Are Midwestern fish retailers willing to pay more for regionally grown fresh-on-ice fish?

Rejeana M Gvillo,Jennifer Dennis,Kwamena Quagrainie,Nicole Olynk

doi:10.4236/as.2013.46a006

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.

Highlights

Since 1980, per capita fish consumption has increased by 26.4%, with the majority of consumption being fresh and frozen fish products (Figure 1)1 [1]
The percent correctly predicted (PCP) for each species is provided in each Tables 4 and 5 for each species
For the four species examined, the overall probability of paying more for regionally grown fish is low; more than half of the retailers in this study are not willing to pay any more for Midwestern fresh fish than they are currently paying for fresh fish

Summary

Introduction

Since 1980, per capita fish consumption has increased by 26.4%, with the majority of consumption being fresh and frozen fish products (Figure 1)1 [1]. Food imports have increased since 1989 [1]. With this increase in fish supply, consumption, and expenditures, retailers may be interested in offering more varieties of fish and seafood products to their customers. The fish and seafood market in the Midwestern (MW) region of the United States (US) is currently dominated by frozen products, and MW fish producers may be able to include additional products from the region-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. Most of the fish currently produced in the Midwest is sold live to ethnic markets [2]

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Conclusion