Aquaculture, the farming of aquatic animals and plants, and other seafood businesses continue to grow rapidly around the world. However, many of these businesses fail due to the lack of sufficient attention to marketing. The Seafood and Aquaculture Marketing Handbook provides the reader with a comprehensive, yet user-friendly presentation of key concepts and tools necessary for aquaculture and seafood businesses to evaluate and adapt to changing market conditions.
Markets for aquaculture and seafood products are diverse, dynamic, and complex. The Seafood and Aquaculture Marketing Handbook presents fundamental principles of marketing, specific discussion of aquaculture and seafood market channels and supply chains from around the world, and builds towards a step-by-step approach to strategic market planning for successful aquaculture and seafood businesses.
This book is an essential reference for all aquaculture and seafood businesses as well as students of aquaculture. The volume contains a series of synopses of specific markets, an extensive annotated bibliography, and webliography for additional sources of information.
Written by authors with vast experience in international marketing of aquaculture and seafood products, this volume is a valuable source of guidance for those seeking to identify profitable markets for their aquaculture and seafood products.
Carole R. Engle, Engle-Stone Aquatic$ LLC, Strasburg, VA, USA
Kwamena Quagrainie, Department of Agricultural Economics, Purdue University, USA
Madan M. Dey, Department of Aquaculture and Fisheries, University of Arkansas at Pine Bluff, USA
Seafood and aquaculture markets
This introductory chapter will provide an overview of seafood and aquaculture markets worldwide, the global supply of major seafood and aquaculture species, the location of major markets, and international trade volumes and partners. The chapter continues with a discussion of characteristics of aquaculture products and the market competition between wild-caught and farmed fish. The chapter concludes by summarizing trends in consumption of seafood and aquaculture products. Practical examples from aquaculture are included throughout.
Global trends in seafood and aquaculture markets
Successful industries must be successful in marketing their products yet marketing is not well understood by many aquaculturists. This book both defines and explains many key marketing concepts and components of theory fundamental to a thorough understanding of marketing that is necessary for aquaculture businesses to successfully develop effective marketing plans and strategies. A market can be defined in a number of ways. It can be a location, such as the Fulton Fish Market in New York City or the Tsukiji Market in Tokyo, Japan, a product such as the jumbo shrimp market, a time such as the Lenten season market in the United States or the European Christmas market, or a level such as the retail or wholesale market.
This chapter will focus mostly on geographic markets but will touch on several other levels of markets. Chapter 3 presents more specific information on fundamental marketing terms and concepts.
A frieze in an Egyptian tomb dated to 2500 B.C. shows the harvest of cultured tilapia (Bardach et al. 1972). While this date places aquaculture as an ancient technology, it is still quite young when compared to terrestrial agriculture. Diamond (1999) shows that domesticated species of both crops and animals were being cultivated by 8500 B.C. (Table 1.1). Southwest Asia and China served as the birthplace for many types of terrestrial agriculture and aquatic crops. Diamond theorized that areas with sparse game would provide greater returns to the effort in developing farming technologies. For most species of fish, scarcities due to overfishing have become evident only in the latter part of the 1900s. Thus, strong incentives to explore and invest in widespread domesticated production of aquatic plants and animals have been of comparatively recent origin. The ensuing level of scientific and technological development of aquaculture in the 1900s has resulted in a dramatic blossoming of aquaculture industries.
Table 1.1 Dates of domestication of various plant and animal crops important in the cultural development of humans.
Source: Diamond (1999). Area Domesticated Earliest attested date of domestication Plants Animals Independent origins of domestication
Southwest Asia Wheat, pea, olive Sheep, goat 8500 B.C. China Rice, millet Pig, silkworm By 7500 B.C. Mesoamerica Corn, beans, squash Turkey By 3500 B.C. Andes and Amazonia Potato, manioc Llama, guinea pig By 3500 B.C. Eastern U.S. Sunflower, goosefoot None 2500 B.C. Sahel Sorghum, African rice Guinea fowl By 5000 B.C. Tropical West Africa African yams, oil palm None By 3000 B.C. Ethiopia Coffee, tea None Unknown New Guinea Sugar cane, banana None 7000 B.C. Local demonstration following arrival of founder crops from elsewhere
Western Europe Poppy, oat None 6000-3500 B.C. Indus Valley Sesame, eggplant Humped cattle 7000 B.C. Egypt Sycamore fig, chufa Donkey, cat 6000 B.C.
