THE MENHADEN FISHERY 157 



fatty acids and their high degree of polyunsaturation, perhaps render 

 this product of greatest potential to the menhaden industry ''•^'^. 



In 1961, there were produced 247,551 tons of menhaden scrap and meal, 

 valued at $25,852,498; 31,355,570 gallons of oil, valued at $12,913,447; 

 and 73,305 tons of solubles, valued at $3,142,397. These quantities rep- 

 resented 80 per cent of the domestic fish scrap and meal production, 

 91 per cent of the fish oil production, and 66 per cent of the condensed 

 fish solubles production ^ The yield and value of menhaden products 

 for the period 1950-61 are given in Table 11.2. 



Marketing of the Products 



The greatest share of the meal, scrap, and solubles produced by the 

 menhaden industry is sold on contract to animal feed manufacturers, 

 either directly or through brokerage concerns. In some localities these 

 products enter local markets. The bulk of menhaden oil production cur- 

 rently is exported. Sales of this product are handled through brokers, 

 exporters, or company sales representatives. 



Recent Changes in Marketing Practices. The recent increased world 

 supply of fish meal and oil has brought about a number of changes in 

 marketing practices within the menhaden industry. Prior to 1959, sales 

 of menhaden meal and scrap were made on the basis of long-term com- 

 mitments. With the recent shift from a seller's to a buyer's market, 

 many customers have converted to short-term contracts and "spot" 

 purchases. This has prompted the menhaden industry to establish a 

 closer liaison with the feed mixers, users, and various trade associations. 

 A number of companies also have added scientifically trained personnel 

 to their staffs in an effort to improve the quality of present products 

 and search for new products. 



Since the production of menhaden meal and solubles is seasonal, the 

 feed manufacturers previously carried large inventories of these products 

 so as to be assured of adequate supplies. Fish meal buyers now frequently 

 specify that shipments be scheduled through the year, thus requiring 

 the producers to assume a large share of the cost and responsibility for 

 inventories. 



Distribution of the products also have become a problem to the pro- 

 ducers. Since reduction plants are located on the seacoasts, much of the 

 meal, scrap, and solubles production must be transported long distances 

 to inland feed-mixing plants. Differential freight rates and increased 

 shipping costs, often amounting to as much as 20 per cent or more of 

 the delivery price, formerly were borne by the buyer. Under present 

 market conditions, the producers must absorb a greater share of these 

 costs to be competitive. A number of reduction plants are located at 



