish into butterfly fillets which are handy for further processing.
Trucks and tanks are needed for transport of live fish to the processing factory, and trucks with chilling facilities for transport of processed products to airport and market.
A complete processing line to turn out all kinds of trout products.
Storage with colling facilities and a small freezer store are needed.
A smokehouse is needed for producing smoked fillets or whole fish.
A factory building.
The purpose of the five year production plan is to prepare the Provincial Government, and its new Qinghai Rainbow Trout Company, to gain maximum benefit from the industry development. The plan was built on the success achieved in project CPR/88/077. The momentum of project progress in terms of outputs from trout hatcheries and ongrowing units, and in building up a core of trained counterpart staff, will be maintained and further expanded.
Technically, the expansion plan has two major components:
1. Juvenile/fingerling production.
The existing hatchery and nursery at Nanmenxia needs to be enlarged and equipped to produce one million one year old rainbow trout fingerlings in 1994, 1.4 million in 1995, 1.8 million in 1996, 2 million in 1997 and 2.2 million in 1998, with capacity for further increases in output. This requires:
Provision of additional incubators to allow simultaneous incubation of five million eggs.
Construction of small internal and external concrete raceways for trout fry rearing.
Import or stripping of 2 million eggs in 1994, 3 million in 1995, 3 million in 1996, 3 million in 1997 and 3.5 million in 1998.
2. Growout to market size.
The existing cage culture site at Longyangxia hydro-power reservoir will be enlarged to produce 300 tonnes of trout in 1994, 500 tonnes in 1995, 600 tonnes in 1996, 800 tonnes in 1997 and 1,000 tonnes in 1998, by:
Construction of more floating cages.
Provision of necessary ancillary land facilities and boats to service the cages.
Stocking of cages with enough fingerlings to meet production targets yearly.
Rearing of fish to a target market size of 500g.
3. Profitability of trout culture in Qinghai.
A full economic evaluation of the rainbow trout farming industry in Qinghai Province will be undertaken during the development period.
It must again be stressed that the way ahead depends above all on satisfying the needs of the marketplace. As in other countries, it is probable that the future belongs to value added and high quality products.
