AN EXPLORATORY PERFORMANCE ASSESSMENT OF SHRIMP EXPORTERS FOR THE U.S. MARKET

This paper develops a systematic approach for the assessment of export performance and applies it to evaluate the major shrimp exporters for the U.S. market during the period from 1991 to 2007. Export performance is evaluated from two perspectives: (1) an individual exporter's competitiveness in a specific shrimp product in terms of comparative advantage, and (2) an individual exporter's overall competitiveness in the U.S. market in terms of specialization.     

FACTORS THAT INFLUENCE FREQUENCY OF PURCHASE OF CATFISH BY U.S. HOUSEHOLDS IN SELECTED CITIES

Increased understanding of the factors that influence the frequency of purchase of catfish (Ictalurus punctatus) by U.S. households would provide guidance for catfish marketing programs. A household survey was conducted to analyze consumer preferences and consumption trends of U.S. farm-raised catfish in Birmingham, Memphis, Chicago, Jackson (MS), New Orleans, Baton Rouge, Little Rock, Oklahoma City, Dallas, Houston, and San Antonio. An ordered probit model was developed to examine the variables influencing frequency of catfish purchase. Household respondents in all cities except Jackson, New Orleans, Oklahoma City, and San Antonio were found to be more frequent buyers of catfish products. Respondents who preferred fresh catfish had a greater likelihood of frequent catfish purchase while buyers of frozen catfish were less likely to purchase catfish frequently. Method of preparation and serving had no influence on catfish purchase frequency. Buyers purchasing from supermarket outlets had a higher probability of being more frequent buyers of catfish products than those who purchase from other market outlets. Product origin labels and vacuum-sealed packaging influenced the frequency of catfish purchase. Caucasians and African Americans were found to be more frequent buyers of catfish products while Hispanics were found to be significantly less frequent buyers of catfish products. Married couples had a greater likelihood of purchasing catfish more frequently than unmarried couples. Age of the respondents as well as number of household members had no significant effect on frequency of catfish purchase. The results from this study support the importance of country of origin labeling, supplying high-quality fresh products, and alternative packaging to enhance sales of U.S. farm-raised catfish in supermarkets.     

Export performance of major cultured shrimp producers in the Japanese and US markets

Increase in shrimp farming was stimulated by growth in world market for high-value shrimp products in the 1980s. The major cultured shrimp producers are located in Asia-Pacific and Latin American regions. The revealed comparative advantage (RCA) method is used to provide insights into the export performance of nine selected shrimp producers in the Japan and United States markets, separately. Shrimp is marketed in a wide variety of product forms, and prices vary according to various product attributes including species, size, taste, quality and origin. The results show that vertical product differentiation concerning different varieties of a good in terms of both quality and price plays an important role on the relative export competition of shrimp products among major shrimp-exporting countries. As a result of the geographical advantage, Asia-Pacific producers enjoy comparative advantage in the Japanese imported shrimp market. Joint ventures with the United States provide great benefits to Ecuador and Mexico in exporting fresh shrimp into the United States market.     

Price integration in the farmed and wild fish markets in Uganda

This paper looks at price integration in the aquaculture and wild-harvested African catfish market channels in Uganda. The issue of integration between the two market channels is important because African catfish has become an important traded species in Uganda with exports to regional markets rising even faster than production, yet limited research has been undertaken to understand price formation in the supply chain. The analysis draws on monthly price data from January 2006 to August 2013, and applies threshold autoregressive approaches to test for the existence of a long-run relationship and price asymmetry and to determine the time path needed for shocks to be transmitted from one market channel to the other. The results show that, over the studied period prices in both market channels are linked in the long-run, implying that farm-raised catfish forms part of the same market as wild-harvested catfish in the country. The findings have strong implications for aquaculture producers and artisanal fishers as they can serve as a basis for more efficient farm management and marketing decisions.     

Analysis of Catfish Pricing and Market Dynamics: The Role of Imported Catfish

The producer price of catfish is becoming relatively unstable compared to the trend in previous years, necessitating the need for a complete analysis of catfish pricing and market dynamics. An understanding of the price determination mechanisms in the catfish market and the relationships between producer price, domestic processed price, and import price are important because price variability can result in significant financial losses to the domestic catfish industry. This study used a cointegration procedure to examine the long-run relationships between domestic prices of catfish and imported price. Results from unit root and cointegration tests suggest that there is a long-run equilibrium relationship between pairs of these prices. Results from Granger causality tests and error-correction model estimations suggest that the market for domestic frozen fillets plays a significant role in the price determination of imported catfish. A similar relationship is found between producer price and frozen fillet price. Some significant measures that were estimated include a frozen fillet-producer long-run price transmission elasticity of 0.162, a frozen fillet-imported fillet long-run price transmission elasticity of 3.56, and a producer-frozen fillet short-run price transmission elasticity of 0.322. High levels of fillet prices appear to have influenced the level of catfish imports. As long as distributors and restauranteurs do not see a basis for paying a premium for U.S. catfish products, they will continue to purchase the lower-priced imported catfish and consequently imports will continue to increase.     

