The U.S. Market for Organically Farmed Aquatic Products

1
The U.S. Market for Organically Farmed Aquatic
Products
Linda O Dierno Joseph J. Myers New Jersey
Department of Agriculture
2
Organic Aquaculture Production 2003
Source Naturland
3
Marketing Orientation

• Determine consumer wants/needs and then
  delivering the product desired at a price the
  consumer is willing to pay
• Segmenting, Targeting and Positioning (STP) to
  differentiate yourself from the competition

4
European Consumer Attitudes

• Organic Farm-Raised Salmon

5
Norway

• No well defined understanding of the term organic
• Knowledge of aquaculture
• Sustainability
• Organicsales gimmick

6
Germany

• Little knowledge of aquaculture
• Well defined understanding of the term
  organic-animal welfare, natural and
  environmentally-friendly
• Negative attitudes towards mass production

7
United Kingdom

• Limited knowledge of aquaculture
• Freedom from artificial inputs most important
• Skeptical about organic aquaculture

8
France

• Organicnatural
• Limited control and intervention
• Strict regulation and control

9
Spain

• Limited knowledge of the term organic
• Organicquality
• Organic synonymous with ecological and natural
• Non-use of pesticides and not damaging to the
  environment

10
United States Market Barriers

• Not a seafood consuming nation
• Lack of understanding of aquaculture
• Lack of understanding of term organic
• Tend to follow trends
• Majority of consumers shop on price

11
Critical Market Information

• Drill down approach
• Seafood
• Aquaculture
• Organic Aquaculture

12
Target Markets

• Boston
• Princeton, New Jersey
• Chicago
• Colorado Springs

13
Trends

• Great deal of variety between markets
• Product differed depending on time of year
• Many stores used geographic names
• Genuine Long Island littlenecks
• Shetland salmon fillets
• Chilean steelhead fillets
• Chesapeake oysters

14
Consumer Focus Groups
15
Telephone Interviews
16
Retail Survey
17
Issues

• Understanding of aquaculture
• Understanding of term organic
• Food miles
• Importance of environmental concerns
• Importance of sustainability
• Willingness to pay
• Food safety

18
Price Analysis for Organic Shrimp
(Naturland, June 2004)
19
(No Transcript)
20
Selected Retail Prices

• Catfish 3.99- 8.99
• Genuine LI Littlenecks 3.99/dz-Wellfleet
  littlenecks 5.99/dz
• Rainbow trout fillets 4.99-18.00
• Arctic char 14.99

21
New Jersey Department of Agriculture Jersey
Seafood Website

• http//www.jerseyseafood.nj.gov/