Central and Satellite Farms

The entire life cycle of the aquaculture crop, from egg to market-size product, is completed in a production line composed of these stages: Hatchery: parental brood stock produce high quality hybrid fry. Nursery: young fry are raised to juveniles. Growout: juveniles are raised to market size product. Processing Plant: processing and packaging of fish fillets. Support & service: ensuring supply of feed, disease control, etc. Marketing: distribution to local and foreign markets. In a vertically integrated system, all production stages are carried out under the same business/ownership roof. Alternatively, the same components could be carried out differently, employing the strategy of Central Farm - Satellite Farms, as follows:

Central Farm: carries out activities seen in the diagram above. It maintains the parental brood stocks, performs the hatchery and partial nursery activity, and is responsible for processing & marketing. The Central Farm provides all the support and back-up services. Satellite Farms: are engaged in one production stage only, namely: the ‘fattening’ growout of fingerlings to market size product. (Growout may also be carried out by the Central Farm). The division of the production line between the Central Farm and the Satellites allows specialization and optimization of the production process. Satellite Tilapia Farm is essential, for the individual farmer, agricultural cooperative or agricultural entrepreneur, lacking the ability to manage and control the technically complex parts of the production line. It is beyond the capability of the farmer to engage in final product packaging and marketing to foreign markets. On the other hand, the Central Farm is better equipped to master the technically complex steps including hatchery, processing, packaging and export marketing. Local Governments and international Aid organizations have an interest in participating in Tilapia Satellite Farming projects, because they bring about development in rural communities. Satellite Farming create a win-win situation for all concerned. Advantages to the Central Farm: More product from other producers to process and export. Specialize in the industrial-marketing aspects. Reduced capital investment in production facilities. Increased sales of feed, fry, services. Access to international financial institutions. Advantages to farmers, agricultural cooperatives and agricultural entrepreneurs: New production system for export. Increased employment and income generation. Reliable supply of fry, feed, extension services. Reliable processing and access to markets. Advantages to Government & Regional authorities: Cause development in rural areas. Increased employment. Increase foreign currency generation. Possibility of obtaining development loans from international finance institutions. Less risk of default on repayment, due to involvement of the Central Farm.