Wildlife-Caused Losses for Producers of Channel Catfish Ictalurus punctatus in 1996

The National Agricultural Statistics Service surveyed by telephone and mail in January and February 1997 all known producers of channel catfish letalurus punctatus to acquire current information about wildlife-caused losses in calendar year 1996. Many producers tried to prevent wildlife-caused losses of their catfish by shooting (57%), vehicle patrol (55%), or frightening (36%), at an estimated cost of >$5 million. Yet, 69% of catfish producers cited some wildlife-caused losses. Birds were most frequently cited as a cause of losses, and double-crested cormorants Phalacrocorax auritus was the species cited most frequently (53%). The next most frequently cited birds were herons Ardea spp. (48%), egrets Egretta spp . (16%), and pelicans Pelecanus spp. (8%). Muskrats Ondatra zibethicus were cited by 10% of producers, primarily for damaging dikes and roads. The main problems caused by wildlife were feeding on catfish (67%), injuring catfish (40%) or disturbing feeding patterns of the catfish (23%). The total estimated cost of losses was $12 million. Overall, wildlife damage and damage prevention may have cost catfish producers > $17 million, about 4% of the total $425 million of catfish sales in 1996. Of the 44% of all catfish producers who were familiar with Wildlife Services (WS), 51% had ever contacted WS for assistance, 55% used methods suggested by WS to reduce their losses, and 40% received direct assistance from WS in 1996. Mississippi producers, who most frequently received direct assistance from WS, had proportionately lower wildlife-caused losses.     

Development of aquaculture financial planning system

Abstract

Economically efficient feeding levels in intensively stocked ponds might be below minimum biological feeding requirements under adverse market conditions. A catfish production function that estimated relationships between yield and stocking and feeding rates was used as the basis for estimating production relationships. Feed price boundaries were developed that allowed the feeding rate to exceed the minimum biological level but still reflected economically efficient rates over a range of catfish prices and producer risk preferences. At higher stocking densities (20,000/ha), the feed price upper bound is lower than at lower stocking densities. Producers stocking at higher rates will be less likely to maximize profit and meet minimum biological feeding requirements as feed price increases than those producers stocking at lower rates. However, if feed prices exceed the upper bounds calculated in this paper, producers should engage in feeding only at levels necessary to meet farm financial and cash flow obligations until such time as the feed price decreases.     

Price transmission among different Atlantic salmon products in the U.S. import market

The cross-commodity price transmission is an approach to derive meaningful results from the price information, and is mostly influenced by the substitutability and complementary relations among products. Using time series data collected from the National Marine Fisheries Statistics, the present study specified and estimated cross-commodity price transmission models for 13 salmon products imported in the U.S. market. The salmon products are differentiated by form, cut, source/origin, and production environment. The estimated cross-product price transmission elasticity and degree of substitutability among them varied considerably. Whole fresh farmed Canadian and Norwegian Atlantic salmon did not have any close import substitutes in the U.S. market among the salmon products considered in the study. A reduced pricing strategy would result in an increase in U.S. salmon import market share of Chilean and U.K. Atlantic fillet fresh, if the U.S. import demand for it is relatively own-price elastic.     

Economics of Intensively Aerated Catfish Ponds

The US catfish industry is evolving by adopting production‐intensifying practices that enhance productivity. Catfish producers have increased aeration rates over time, and some now use intensive rates of aeration (>9.33 kW/ha). Costs and production performance were monitored at commercial catfish farms using high levels of aeration (11.2–18.7 kW/ha) in Alabama, Arkansas, and Mississippi. A multivariate‐cluster analysis was used to identify four different management clusters of intensively aerated commercial catfish farms based on stocking density, size of fingerlings at stocking, and feed conversion ratios (FCR). Breakeven prices of hybrid catfish raised in intensively aerated pond systems were estimated to range from $1.86/kg to $2.17/kg, with the lowest costs associated with the second greatest level of production intensity. The two medium‐intensity clusters generated sufficiently high revenues for long‐term profitability. However, the least‐intensive and the most‐intensive clusters were economically feasible only when catfish and feed prices were closer to less probable market prices. Feed price, FCR, and yield contributed the most to downside risk. Intensive aeration in catfish ponds, up to the levels analyzed in this study, appears to be economically feasible under the medium‐intensity management strategies identified in this analysis.     

