1. Viable Market Opportunities for Organically Grown Aquatic Products Organic Shrimp – The Way of the Future November 18, 2005 Panama City, Panama LINDA J. ODIERNO JOSEPH J. MYERS* International Shrimp Culture Symposium & Trade Show Identification and Evaluation of New Jersey Department of Agriculture Fish & Seafood Program Trenton, NJ USA

2. 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

3. Overview USDA Organic Standards for Seafood Organic Aquaculture Marketing Study

4. 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

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

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

7. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama USDA Organic Standards for Seafood Status of Standards – Whats Next?? Review Public Notice (Federal Register) Public Comment Final Rule Adoption

8. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama USDA Organic Standards for Seafood Status of Standards – Whats Next?? About 3-4 years until: Seafood =

9. 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

10. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Impetus for Project USDA – CSREES (Dr. Gary Jensen) – Standards on the Way – Need Market Information

11. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Advisory Committee NOAWG National Organic Aquaculture Working Group NFI National Fisheries Institute NASAC National Association of State Aquaculture Coordinators Variety of Geographic Regions & Industry Sectors

12. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Advisory Committee Formulate Investigative Strategy Continued Advisement Throughout the Project Function

13. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Consumer – Focus Groups – Telephone Survey Marketplace – Analysis of Products Now in Market – Retailer Mail Survey Scope of Project

14. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Consumer – Focus Groups – Telephone Survey Marketplace – Analysis of Products Now in Market – Retailer Mail Survey Scope of Project

15. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Seafood Aquaculture Organic Aquaculture Investigative Strategy Drill-Down Approach Information About:

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

17. Consumer – Focus Groups – Telephone Survey Marketplace – Analysis of Products Now in Market – Restaurant Survey – Retailer Mail Survey Scope of Project

18. Investigative Strategy Seafood Aquaculture Organic Aquaculture FOUR Target Markets – Affluence – Coastal Proximity Geography Seafood Tradition – Budget and Logistics TWO Market Levels International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

19. Target Markets Boston Region (Massachusetts) Central New Jersey Greater Chicago (Illinois) Colorado Springs (Colorado)

20. Target Markets Boston Region (Massachusetts) Central New Jersey Greater Chicago (Illinois) Colorado Springs (Colorado) International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

21. Target Markets Boston Region (Massachusetts) Central New Jersey Greater Chicago (Illinois) Colorado Springs (Colorado)

22. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Target Markets Boston Region Central New Jersey Greater Chicago Colorado Springs

23. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Target Markets Boston Region Central New Jersey Greater Chicago Colorado Springs

24. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Target Markets Boston Region Central New Jersey Greater Chicago Colorado Springs

25. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Target Markets Boston Region Central New Jersey Greater Chicago Colorado Springs

26. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Target Markets Boston Region Central New Jersey Greater Chicago Colorado Springs

27. New Jersey Upscale Coastal Strong Seafood Tradition * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

28. Boston Blue-Collar Coastal Strong Seafood Tradition * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

29. Colorado Springs Upscale Landlocked NO Seafood Tradition Residents from other Areas * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

30. Chicago Blue-Collar Inland Market – Meat & Potatoes Tradition – Some Seafood Tradition GREAT LAKES – Shellfish Market * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

31. Market Levels General Purchase Supermarket Upscale, Health Food Supermarket

32. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Target Markets Central New Jersey Boston Region Greater Chicago Colorado Springs Target = Eight Focus Groups Conventional Upscale

33. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Target Markets Central New Jersey Boston Region Greater Chicago Colorado Springs Goal = Seven Focus Groups Conventional Upscale

34. Investigative Strategy Seafood Aquaculture Organic Aquaculture Recruitment of Participants – Large Supermarkets – Placard at Seafood Counter – Help from Seafood Manager Compensation – Dinner – $20 Gift Card International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

35. Investigative Strategy Seafood Aquaculture Organic Aquaculture 4-15 Participants Group – Scripted Questions – Group Discussion Individuals – 4-page survey International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

36. Consumer – Focus Groups – Telephone Survey Marketplace – Analysis of Products Now in Market – Retailer Mail Survey Scope of Project

37. Seafood Aquaculture Organic Aquaculture Four Target Markets 200 Surveys in Each Target Market – Purchase decision on seafood Investigative Strategy International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama

38. Target Markets Colorado Springs Central New Jersey Boston Region Greater Chicago Seafood purchasers

39. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Consumer – Focus Groups – Telephone Survey Marketplace – Analysis of Products Now in Market – Retailer Mail Survey Scope of Project

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

41. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Retailer Survey Supermarkets Identified from: – 2005 Blue Book of Supermarket Distribution 257 surveys sent 38 returned (14.8%)

42. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Telephone Survey Analysis of Products in Marketplace Retailer Mail Survey Results

43. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Telephone Survey Analysis of Products in Marketplace Retailer Mail Survey Results

44. Boston * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Tradition and Enthusiasm (even from Managers) Tendency to Discount media reports Local fish market

45. Chicago * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Health & Safety Concerns Price Concerns

46. Colorado Springs * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Concern about how product reaches inland market Freshness Want more variety

47. New Jersey * International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Most Diverse Opinions Two Income Professionals, No Children I Want It, I Buy It

48. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama 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% 32% 22% Focus Groups Committed: 5% Dont Know: 4% Fad: 22% Non-Converts: 52% Semi- Committed: 16% Comparison Between Different Studies

49. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama 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%46% 28% 20% 32% 22% Focus Groups

50. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Term about seafood that conveys the highest quality. All Natural: 23% Harvested from the Wild: 53% Organically Grown: 24%

51. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Organically Farmed: 12% Organically Aquacultured: 34% Organically Grown: 54% Term about seafood that conveys the highest quality.

52. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Reasons for wanting to purchase organic seafood Chemical/Pesticide-Free95% Free of Antibiotics87% Safer64% Superior Flavor62% Ecologically Sound59% Better Quality59% More Nutritious54% Credible Standards49% Animal Welfare36% Focus Groups

53. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Reasons for NOT wanting to purchase organic seafood Too Expensive67% No Credible Standards53% Not Worth the Price Difference40% Limited Availability13% Additives/Chemical/Residues not a Concern 13% Focus Groups

54. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama If available, would you purchase organic seafood? YES: 72% NO: 28% Focus Groups

55. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Telephone Survey Analysis of Products in Marketplace Retailer Mail Survey Results

56. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Telephone Consumer Survey Do you purchase seafood for home consumption? YES: 69% NO: 31%

57. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Telephone Consumer Survey Have you ever purchased aquacultured or farm-raised seafood? YES: 43% NO: 42% DONT KNOW: 15%

58. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Telephone Consumer Survey What 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% Other2%

59. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Telephone Consumer Survey Are you interested in purchasing organic seafood? YES: 67% NO: 24% DONT KNOW: 9%

60. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Telephone Consumer Survey Would you trust an organic label for seafood? YES: 70% NO: 21% DONT KNOW: 9%

61. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Focus Groups Telephone Survey Analysis of Products in Marketplace Retailer Mail Survey Results

62. International Shrimp Culture Symposium & Trade Show Organic Shrimp – The Way of the Future Nov. 18, 2005 - Panama City, Panama Retailer Survey Data Evaluation In-Progress Many Salmon-Related Concerns Majority believe that Organic Labeling IS Compatible. Supply, Availability, Price, Size Issues

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

64. 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 joseph.myers@ag.state.nj.us www.jerseyseafood.nj.gov