- Impact of the Catfish Industry on Chicot County, Arkansas
Aloyce Kaliba and Carole Engle
An input/output model was used with catfish production survey data to quantify the economic contribution of the catfish industry in terms of creating new dollars, jobs, and income to the local economy. Total employment created in Chicot County by businesses directly or indirectly involved with the catfish industry was 2,665 jobs, representing 48% of all employment in Chicot County. Total tax revenue generated was $22 million.
- Catfish stocker production and economics
Steeve Pomerleau and Carole Engle
Three pond studies and a linear programming model have been completed to evaluate the potential of stocker production on catfish farms. Overall, results show that the most effective way to produce stockers is to stock 40,000 four inch fingerlings/acre to produce from 169-255g stockers. The mathematical programming model showed that using 37g advanced fingerlings for multiple batch production was the most profitable strategy followed by on-farm production of 255g stockers.
- In-pond floating grader trials and economics
Jeremy Trimpey and Carole Engle
Replicated trials were conducted in experimental and commercial ponds to evaluate the in-pond floating grader. The UAPB grader returned more than 2-4 times more sub-harvestable fish to the pond for additional growth than the traditional live car.
Partial budget results indicated positive net benefits for all farm sizes (160 acres, 320 acres, 640 acres and 1,200 acres). Net benefits increased with farm size, market price, and increased dockage penalties.
- Economic impact of the trout industry on Transylvania County, North Carolina
Aloyce Kaliba, Carole Engle, Steeve Pomerleau, Jeffrey Hinshaw and Debra Sloan
A survey of trout farmers in Transylvania County, North Carolina was used to estimate the impact of the trout industry on the county?s economy. The study showed that, in 2002, the trout industry generated about $9 million in economic output, created 201 jobs and generated $3 and $0.9 million, respectively, as labor income and tax revenue. These impacts are particularly important in a county where economic prosperity depends on locally available jobs and diversification of economic activities.
- Effect of proposed effluent treatment options for hybrid striped bass
Yong-Suhk Wui and Carole Engle
A mixed integer programming analysis of effluent treatment options was used to evaluate the farm-level impacts of proposed effluent treatment options for hybrid striped bass farms. Settling basins and constructed wetlands entailed high costs. No annual draining and not flushing the pond water were the best treatments. However, additional work is needed on the long-term risks of not flushing and not draining hybrid striped bass ponds.
- Effect of stocking density on catfish production characteristics
Brent Southworth and Carole Engle
Channel catfish were stocked at 3,500, 7,000, 10,500, and 14,000/acre in single-batch production. Mean weight at harvest and growth of catfish decreased significantly as stocking density increased. Net yield and net daily
yield increased significantly as stocking density increased, but marketable yield was highest at 7,000/acre.
- Forecasting Market Share Using A Flexible Logistic Model
Kwamena K. Quagrainie
The strong competition from low-priced imported catfish fillets has resulted in a declining market share for domestic farm-raised catfish fillets. A better prediction of market shares is useful for evaluating the effectiveness of pricing policies, because in setting prices, one of the fundamental issues to consider is an assessment of the potential market share. The market share of channel catfish is forecast to be increasing. Results also suggest an increase in the price premium of US catfish fillet negatively affects market shares and an increase in personal disposable income, as people eat out, decreases market shares of US catfish fillets. The catfish industry would increase its market share with a higher fillet percentage of total catfish sales, because catfish fillets are the preferred products of the food service sector.
- A Latent Class Model for Analyzing Preferences for Catfish
Kwamena K. Quagrainie
Consumer heterogeneity is an important fundamental concept in marketing strategy and planning because it is the basis for market segmentation, targeting, and product positioning. In this regard, preference heterogeneity that identifies catfish buyer segments with similar preferences could help the marketing of catfish. Product differentiation coupled with market segmentation could be an effective strategy for meeting import competition. Using a latent class model of structural heterogeneity in the multinomial logit framework, this study examined catfish preferences of Arkansas restaurateurs from stated choice data. The results suggest two latent classes of restaurateurs that are fairly distinct and have some degree of overlap. Managers in both classes are sensitive to prices and prefer catfish products that have mild flavor and soft texture. When preference for dryness, flavor and texture are assumed equal for both classes, one class becomes very sensitive to price but unconcerned with color while the other class becomes insensitive to price but very concerned with color. Restaurants that purchase a higher percentage of their catfish products from wholesalers belong to the former class segment.
- Evaluation of Alternative Market Channels for Farm-Raised Catfish
Kwamena K. Quagrainie
Catfish producers have traditionally marketed catfish to centralized processing plants that eviscerate and fillet the fish for distribution to the food service sector and to retail markets. However, low prices offered by the processing plants since December of 2001 have fallen short of the break-even costs for some farmers. Developing alternative marketing channels that offer higher prices to catfish producers have been suggested to help improve
farmers revenue by spreading price risks. The results of the study suggest that catfish farmers can increase the average price received for live food-sized catfish by decreasing the percentage of fish marketed to processing plants and live haulers, while increasing the percentage of fish marketed to retail outlets. This can be achieved with on-farm value added processing. However, retail outlets are relatively limited and may not provide a solution to large-scale producers of the catfish farming industry.