Comparison of Culture Traits of Channel Catfish,Ictalurus punctatus,and Blue Catfish I. furcatus

Culture of channel catfish, "Ictalurus punctatus," accounts for virtually all catfish production. Recently, however, an increasing number of catfish farmers are growing or are considering the culture of blue catfish, "I. furcatus." Current and past research the compared the culture traits of channel and blue catfish are reviewed. Blue catfish could be potentially advantageous for certain farm environments. Strain effects in both species are important. In general, channel catfish grow faster to market size than do blue catfish. However, some strains of blue catfish grow faster than many strains of channel catfish. Blue catfish are more vulnerable to parasites such as "Icthyophthirius" and to bacterial infections such as those from "Flexibacter columnaris when compared to channel catfish. Blue catfish do not tolerate handling as well as channel catfish, and handling stress often leads to infections in blue catfish. However, blue catfish have high resistance to enteric septicemia of catfish caused by "Edwardsiella ictaluri" and to channel catfish virus when compared to channel catfish. Blue catfish are twice as vulnerable to harvest by seining than channel catfish, and have a higher dress-out percentage than most strains of channel carfish. Channel catfish tolerate lower dissolved oxygen levels than do blue catfish. Blue catfish require one more year to reach sexual maturity than do channel catfish.     

Economic assessment of commercial-scale Edwardsiella ictaluri vaccine trials in U.S. catfish industry

Abstract

Enteric Septicemia of Catfish (ESC) is a ruinous bacterial disease affecting the U.S. catfish industry. Previous attempts to develop ESC vaccines have failed to achieve industry acceptance, largely attributed to difficulties in delivering the vaccine to immunocompetent fish. Recently, a live attenuated ESC vaccine has been developed, coupled with a mechanized platform designed to accurately deliver measured doses of vaccine with feed. This delivery scheme for vaccine-feed admixture has shown tremendous promise under controlled research settings. This study evaluated the economic effects of on-going commercial-vaccination trials on catfish fingerling operations in Mississippi. Commercial-vaccination trials for both channel and hybrid catfish demonstrated significant improvement in survival, growth, feed consumption, feed conversion and gross yield. At a realistic vaccination cost of $750/ha, the net economic benefits to channel and hybrid catfish fingerling-production phases were $3199 and $6145/ha, respectively. Whole-farm models showed additional profit ranging from $71,758 to $133,887/400-ha on farms that integrate fingerling production to their production strategies due to appropriation of more of the otherwise incumbent fingerling production acreage into foodfish production. Commercial adoption of the oral-vaccination platform would greatly enhance profitability while laying the foundation for development and delivery of polyvalent vaccines against other catfish diseases.     

Regulatory costs on U.S. salmonid farms

The economic effects of the implementation of regulations on aquaculture farms in the United States, while of concern, are not well understood. A national survey was conducted of salmonid (trout and salmon) farms in 17 states of the United States to measure on‐farm regulatory costs and to identify which regulations were the most costly to this industry segment. The response rate was 63%, with a coverage rate of 94.5% of the U.S. production of salmonids. The regulatory system resulted in increased national on‐farm costs of $16.1 million/year, lost markets with a sales value of $7.1 million/year, lost production of $5.3 million/year, and thwarted expansion attempts estimated at $40.1 million/year. Mean farm regulatory costs were $150,506/farm annually, or $2.71/kg; lost markets with annual sales values of $66,274/farm; annual lost production of $49,064/farm; and an annual value of thwarted expansion attempts estimated at $375,459/farm. Smaller‐scale farms were affected to a disproportionately greater negative extent than larger‐scale farms. Per‐farm regulatory costs were, on average, greater for foodfish producers than for producers selling to recreational markets, but per‐kg regulatory costs were greater for those selling to recreational compared to foodfish markets. Regulatory costs constituted 12% of total production and marketing costs on U.S. salmonid farms. The greatest regulatory costs were found to be effluent discharge regulations. The majority of regulatory costs were fixed costs, but regulatory barriers to expansion precluded compensatory adjustments to the business in spite of growing demand for salmonid products. Results of this study show that the on‐farm regulatory cost burden is substantial and has negatively affected the U.S. salmonid industry's ability to respond to strong demand for U.S. farm‐raised salmonid products. Results also suggest that the regulatory system has contributed to the decline in the number of U.S. salmonid farms. While regulations will necessarily have some degree of cost to farms, the magnitude of the on‐farm regulatory cost burden on U.S. salmonid farms calls for concerted efforts to identify and implement innovative regulatory monitoring and compliance frameworks that reduce the on‐farm regulatory cost burden.     

