Consumer preferences for aquaponics: A comparative analysis of Australia and Israel

Abstract

Aquaponics, the combined rearing of fish and hydroponic horticulture, has great potential for sustainable food production. Despite increasing research and investments in commercial scale systems, aquaponics is not yet a successful industry and most businesses report negative returns. Aquaponic produce is thought to contain added value to the consumer, and the environment.As most consumers are unaware of aquaponics and their benefits, little is known of its potential market. The present study addresses this gap by analysing willingness to consume aquaponic produce at different price levels in Israel and Australia. We used econometric tools to study the effects of pricing and other factors on revenues in each country. Cluster analysis was used to define groups of potential consumers. The results indicate that 17-30% of the population in both Israel and Australia would prefer to consume aquaponic produce once informed of their added value. Revenues at a given premium would be higher in Israel than in Australia, and higher for a leafy green, than for fish. Different segments of the population differed in their willingness to consume aquaponic produce, as well as in their stated motivations when purchasing food.Conclusions highlight the importance of case-specific research on consumer preferences and economic considerations preceding commercial investment in aquaponics.

Factors Influencing the Willingness to Pay for Aquaponic Products in a Developed Food Market: A Structural Equation Modeling Approach

“…In addition, the formerly mentioned impossibility of organic certification is an important barrier [21]. In addition to differentiation-according to the values attributed to aquaponics-there are also differences, depending on the country in which the study is conducted [10,21,28,30,31]. A study by Tamin et al [31] investigated the reaction of Malaysian customers to aquaponic products.…”

“…Miličić et al [21] conducted a Europe-wide survey and found that consumer acceptance was generally positive and that consumers were also willing to pay more for products free of antibiotics, pesticides, and herbicides, and for products that came from local suppliers. Greenfeld et al [10] showed that between 17% and 30% of Australian and Israeli consumers were willing to consume aquaponic products. However, according to their findings, the price premium would be rather low.…”

“…Innovative food production systems, such as vertical farming, urban agriculture, and aquaponics, could positively contribute in this respect. Aquaponics is considered to be a sustainable food production system [6][7][8] that combines fish farming ("aquaculture") and plant cultivation ("hydroponics") in an integrated circulation system that uses the resulting synergy effects [9,10]. The nutrients released by the fish are used by the plants, which, in turn, act as a natural filter (through bacteria) for the water used by the fish [11,12].…”

“…Over the past ten years, global aquaponic production has increased significantly, especially in North America and Australia, where numerous research reports were published and large aquaponic production plants were put into existence [19,20]. However, aquaponics is still in its early stages, and it is not yet a successful business model [10]. In addition, within the European market, the commercialization of aquaponic products is problematic because aquaponic products cannot be certified as organic food in the EU in accordance with the European Commission Regulation (EC) No.…”

“…Nevertheless, aquaponics producers need to know whether consumers are prepared to pay more for aquaponic products, as Miličić et al [21] and Greenfeld et al [10] have researched. In planning to be able to intervene more specifically in the willingness to pay for future consumers, it is, above all, important to know which factors influence this willingness to pay.…”