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Consumer Preference for Wild Caught and Farm Raised Seafood. Kelly Davidson, Minling Pan NOAA Pacific Islands Fisheries Science Center Wuyang Hu, Devie Poerwanto University of Kentucky Dept. of Agricultural Economics. A Comparison across Species and Consumer Residence States.
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Consumer Preference for Wild Caught and Farm Raised Seafood Kelly Davidson, Minling Pan NOAA Pacific Islands Fisheries Science Center Wuyang Hu, Devie PoerwantoUniversity of KentuckyDept. of Agricultural Economics A Comparison across Species and Consumer Residence States CNREP Conference, New Orleans, LA May 26-28, 2010
u.s. Beef, chicken, and fish consumption, 1980-2008 Source: USDA/Economic Research Service Per Capita Availability Data NOAA Fisheries of the United States Report, 2008
A closer look at u.s. per capita fish consumption, 1980-2008 Source: NOAA Fisheries of the United States Report, 2008
U.S. Seafood Consumption (nmfs data) • 2008 U.S. Per Capita Fish/Shellfish Consumption 16.0 pounds • 84% imported, over half of imported seafood is farm raised • U.S. freshwater and marine aquaculture combined provide 5% of seafood demand • U.S. seafood trade deficit of over $9 billion • US ranked 3rd in seafood consumption behind China and Japan • 2008 consumer expenditures on fishery products over $69.9 Billion • Nearly $35 Billion in value-added contributing to GNP
Top ten species: US per capita Seafood consumption in 2008 Source: National Fisheries Institute, 2010
Global aquaculture • World Per Capita Fish/Shellfish Consumption 36.2 lbs • Global wild fish harvest 90-95 million tons/yr • Global aquaculture production 60 million tons/yr • Value of $70 billion per yr • Total U.S. aquaculture production approx. $1.2 billion per yr • China leads in both aquaculture and wild catch • 31 million mT farmed in 2007 • 14 million mT caught in 2007 • U.S. and Japan major importers of fishery products – over $13 billion each Source: FAO data and NOAA Aquaculture Statistics
Hawaii Seafood market • Local per capita seafood consumption rate approx. 3 times the national average • Demand for most products > supply • Imports 75% of all seafood consumed • Fresh and live product markets • Tourism, “ethnic markets” • Premium price for fresh, high quality seafood Source: Hawaii Dept. of Agriculture
Hawaii aquaculture • 70 aquaculture operations statewide • Offshore Marine Culture • Hukilau Foods • Moi Cage Culture • Kona Blue Water Farms • Kona Kampachi • Record $34.7 Million total grown in 2008 • 38% increase from 2007 • Hawaii County accounted for 80% Source: National Agricultural Statistics Service USDA, Hawaii Field Office
pilot study rationale • NOAA Aquaculture Policy • What seafood attributes are important when comparing aquaculture with wild catch? • Perceptions of aquaculture • Consumer preferences • Across species • Popular (tuna, salmon) and less familiar (moi, tilapia) • Across different residence states
Pilot study – august 2009 • 15 respondents in Hawaii, 17 in Kentucky • Clarity of survey questions • Awareness of aquaculture • Familiarity with species • Attribute question for each species used to determine conjoint analysis cards 1=Not important, 5=Very Important
Pilot survey questions • Which of the following have you purchased for home consumption in the past 60 days? • Top ten species • How often can you find fish from aquaculture in the market? • For seafood, which of the following types do you prefer most: • Wild caught • Inshore aquaculture • Offshore aquaculture • Land-based aquaculture • What are the main reasons? (environmental issues, natural resource uses, taste, food safety standards, price, other)
More pilot survey questions • For each species, which type of product have you purchased? • Wild Caught, Farm Raised, Both, Neither, Unsure • How do you perceive the status of wild fish in the U.S. for each species? • Severely Overfished, Moderately Overfished, Not at all Overfished, Unsure • Are you more likely to purchase seafood grown locally in your area?
Interesting comparisons from pilot responses • Consumers are less familiar with term “aquaculture” than “farm-raised” • Top ten species consumption • Shrimp, canned tuna, fresh tuna, salmon relatively equally popular in each state • More variation in Kentucky: Pollock, Tilapia, Catfish, Cod – zero consumed in Hawaii, some in KY • Are you able to differentiate between wild fish and aquaculture fish, either pre or post-consumption? • 12/17 in KY “sometimes, most of the time, always” • 9/15 in HI “rarely, never” 6 in HI “sometimes” or more
More interesting comparisons • Are you more likely to purchase seafood grown locally in your area? • Hawaii: 9 yes, 4 no, 2 unsure • Kentucky: 4 yes, 9 no, 2 unsure • Price always important attribute for each species • Biggest differences for importance of each attribute between Tilapia and Moi • Product familiarity • Tilapia availability: 5 Hawaii respondents indifferent, only 3 said availability was important compared to 8 in Kentucky • Importance of product availability differed by species • Tuna availability more important in Hawaii • Salmon and Tilapia availability important in Kentucky
For seafood, which of the following types do you prefer most?
Research objectives • Consumer preferences across species, different residence states • Production Methods • Tastes • Perceptions • Species Attributes • Hawaii vs. Kentucky: cultural and geographical differences in consumer preferences • Objectives • Examine consumer preference toward farm-raised versus wild caught fish • Evaluate the impact of preference related attributes across species on consumption decisions and WTP
Methodology • Consumer surveys • Online • Face-to-face • Consumer preference elicitation method • Attitude and perception questions • Past consumption history: quantities and price • Hypothetical consumption questions for moi/tilapia • Choice experiment (conjoint analysis) on attributes of species • Tuna, Salmon, Tilapia, Moi • Data analysis • Multivariate regression analysis • Discrete choice models
Sample conjoint card • Wild caught • Previously frozen • $25.49/lb • Farm raised • Previously frozen • Turtle safe • $19.99/lb I will not choose either A or B Option A Option B Option C Tuna (Sashimi Grade Steak): Situation 2
Conjoint analysis: species and attributes • Salmon • Wild Caught/Farm Raised • Previously Frozen/Fresh • Imported/US Domestic • Tilapia • Locally Grown • Veg. Feed/Synthetic • P. Frozen/Fresh/Live • Tuna • Wild Caught/Farm Raised • P. Frozen/Fresh • Turtlesafe Logo • Moi (pacific threadfin) • Locally Grown • Land-based/Ocean-based/Wild Caught