- Analyses of Price Expectations in the Farm-Raised Catfish Market
Kwamena K. Quagrainie
The processing sector is the major market channel for farm-raised catfish, and the supply of catfish to processing plants typically involves a time lag between supply decisions and delivery at the plant door. A farmer who decides to supply catfish to a processing plant must first provide a sample about 3-4 weeks before delivery for a flavor test. Assuming fish is on flavor, catfish farmers must base their delivery (supply) decisions on price forecasts. The study predicted a common expected price that matches well with actual transacted price from August 1997 to February 2001. Estimates of missed farm revenue due to the non-realization of the expected price are $18, $11, and $88 million in 1999, 2000, and 2001 respectively.
- A Study of the Catfish Preferences of Restaurants and Retail Supermarket Outlets
Kwamena K. Quagrainie
The retail grocery and food service sectors constitute important catfish market channels that need to be examined. In particular, their preference structure and their perceptions of catfish compared to other finfish products that they handle need to be assessed. This is because the relationship between these industries and their customers is primarily based on the ability to supply quality fish. Thus, the preferences and perceptions of these retail grocery and food service operators could help to position catfish as a high-quality product. In addition, one effective marketing strategy for meeting the competition is for the industry to differentiate its products from the competition. By determining the preferences of grocers and restaurateurs, the industry can market catfish products to directly meet their needs. The study involves a nationwide survey of retail grocery outlets and restaurants.
- Consumer Preferences for Retail Seafood Packs: The Case of Catfish
Kwamena K. Quagrainie
The catfish industry is becoming interested in retail sales of catfish because of the competitive nature that imported fish fillets pose at the foodservice sector market. It is envisaged that the marketing strategy of labeling, emphasizing
"U.S. farm-raised catfish" can be better pursued at the retail market level. Proper household-size retail packages for catfish could be used to provide labeling information on origin, price, quality, nutrition, product safety and other relevant product information to consumers. That way, a positive relationship could be developed between consumers and U.S. catfish to establish a US farm-raised brand equity and loyalty, and probably a guarantee of quality and safety. It could result in increased profitability for producers and processors if consumers are willing to pay a higher price for a U.S. farm-raised brand. Retail food sales continue to attract a larger share of consumer expenditure on food accounting for over 52% of total household food expenditures. The grocery retail outlet presents a potential for increased sale and demand for catfish products but has not been explored. The study evaluates grocery-retail demand for retail catfish packs, including a determination of factors that may be necessary for developing such retail packages. An assessment will also be made about the use of origin as a cue for food safety and quality.
- Contracting as an Alternative Marketing Strategy: Evidence from Arkansas Catfish Farmers
Kwamena K. Quagrainie
It is believed that food processors are generally less risk averse than farmers so that processors shift some risk from farmers in order to increase their profits. But in the catfish industry, processors are not well diversified and have a limited ability to bear risk. Over 93 percent of farm-raised catfish are sold through fish processing companies. If we assume that catfish processors behave as other food processors, then catfish processors, being relatively concentrated, dictate the terms of transactions for the purpose of profit maximization. However, some processors of late have been willing to bear some market risks through selling delivery rights. To fully understand the development of catfish markets and contracts, it is necessary to understand whether catfish processors, being concentrated but not well diversified, are more risk averse and/or have less ability to absorb risks from producers. This relationship in terms of risk aversion between processors and producers would imply that catfish processors are more likely to offer terms of trade that do not shift risk from producers. Additionally, if catfish processors are facing price risk in their terms of trade from retailers, they are more likely to pass that risk on to producers. The study examines the risk shifting characteristics of cooperative processors versus independent processors.
- Catfish Quality Differences and the Impact of Imports on the US Catfish Industry
Kwamena K. Quagrainie
The United States lifted a trade and investment embargo against Vietnam in 1994 paving the way for normal trade relations between the two nations. Currently, Vietnamese catfish accounts for over 95 percent of the catfish products imported into the U.S. The seafood market demand in the U.S. is large and with the relative strength of the dollar and a bilateral trade agreement with Vietnam, it is expected that Vietnamese exports of aquaculture products into the U.S. will continue to grow. Since 1998, Vietnam has become the largest exporter of catfish fillets to the US. The species from Vietnam are the Pangasius hypothalamus and Pangasius bocourti. US farm-raised catfish is the channel catfish, Ictalurus punctatus. This study will examine factors that affect trade flows of catfish from Vietnam to the US as well as any quality differences between the Ictalurus punctatus and the Pangasius species. The potential differences will help to differentiate US farm-raised catfish from the competition. Unique qualities of catfish can be used in product promotion.
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