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The U.S. Market for Organically Farmed Aquatic Products Linda O Dierno Joseph J. Myers New Jersey Department of Agriculture
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Organic Aquaculture Production 2003 Source: Naturland
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Marketing Orientation Determine consumer wants/needs and then delivering the product desired at a price the consumer is willing to pay Determine consumer wants/needs and then delivering the product desired at a price the consumer is willing to pay Segmenting, Targeting and Positioning (STP) to differentiate yourself from the competition
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European Consumer Attitudes Organic Farm-Raised Salmon
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Norway No well defined understanding of the term organic No well defined understanding of the term organic Knowledge of aquaculture Knowledge of aquaculture Sustainability Sustainability Organic=sales gimmick Organic=sales gimmick
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Germany Little knowledge of aquaculture Little knowledge of aquaculture Well defined understanding of the term organic-animal welfare, natural and environmentally-friendly Well defined understanding of the term organic-animal welfare, natural and environmentally-friendly Negative attitudes towards mass production Negative attitudes towards mass production
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United Kingdom Limited knowledge of aquaculture Limited knowledge of aquaculture Freedom from artificial inputs most important Freedom from artificial inputs most important Skeptical about organic aquaculture Skeptical about organic aquaculture
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France Organic=natural Organic=natural Limited control and intervention Limited control and intervention Strict regulation and control Strict regulation and control
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Spain Limited knowledge of the term organic Limited knowledge of the term organic Organic=quality Organic=quality Organic synonymous with ecological and natural Organic synonymous with ecological and natural Non-use of pesticides and not damaging to the environment Non-use of pesticides and not damaging to the environment
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United States Market Barriers Not a seafood consuming nation Not a seafood consuming nation Lack of understanding of aquaculture Lack of understanding of aquaculture Lack of understanding of term organic Lack of understanding of term organic Tend to follow trends Tend to follow trends Majority of consumers shop on price Majority of consumers shop on price
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Critical Market Information Drill down approach SeafoodAquaculture Organic Aquaculture
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Target Markets Boston Boston Princeton, New Jersey Princeton, New Jersey Chicago Chicago Colorado Springs Colorado Springs
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Trends Great deal of variety between markets Great deal of variety between markets Product differed depending on time of year Product differed depending on time of year Many stores used geographic names Many stores used geographic names Genuine Long Island littlenecks Shetland salmon fillets Chilean steelhead fillets Chesapeake oysters
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Consumer Focus Groups
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Telephone Interviews
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Retail Survey
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Issues Understanding of aquaculture Understanding of aquaculture Understanding of term organic Understanding of term organic Food miles Food miles Importance of environmental concerns Importance of environmental concerns Importance of sustainability Importance of sustainability Willingness to pay Willingness to pay Food safety Food safety
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Price Analysis for Organic Shrimp ( Naturland, June 2004)
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Selected Retail Prices Catfish $3.99-$ 8.99 Catfish $3.99-$ 8.99 Genuine LI Littlenecks $3.99/dz-Wellfleet littlenecks $5.99/dz Genuine LI Littlenecks $3.99/dz-Wellfleet littlenecks $5.99/dz Rainbow trout fillets $4.99-$18.00 Rainbow trout fillets $4.99-$18.00 Arctic char $14.99 Arctic char $14.99
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New Jersey Department of Agriculture Jersey Seafood Website http://www.jerseyseafood.nj.gov/
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