Market opportunities for U.S. aquaculture producers: The case of Branzino

Authors: ASCHE, FRANK - University Of Florida; GARLOCK, TARYN - University Of Florida; CAMP, EDWARD - University Of Florida; GUIILLEN, JORDI - European Commission-Joint Research Centre (JRC); KUMAR, GANESH - Mississippi State University; LLORENTE, IGNACIO - University Of Cantabria; SHAMSHAK, GINA - Goucher College

Submitted to: Marine Resource Economics
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 9/25/2021
Publication Date: 3/4/2022
Citation: Asche, F., Garlock, T., Camp, E., Guiillen, J., Kumar, G., Llorente, I., Shamshak, G. 2022. Market opportunities for U.S. aquaculture producers: The case of Branzino. Marine Resource Economics. 37(2):221-233. https://doi.org/10.1086/718437.
DOI: https://doi.org/10.1086/718437

Interpretive Summary: Branzino is a portion-sized white-fleshed fish primarily farmed in the Mediterranean, with no obvious equivalents produced in the US. Since the turn of the century, imports have grown from zero to almost 10,000 metric tons, a quantity that would have made it the fourth-largest farmed fish species if produced in the US, and all is imported fresh. From 2015 when the quantities became more significant, the species entered the large whitefish market, although with a significant price premium relative to tilapia, the largest species in this market, indicating that the opportunity to create separate niches in the seafood market is limited.

Technical Abstract: The US is the world’s largest seafood importer by value, with an increasing share of imports composed of farmed seafood. Despite numerous policy initiatives, production and growth in the US aquaculture sector is limited, and there is a significant literature discussing potential explanations. In this paper the recent success of imported Branzino is used to show that the market is not a constraint. Branzino is a portion-sized white-fleshed fish primarily farmed in the Mediterranean, with no obvious equivalents produced in the US. Since the turn of the century, imports have grown from zero to almost 10,000 metric tons, a quantity that would have made it the fourth-largest farmed fish species if produced in the US, and all is imported fresh. From 2015 when the quantities became more significant, the species entered the large whitefish market, although with a significant price premium relative to tilapia, the largest species in this market, indicating that the opportunity to create separate niches in the seafood market is limited. The study suggested that there is still room for new species in the market, and it is not too hard to introduce them if the price and quality point is reasonable. Hence, demand does not appear to be a significant constraint for potential US aquaculture producers. Moreover, it suggests that it is possible to develop niches for new species and product forms even in a market that is dominated by a few, mostly imported, species. However, at a relatively moderate quantity, imported sea bass started to compete in the larger whitefish market where tilapia is the leading species, although obtaining a premium. This shows that there is relatively little room to develop new independent market segments, as most products in the US get pulled into one of the large species groups for which there are global markets. For an expanding industry this may be an advantage, though, as the price effect is limited by the larger quantity in the market that one enters.