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2007 Louisiana Shrimp Marketing Survey Report

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2007 Louisiana Shrimp Marketing Survey Report 2007 LOUISIANA SHRIMP MARKETING SURVEY REPORT National Oceanic and Atmospheric Administration/U.S. Department of Commerce Grant Award Number: NA03NMF4520310 by Jack C. Isaacs and David R. Lavergne Louisiana Department of Wildlife and Fisheries Office of Management and Finance Socioeconomic Research and Development Section Baton Rouge, Louisiana January 2008 Acknowledgements The authors wish to express their gratitude to Herb Holloway, Ebenezer Ogunyinka, and Vincent Hoang, Albert “Rusty” Gaudé and Robert Nguyen, Rex Caffey and Hamady Diop, John Roussel, Karen Foote, Marty Bourgeois, Harry Blanchet, Donna Gautreau, Jim Hanifen, Mike Harden, Keith Ibos, Rick Kasprzak, and Clarence Luquet, Ewell Smith, Liz Ferguson, and Sara Ann Harris, Bobby Samanie, Janis Landry, and everybody in the Louisiana Department of Wildlife and Fisheries Marine Fisheries Division, Licensing Section, Fiscal Section, Accounting Section, Accounts Payable Section and Property Control Section who helped me in this effort. A special thank you is extended to all survey participants who gave their time, information, and insight. Without them, this work would not have been possible. This project was sponsored, in part, by funds from the National Oceanic and Atmospheric Administration / U.S. Department of Commerce (Grant Award No. NA03NMF4520310). Cost Statement One hundred (100) copies of this report were printed at a cost of $ 437.90. This document was compiled, prepared, and printed by the Louisiana Department of Wildlife and Fisheries, Office of Management and Finance, Socioeconomic Research and Development Section, 2000 Quail Drive, Baton Rouge, Louisiana 70808. The Louisiana Department of Wildlife and Fisheries follows a non-discriminatory policy in programs and employment. TABLE OF CONTENT PAGES TABLE OF CONTENT………………………………………………………… i LIST OF FIGURES…………………………………………………………….. iii LIST OF BOXES………………………………………………………………. vii 2007 LOUISIANA SHRIMP MARKETING SURVEY REPORT …………… 1 INTRODUCTION……………………………………………………… 1 ANNUAL SHRIMP LANDINGS IN THE GULF OF MEXICO …….. 4 ANNUAL SHRIMP PROCESSING IN THE GULF OF MEXICO…… 10 SHRIMP PRODUCTS PRODUCED IN THE GULF OF MEXICO IN 2005…………………………………………………………………..... 13 SHRIMP PRODUCTS PRODUCED IN LOUISIANA IN 2005……… 14 SHRIMP DEALER LICENSE SURVEY…....................................................... 16 VALUE AND VOLUME OF DOCKSIDE PURCHASES……………. 18 PHYSICAL PLANT AND FACILITY VALUE………………………. 19 YEARS IN BUSINESS…………………………………….………….. 19 MONTHS OF OPERATION………………………………………….. 19 DEALERS’ MARKETING AND PRODUCTION ACTIVITIES…….. 21 NUMBER OF EMPLOYEES………………………………………….. 23 SPECIES OF SHRIMP PURCHASED ……………………………….. 24 SALES OF SHRIMP PRODUCTS……………………………………. 34 HEAD-ON SHRIMPS…………………………………………………. 35 HEAD-OFF SHRIMPS (SHRIMP TAILS)……………………………. 38 RAW PEELED SHRIMP………………………………………………. 41 DRIED SHRIMP……………………………………………………….. 44 i TABLE OF CONTENT PAGES OTHER PRODUCT SHRIMPS………………………………………... 44 RESPONDENTS’ ADVERTISING EFFORTS ……………………….. 