Assessing the U.S. Market Economics for a Cultured Flounder, Paralichthys sp., Industry

摘要

There is considerable interest in the culture of flounder because of its high retail market value, the established worldwide market forflatfish, and the ability of flounder to grow in fresh or brackish water. The author assesses the U.S. market potential for a culturedflounder, Paralichthys sp., industry. Regression analyses were used to estimate both the price and income elasticity of demand forflounder. Demand forecasting was used to predict effective annualfuture demand for flounder. Although the U.S. flounder market is large and expanding, there are indications of excess supply suppressing prices below profitable levels for aquaculture producers. Demand is price inelastic, so an increase in supply from aquaculture production will produce a disproportionately large decrease in price, reducing total producer revenue. Unless niche markets are targeted or an export market is developed, the outlookfor large-scale flounder aquaculture in the United States is not economically promising.