Commercial value of marine baitfish
Baitfishes, mostly saltwater origin, are one of our nation’s highest tonnage and value commercial fisheries, at approximately 201,000 metric tons and $68 billion and arguably support more than half (over $100 billion) of all commercial and recreational fishing industries.
Recreational and commercial fishermen rely on live and dead bait to support their $60.6 billion and $153 billion industries, respectively (NMFS 2017a). Bait sales throughout the United States account for an approximate $2.3 billion across the economy (NMFS 2017b). In addition, there has been significant interest internationally in sources of marine bait as wild bait populations continue to decline and offshore fishing fleets continue to rely on bait for fishing activities. While the freshwater baitfish industry has been a mainstay of pond aquaculture for years, development of live, marine baitfish culture industries has only recently garnered significant attention (Adams et al. 1998; Oesterling et al. 2004; Creswell et al. 2007). Of the two dozen marine baitfish species, three species stand out in both demand and market price: Pinfish for brackish and inshore recreational angler market, Atlantic Croaker for the inshore recreational angling market and Bigeyed Scad for the offshore recreational and commercial angling markets.
Among U.S. states, Florida ranks #1 in value associated with its saltwater recreational fishery, with twice the value of any other state. Of the total recreational fishing expenditures, approximately 3x more was spent by saltwater anglers compared to freshwater. Florida’s recreational saltwater fishing industry has an economic impact of $5.7 billion in 2011, supporting more than 54,500 jobs (up from $5.2 billion and 51,000 jobs in 2006). The majority of marine recreational fisherman use live or frozen baitfish or shrimp, more than half purchasing their bait rather than catching it locally themselves. Approximately 3.1 million people 16 years old and older fished in Florida in 2011 (61% state residents and 39% nonresidents), fishing a total of 57.6 million days, or an average of 19 days per angler. Over the last decade, the number of saltwater anglers has remained steady, however the amount spent on bait has increased by 200%. Among those recorded fishermen, 1,895,000 anglers (55% of the total), purchased baitfish, at total value of $273,639,000 or $144 per purchasing angler per year.
Calculation of $274M value in Florida …
32.1% of anglers purchase live marine baitfish (excluding shrimp) —> 3,100,000 anglers in 2011 *0.321 = 995,100 anglers
Anglers purchase baitfish 8.6 trips per year —> 995,100 anglers * 8.6 = 8,557,860 trips
Average expense on marine baitfish per trip is $26.82 —> 8,551,860 trips * $26.82 = $229,521,805
TOTAL LIVE MARINE BAITFISH MARKET 2011 = $229,521,805
Economic value of pinfish
While it is impossible to determine exactly how much of the bait expenditures were spent on live vs. frozen bait and of which bait species, it is possible to estimate how much was spent on the most popular live bait species, pinfish Lagodon rhomboides (see Ohs & DiMaggio 2012). Pinfish are identified as one of the nine marine baitfish species to have potential for aquaculture in Florida (Oesterling et al 2004, Ohs, Creswell & DiMaggio 2013) as well as Mississippi (Peterman 2005). Three comprehensive surveys have been completed on the size of the live baitfish market and the market gap that aquaculture-produced product could fill (Adams et al. 1998; Oesterling et al. 2004; Ohs & DiMaggio 2012). From these surveys, it can be determined the market share for pinfish in Florida is approximately $10,492,292 or 4.6% of live marine baitfish market by value (Table 1). If aquaculture produced pinfish were to fill only the declared gap in the market due to seasonal availability (approximately 10-15%), it would represent a $1,049,292 increase in industry value. Validity of this market gap was also established by discussions with several large baitfish dealers whom admitted only being able to source live pinfish 3-4 days out of 7 each week, a ~40% market gap (Henry Caimotto, owner of the Snook Nook). And market acceptance of the ‘fat pins’, as the aquaculture-produced pinfish are nicknamed, is high (Ohs pers. comm.). Therefore, the previously provided estimate may be highly conservative. As pinfish are also the most popular live baitfish throughout the SE from New England to Florida and throughout the Gulf of Mexico (Ohs, Creswell and DiMaggio 2013), this market has potential to expand geographically as well. While wild caught baitfish offers seasonal variation due to weather and natural abundances, year-round aquaculture produced baitfish are hardier, of better quality, and with size graded for specific markets and/or season, domestically produced pinfish it would be expected capture a percentage of the existing wild catch market as well.