44 MOST VALUABLE OR DESIRABLE SHRIMP PRODUCTS ……… 45 WHAT DISTINGUISHES LOUISIANA SHRIMP …………………… 46 CONSUMERS’ MOST PREFERRED OR DESIRED SHRIMP PRODUCTS …………………………………………………………… 49 LOUISIANA SEAFOOD PROMOTION AND MARKETING BOARD ACTIVITIES ………………………………………………… 52 VIEWS OF CERTIFICATION AND QUALITY ASSURANCE PLANS ………………………………………………………………… 60 CHALLENGES FACING THE LOUISIANA SHRIMP INDUSTRY .. 65 RECOMMENDATIONS FOR THE SEAFOOD PROMOTION AND MARKETING BOARD ……………………………………………….. 66 RECOMMENDATIONS FOR THE LOUISIANA DEPARMENT OF WILDLIFE AND FISHERIES ………………………………………… 70 RECOMMENDATIONS FOR THE LOUISIANA SHRIMP INDSTURY ……………………………………………………………. 73 CONCLUSION ………………………………………………………………… 77 ii LIST OF FIGURES FIGURES PAGE Figure 1. Volume of Shrimp Harvested in U.S. and in Gulf of Mexico, 2006. 1 Figure 2. Dockside Value of Shrimp Harvested in U.S. and in Gulf of Mexico, 2006 ……………………………………………………… 2 Figure 3. Real Dockside Price of Shrimp at Local, Regional, and National Levels: 1995-2006 ………………………………………………… 2 Figure 4. Louisiana Shrimp Marketing Chain ………………………………. 3 Figure 5. Volume of Shrimp Landings, Gulf of Mexico Region: 1995-2006.. 5 Figure 6. Volume of Shrimp Landings, Gulf of Mexico Region, by State: 1995-2006…………………………………………………............. 6 Figure 7. Volume of Shrimp Landings, Gulf of Mexico Region, by Species: 1995-2006………………………………………………................. 7 Figure 8. Volume of Shrimp Landings, Louisiana, by Species: 1995-2006… 8 Figure 9. Real Dockside Value of Shrimp Landing (in Constant Dollars), Gulf of Mexico Region: 1995-2006.................................................. 9 Figure 10. Real Dockside Value of Shrimp Landing (in Constant Dollars), Gulf of Mexico Region, by State: 1995-2006……………………... 9 Figure 11. Volume of Shrimp Processing, Gulf of Mexico Region: 1995-2005 10 Figure 12. Volume of Shrimp Processed (Million Pounds), Gulf of Mexico Region, by State: 1995-2005……………………………………..... 11 Figure 13. Real Value of Shrimp Processed, Gulf of Mexico Region: 1995- 2005 ……………………………………………………………….. 12 Figure 14. Real Value of Shrimp Processed, Gulf of Mexico Region, by State: 1995-2005…………………………………………............... 12 Figure 15. Volume of Shrimp Products Produced in Gulf of Mexico Region, by Product: 2005 ………………………………………………...... 13 iii FIGURES PAGE Figure 16. Value of Shrimp Products Produced in Gulf of Mexico Region, by Product: 2005 ……………………………………………………... 14 Figure 17. Volume of Shrimp Products Produced in Louisiana, by Product: 2005 …………………………………………………….................. 15 Figure 18. Value of Shrimp Products Produced in Louisiana, by Product: 2005 ……………………………………………………………….. 15 Figure 19. Parishes in Which Survey Participants Were Interviewed………… 18 Figure 20. Months in Which Respondents’ Shrimp-Handling Enterprises Operate ……………………………………………………………. 20 Figure 21. Months in Which Respondents’ Shrimp Sales Peaked……………. 21 Figure 22. Respondents’ Shrimp-Handling Activities………………………... 22 Figure 23. Respondents’ Self-Identified Main Activities…………………….. 23 Figure 24. Species of Shrimp Brought by Respondents: 2006............……….. 24 Figure 25. Percentage of Respondents’ Shrimp Purchases by Species………. 25 Figure 26. Additional Seafood Species Handled by Respondents…….……… 26 Figure 27. Percentage of Total Seafood Sales Represented by Non-Shrimp Seafood Products (Among Respondents Reporting Non-Shrimp Sales)………………………………………………………………. 