Aquaculture America 2020

February 9 - 12, 2020

Honolulu, Hawaii

CONSUMER WILLINGNESS TO PAY FOR ATTRIBUTES OF FISH FILLETS IN BRAZIL

 
 
 Roberto M. V. Flores*,  Nicole O. Widmar,  Kwamena K. Quagrainie, Paul V. Preckel , Manoel X. Pedroza Filho
 
 Agriculture Economics Department
Purdue University
West Lafayette, IN 47907 
flore128@purdue.edu

Tilapia and tambaqui are the two most important farmed fish species in the Brazilian market . This study provides  insight into consumer demand for  the product attributes of these species. Seafood supply chains, from fish farmers to supermarkets selling direct to consumers, must understand consumer demand for product attributes to ensure production and availability of desired products .  There are no relevant economic studies in Brazil of the impact of variables such as species, processed form (fresh/frozen), and fish knowledge on consumers' fish selections. This study analyzes  the impact of factors like product price, consumers' demographics, and product attributes such as species and processing  on consumers' willingness to pay for tilapia and tambaqui in the Brazilian market.

R andom utility theory is used to model consumer demand for the fish attributes of  the  species in fillet form.  A random parameters logit (RPL) also known as mixed logit model is used to for the analysis . The data were collected through a choice experiment  on fish consumers administered in person at  seafood counters  in supermarkets in each of the five Brazilian Regions.

The mean WTP estimates are presented in Table 1. Consumers are, on average, willing to pay more for tilapia and fresh fillets than tambaqui or frozen fish. For tilapia, the lowest WTP was found in Northeast Region where consumers are willing to pay a premium of US$ 1.64 to purchase one kilo of tilapia instead of tambaqui on average. On the other hand, Southeast and Midwest regions have the highest WTP for tilapia of almost US$ 4. Overall, the results indicate a preference for tilapia especially in regions where tambaqui does not have a mature market.  Freshness appears to be the most important attribute for consumers in Brazil. In the Southeast, consumers are willing to pay a premium for fresh fillet above the average price of the choice experiment that is US$ 7.50. Even in the Northeast where the WTP is lowest for freshness, the premium value of US$ 5.50 per kilo represents a high preference for this attribute.