Price volatility dynamics in aquaculture fish markets

Abstract

In this paper, a time-varying student-t copula is used to capture information on price volatility dependence in the short-, medium-, and long-run horizon in the US market for frozen and fresh salmon, trout, tilapia and catfish. Using monthly data from July 1992 to March 2017, the volatility dynamics for these aquaculture species are assessed. The analysis allows indicating significant differences in the volatility relationships, depending on time-frequency. While short-run volatility has limited dependency, there is significant dependency in both the medium- and long-run, indicating that market integration is stronger in the long-run. The information is particularly important to buyers and producers utilizing the futures markets, as contracts are typically traded using a set of frequencies, and may help them manage and reduce price risk.     

Foodfish Production Strategies Using 13‐cm and 19‐cm Hybrid Catfish, ♀Ictalurus punctatus × ♂Ictalurus furcatus

Most hybrid catfish, ♀Ictalurus punctatus × ♂Ictalurus furcatus, producers stock 18‐ to 19‐cm fingerlings in single‐batch production. While stocking smaller fingerlings would be less expensive, the economic trade‐offs of using smaller fingerlings is unknown. Two sizes of hybrid catfish fingerlings (13‐cm and 19‐cm) were stocked in single‐size treatments at 9884 head/ha and a multi‐size treatment with each size stocked at 9884 head/ha (total 19,768 head/ha). In the 13‐cm and 19‐cm single‐size treatments, 87 and 98%, respectively, reached market size in one season. In the multi‐size treatment, 77% of all fish stocked reached market size, demonstrating that more than half of the 13‐cm fish reached market size in this treatment. Gross, net, and marketable yields were significantly greater in the multi‐size treatment when compared to the 13‐cm or 19‐cm single‐size treatments, but were not significantly different between the two single‐size treatments. The 19‐cm single‐size treatment resulted in greater break‐even prices and economic risk than the other two treatments. This study demonstrated that 13‐cm hybrid catfish fingerlings can be raised economically in both single‐ and multi‐size production systems in the southern USA.     

Characterization of supply of marine finfish species with potential for commercial growth in the United States

Global production of marine finfish has grown in total volume of production and the number of species farmed commercially, but there has been little production in the United States of marine finfish other than salmon and red drum. For most species considered to be ready for commercialization, there are few or no farms from which to evaluate the size of the market or to estimate revenues and costs necessary to assess economic feasibility. This present study takes a first step to fill this gap with an analysis of the existing supply of 20 marine finfish species identified as candidates for commercialization in the United States, as a proxy for effective demand (the volume of a product sold at the market equilibrium price). Secondary data from 1950 (where available) through 2019 were compiled on each species, including (1) global aquaculture production, (2) US aquaculture production, (3) US commercial landings, (4) US recreational landings, and (5) imports. Current effective market demand (measured as the sum of commercial landings, farmed production, and imports) was low, totaling 36.6 million kg across the 20 species, which is equivalent to less than 23% of the annual volume sold of US farmed catfish. Commercial landings for 17 of the 20 species exhibited declines, potentially offering opportunities for farmed product to capture market share by filling the increasing gaps in supply. The variability in commercial landings provides opportunities for farms to capitalize on their advantage in supplying product with a high degree of consistency of volume, size, delivery frequency, and quality. Several unknown factors suggest the need for follow-up studies on consumer preferences, degree of substitutability among finfish species, and effects of recreational landings on demand. An important limitation to prospective producers is the lack of species-specific import data for the generic categories of “flounder,” “bass,” and “snapper.” This supply analysis provides a foundational analysis for prospective producers, investors, and researchers interested in commercialization of these marine species.     

COMPETITIVENESS OF U.S. AQUACULTURE WITHIN THE CURRENT U.S. REGULATORY FRAMEWORK

Increased attention has been paid in recent years to both positive and negative effects of increasing numbers of regulations on businesses in the United States. The decline in U.S. aquaculture has been attributed in part to increasing volumes of imports and high feed prices. However, there is increasing concern that the U.S. regulatory environment, as compared to that of international competitors, may also have contributed to this decline. More than 1,300 laws apply to U.S. aquaculture and even though the majority has been issued by individual states and apply only to specific types of aquaculture businesses in that state, the cumulative regulatory burden has increased over time. Major compliance categories include: 1) environmental management; 2) food safety; 3) legal and labor standards; 4) interstate transport of aquatic products; 5) fish health; and 6) culture of commercially harvested species. A substantial portion of the regulatory burden is the managerial and labor time spent on compliance in addition to the direct cost increases. The streamlined one-stop process adopted in Norway appears to have allowed growth of aquaculture within a comprehensive regulatory framework, yet the lack of such a streamlined approach in the United States appears to have contributed to the decline of existing industries and to serve as a deterrent to investment in newly emerging technologies. Favorable regulatory environments in countries that export to the U.S. contrast sharply with the increasingly inefficient, cumbersome and/or restrictive U.S. environment. Such disparities have created competitive disadvantages for U.S. producers. Attention is needed by policy makers to search for streamlining mechanisms and by the scientific community to address the growing competitive disadvantage to U.S. aquaculture to respond to increased global demand for farmed seafood.     

