Viable Market Opportunities for Organically Grown Aquatic Products Organic Shrimp – The Way of the Future November 18, 2005 Panama City, Panama LINDA J

Viable Market Opportunities for Organically Grown Aquatic Products

Organic Shrimp – The Way of the Future

November 18, 2005

Panama City, Panama

LINDA J. O’DIERNO

JOSEPH J. MYERS*

International Shrimp Culture Symposium & Trade Show

Identification and Evaluation of

New Jersey Department of Agriculture

Fish & Seafood Program

Trenton, NJ USA

Acknowledgments

Rutgers State University of New Jersey– Ramu Govindasamy– Sho Islam– Venkata Puduri– Brian Schilling

US Department of Agriculture– Federal State Market Improvement Program– Grant # 12-25-G-0420

International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama


Overview

USDA Organic Standards for Seafood

Organic Aquaculture Marketing Study


Overview





NOSB formed (15 members)– Aquatic Animal Task Force (Sep 2000)– Recommendations made May 2001

– NEW Task Force on Standards for Aquatic Animals

Wild-Caught WG Farm-Raised (NOAWG)

– Shellfish Sub-Group

OFPA of 1990


USDA Organic Standards for Seafood Status of Standards

NOAWG completed Draft of Proposed Organic Standards for Farmed Aquatic Animals– May 2005– Submitted to USDA National Organic

Program for Review


USDA Organic Standards for Seafood Status of Standards – What’s Next??

ReviewPublic Notice (Federal Register)Public Comment Final RuleAdoption


USDA Organic Standards for Seafood Status of Standards – What’s Next??

About 3-4 years until:

Seafood =


Overview




Impetus for Project

USDA – CSREES (Dr. Gary Jensen)– Standards on the Way– Need Market Information


Advisory Committee

NOAWG National Organic Aquaculture Working Group

NFINational Fisheries Institute

NASACNational Association of State Aquaculture Coordinators

Variety of Geographic Regions & Industry Sectors


Advisory Committee

Formulate Investigative Strategy

Continued Advisement Throughout the Project

Function


Consumer– Focus Groups– Telephone Survey

Marketplace– Analysis of Products Now in Market– Retailer Mail Survey

Scope of Project




Scope of Project


Seafood

Aquaculture

Organic Aquaculture

Investigative StrategyDrill-Down Approach

Information About:

Seafood

Aquaculture

Organic Aquaculture

Sets Scope of Survey Collect Other Marketing Information

– Seafood Health & Safety– Consumption Advisories– C.O.O.L.– Aquaculture vs. Wild-Caught Perceptions– Purchase Patterns– General Organic Attitudes– Other Marketing Terms

Sustainable, Eco-Friendly, Natural, Pristine

Investigative StrategyDrill-Down Approach




Marketplace– Analysis of Products Now in Market– Restaurant Survey– Retailer Mail Survey

Scope of Project

Investigative Strategy

Seafood

Aquaculture

Organic Aquaculture

FOUR Target Markets– Affluence– Coastal Proximity

GeographySeafood Tradition

– Budget and Logistics

TWO Market Levels



Target Markets

Boston Region (Massachusetts) Central New Jersey Greater Chicago (Illinois) Colorado Springs (Colorado)

Target Markets

• •

•

• Boston Region (Massachusetts) Central New Jersey Greater Chicago (Illinois) Colorado Springs (Colorado)



Target Markets

• •

•

• Boston Region (Massachusetts) Central New Jersey Greater Chicago (Illinois) Colorado Springs (Colorado)


Target Markets

• •

•

•

•Boston

Region•CentralNew Jersey•Greater

Chicago•ColoradoSprings


Target Markets

• •

•

•

•Boston




Target Markets

• •

•

•

•Boston




Target Markets

• •

•

•

•Boston




Target Markets

Boston

Region

CentralNew Jersey

Greater

Chicago

ColoradoSprings

• •

•

•

New Jersey

Upscale Coastal Strong Seafood Tradition

*


Boston

Blue-Collar Coastal Strong Seafood Tradition

*


Colorado Springs

Upscale Landlocked NO Seafood Tradition Residents from other Areas

*


Chicago

Blue-Collar “Inland” Market

– Meat & Potatoes Tradition– Some “Seafood” Tradition

GREAT LAKES

– Shellfish Market

*



Market Levels

General Purchase Supermarket

Upscale, Health Food Supermarket


Target Markets

• •

•

•

CentralNew Jersey

Boston

RegionGreater

Chicago

ColoradoSprings

Target = Eight Focus Groups

Conventional

Upscale


Target Markets

• •

•

•

CentralNew Jersey

Boston

RegionGreater

Chicago

ColoradoSprings

Goal = Seven Focus Groups

Conventional

Upscale


Seafood

Aquaculture

Organic Aquaculture

Recruitment of Participants– Large Supermarkets– Placard at Seafood Counter– Help from Seafood Manager

