Complexities of the U.S. Seafood Market MADAN M DEY, Ph.D. Professor, Aquaculture/Fisheries Center, University of Arkansas at Pine Bluff

Outline

Importance of market information Broad description for the U.S. and Little Rock markets on: Number of products, species, brands, categories of products, Market shares and recent trends in sales for important products

Importance of market information

Marketing equally important as production Traditional market structure changing, with consolidation and growth of large retail chains Enables production and marketing to be in tune with market trends Specifically for processors and farmers: to know finer details about retail sales behavior

Seafood market in the U.S.

Major categories of products

 Canned,  Frozen unbreaded,  Frozen breaded,  Entrée

Some description of seafood sales of 2010 Category

Total no of brands

Share of top- Share of top10 brands in 5 brands in total total sales sales(%) (%)

Total no of products (UPC)

Number of packaging sizes available

Breaded Fish

67

98

95

404

64

Breaded Shrimp

57

97

90

177

22

Canned Shrimp

53

91

79

98

17

Entrée

216

67

49

773

75

Tuna shelf stable

112

99

96

573

573

Unbreaded Crab

101

73

63

207

20

Unbreaded Fish

278

74

64

1123

40

Unbreaded Shrimp

266

82

75

1869

29

Some Description of Unbreaded Fish Products No of Brands

No of Product Forms

No of Product Styles

Number of products (UPCs)

Number of packagin g sizes

Total Unbreaded fish (includes 84 different fish groups)

278

34

102

1123

40

Tilapia

68

4

6

141

18

Salmon

59

12

52

183

25

Basa/Bocourti/Swai

12

3

4

23

6

Catfish / Channel Catfish 36

7

5

91

16

Some description of breaded fish products No of Brands

No of Product Forms

No of Product Styles

Number of Number of packaging UPCs Sizes

Total Breaded fish (31 groups of fish)

67

21

72

404

64

“FISH” (unspecified)

24

13

48

257

59

Tilapia

14

5

11

22

8

Flounder

13

3

10

17

9

Catfish

14

4

4

19

7

Some description of entrée products Entrée Products

No of Brands

No of Product Varieties

No of Product Styles

Number of Number of products packaging (UPCs) sizes

Total entrée fish (40 different fish groups)

216

4

3

773

75

Shrimp

59

4

3

185

34

Tilapia

32

3

3

99

19

Salmon

38

3

3

25

111

Crawfish

18

2

1

27

13

Catfish

3

1

1

6

5

SALES VALUE (IN MILLION US$) OF MAJOR SEAFOOD CATEGORIES IN 2010 195.61

8.39

281.26 1,031.05 TUNA SHELF STABLE ALL CANNED

685.57

ALL UNBREADED FROZEN ENTRÉE ALL BREADED FROZEN ANCHOVIE PRODUCTS

693.06

MAJOR 18 SEAFOOD SUB-CATEGORIES: SHARE IN SALES 1.82 2.33 2.64 3.62

1.14

TUNA-SHELF STABLE SHRIMP - UNBREADED - FROZEN FISH-UNBREADED-FROZEN FISH - BREADED - FROZEN

0.23

ENTREES

1.38 0.44

SALMON - CANNED SHRIMP - BREADED - FROZEN

28.70

SARDINES - CANNED REMAINING-UNBREADED-FROZEN

7.83

SEAFOOD - REMAINING - CANNED CRAB-UNBREADED-FROZEN

OYSTERS - CANNED

9.44

CRAB-CANNED SHRIMP - CANNED ANCHOVIES

12.40

25.76

CLAMS-CANNED REMAINING-BREADED-FROZEN ANCHOVY PASTE

Unbreaded shrimp 250.00

Sales Value Index 200.00

Sales Volume Index 150.00

100.00

50.00

0.00

Unit Price Index

ENTRÉE TOTAL 180.00 160.00 140.00 120.00 100.00 80.00

ENTRÉE Sales Value Index

60.00

ENTRÉE Sales Volume Index 40.00

ENTRÉE Price Index 20.00 0.00

ENTRÉE SHRIMP 160.00 140.00 120.00 100.00 80.00 SHRIMP SALES VALUE INDEX 60.00 SHRIMP SALES VOLUME INDEX 40.00 SHRIMP PRICE INDEX 20.00 0.00

