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Analysis on penetrating the market of fish waste

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If companies have to enter the Agri-food market, they need to qualify certain criteria. The four main criteria are: the size of firms in the agri-food sector, the location of waste treatment, the company's specialization, and the geographic distribution of species. The firms in the agri-food sector are mostly small in size.

This article will concentrate chiefly on fish trade in France, and processing the waste generated by this trade, in this document. There are more than 650 companies in France that are into fish trade and processing. These companies employ fewer than 20, 000 people i.e. under 30 employees per company, on an average. Since the businesses are small, the volume of waste generated by them are too low for an individual solution to be economically viable.

To establish itself effectively in the market, the companies that are into the waste treatment business will have to collect the waste generated by a large number of processors. So, the best strategy here will be to set up the recycling plant in a port area. The most suitable area would be the region where there is a concentration of fish trade, and where the waste produced matters.

The Atlantic coast, especially Brittany is a geographically conducive place to set up a recycling plant. In addition to this, companies in the fish trade should try to diversify their activities by extending the range of treated fish, in order to be competitive.

Consequently, the recycling companies will receive increased quantities of mixed waste, and should be able to provide appropriate treatment for each species, or each category. Thus,it is necessary that the company wishing to enter the market specializes in the treatment of more than one category of waste, which will make its entry into the market easier.

It is also necessary to take into account the geographical distribution of the species. Besides the presence of white fish (cod, whiting, place etc.) in Brittany and Normandy, other species are less prevalent. Various species are prevalent in various areas and hence, geographical specialization will not be a barrier to a company's entry into the recycling market.

In a context of sustainable development and innovation research, particularly in the field of waste recovery to be competitive, companies need to spend money on research and development or consider partnership with laboratories (as is the case in the project VALBIOMAR). This cooperation is necessary and may therefore be a form of barriers to entry into the market, insofar as the sector requires to be at the fore front of technological progress.

In a context of sustainable development research projects in thewaste recovery Sea often receive financial aid at the national orEuropean level. For example, the ERDF co-financing for more than half(1.1 million) project VALBIOMAR, validated in 2003 biotechnological development on marine resources.

This is an interregional project(between Atlantic regions)to exploit the co-products from the sea,and involving businesses in the fishing industry and research centers(such as universities or IFREMER) . Rather than threatening potential entrants, it appears that governments are encouraging them to enter the market.

Tags: Marketing analysis of fish waste, VALBIOMAR, development research

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