Compensation– Dinner– $20 Gift Card




Seafood

Aquaculture

Organic Aquaculture

4-15 Participants

Group– Scripted Questions– Group Discussion

Individuals– 4-page survey





Scope of Project

Seafood

Aquaculture

Organic Aquaculture

Four Target Markets200 Surveys in Each Target Market

– Purchase decision on seafood




Target Markets

ColoradoSprings

CentralNew Jersey

Boston

RegionGreater

Chicago

Seafood purchasers




Scope of Project


Farmed Seafood Currently in the US Market

On-Line Literature Research Current Retail Advertising

– All supermarkets in that area– How they marketed the product– Price points– QUALITATIVE


Retailer Survey

Supermarkets Identified from:– 2005 Blue Book of Supermarket Distribution

257 surveys sent 38 returned (14.8%)


Focus Groups Telephone Survey Analysis of Products in Marketplace Retailer Mail Survey

Results



Results

Boston

*


Focus Groups

Tradition and Enthusiasm

(even from Managers)

Tendency to Discount

media reports

Local fish market

Chicago

*


Focus Groups

Health & Safety Concerns

Price Concerns

Colorado Springs

*


Focus Groups

Concern about how product

reaches inland market

Freshness

Want more variety

New Jersey

*


Focus Groups

Most Diverse Opinions

Two Income Professionals,

No Children

“I Want It, I Buy It”


Consumer attitude and purchase behavior – Organic Foods.

NJDA et.al 2005 (USA)

SEAFISH 2001 (UK)

Committed to buying as often as possible

Will buy occasionally

NOT Convinced, Will NOT Buy

46%46%32%32%22%22%

Focus Groups

Committed: 5%Don’t Know: 4%

Fad: 22%

Non-Converts: 52%Semi-

Committed: 16%

Comparison Between Different Studies


Consumer attitude and purchase behavior.

ORGANIC FOODS

ORGANIC SEAFOOD

Committed to buying as often as possible

Will buy occasionally

NOT Convinced, Will NOT Buy

52%52%46%46% 28%28%20%20%32%32%

22%22%

Focus Groups


Focus GroupsTerm about seafood that conveys the highest quality.

All Natural: 23%

Harvested from the Wild: 53%

Organically Grown: 24%


Focus Groups

Organically Farmed: 12%

Organically Aquacultured: 34%

Organically Grown: 54%

Term about seafood that conveys the highest quality.


Reasons for wanting to purchase organic seafood

Chemical/Pesticide-Free 95%

Free of Antibiotics 87%

Safer 64%

Superior Flavor 62%

Ecologically Sound 59%

Better Quality 59%

More Nutritious 54%

Credible Standards 49%

Animal Welfare 36%

Focus Groups


Reasons for NOT wanting to purchase organic seafood

Too Expensive 67%

No Credible Standards 53%

Not Worth the Price Difference 40%

Limited Availability 13%

Additives/Chemical/Residues not

a Concern

13%

Focus Groups


If available, would you purchase organic seafood?

YES: 72%

NO: 28%

Focus Groups



Results


Telephone Consumer SurveyDo you purchase seafood for home consumption?

YES: 69%

NO: 31%


Telephone Consumer SurveyHave you ever purchased aquacultured or farm-raised seafood?

YES: 43%NO: 42%

DON’T KNOW: 15%


Telephone Consumer SurveyWhat is the most important reason for consuming seafood?

I like the taste. 49%

I believe it is healthy. 41%

I believe it is a low-calorie food. 3%

I believe it is easy to prepare. 2%

I like the gourmet appeal. 2%

I feel it is priced lower. 1%

Other 2%


Telephone Consumer SurveyAre you interested in purchasing organic seafood?

YES: 67%NO: 24%

DON’T KNOW: 9%


Telephone Consumer SurveyWould you trust an organic label for seafood?

YES: 70%NO: 21%

DON’T KNOW: 9%



Results


Retailer Survey

Data Evaluation In-Progress Many Salmon-Related Concerns Majority believe that Organic Labeling IS

Compatible. Supply, Availability, Price, Size Issues


Consumer / Point-of-Sale Information Booklet Magazine Article(s) Peer-Reviewed Journal Articles

– Aquaculture/Seafood Marketing– Agricultural Economics– Consumer Econometrics

Website– www.jerseyseafood.nj.gov

Deliverables

Contact Information

New Jersey Department of Agriculture

Fish & Seafood Program

PO Box 330

Trenton, New Jersey 08625-0330 USA

(609) 984-2502, (609) 633-7229

[email protected]

www.jerseyseafood.nj.gov

Documents

Viable Market Opportunities for Organically Grown Aquatic Products Organic Shrimp – The Way of the Future November 18, 2005 Panama City, Panama LINDA J