The Bluewater Aquaculture is a HBS Case on Shrimp Industry and how Bluewater Integrated and increased their brand value.

1. Procurement Management
Case Analysis of Bluewater Aquaculture
GROUP 04
03. ALIYA ANJUM
04. ALLURI AJAY VARMA
06. AMIT KUMAR SAHU
23. HARSHJIT SANTOSH PATIL
40. RAJEEVI PARSA
51. RISHU MAURYA
65. VARUN
66. VISHNUVARDHAN R

2. Overview of the Case
Jeff
Fort
&
Blue
Water
Blue Water Shrimp Business – Challenges,
Mitigations and Evolution
Expansion of Markets and Distribution Channel
Specialization
Brand Building and Competition evasion
and way forward

3. Shrimp and its Opportunities
 Shrimp – Important source of Protein
Feed Conversion rate High ( 2 pounds of feed to produce 1 pound of Shrimp)
Investment recapture by changing Rice field to shrimp farm is very minimal time (1 year)
Sensitive, Semi Intensive farming methods developed
Vertical Integration ( From Feedmills to hatcheries to farm to processing)
Value added Processing (Fresh and Frozen Shrimp)
Increasing Demand and Limited supply makes it a Lucrative business

4. Blue Water
Business
• Shrimp
production and
Sales
• Providing Seed
material to
Shrimp growers
and Procurement
Need
• Highly dependent
on Suppliers for
Inputs, Processors
and Fragile Supply
chain
Innovations
• Vertical
Integration
• Good Marketing
Channel and
Distribution

5. Contd.
 Hatchery
1. 6.5 hectare m³ - 25 million postlarvae per month (Capacity)
2. Presence of Cooler and Market excess production at an attractive price
 Processing Plant
1. 14000 sq. ft building and capacity to process 25000 pounds of Shrimp each 10 hour shift
2. Largest in Belize and HACCP Certified
3. Individually Quick Frozen Facility
 Controlled Process and Traceability and Accountability
Chemical Free, Rapid Response and Packaging

6. Challenges due to Environment
Damaged Mangroves and Government Interventions to conserve the Mangroves
Locals displaced for Farming
On Short term approach, Farmers totally destroyed the land quality
Contaminated Local Ground Water and Polluted the soils
Low Production due to diseases
Farm not able to Support Crops after Shrimp cultivation
Environmental Agencies Boycotting the Shrimp Cultivation

7. Way forward
Exploit possibility of Premium Farm Raised Shrimps and create Premium Market for the
product
 Enter developing countries where they can get more Markets
 Developing more green field Production facilities
Acquisition of Profitable and Efficient farms
Product marketing to develop more Visibility and buying for their high quality products

8. Solutions
 Jeff should go for Acquisition of Semi Intensive Farms in Western Hemisphere
 Should invest in Value Added Processing
 Develop Niche Markets for his Products (Vertical Integration and Traceability)
 Bluewater should look for Long term expansion and so should get funded for long term
 Positioning as Responsible Shrimp brand in the Industry through Aggressive Marketing
 He should target for Forward Integration through Food Services and related businesses to
avoid Competitive issues when more Powerful players enter into the market
 His insights is on the right track and he should take appropriate steps to capture and hold the
segment of Shrimps in which he has mastered