Purchase Behavior, Food Safety, and Quality Control in Seafood and Aquaculture Marketing: Discussion

It is about time that the agricultural economics profession began paying more attention to seafood and aquaculture marketing. It is about time, because aquaculture is probably the single most exciting development in the animal protein industry since the domestication of cattle. It is about time, since the revolution in aquaculture has been taking place for more than two decades, yet still has received very little attention from our profession. Aquaculture development encompasses an intriguing array of economic problems in addition to the marketing problems addressed in this session. It is characterized by rapid technological change and development that represents the transition from a wild-based industry to a farmbased industry, and it is taking place in a highly regulated and international environment. A broad range of species and technologies is being utilized in aquaculture production. For example, the technology used to raise oysters has similarities to but is also vastly different from the technologies employed in shrimp culture or those involved with salmon culture. Given its rapid growth, broad range of species, technologies, and international diversity, aquaculture is clearly one of the most intriguing natural-resource-based economic enterprises. This session emphasized the marketing aspects of aquaculture products. Let us now consider why marketing and demand analysis for the seafood industry and aquaculture are particularly interesting. First, the seafood industry is global. The United States imports most of its shrimp, fresh salmon, and seafood in general. Currently more than half the shrimp entering the United States is from aquaculture production, as is the majority of fresh salmon. Another factor that makes the study of seafood marketing fascinating is its exceptional heterogeneity. There are well over 200 commercial species currently being traded. A clam is significantly different from a piece of salmon, a swordfish steak, or canned tuna, much more different than, say, a piece of chicken compared to a pork chop or a piece of steak. In addition to the diversity characterized by the vast array of species and their origins, there is also diversity in product form. Some seafood is sold live at the retail level. Yet fish are also sold in highly processed forms, e.g., canned, breaded, and as surimi; crab analog products. It is unfortunate that agricultural economists chronically group s afood as if it were one homogeneous product. The structure of the seafood industry is undergoing metamorphosis as aquaculture production becomes a more significant factor in supply. Presently, the seafood industry is characterized by a large number of relatively small firms. As aquaculture develops, it has attracted the interest of larger firms, thus becoming vertically integrated and concentrated. This increased concentration and vertical integration will lead to more sophistication in the marketing of aquaculture products. The paper by Hanson, Herrmann, and Dunn addresses the determinants of seafood purchase behavior, with emphasis on consumer behavior. Seafood, like other animal proteins, is influenced by traditional factors of demand including own price, substitute price, income, perceptions, tastes, and preferences. The issue, which is not addressed here, is, to what degree do these factors influence seafood demand? Hanson, Herrmann, and Dunn (HHD) comment on supply constraints, suggesting two factors that are significant in limiting the potential for aquaculture. First, the industry "produces many different types of finfish and shellfish, fragmenting the genetic research efforts." Second, "fish health regulations and discharge perJames L. Anderson is professor in the Department of Environmental and Natural Resource Economics at the University of Rhode Island.