26 Figure 28. Sources of Shrimp Utilized by Respondents……….……………… 27 Figure 29. Percentage of Respondents’ Shrimp Purchases by Source ………. 28 Figure 30. Percentage of Respondents’ Shrimp Purchases from Louisiana and Other States....................................................................................... 29 Figure 31. Types of Shrimp Products Respondents Purchased ………………. 30 Figure 32. Supplies Sold by Respondents to Shrimpers.......…………………. 33 Figure 33. Method of Payment Accepted by Respondents for Supplies Sold to Shrimpers………………………………………………………….. 33 iv FIGURES PAGE Figure 34. Shrimp Products Sold by Respondents……………………………. 34 Figure 35. Percentage of Heads-On Shrimp Sales Sold to Other Businesses or Directly to the Public ……………………………………………… 36 Figure 36. Percentage of Heads-On Shrimp Sales Sold to Entities in Louisiana and Other States ………………………………………... 36 Figure 37 Forms of Packaging Used for Heads-On Shrimp Sold to Businesses ………………………………………………………… 37 Figure 38. Transportation Arrangements for Heads-On Shrimp Sold to Businesses ………………………………………………………… 37 Figure 39. Percentage of Respondents’ Heads-Off Shrimp (Shrimp Tails) Sales Sold to Other Businesses or Directly to the Public…………. 39 Figure 40. Portion of Heads-Off Shrimp (Shrimp Tails) Sales Sold to Entities in Louisiana and Other States……………………………………… 39 Figure 41. Forms of Packaging Used for Heads-Off Shrimp (Shrimp Tails) Sold to Businesses ………………………………………………… 40 Figure 42. Transportation Arrangements for Heads-Off Shrimp (Shrimp Tails) Sales Sold to Businesses …………….…………………….. 40 Figure 43. Percentage of Raw Peeled Shrimp Sales Sold to Businesses or Directly to the Public……………………………………………… 42 Figure 44. Percentage of Raw Peeled Shrimp Sales to Entities in Louisiana and Out of State Locations………………………………………... 42 Figure 45. Forms of Packaging Used for Raw Peeled Shrimp Sold to Businesses ………………………………………………………… 43 Figure 46. Transportation Arrangements for Raw Peeled Shrimp Sold to Businesses ……….………………………………………………... 43 Figure 47. Respondents Familiar with Louisiana Seafood Promotion Efforts.. 53 Figure 48. Respondents’ Familiarity with the “Demand Louisiana Shrimp” Slogan……………………………………………………………… 54 v FIGURES PAGE Figure 49. Respondents’ Familiarity with the Great American Seafood Cook- Off…………………………………………………………………. 54 Figure 50. Respondents’ Familiarity with Bonne Crevette Campaign……….. 55 Figure 51. Respondents’ Familiarity with WASI……………………………... 56 Figure 52. Problems Encountered by Respondents: “Are You Having Difficulties…?”................................................................................. 66 vi LIST OF BOXES BOXES PAGE Box 1. Factors that Limit the Amount of Shrimp Respondents Can Handle …. 31-32 Box 2. What Distinguishes Louisiana Shrimp ………………………………... 46-48 Box 3. Most Desirable Shrimp Products ……………………………………... 49-51 Box 4. View of the Effectiveness of the "Demand Louisiana Shrimp" Campaign ……………………………………………………………... 56-57 Box 5. View of the Effectiveness of the “Bonne Crevette” Campaign's ……... 57 Box 6. View of the Effectiveness of the Great American Seafood Cook-Off… 58 Box 7. View of the Effectiveness of the WASI Campaign……………………. 59-60 Box 8. View of Certification
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