Are Midwestern fish retailers willing to pay more for regionally grown fresh-on-ice fish?

Rejeana M. Gvillo, Kwamena Quagrainie, Nicole Olynk, Jennifer Dennis

Department of Agricultural Economics, Purdue University, West Lafayette, USA.
Department of Agricultural Economics, Texas A&M University, College Station, USA;.

DOI: 10.4236/as.2013.46A006                

Abstract

The fish and seafood market in the Midwestern region of the United States is currently dominated by frozen products. Fish producers in the region may be able to market their products as fresh, regionally grown and farmed fish. Fish producers may be able to supply fresh fish products that have not been previously frozen but preserved fresh with ice. The study examined retailers’ willingness to pay more for Midwestern fresh fish adopting the literature on consumers’ willingness to pay for market services or products, assuming that retailers understand their customers, and that they are able to add any premiums paid for to their retail prices. The overall probability of retailers paying more for regionally grown fresh-on-ice fish is low though consistency in supply and sourcing out of state positively affected the probability to pay more. In spite of these positive factors on willingness to pay more for Midwestern fresh-on-ice fish, Midwestern fish producers would probably remain non-competitive in the fresh-on-ice fish market in the short and medium term, and should continue to focus on the live market.

Keywords

Fresh Fish; Midwest; Willingness to Pay; Ordered Probit

Conflicts of Interest

The authors declare no conflicts of interest.

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