Evaluation of Retail Markets and the Perception and Potential of Marketing Cultured Bait Shrimp

Abstract

Of the total economic impact generated by the marine recreational fishing industry in the United States, the state with the largest contribution is Florida. Bait purchases can be a large portion of marine recreational angler expenditures. Despite this well-established industry, development of marine bait shrimp aquaculture to supply this significant market has been slow. Descriptive market information necessary to shape production and marketing strategies is lacking. The objectives of this project were to evaluate and describe the market for live marine bait shrimp in Florida and to assess the potential market for cultured bait shrimp. A survey instrument was designed and distributed to 224 bait shrimp retailers in 35 coastal counties of Florida. Surveys were developed to be concise and succinct, while still soliciting salient information vital to market evaluation. Bait shrimp retailer survey questions focused on business location, shortcomings of wild shrimp, preferred bait shrimp characteristics, quantities of bait shrimp sold, bait shrimp wholesale purchase prices, purchasing patterns as related to season and size, perceived bait shrimp market demand by region, perception of aquaculture, and interest in purchasing aquaculture-produced bait shrimp. A total of 98 surveys representing 31 counties were returned for a 43.8% response rate. Almost all respondents (95.9%) marketed live marine bait shrimp. The overall perception of aquaculture as a means to produce bait shrimp was 24.7% positive, 19.4% somewhat positive, 40.8% unknown, 9.7% somewhat negative, and 5.7% negative. Analysis of demand data by season for live marine bait shrimp suggests seasonal shortages exist for various size classes, with 50.6% of respondents saying they could sell more if supplied. These supply shortages could provide market share to aquaculture producers to supply retailers and possibly develop favorable pricing strategies during shortages. Compared with previous surveys conducted in Florida, the wholesale market price of live bait shrimp about tripled from 1997 to 2014. These survey results provide critical information to potential shrimp aquaculture producers seeking to enter the live marine bait shrimp market in Florida.