The Value of Country-of-Origin and Wild-Caught Labels: A Hedonic Analysis of Shrimp Retail Prices in the United States

The retail market for shrimp is dynamic with substantial competition between imports and domestic products. Country of origin and method of production (wild and/or farm-raised) labels are required for all seafood since April 4, 2005. But little is known about how these and other credence attributes are valued in the retail market. To estimate the value of these attributes, we use weekly store scanner data of unbreaded frozen shrimp products in 2013. An estimated hedonic model shows a premium for both home (product of USA), and price premium for fishing method (wild-caught), and a premium for the organic claim. The results contribute new insights regarding opportunities for differentiation by credence attributes which may lead to more sustainable and effective resource use along the value chain for shrimp