Given the defined market demand for pinfish and the value of the industry, development of aquaculture produced pinfish could result in an increase of $5 million to the Florida recreational fishing industry, or approximately 170 jobs per annum.
Socioeconomic value of live pinfish sales to bait-and-tackle shops
To demonstrate the socioeconomic value of live marine baitfish retail to bait-and-tackle shops, four shops who previously only retailed live shrimp were provided with pinfish for four weeks. In return they were asked to keep records if the customer was new or returning, how many fish they purchase and for what price, and how much the customer spent on other items in the shop.
The results of this trial showed … The customers who purchased live bait were nearly evenly split between new and returning customers over the course of the four weeks of the trial, with an average of 54% new customers. The number of new customers purchasing pinfish remained high over all four weeks of the trial.
The shops were allowed to set their own retail price. Each was provided with the wholesale costs of the fish if purchased through Live Advantage Bait LLC, $0.40 for small 2” pinfish and $0.65 for large 4” pinfish, to assist with their retail price calculation. The average sale price for 2” fish was $1 and 4” was $1.50.
The majority of customers who purchased live bait also made additional purchases within the stores (73%). The average value of additional purchases was $24.31, however new customers were found to make significantly higher purchases ($27.88) on average compared to returning customers ($21.73).
When the wholesale cost of the fish was accounted for, the addition of live bait to the stores on average increased revenues by $249.26 per week.
Economic value of Atlantic Croaker
Atlantic Croaker, native to the Atlantic and Gulf State regions, have high potential for multi-purpose aquaculture development, including use as live baitfish (Creswell et al. 2007; Sink 2011; Ohs et al, 2013; Ropicki & Fuiman 2020), foodfish (Davis and Arnold, 1997; Sink et al. 2010; Sink, 2011; Sink and Lochmann, 2011; Sink and Lochmann, 2012), and population restoration. Atlantic croaker (7.6-17.7 cm TL) is a high-value marine baitfish that obtains retail values of more than $1.25 per fish 7.6-12.7 cm fish, although $8.90/dozen ($0.74/fish) was the mean retail price found during an economic survey of marine baitfish in Florida in 1997 (Adams et al. 1998). When adjusted for inflation, the 1997 value of a dozen croakers is $15.34 in 2021 (U.S. Inflation Calculator, 2021) for a dozen bait-sized fish. Croaker are subject to seasonal availability, typically May through September along the gulf coast and April through July along the Atlantic Coast, which can increase demand significantly and drive prices higher during off-peak availability. Currently all croaker sold as live bait are from wild origin. Ropicki and Fuiman (2020) recently estimated a 89% market gap and a significant 64-73% market acceptance of cultured Croaker in Texas, meaning the live bait industry for aquacultured Croaker has huge growth potential. Across the Southeast region, the economic impact of Croaker aquaculture could be conservatively estimated at $23.6M per year. Employment opportunities in marine industries would also be generated at every phase of production including hatcheries, grow-out facilities, transportation, bait shops, and fishing vessels.
Economic value of Bigeye Scad, aka Goggle eye
Also known as goggle eye in Florida, are indiginious to all tropical and subtropical oceans worldwide. In the U.S., especially Florida, they are prized bait for large offshore species and are in extremely high demand during sportfish tournaments where prices can exceed $120 per dozen. The domestic, and more importantly export market, for aquacultured Bigeye Scad could easily be estimated in the tens of Millions per year.
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