Tilapia Production in Indonesia: The Regal Springs …...Early plans, 1980s Catfish: Two years of...
Transcript of Tilapia Production in Indonesia: The Regal Springs …...Early plans, 1980s Catfish: Two years of...
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Tilapia Production in Indonesia:The Regal Springs Experience
A classic tale of adventures and misadventures on the way to success
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Early plans, 1980s
Catfish: Two years of attempts.
Began Tilapia.
Limited number of concrete tanks on only 2,500 sqm
Fish size was 300-400 g
Targeted for the local market in one city in Central Java only
Grew fish to 500-700 g for the live wet market
Production exploded. Sales didn’t. Added another city. Still couldn’t keep up with production.
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Pioneered virtually all elements of the business
as necessity demanded
Discovered a dam with floating cages
Combined know-how of West Java’s existing carp cage farming and Norwegian salmon farming
Right time, right place
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Resources and fish galore, but slow sales.Leased a processing plant to produce fillets
- Indonesia had logistics and infrastructure to easily accommodate this
Market in Indonesia did not demand fillets.
- needed to export
Explored sales in USA
- went door to door and eventually landed first large food service contract
- pioneered Tilapia as a common food item in the USA
- subsequently, we exited the local market in Indonesia
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Mistakes & mishaps1. Lake turnover
24 hrs later = 700 tons of dead fish
Back to square one
Months and months of repercussions in sales & cash-flow
2. Logistics troubles
unplugged freezers, etc.
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Years of Growth, 1990s
Built our own processing plants, expanding into Sumatera
Dealing with surpluses and shortages of product
Fine tuning forecast and farming methods
Balancing social and technical needs (e.g. hand-feeding the fish)
Continual, tremendous growth of frozen product market
Ongoing issues with logistical infrastructure in Indonesia
-infrastructure not commensurate with economic activity
-ports, roads, etc. stressed
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Past decade of growth
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Developing healthy operations Use of public resources:
collaborating with communities to preserve their resources
making choices that strengthen stakeholder phenomenon
educating communities on wise use
navigating contradictory government policies between various agencies
Use of environment:
applying “zero waste” principle
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Social Impact & ProvisionsFish farming by nature requires collaboration and trustRST has a for-profit, many-shareholder model --as replicated in Honduras, 1998, and in Mexico, 2010--Case study: Fingerling production collaboration--
Education
Continual job security
Superior work conditions-social security, bonuses, allowances for inflation, etc.
Alternatives to destructive industries like illegal logging
Adding to infrastructure / labor / capital
Transporting young tilapia to rice paddies
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Indonesia: overview. Potential is in human resource-our operations are run by local managers
Tremendous development in human resources over all
Environmental resources: -cage farming capacity limited now; huge capacity in idle shrimp farms
Feed supply -very well developed industry
Limited infrastructure resulting in queues at port, etc.
Infrastructure growth is not commensurate to industry growth
Government as a resource-very convoluted -“weakest link”
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CommitmentEvery location, and Indonesia quite particularly, requires commitment to values:
Continuity
Quality
Responsibility
The little startup from the 1980s is “old, large and stable.”
Growing our distribution network in the USA, EU, Asia and Australia.
Confident in aquaculture’s healthy future.
Thank you
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