About the authors xiii
1 Seafood and aquaculture markets 1
Global trends in seafood and aquaculture markets 1
Where are most aquaculture crops produced? 4
What are the major species cultured worldwide? 5
What are the major finfish species caught and supplied to world markets? 7
What countries are the major markets for seafood and aquaculture? 8
Trade in seafood and aquaculture 9
Are aquaculture products different from agriculture products? 9
Characteristics of aquaculture products 9
Market competition between wild?caught and farmed finfish 12
Consumption trends in seafood and aquaculture markets, expenditures, effects of income, and at?home versus away?from?home purchases 13
Aquaculture market synopsis: tilapia 14
Summary 18
Study and discussion questions 19
References 19
2 Demand and supply: basic economic premises 22
What is economics? 22
Demand 23
Population 27
Income 27
Consumer tastes and preferences 28
Consumer behavior 28
Supply 29
Costs of production 31
Technology 31
Price determination 32
Elasticity 32
Demand elasticity 34
Cross?price elasticity 36
Price elasticity and total revenue 37
Elasticity of supply 38
Market structures and implications for competition and pricing 38
Special demand and supply conditions 39
Aquaculture market synopsis: salmon 40
Summary 44
Study and discussion questions 45
References 45
3 Seafood and aquaculture marketing concepts 47
What is marketing? 47
Marketing plan 48
Market products 48
Supply chain and value chain 48
Processors 49
Market or distribution channels 50
Transportation 52
Wholesaling 53
Brokers 54
Retailing 54
Food grocers 55
Livehaulers 56
Restaurants 56
Direct sales 56
Profit margins 57
Economies of scale in marketing 58
Supply chain management 58
Pricing systems 59
Price determination 59
Marketing margins, marketing bill, and farm?retail price spreads 60
Pricing at different market levels 62
Price behavior, trends, and fluctuations 63
Geographic markets 64
Product storage 65
Market power 65
Advertising and promotion 66
Product grades, quality, and marketing implications 67
International trade 69
Aquaculture market synopsis: shrimp and prawns 70
Summary 76
Study and discussion questions 76
References 77
4 Market trends 80
The role of imports in U.S. seafood markets 80
U.S. seafood consumption 82
Food consumption away from home 84
Convenience in food preparation and consumption 85
Demand for healthy and wholesome foods 86
Sustainability and seafood 87
Certification of sustainability 89
The Marine Stewardship Council (MSC) 89
The Global Aquaculture Alliance (GAA) Best Aquaculture Practices (BAP) 90
The Aquaculture Stewardship Council (ASC) 90
GLOBAL Good Agricultural Practice (GLOBALG.A.P.) 91
Traceability and labeling of seafood products 91
Country?Of?Origin Labeling (COOL) 92
Ecolabeling of seafood products 93
Seafood and the “local food“ movement in the U.S. 95
Organic seafood 96
Wholesale?retailer integration in the food system 97
Electronic Data Interchange (EDI) 98
The Efficient Consumer Response (ECR) 98
The Efficient Food Service Response (EFR) 99
E?commerce 100
Aquaculture market synopsis: Pangasius spp. (swai, basa, and tra) 102
Summary 104
Study and discussion questions 106
References 106
5 Seafood market channels 109
Market channels for primary seafood products 109
Seafood distribution in developing economies 109
Seafood distribution in developed economies 110
Seafood distribution in the U.S. 112
Price discovery for primary commodities 113
Contracting and vertical integration in U.S. seafood business 113
Other transaction types in U.S. seafood business 115
Participation in food market channels 116
Distributors 116
Wholesalers 116
Channel ownership and control for secondary products 123
Consolidation and channel control 124
Channel coordination and leadership for secondary products 126
Channel agreements 128
Tying agreements 128
Exclusive dealing 128
Value chain analysis 129
Channel conflict 129
Aquaculture market synopsis: trout 130
Summary 132
Study and discussion questions 133
References 134
6 Seafood and aquaculture product processing 136
Processing 136
Structure of the seafood and aquaculture product processing industry 142
Concentration 144
Vertical integration 146
Product characteristics 146
Entry into the industry 148
Plant location 149
Law of market areas 150
Capacity utilization 151
Innovation and branding 151
Challenges in aquaculture product processing 153
Aquaculture market synopsis: U.S. channel catfish 154
Summary 158
Study and discussion questions 159
References 159
7 The international market for seafood and aquaculture products 162
The basis for trade 162
Dimensions of the international market 163
Trade policy tools 167
Trade policy in seafood and aquaculture 169
The General Agreement on Tariffs and Trade (GATT) 169
