Reading text

4.3.2 Understanding the opportunities associated with market diversification and technological innovation

To mitigate business risks, aquaculture companies must adopt a two-pronged approach to diversification: on the one hand, geographical and channel diversification (markets), and on the other, diversification of supply (products).

Product diversification (product and process innovation): In Italy and Spain, there is a strong push towards processed products. In response to domestic demand for "convenience", companies are developing lines of pasteurised molluscs, packaged in a protective atmosphere (MAP), frozen half-shell molluscs or molluscs included in ready- to-cook dishes. In Spain, moreover, the conservas sector (high-end canned fish) transforms a perishable product that, if caught in excess, must be disposed of after a few days, into a long-life product with very high added value. Process innovation is also reflected in the adoption of new purification technologies, optical sorting machinery and sustainable packaging (e.g. compostable nets) that improve quality and reduce environmental impact.

Market diversification (geographical and channel): Depending on a single buyer or a single country exposes the company to enormous risks. In Ireland, geographical diversification is a proven model of success: given the low domestic demand for fresh bivalves, companies have built robust trade networks to France, Asia and the United States. The differentiation of sales channels (balancing supply to large-scale retail trade, the hospitality sector and direct sales) is also crucial to cushion the crises that can affect a single sector, as highlighted during recent global health emergencies.