keys to be successful in commercial aquaponics

[mcfarm]

The economies of scale have been the mantra for decades, "get big or get out" was the catch cry, but at a certain scale you end up having to wholesale your produce. The minute you do that you become a price taker and are at the feet of a merciless market - just ask any Coleworths supplier - the softest part of any corporate buyer is their teeth.

[mcfarm]

Australia exports tonnes of food every single day, so i don't think that's really in context.

The figures would only be accurate if we exported nothing, and imported nothing.

Not saying they mean nothing, but it's not considering all factors.

Rob

Problem is Rob, we export into a global market that produces enough food for 11 Billion with a global populating of 7.1 Billion. We also import food from overseas because it is cheaper if they have a comparative advantage i.e. cheap labour for intensive horticulture. We on the other hand have a comparative advantage of lots of acres and big machinery, so we predominantly export grains and meat. But every food producer on the planet is up against the same problem - there is too much food, produced in the wrong places, and much of it of the wrong type. So we can only negotiate on price in a global market which has a glut. A global glut of food puts exporters and importers in the same price squeezed and squeezing boat.

Here is something I co-authored to put it in context and puts some hard numbers on it http://theconversation.edu.au/the-dr...ger-first-8342

The key for AP is that much of the food is currently produced in the wrong place and is of the wrong type, and this means targeting niches.

Cheers,
Michael

[RupertofOZ]

The economies of scale have been the mantra for decades, "get big or get out" was the catch cry, but at a certain scale you end up having to wholesale your produce. The minute you do that you become a price taker and are at the feet of a merciless market - just ask any Coleworths supplier - the softest part of any corporate buyer is their teeth.

Well understood McFarm...

[Murray]

this means targeting niches.

This is so true.

[Rob]

I think that most people can also recognise that farming is easy (relatively) to do in order to feed your family, perhaps even a few neighbours. But it becomes infinitely more complex when trying to drive economy with it.

Targeting niches for a better dollar is always going to be the best option.

Modern farming will always be hard. The basic act of producing food so you don't starve (farming at its core) is sustainable en-mass. But farmers don't produce food to eat nowadays, they produce food to sell, to pay for the feed/equipment/running costs.

People complain that they can't afford healthy food... it's a load of crap. People can't afford healthy food because they also want their TV, Foxtel, shiny car, big house... etc etc.

Sorry for the rant... perhaps a little off-topic.

With all the above said, i live in the real world too, and have a mortgage like the large majority too. So i have to play the game just like everyone else.

Rob