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Purpose

This paper aims to investigate how small and medium sized aquaculture producers in the Mediterranean might move from traditional high volume output systems to become more market oriented.

Design/ methodology/approach

The quantitative methodology was devised to assess production trends and potential of seabass and seabream farmed off most of the countries bordering the Mediterranean. In addition to markets adjacent to the Mediterranean producers, those in Northern Europe are also included because of the opportunities for market expansion and product diversification.

Findings

It is concluded that greatest scope for industry gain lies in supply channel members being more market oriented to meet the dynamic and varied demands of consumers. The historic, but still predominant, one‐size fits all philosophy and business approach to fish farming is outdated and demands radical revision to realise potential added value of the industry. This is all the more important as consumers, pressure groups and governments become more aware of the political, economic and environmental impact of food miles and wider sustainable production issues, encouraging many international food markets to move away from an emphasis on cheap food.

Practical implications

The study has practical implications for European Union aquaculture policy and small to medium‐sized enterprise development to ensure more sustainable production and to promote positive benefits in often peripheral and fragile rural economies where alternative options are commonly rare and/or conflicting.

Originality/value

The research highlights the challenges of a sector with spatially disparate points of production and consumption coupled with a highly perishable product critically dependent on efficient distribution whilst facing emergent environmental concerns over sustainable food production systems.

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