U.S. Aquaculture Faces Challenges into New Century

October 12, 1999

The U.S. aquaculture industry faces competition within the seafood market, competition from other protein sources and changing consumption patterns in many of the world's economies going into the 21^st century, USDA reports.

U.S. aquaculture producers were faced with a basically flat per capita seafood consumption rate over the last decade, says the report, so the only growth in total U.S. consumption has come from the 1-2 million person population increase each year.

"Unless this changes, the only way consumption of a specific commodity -- for example, catfish -- will increase is by taking market share from other fish species," says the report. That would favor already established aquaculture species that have a level of production that justifies research into various areas of production and explores promotional efforts to broaden product awareness and acceptance among consumers and the food service industry.

Per capita consumption in 1998 of shrimp, salmon, tuna and catfish made up about 50-60% of total seafood consumption. That could increase as more food is consumed away from home, and food service firms may choose to carry only a limited number of seafood species on their menus.

As Japan's economy recovers, the country is expected to expand its seafood imports from a number of countries, chiefly the United States. Larger imports are expected of the wild harvest salmon that the farmed mollusk.

In 2000 the average farm price for catfish should show little change from the 74 cents per pound in 1999. Barring any long term harvesting disruptions, prices should average in the low to mid-70 cents range through the first half of next year.

Overall increases in farm production are expected to be balanced by increasing demand for finished retail product. The food service industry, the major purchaser of catfish products, continues to experience strong sales as a robust economy with low unemployment increases business, the report says.

The entire report is available on the Internet at http://usda.mannlib.cornell.edu/reports/erssor/livestock/ldp-aqs/1999/AQS10.ASC .