Continued growth in the global economy and in the world's population has resulted in increasing demand for seafood. However, the volume of seafood supplied from capture fisheries across the world has leveled off since about 1994, while the quantity of aquaculture production supplied worldwide has continued to increase (Fig. 1.1). The global supply from capture fisheries increased most rapidly during the late 1950s through the end of the 1960s. From that point, capture fisheries continued to increase, but at a slower rate, reaching slightly more than 95 million metric tons in 1996. Since then, world capture fisheries have fluctuated from 86.8 million to 94.8 million metric tons, averaging about 92 million metric tons. It is clear that most of the increase in the world supply of fish and seafood has been due to the expansion of aquaculture production.
Fig. 1.1 Volume of wild-caught and farmed supply of seafood, 1950-2012.
Source: FAO (2014).
Global aquaculture production has increased more than 40-fold, from 2 million metric tons in 1960 to 90.4 million metric tons in 2012 (FAO 2014), while chicken meat production increased by a factor of 10 and beef production doubled (Thornton 2010). From 2008 to 2012, the annual growth rate of cultured finfish and shellfish production averaged 4%. Capture fisheries production has declined by 3% from 1996 to 2012.
All aquatic farming combined represented a 3% share of the world harvest of fish, shellfish, and seaweeds in 1950 (FAO 2014). By 2012, this share had increased to 49.4% and consisted of a record 90.4 million metric tons of total farmed aquatic production. Of this, the greatest increase was for freshwater diadromous fishes (41.97 million metric tons), aquatic plants (23.78 million metric tons), and mollusks (15.17 million metric tons). The total value of aquaculture production worldwide increased to $144.3 billion in 2012.
The relative costs of capture fisheries have increased over time while those of aquaculture production have decreased. In the United States, the Magnuson Fishery Conservation and Management Act established a 200 nautical mile (370?km) Exclusive Economic Zone (EEZ) for commercial fisheries. The U.S. Magnuson Act, combined with declining abundance of many types of fish stocks, requires trawlers to travel greater distances to find supplies of fish. In other parts of the world, countries such as Chile, Ecuador, and Peru have also claimed rights to 200 nautical mile zones for fishing. However, a few countries, such as Papua New Guinea and Anguilla, still use a 5-km limit, while others have moved to a 12 nautical mile limit. Costs of capture fisheries are likely to continue to increase over time. At the same time, aquaculture costs have declined as new technologies have been developed and refined. According to a 2013 World Bank study (World Bank 2013; Kobayashi et al. 2015), global fish supply is projected to rise to 187 million metric tons by 2030. Capture production is expected to remain fairly stable over the 2000-2030 period, with a projected supply of about 93.2 million metric tons in 2030. In contrast, global aquaculture projection is likely to maintain its steady rise, reaching 93.6 million metric tons by 2030. In terms of food fish production, the World Bank study predicts that aquaculture will contribute 62% of the global supply by 2030.
Where are most aquaculture crops produced?
Asia is the birthplace of early aquaculture production technology and continues to be the world's leading aquaculture region. Production in Asia reached 46.7 million metric tons in 2012, accounting for 91% of the world's output (Fig. 1.2). Next to Asia, the Americas was the second leading aquaculture producing region, but with only 4% of total world production. Europe followed closely at 3% of total world production, and Africa at 2%.
Fig. 1.2 World aquaculture production by region, 2012.
Source: FAO (2014).
The nation that leads the world in aquaculture production is China (Fig. 1.3). Of the top 10 countries in aquaculture production, eight are located in Asia (China, Indonesia, India, Vietnam, The Philippines, Bangladesh, Republic of Korea, and Thailand). Norway and Chile are the only non-Asian countries in the top 10 (ranking eighth and tenth, respectively, in terms of quantity produced). While aquaculture's contribution to world aquatic production averaged 35% in 2002, it reached 66% to 77% in some of the top aquaculture producing countries (China, India).
Fig. 1.3 Volume of global aquaculture production by country, 2012.
Source: FAO (2014).
Much of the aquaculture production in the world occurs in lesser-developed nations (FAO 2014). Of the top 20 aquaculture producing nations, only three, Japan, Norway, and the U.S., are considered developed nations by the FAO. Moreover, much of the increase in aquaculture production has been from low-income food deficit countries, such as China.
Global aquaculture production has grown at an annual rate of...