Are Midwestern fish retailers willing to pay more for regionally grown fresh-on-ice fish?
Affiliation(s)
Department of Agricultural Economics, Texas A&M University, College Station, USA;. Department of Agricultural Economics, Purdue University, West Lafayette, USA.
Department of Agricultural Economics, Texas A&M University, College Station, USA;. Department of Agricultural Economics, Purdue University, West Lafayette, USA.
ABSTRACT
The fish and seafood market in the Midwestern region of the United States is currently dominated by frozen products. Fish producers in the region may be able to market their products as fresh, regionally grown and farmed fish. Fish producers may be able to supply fresh fish products that have not been previously frozen but preserved fresh with ice. The study examined retailers’ willingness to pay more for Midwestern fresh fish adopting the literature on consumers’ willingness to pay for market services or products, assuming that retailers understand their customers, and that they are able to add any premiums paid for to their retail prices. The overall probability of retailers paying more for regionally grown fresh-on-ice fish is low though consistency in supply and sourcing out of state positively affected the probability to pay more. In spite of these positive factors on willingness to pay more for Midwestern fresh-on-ice fish, Midwestern fish producers would probably remain non-competitive in the fresh-on-ice fish market in the short and medium term, and should continue to focus on the live market.
The fish and seafood market in the Midwestern region of the United States is currently dominated by frozen products. Fish producers in the region may be able to market their products as fresh, regionally grown and farmed fish. Fish producers may be able to supply fresh fish products that have not been previously frozen but preserved fresh with ice. The study examined retailers’ willingness to pay more for Midwestern fresh fish adopting the literature on consumers’ willingness to pay for market services or products, assuming that retailers understand their customers, and that they are able to add any premiums paid for to their retail prices. The overall probability of retailers paying more for regionally grown fresh-on-ice fish is low though consistency in supply and sourcing out of state positively affected the probability to pay more. In spite of these positive factors on willingness to pay more for Midwestern fresh-on-ice fish, Midwestern fish producers would probably remain non-competitive in the fresh-on-ice fish market in the short and medium term, and should continue to focus on the live market.
Cite this paper
Gvillo, R. , Quagrainie, K. , Olynk, N. and Dennis, J. (2013) Are Midwestern fish retailers willing to pay more for regionally grown fresh-on-ice fish?. Agricultural Sciences, 4, 39-45. doi: 10.4236/as.2013.46A006.
Gvillo, R. , Quagrainie, K. , Olynk, N. and Dennis, J. (2013) Are Midwestern fish retailers willing to pay more for regionally grown fresh-on-ice fish?. Agricultural Sciences, 4, 39-45. doi: 10.4236/as.2013.46A006.
References
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[1] US Department of Commerce, National Oceanic Atmospheric Association (NOAA) (2010) Fisheries of the United States. http://www.st.nmfs.noaa.gov/st1/fus/fus09/ index.html [2] Quagrainie, K.K., Xing, A. and Hughes, K.G. (2011) Factors influencing the purchase of live seafood in the north central region of the United States. Marine Resource Economics, 26, 59-74. doi:10.5950/0738-1360-26.1.59 [3] USDA, National Agricultural Statistics Service—NASS. (2005) Table 7: Food fish sales by species, by state and United States: 2005 and 1998. Census of Aquaculture. http://www.agcensus.usda.gov/Publications/2002/Aquaculture/index.asp [4] USDA, National Agricultural Statistics Service—NASS (2007) Table 23: Aquaculture sold: 2007 and 2002. Census of Agriculture. http://www.agcensus.usda.gov/Publications/2007/Full_Report/ Volume_1,_Chapter_2_US_State_Level/st99_2_023_023.pdf [5] Hart, S.D., Garling, D.L. and Malison, J.A. (2006) Yellow perch (Perca flavescens) culture guide. North Central Regional Aquaculture Center (NCRAC) Culture Series #103, Michigan State University, Lansing. [6] Timmons, M.B. and Ebeling, J.M. (2007) Recirculating aquaculture. Northeastern Regional Aquaculture Center (NRAC) Publication #01-007, Michigan State University, Lansing. [7] Loureiro, M.L. and Hine, S. (2002) Discovering niche markets: A comparison of consumer willingness to pay for local (Colorado grown), organic, and GMO-free products. Journal of Agricultural and Applied Economics, 34, 477-487. [8] Hu, W., Woods, T. and Bastin, S. (2009) Consumer cluster analysis and demand for blueberry jam attributes. Journal of Food Products Marketing, 15, 420-435. doi:10.1080/10454440802544716 [9] Darby, K., Batte, M., Ernst, S. and Roe, B. (2006) Will ingness to pay for locally produced foods: A customer intercept study of direct market and grocery store shoppers. American Agricultural Economics Association Annual Meeting, Long Beach, 23-26 July 2006, California. [10] Kumar, G., Quagrainie, K.K. and Engle, C. (2008) Factors that influence frequency of purchase of catfish by US households in selected cities. Aquaculture Economics and Management, 12, 252-267. doi:10.1080/13657300802494297 [11] McCluskey, J.J., Grimsrud, K., Ouchi, H. and Wahl, T.I. (2005) Bovine spongiform encephalopathy in Japan: Consumers’ food safety perceptions and willingness to pay for tested beef. The Australian Journal of Agricultural and Resource Economics, 49, 197-209. doi:10.1111/j.1467-8489.2005.00282.x [12] Myers, J.J., Govindasamy, R., Ewart, J.W., Liu, B., You, Y., Purduri, V.S. and O’Dierno, L.J. (2010) Consumer analysis in ethnic live seafood markets in the northeast region of the United States. Journal of Food Products Marketing, 16, 147-165. doi:10.1080/10454440903415477 [13] Puduri, V., Govindasamy, R., Myers, J.J. and O’Dierno, L.J. (2011) Consumer attitude towards pricing of live aquatic products. Aquaculture Economics and Management, 15, 118-129. doi:10.1080/13657305.2011.573522 [14] Puduri, V., Govindasamy, R., Myers, J.J. and O’Dierno, L.J. (2010) Demand for live aquatic products in the Mid-Atlantic States: An ordered probit analysis towards consumers’ preferences. Aquaculture Economics and Management, 14, 30-42. doi:10.1080/13657300903566860 [15] Quagrainie, K.K. (2006) IQF Catfish retail pack: A study of consumers’ willingness to pay. International Food and Agribusiness Management Review, 9, 75-87. [16] Zimet, D. and Zajicek, P. (2000) The market potential for live Florida food fish in the Northeastern United States. The Business of Marketing Live Aquatic Products, Annapolis, 1-4 November 2000. [17] Harvey, D.J. (2005) US aquaculture production higher in 2005. ERS: Aquaculture Outlook LDP-AQS-21, United States Department of Agriculture, Washington DC. [18] Cranfield, J.A.L. and Magnusson, E. (2003) Canadian consumer’s willingness-to-pay for pesticide free food products: An ordered probit analysis. International Food and Agribusiness Management Review, 6, 13-30. [19] Wooldridge, J.M. (2009) Introductory econometrics: A modern approach. South-Western Cengage Learning, Mason. [20] Greene, W.H. (2008) Econometric analysis. Prentice Hall, Upper Saddle River. [21] Greene, W.H. and Hensher, D.A. (2008) Molding ordered choices: A perimer and recent developments. Version 4.