1. C ONSUMER P REFERENCE FOR W ILD C AUGHT AND F ARM R AISED S EAFOOD A Comparison across Species and Consumer Residence States Kelly Davidson, Minling Pan NOAA Pacific Islands Fisheries Science Center Wuyang Hu, Devie Poerwanto University of Kentucky Dept. of Agricultural Economics CNREP Conference, New Orleans, LA May 26-28, 2010

2. U. S. B EEF, CHICKEN, AND FISH CONSUMPTION, 1980-2008 Source: USDA/Economic Research Service Per Capita Availability Data NOAA Fisheries of the United States Report, 2008

3. A CLOSER LOOK AT U. S. PER CAPITA FISH CONSUMPTION, 1980-2008 Source: NOAA Fisheries of the United States Report, 2008

4. U.S. S EAFOOD C ONSUMPTION ( NMFS DATA ) 2008 U.S. Per Capita Fish/Shellfish Consumption 16.0 pounds 84% imported, over half of imported seafood is farm raised U.S. freshwater and marine aquaculture combined provide 5% of seafood demand U.S. seafood trade deficit of over $9 billion US ranked 3 rd in seafood consumption behind China and Japan 2008 consumer expenditures on fishery products over $69.9 Billion Nearly $35 Billion in value-added contributing to GNP

5. T OP TEN SPECIES : US PER CAPITA S EAFOOD CONSUMPTION IN 2008 Species (Ranked)Pounds per capita 1.Shrimp4.10 2. Canned Tuna2.80 3. Salmon1.84 4. Pollock1.34 5. Tilapia1.19 6. Catfish0.92 7. Crab0.61 8. Cod0.44 9. Flatfish0.43 10. Clams0.42 Total Top 10 Species14.1 Source: National Fisheries Institute, 2010

6. G LOBAL AQUACULTURE World Per Capita Fish/Shellfish Consumption 36.2 lbs Global wild fish harvest 90-95 million tons/yr Global aquaculture production 60 million tons/yr Value of $70 billion per yr Total U.S. aquaculture production approx. $1.2 billion per yr China leads in both aquaculture and wild catch 31 million mT farmed in 2007 14 million mT caught in 2007 U.S. and Japan major importers of fishery products – over $13 billion each Source: FAO data and NOAA Aquaculture Statistics

7. H AWAII S EAFOOD MARKET Local per capita seafood consumption rate approx. 3 times the national average Demand for most products > supply Imports 75% of all seafood consumed Fresh and live product markets Tourism, “ethnic markets” Premium price for fresh, high quality seafood Source: Hawaii Dept. of Agriculture

8. H AWAII AQUACULTURE 70 aquaculture operations statewide Offshore Marine Culture Hukilau Foods Moi Cage Culture Kona Blue Water Farms Kona Kampachi Record $34.7 Million total grown in 2008 38% increase from 2007 Hawaii County accounted for 80% Source: National Agricultural Statistics Service USDA, Hawaii Field Office

9. PILOT STUDY RATIONALE NOAA Aquaculture Policy What seafood attributes are important when comparing aquaculture with wild catch? Perceptions of aquaculture Consumer preferences Across species Popular (tuna, salmon) and less familiar (moi, tilapia) Across different residence states

10. P ILOT STUDY – AUGUST 2009 15 respondents in Hawaii, 17 in Kentucky Clarity of survey questions Awareness of aquaculture Familiarity with species Attribute question for each species used to determine conjoint analysis cards 1=Not important, 5=Very Important

11. P ILOT SURVEY QUESTIONS Which of the following have you purchased for home consumption in the past 60 days? Top ten species How often can you find fish from aquaculture in the market? For seafood, which of the following types do you prefer most: Wild caught Inshore aquaculture Offshore aquaculture Land-based aquaculture What are the main reasons? (environmental issues, natural resource uses, taste, food safety standards, price, other)

12. M ORE PILOT SURVEY QUESTIONS For each species, which type of product have you purchased? Wild Caught, Farm Raised, Both, Neither, Unsure How do you perceive the status of wild fish in the U.S. for each species? Severely Overfished, Moderately Overfished, Not at all Overfished, Unsure Are you more likely to purchase seafood grown locally in your area?

13. I NTERESTING COMPARISONS FROM PILOT RESPONSES Consumers are less familiar with term “aquaculture” than “farm-raised” Top ten species consumption Shrimp, canned tuna, fresh tuna, salmon relatively equally popular in each state More variation in Kentucky: Pollock, Tilapia, Catfish, Cod – zero consumed in Hawaii, some in KY Are you able to differentiate between wild fish and aquaculture fish, either pre or post-consumption? 12/17 in KY “sometimes, most of the time, always” 9/15 in HI “rarely, never” 6 in HI “sometimes” or more

14. M ORE INTERESTING COMPARISONS Are you more likely to purchase seafood grown locally in your area? Hawaii: 9 yes, 4 no, 2 unsure Kentucky: 4 yes, 9 no, 2 unsure Price always important attribute for each species Biggest differences for importance of each attribute between Tilapia and Moi Product familiarity Tilapia availability: 5 Hawaii respondents indifferent, only 3 said availability was important compared to 8 in Kentucky Importance of product availability differed by species Tuna availability more important in Hawaii Salmon and Tilapia availability important in Kentucky

15. F OR SEAFOOD, WHICH OF THE FOLLOWING TYPES DO YOU PREFER MOST ? HawaiiKentucky Wild Caught1211 Inshore Marine Aquaculture10 Offshore Marine Aquaculture32 Land-based Aquaculture02

16. R ESEARCH OBJECTIVES Consumer preferences across species, different residence states Production Methods Tastes Perceptions Species Attributes Hawaii vs. Kentucky: cultural and geographical differences in consumer preferences Objectives Examine consumer preference toward farm-raised versus wild caught fish Evaluate the impact of preference related attributes across species on consumption decisions and WTP

17. M ETHODOLOGY Consumer surveys Online Face-to-face Consumer preference elicitation method Attitude and perception questions Past consumption history: quantities and price Hypothetical consumption questions for moi/tilapia Choice experiment (conjoint analysis) on attributes of species Tuna, Salmon, Tilapia, Moi Data analysis Multivariate regression analysis Discrete choice models

18. S AMPLE CONJOINT CARD Tuna (Sashimi Grade Steak ): Situation 2

19. C ONJOINT ANALYSIS : SPECIES AND ATTRIBUTES Salmon Wild Caught/Farm Raised Previously Frozen/Fresh Imported/US Domestic Tilapia Locally Grown Veg. Feed/Synthetic P. Frozen/Fresh/Live Tuna Wild Caught/Farm Raised P. Frozen/Fresh Turtlesafe Logo Moi (pacific threadfin) Locally Grown Land-based/Ocean- based/Wild Caught

20. QUESTIONS OR COMMENTS?