The U.S. Market for Organically Farmed Aquatic Products

Linda O’ DiernoJoseph J. Myers

New Jersey Department of Agriculture

Organic Aquaculture Production 2003

0500

100015002000250030003500400045005000

Tons

Salmon Carp/Trout Shrimp Other

Source: Naturland

Marketing Orientation

Determine consumer wants/needs and then Determine consumer wants/needs and then delivering the product desired at a price the delivering the product desired at a price the consumer is willing to payconsumer is willing to pay

Segmenting, Targeting and Positioning Segmenting, Targeting and Positioning (STP) to differentiate yourself from the (STP) to differentiate yourself from the competitioncompetition

European Consumer Attitudes

Organic Farm-Raised SalmonOrganic Farm-Raised Salmon

Norway

No well defined understanding of the term No well defined understanding of the term organicorganic

Knowledge of aquacultureKnowledge of aquaculture SustainabilitySustainability Organic=sales gimmickOrganic=sales gimmick

Germany

Little knowledge of aquacultureLittle knowledge of aquaculture Well defined understanding of the term Well defined understanding of the term

organic-animal welfare, natural and organic-animal welfare, natural and environmentally-friendlyenvironmentally-friendly

Negative attitudes towards mass productionNegative attitudes towards mass production

United Kingdom

Limited knowledge of aquacultureLimited knowledge of aquaculture Freedom from artificial inputs most Freedom from artificial inputs most

importantimportant Skeptical about organic aquacultureSkeptical about organic aquaculture

France

Organic=naturalOrganic=natural Limited control and interventionLimited control and intervention Strict regulation and controlStrict regulation and control

Spain

Limited knowledge of the term organicLimited knowledge of the term organic Organic=qualityOrganic=quality Organic synonymous with ecological and Organic synonymous with ecological and

naturalnatural Non-use of pesticides and not damaging to Non-use of pesticides and not damaging to

the environmentthe environment

United States Market Barriers

Not a seafood consuming nationNot a seafood consuming nation Lack of understanding of aquacultureLack of understanding of aquaculture Lack of understanding of term organicLack of understanding of term organic Tend to follow trendsTend to follow trends Majority of consumers shop on priceMajority of consumers shop on price

Critical Market InformationDrill down approachDrill down approach

SeafoodSeafood

AquacultureAquaculture

Organic AquacultureOrganic Aquaculture

Target Markets

BostonBoston Princeton, New JerseyPrinceton, New Jersey ChicagoChicago Colorado SpringsColorado Springs

Trends Great deal of variety between marketsGreat deal of variety between markets Product differed depending on time of yearProduct differed depending on time of year Many stores used geographic namesMany stores used geographic names

Genuine Long Island littlenecksGenuine Long Island littlenecks

Shetland salmon filletsShetland salmon fillets

Chilean steelhead filletsChilean steelhead fillets

Chesapeake oystersChesapeake oysters

Consumer Focus Groups

Telephone Interviews

Retail Survey

Issues Understanding of aquacultureUnderstanding of aquaculture Understanding of term organicUnderstanding of term organic Food milesFood miles Importance of environmental concernsImportance of environmental concerns Importance of sustainabilityImportance of sustainability Willingness to payWillingness to pay Food safetyFood safety

Price Analysis for Organic Shrimp

(Naturland, June 2004)

Tilapia Fillets, 5-7 ounce Taiwan/Indonesia

$1.50

$1.70

$1.90

$2.10

$2.30

$2.50

$2.70

$2.90

Month

Do

llars

per

Po

un

d

2001

2002

Selected Retail Prices

Catfish $3.99-$ 8.99Catfish $3.99-$ 8.99 Genuine LI Littlenecks $3.99/dz-Wellfleet Genuine LI Littlenecks $3.99/dz-Wellfleet

littlenecks $5.99/dzlittlenecks $5.99/dz Rainbow trout fillets $4.99-$18.00Rainbow trout fillets $4.99-$18.00 Arctic char $14.99Arctic char $14.99

New Jersey Department of Agriculture

Jersey Seafood Website

http://www.jerseyseafood.nj.gov/http://www.jerseyseafood.nj.gov/