Retail supply and the purchase of midwestern fresh fish on ice
Abstract
According to the NASS 2007 Census of Agriculture, the Midwestern region of the United States has witnessed growth in the aquaculture sector in both volume and sales since 2005. With this growth, producers of aquaculture products in the region may be interested in marketing more, seeking a premium for a regionally grown fish. Per capita fresh and frozen fish consumption also continues to increase in the US. Observing this increase in fish product consumption, fish retailers may be interested in offering fresh fish on ice to their customers by expanding their current seafood assortment. The fish market in the Midwest region of the US is dominated by frozen products, both domestically produced and imported. One study examined the role demographic factors play in a retailer.s provision of fresh fish on ice. Densely populated areas negatively affected a retailer.s probability of supplying fresh fish on ice while per capita income and the number of restaurants nearby were not significant. Results from the model simulations suggest that by adding one more fish processor per county, 16.52% more retailers supplied fresh fish on ice. With a 4.3% increase in population, 4.35% fewer retailers supplied fresh fish on ice. The second study examined the incentives of Midwestern fish retailers for supplying eight species (bluegill, carp, catfish, hybrid striped bass, largemouth bass, tilapia, trout, and yellow perch) of fresh fish on ice, as well as the willingness to pay more for these Midwestern grown fish. For the eight species examined, the overall probability of paying more for regionally grown fish is low; more than half of the retailers in this study are not willing to pay any more for Midwestern fresh fish than they currently pay for fresh fish. However, all eight species had positive mean willingness to pay amounts with tilapia, yellow perch, catfish, and trout having the highest mean willingness to pay values. The results also showed that as the number of fresh fish deliveries increased per week, retailers were willing to pay more for Midwestern grown fresh fish. Likewise, if the retailer received its supply of fresh fish from only out of state, it was willing to pay more. If the retailers' customers preferred fresh fish to value added and frozen, it negatively affected the retailers' probability of paying more for Midwestern fresh fish on ice. Midwestern fish production and overall seafood consumption in the US are increasing; however, it seems as though there is little room for fish farmers in the Midwestern region to attract premiums for their products.
Degree
M.S.
Advisors
Quagrainie, Purdue University.
Subject Area
Agricultural economics
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