Aquaculture America 2024

February 18 - 21, 2024

San Antonio, Texas

ECONOMIC BENEFITS OF LOCAL SEAFOOD IN RESTAURANTS AND RETAIL STORES IN VIRGINIA

Fernando H. Gonçalves *, Jonathan van Senten, Michael H. Schwarz

Virginia Tech - VSAREC | SEAMaR

 15 Rudd lane
Hampton, VA, 23669
ocfernando@vt.edu

 



 As the fourth largest producer of seafood in the United States, the Virginia Seafood Industry has long been recognized as a vital component of the state’s economy, contributing significantly to its economic growth and employment. Recent estimates  showed  $1.1 billion in total economic output for  2019, supporting over 7,000 jobs. However, these estimates do not reflect the economic contributions from seafood restaurants and retail stores. Restaurants and retail stores are essential in connecting consumers with local seafood products, acting as intermediaries between seafood producers and consumers. Moreover, these establishments often create unique culinary experiences, attract residents and tourists, and fuel Virginia’s vibrant food culture. Despite their undeniable importance, the economic contributions of the seafood portion of the sales from these establishments have remained largely unexplored due to difficulties in obtaining primary data . Therefore, we aim to estimate the economic contributions of local seafood sales from restaurants and retail stores in Virginia and generate a more holistic understanding of the Virginia Seafood Industry’s overall  economic benefits.  We plan to purchase datasets of seafood sales in retail stores in Virginia through scanner data of seafood products’ bar codes from NielsenIQ , a specialized company in marketing strategy and consumer behaviors. Existing expenditure models from restaurants and retail stores can be found on the IMPLAN modeling software that we will subscribe to perform the economic contribution analysis.  Authorities, State agencies, and other entities overseeing restaurants and retail stores, such as the Virginia Department of Taxation, the Virginia Department of Tourism, and restaurant associations, will be consulted for records of the number of commercial licenses or permits held within the state.  Data unavailable from secondary sources or consultation with other researchers must be collected  through  a survey. Seafood distributors will be asked how much Virginia’s seafood products stay in the state. In addition, an analysis of restaurant menus published online will be performed to assess the number of entities advertising Virginia seafood products and their prices. After obtaining the necessary data to perform an economic contribution analysis on IMPLAN, the results will be incorporated into the previous model that estimated the contributions from commercial fisheries, aquaculture, seafood processors, and distributors. B y combining the contributions of restaurants and retail stores into the economic estimates, we can enhance the accuracy and completeness of the data, enabling a more comprehensive understanding of the Virginia seafood industry’s true economic significance. The results of this analysis will include estimates of the economic contributions of local seafood sales from restaurants and retail stores in Virginia to the economy of the Commonwealth, which will be reported as direct, indirect, and induced effects on economic output, the total value added, labor income, other property income, employment, and tax revenue. Additionally, the sectors identified as supported by the Virginia seafood restaurants and retail stores will be ranked to determine which other sectors benefit the most from Virginia seafood business activities.