ENTRÉE TILAPIA 300.00

250.00

TILAPIA SALES VALUE INDEX 200.00 TILAPIA SALES VOLUME INDEX TILAPIA PRICE INDEX 150.00

100.00

50.00

0.00

ENTRÉE CATFISH 180.00 CATFISH SALES VALUE INDEX 160.00

CATFISH SALES VOLUME INDEX CATFISH PRICE INDEX

140.00

120.00

100.00

80.00

60.00

40.00

20.00

0.00

UNBREADED TOTAL SALES 250.00 UNBREADED FISH VALUE INDEX UNBREADED FISH VOLUME INDEX

UNBREADED FISH PRICE INDEX 200.00

150.00

100.00

50.00

0.00

UNBREADED CATFISH 200.00 180.00 160.00 140.00 120.00 100.00 80.00 60.00 UB CATFISH SALES VALUE INDEX

40.00 UB CATFISH SALES VOLUME INDEX

20.00 UB CATFISH PRICE INDEX

0.00

UNBREADED BASA/SWAI/BOCOURTI 400.00 UB BASA VALUE INDEX 350.00

300.00

250.00

200.00

150.00

100.00

50.00

0.00

UB BASA VOLUME INDEX UB BASA PRICE INDEX

350.00

TOTAL BREADED FISH PRODUCT SALES INDEX- VALUE-BREADED

300.00

INDEX- VOLUME-BREADED

INDEX- PRICE-BREADED 250.00

200.00

150.00

100.00

50.00

0.00

500.00

BREADED HADDOCK HADDOCK VALUE INDEX

450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00

HADDOCK VOLUME INDEX

HADDOCK PRICE INDEX

BREADED TILAPIA 400.00 TILAPIA VALUE INDEX 350.00

TILAPIA VOLUME INDEX

TILAPIA PRICE INDEX 300.00

250.00

200.00

150.00

100.00

50.00

0.00

BREADED CATFISH 300.00

250.00

CATFISH VALUE INDEX CATFISH VOLUME INDEX CATFISH PRICE INDEX

200.00

150.00

100.00

50.00

0.00

Important Seafood Product Characteristics -form, style and variety

Unbreaded Shrimp

About 53% of the value and 65% of the volume sold under promotion. 266 brands selling 407 different types of processed unbreaded shrimp

Unbreaded Fish

Diverse category About 46% of the value and 51% of the volume of the products are sold under promotion

Unbreaded Fish Products: $ Shares of top 10 Species 3.01

2.64

2.08

TILAPIA

2.00

SALMON

4.61 32.31

5.06

WHITING CATFISH

6.05

COD 7.17

FLOUNDER 18.38

CRAWFISH MAHI MAHI ORANGE ROUGHY HALIBUT

Unbreaded Fish Products: Top 10 species with their Share in Total and Promotional Sale Values 45.00 40.00 35.00 30.00 25.00 20.00

% Total $ share

15.00 10.00 5.00 0.00

% promo sales share

Top 5 Unbreaded Product Forms: % share in Total $ Sales FILET 3.55

2.89 2.60 2.25

STEAK TAIL PIECE SLICED

81.37

Salmon Unbreaded: Product form % shares in Sales $ 3.81

2.82

2.67

5.17

FILLET PIECE PORTION SLICED 84.41

PATTIE

Tilapia Unbreaded: Product form % shares in Sales $ 3.24

1.33

0.24

FILLET WHOLE CUT PIECE

95.19

Basa/Boucourti/Swai: Product form % shares in Sales $ 3

FILLET PIECE

97

Catfish Unbreaded: Product form % shares in Sales $ 0.52

0.60

0.34

0.29

0.003 FILLET

22.00

NUGGET WHOLE STEAK STRIP 76.25

FINGER PIECE

Breaded Fish Products

About 41% and 51% of the value and volume sold through promotional sales.

