Economic value of seafood nutrition attributes in a context of climate change: a quantile hedonic price analysis

The aim of this paper is to examine the role that small pelagics (sardines, mackerel, anchovies, etc.) could still play in human health and food safety in the context of climate change. The decline in the nutritional quality of small pelagic fish (SPF), particularly sardines, the leading product in French tinned food consumption and known for its nutritional properties (omega3), is now a source of concern for scientists and the industry, even if it is not yet perceptible to consumers.

We are interested in how the sardine industry in France deals with these changes in order to build its differentiation strategies based on food values (Lusk & Briggeman (2009)) that are supposed to reflect the heterogeneity of consumer preferences in this mature market. To do so, we grouped the claims identified on a representative sample of 1,442 tins of sardines sold in super and hypermarkets into 11 Food Values (FV: Old, Taste, Origin, Tradition, Omega, Health, Sustainable, Organic, Convenience, Premium, Equity). Next, an econometric model of hedonic prices was estimated with the FV and other attributes (sales location, brands,...) to explain the average effects of the attributes on the price of tins. Then, given the heterogeneity of observed prices, quantile regressions (deciles) representing different market segments are also performed.

The main results show the positive and significant effect of the number of claims on prices, reflecting a strategy of horizontal differentiation. To analyse this strategy, we look in greater detail at the effect of FVs on price. We show that Health and Omega VFs, specific and intrinsic attributes of sardines, are used to attract price-sensitive customers. Indeed, FV Omega reduces tin prices in the low-price segment, and FV health has a similar effect in the mid- and high-end segments. By contrast, Sustainable FV leads to higher prices in all market segments, but the higher the range, the lower the price. FV Old means higher prices for entry-level tins and lower prices for top-of-the-range tins. FV taste and origin have a robust positive impact across all segments.

Finally, our findings show that the presence of omega 3 in sardines is likely to attract a very wide range of consumers. If sardines lose their nutritional value, consumers looking for low-priced products with high nutritional value are likely to turn away from this market, with food safety implications.