The World Trade Organization (WTO) 170
U.S. Antidumping 172
Byrd Amendment, Continued Dumping and Subsidy Offset Act of 2000 172
Salmon trade conflicts 173
United States and Norway 173
United States and Chile 173
European Union and Norway 174
Blue crab conflict 174
U.S. crawfish and China 175
U.S. catfish and Vietnamese basa 176
Mussel conflicts 177
Shrimp conflicts 177
The Convention on International Trade in Endangered Species (CITES) 177
Aquaculture market synopsis: ornamental fish 178
Summary 181
Study and discussion questions 181
Appendix 7A: The U.S. Antidumping Law 182
The U.S. Department of Commerce 182
The U.S. International Trade Commission (ITC) 183
References 184
8 Marketing by aquaculture growers 187
Fish species and markets 187
Production systems and intensification 188
Sizes of producers 191
Supply response and biological lags 192
Commodities, markets, and niche markets for differentiated products 193
Farmers’ marketing alternatives 194
Sales to processors 194
Sales to livehaulers 194
Selling directly to end consumers 195
Marketing by fisher/farmer groups 198
Marketing cooperatives 201
Local cooperatives 201
Centralized cooperatives 201
Federated cooperatives 202
Mixed cooperatives 202
Marketing cooperatives as marketing agents 203
Marketing cooperatives as processing groups 203
Farmers’ bargaining groups 203
Marketing orders 205
Futures markets for aquaculture products? 206
Generic advertising of seafood and aquaculture products 207
Advertising of seafood – the National Fisheries Institute (NFI) 208
Salmon advertising – the Salmon Marketing Institute (SMI) 208
Catfish advertising – the Catfish Institute (TCI) 209
Tilapia advertising – the Tilapia Marketing Institute (TMI) 209
Trout advertising – the United States Trout Farmers Association (USTFA) 210
Aquaculture market synopsis: oysters 210
Summary 213
Study and discussion questions 214
Appendix 8A: The Capper-Volstead Act 214
References 216
9 Marketing strategies and planning for successful aquaculture businesses 219
Current market situation analysis 219
Market research 219
Competition 222
Consumer attitudes/preferences 223
Analysis of business strengths and weaknesses 224
Developing the marketing strategy 226
Developing a retail outlet 227
Market segmentation 228
Products and product lines 229
Commodity markets 235
Niche markets 235
Value?added products 236
Business organization and contracting 237
Sales 238
The marketing plan 238
Aquaculture market synopsis: mussels 243
Summary 247
Study and discussion questions 248
Appendix 9A: A sample market plan (hypothetical) 248
Executive summary 248
Vision 248
Overall market situation analysis 249
References 251
10 Marketing research methodologies 254
Types of research and design 255
Exploratory research 255
Qualitative research 256
Quantitative research 257
Data collection 257
Secondary data 257
Primary data 258
Sampling 263
Questionnaire design 265
Response rate 266
Research on attitudes and preferences 266
Theories of choice behavior 267
Product research 268
Product ideas 268
Product testing 269
Market share research 270
Advertising research 270
Sales control research 272
Value chain research 273
Data analysis 275
Statistical summaries 275
Relationships between variables or responses 278
Discrete choice analysis 280
Conjoint analysis 282
Traditional demand analysis 284
Aquaculture market synopsis: baitfish 285
Summary 288
Study and discussion questions 289
References 291
11 Seafood demand analysis 293
Demand theory 293
Theoretical properties of demand 294
Approaches to modeling fish and seafood demand 295
Commodity grouping and separability 298
Other issues pertaining to estimating demand for seafood 299
Data 301
Scanner data 302
Elasticities and flexibilities of seafood demand 303
Estimates of elasticities and flexibilities of seafood demand 304
Recent estimates of elasticities/flexibilities of seafood demand in developed countries 304
Recent estimates of elasticities/flexibilities of seafood demand in developing countries 318
Aquaculture market synopsis: crawfish 319
Summary 323
Study and discussion questions 324
References 324
12 Policies and regulations governing seafood and aquaculture marketing 330
Regulatory frameworks for seafood and aquaculture 330
Food safety 331
Industry?initiated programs 333
Regulation of food safety 335
Organic standards 338
Green labeling and standards 339
Marketing and transportation of live aquatic animals 340
Aquatic animal health and biosecurity 341
Aquaculture market synopsis: mariculture of grouper, snapper, tuna, and cobia 342
Summary 343
Study and discussion questions 344
References 344
Glossary 347
Annotated bibliography of aquaculture marketing information sources 365
Annotated webliography of sources of data and information for aquaculture marketing 373
Index 390