TOP SELLING FISH GROUPS IN BREADED FISH CATEGORY ($) 2010 COD CATFISH HALIBUT POLLACK

SALES $

FLOUNDER HADDOCK TILAPIA 0

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000

BREADED CATFISH SALES 2010: % $ SHARES OF PRODUCT FORMS 5.8

2.4 0.34

NUGGET

STRIPS N/A

91.4

FILLET

BREADED TILAPIA PRODUCT SALES: $ SHARES OF DIFFERENT FORMS 2.45 0.30 15.43 FILLET

18.13 63.70

FILLET TENDERS

STICK UNKNOWN TENDER

BREADED FLOUNDER SALES: $ SHARES OF DIFFERENT PRODUCT FORMS 0.15 6.54 FILLET UNKNOWN

93.31

WHOLE FILLET

Entrée products

- Promising opportunity for domestic industry

Entrée Products in 2010

About 46% of the sales value and 52% of volume are realized in promotional sales.

Entree products: % Share in sales $ 35.00

% 'sales $ 30.00

25.00

20.00

15.00

10.00

5.00

0.00

Average Price of Entree Products ($/lb): 2010 14.00

12.00 10.00 8.00 6.00 4.00 2.00 0.00

Average Price

Entree Products: % share of different product styles 3.393

0.475

NON-MICROWAVE MICROWAVE REGULAR

96.132

Entre Products: % share of different product varieties 0.193

0.192

99.096

0.001

0.711 REGULAR STEAM IN BAG BOIL IN BAG BAKE IN BAG

Breaded Shrimp

About 44% of the sales value and 48% of the volume are realized during promotional sales. 57 brands, dealing on about 9 types of physical forms and 7 types of dressing styles.

Little Rock City: Seafood Sales 2010

Some information on sales of entrée, unbreaded and breaded fish

Some description of seafood products in Little Rock Number of product forms

Number of Number Number Number of product of product of brands UPCs varieties Styles

Number of Packaging Size

All Breaded fish (5 varieties of fish)

5

-

20

7

55

27

Breaded catfish

2

-

3

3

3

2

Breaded tilapia

1

-

2

2

2

2

All entrée (28 varieties of fish)

-

1

76

28

89

29

Entrée shrimp

-

1

30

17

34

13

Entrée tilapia

-

1

13

9

13

5

UNBREADED FISH (21 varieties of fish)

6

-

26

118

16

Unbreaded catfish

2

-

9

18

8

Unbreaded tilapia

1

-

8

14

8

Unbreaded shrimp

-

-

22

102

14

62

Trends in weekly sales over the year

300.00

Total breaded product: Trends in sales VALUE INDEX

250.00 VOLUME INDEX

200.00

150.00

100.00

50.00

0.00

PRICE INDEX

All entrée products: Trends in weekly sales

200 180

VALUE INDEX

160

VOLUME INDEX

140

PRICE INDEX

120 100 80 60 40 20 0

Unbreaded Fish Products: Trends in Weekly Sales 250.00

VALUE INDEX VOLUME INDEX

200.00 PRICE INDEX

150.00

100.00

50.00

0.00

Entrée products

About 42% and 43% of the value and volume respectively are sold under promotion Catfish is not on the list of products sold.

Top-5 Entree Products in Little Rock and their % $ share 60

% SALES $

50 40 30

20 10 0 SHRIMP

TILAPIA

SALMON

FISH FILLET CRAB CAKE CRAWFISH

Unbreaded Products

About 40% sold under promotion.

Top-5 Unbreaded Products in Little Rock ($ Share) 4

4

15 CATFISH

48 15

SALMON TILAPIA CRAWFISH COD

BREADED PRODUCTS

About 31% of the value and 37% of the volume comes from promotional sales Tilapia, cod, catfish and haddock are important products

Conclusions

U.S. seafood market has many products Domestic catfish serves a small portion of it Need to have a holistic view (including competitive products) Need to look for niche markets (place, market segments, consumer, etc).

Questions?