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April 21, 2008

Future for US Catfish Farms Could Be Bleak

Think commercial fishing is the only segment of seafood producers to feel pinched by foreign competition and escalating operating costs? Jim Popejoy shares these facts on the state of US catfish growers.
Mr and Mrs Consumer: Another crisis looms for a USA product - US Grown Catfish. That crisis is EXTINCTION, and it is NOT the growers fault. OPEC is the real culprit behind all our present day woes of spiraling cost of production, distribution and marketing of everyday items which make up the basic shopping list at the grocery store. In the case of the U.S. Catfish industry, foreign competition and an even higher cost of producing a pound of fish in 2008 without a industry-wide unified marketing strategy consumer public relations ad campaign is contributing to the declining sales and ultimately the need for production growers or producers. IS THE AMERICAN PUBLIC GOING TO LET ANOTHER U.S. ICON, USA GROWN CATFISH DIE??? IS THIS ICON GOING TO SUFFER THE SAME DEMISE AS USA MADE LEVI JEANS, USA MADE RUBBERMAID BRANDED PRODUCTS, USA MADE AUTOMOBILES, USA MADE CLOTHING AND THE USA TEXTILE INDUSTRY????? IS THE U.S. CATFISH INDUSTRY GOING TO LET ITSELF BE SUCKED UNDER BY FOREIGN (AND OTHER SPECIES) COMPETITION???? MAYBE SO. WHY???? 1. Imported fish are usurping our market through a low priced product NOT produced to USA standards of Healthiness and Food Safety. This product is allowed to flourish in food service outlets and retail outlets without you, the consumer, being given the opportunity to evaluate the country-of-origin. Even stores doing less than $230,000 a year in seafood sales are exempt from federal country-of-origin retail labeling requirements. With a declining market due to foreign competition, the US Grown catfish industry is undergoing a SHRINKING need for production acres. Hence a SHRINKING need for USA catfish growers. Since year 2000, the US catfish industry has lost 35 percent of production acres and another 15 percent is expected to exit the industry throughout 2008. Just drive through the countryside in Chicot County, AR, Humphreys County, MS and other used-to-be premier catfish production areas and notice the drained ponds evident of foreclosures, bankruptcy and investors who have lost hope of a return. It is a sign of despair and lost hope within the grower segment of this industry. 2. Increased cost of production: Over the last several years, especially 2006, 2007 and present, the demand for alternative fuels has been on the forefront of government investment and grants. Biofuels, BioDiesel, Ethanol along with an increased global demand for food grains are pushing the cost of production through the roof. These same demands are pushing the cost of your grocery bill on an inflationary spiral never seen before by the consumer. Coupled with the increased cost of transportation, the increased cost of food is certainly going to make life in America more like the 1930's. All food products will have to elevate in price. Increased cost of distribution caused by $4.50 diesel to run the 18 wheelers. Increased cost of raw material, e.g. Corn in corn flakes, wheat in bread, soybean meal in chicken, pork, cattle and yes, catfish feed. Back to catfish! It is estimated that the price per ton of catfish feed for 2008 will reach an all-time high of $450.00 a ton. That is almost DOUBLE the cost of feed in 2006 and 2007 production years. That relates to a 40 percent increase in cost of production. IN ORDER TO SURVIVE, the US Catfish Grower must receive 95 cents a pound for the a pound of live catfish. Thus the need for a Industry wide public relations campaign for Consumer Awareness program of BASE95. Without the grower receiving BASE95 pricing, this industry will cease to exist as we have known it. The U.S. Catfish industry is VITAL to the financial well being of the communities in the ARK-LA-MISS-AL catfish growing regions. Jim Popejoy Sr. Uncle Cat® Marketing - Promoting USA*Catfish - the trademark and USA*Proud "another USA*Proud product" - USA*Catfish

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