Analyzing Production Feasibility and Market Potential For Florida Aquaculture Catfish Products

A spatiotemporal linear programming model (GAMS) was constructed to simulate the catfish production and marketing system in the U.S. in order to study the economic feasibility of Florida entering the aquaculture catfish industry. Evaluation of base model results and sensitivity analysis were used to identify constraints to the potential expansion of the catfish industry in Florida. Results indicated production and processing costs were more important in determining the locus of production and processing than were processing capacity, storage costs and capacity, and transportation costs. Thus, existing industry geographic concentration is likely to continue, but small new processing plants could develop proximate markets for fresh product.     

Principal economic effects of cormorant predation on catfish farms

Substantial economic losses of farmed catfish to fish‐eating birds such as the double‐crested cormorant, Phalacrocorax auritus, continue to be reported on U.S. catfish farms. An economic analysis was conducted of the on‐farm effects of both the increased expenditures to scare fish‐eating birds from catfish farms and of the value of the catfish that were consumed by cormorants. A survey was conducted of U.S. catfish farmers in the Delta region of Mississippi and Arkansas, to obtain farm‐level data on expenditures to scare birds. Estimations of the lost revenue from catfish consumed by cormorants were developed from a concurrent study on cormorant distribution, abundance, and diet in the region. The economic effects of bird predation in terms of both fish consumption and management costs were evaluated across three farm sizes and nine catfish production practices. Catfish farmers spent on average $704/ha ± $394/ha to scare birds, making bird‐scaring costs one of the top five costs of raising catfish. The greatest cost components of scaring birds were manpower (39% of all bird‐scaring costs) and the variable and fixed costs of trucks used to scare birds (34% of all bird‐scaring costs). Losses were greater on hybrid than channel catfish fingerling ponds. Industry‐wide, the value of catfish losses averaged $47.2 million (range of $25.8–$65.4 million). Total direct economic effects (including both the increased costs to scare birds and the revenue lost from fish consumed by cormorants despite bird‐scaring attempts) averaged $64.7 million (ranging from $33.5 to $92.6 million). Profitability improved by 4% to 23% across the farm size/production strategies analyzed upon removal of the economic effects from bird predation, with greater effects occurring on smaller‐scale farms. One‐third of the farm size and production scenarios analyzed changed from being unprofitable to showing a profit in the absence of such negative economic effects associated with bird depredation. Overall, the combined effects of increased farm expenditures to scare birds from farms and the value of the catfish lost to predation by cormorants caused substantial negative economic effects on catfish farms.     

Profit-Maximizing Stocking Rates for Channel Catfish in Cages

A production function for catfish in cages was estmated by combining data from a survey of producers in Alabama with data from experimental studies in Texas, South Carolina, and Alabama. Explanatory variables in the quadratic model included cage stocking density, fingerling size, length of growing season, feed conversion rate, squared and cross-product terms, and dummy variables for data sources. Model R ² was 87%. Profit-maximizing stocking densities were calculated for varying levels of growing season duration, fingerling size, fingerling price and market price. Optimal stocking density was shown to be most sensitive to length of growing season.     

U.S. seafood consumption

U.S. seafood consumption has changed dramatically in recent decades and has become increasingly dominated by the consumption of a limited number of species that are primarily imported and predominantly sourced from aquaculture. In getting to this point, the United States has been, and still is, at the forefront of some of the most important trends in global seafood markets. Hence, discussing the factors influencing U.S. seafood consumption patterns is an interesting and informative endeavor and will most likely also have strong predictive power for the continued development of seafood markets in the United States. In this article, we will discuss the transitions in the U.S. seafood market, primarily focusing on the period from 1990 to the present, highlighting the main factors that facilitated this development. This article provides an overview of U.S. landings, aquaculture production, exports, and imports and also explores contributing trends in global export and import markets. This will be followed by a discussion of U.S. per capita consumption patterns and an examination of the consolidation of species consumed over time. Finally, implications for future trends in seafood consumption and production are discussed.