by C. Greg Lutz, Pramod Sambidi and R. Wes Harrison, Louisiana State University Agricultural Center,
glutz@agctr.lsu.edu, psambil@lsu.edu, and rharrison@agctr.lsu.edu

Revised December 2007 by Diane Huntrods, Ag Marketing Resource Center, Iowa State University.

Overview

Although initially based on wild harvests, industry practices of maintaining turtle breeding stock in fenced pond enclosures have remained virtually unchanged since the 1950s. In the late 1960s, annual U.S. production levels reached as high as 15 million baby turtles, produced on 75 farms. This peak coincided with heavy domestic demand for these animals as pets throughout the United States. Shortly thereafter, however, the U.S. Centers for Disease Control claimed that pet turtles might be responsible for up to 14 percent of salmonella infections in children throughout the country. 

As a result, interstate commerce in pet turtle hatchlings was banned in 1971 unless the hatchlings could be certified as salmonella-free. In 1975, the U.S. Food and Drug Administration (FDA) banned domestic sales, as well as interstate transport, of all turtles with shells less than 4 inches in width, citing continued concerns over salmonella. Hatchling production levels in Louisiana dropped to roughly two million per year, for shipment only to export markets, primarily in Asia and Europe. (The FDA ban did not apply to turtles intended for export or for bona fide scientific, educational or exhibitional purposes.)   

By the mid-1970s, efforts were undertaken to identify mechanisms of salmonella infection in baby turtles, in order to develop effective preventive treatments. As disinfection methods were developed, export markets expanded somewhat. Turtle sales reached between $3 and $4 million in 1986 and exceeded $6.7 million in 2005. During the same period, the number of U.S. producers grew from 25 to 99. After years of shipments, concerns over the ecological impacts of non-native species influenced the European Union to ban the import of turtle hatchlings in 1998, reducing demand throughout western Europe. Demand from Asian nations is also eroding because commercial turtle farming has become widespread in China.      

As of 2005, pet turtle production continued to be a highly regulated and profitable form of aquaculture in Louisiana. Over 60 turtle farms were located there, and the state Department of Agriculture estimated that annual turtle sales totaled $9.4 million in 2007.

Industry Structure
The turtle hatchling industry is comprised of individual operators that maintain breeding turtles and collect their eggs during the laying season. Most farmers sanitize and incubate eggs onsite, although a few may transfer newly collected eggs to other facilities to be cleaned and hatched out. Marketing channels for red-eared slider (pseudemys scripta elegans) hatchlings, the most common species sold as pets, is limited. Only a handful of major exporters, some of which are also producers, handle most of the industry’s production. In part, this has been a response to the testing protocols required for certification.

In the past two decades, prices for turtle hatchlings have ranged from $0.21 to over $1.00. The average price for turtles in 2005 was $0.59 per pound. While supply and demand forces influence prices from season to season, economic success is generally more influenced within individual operations by capitalization levels, labor requirements and laying, hatching and disinfection rates. Clearly, economies of scale play some role in economic success. In analyses of an industry survey conducted in 1997, Hughes (1999) reported mean and median farm sizes of 6.1 and 2 hectares, respectively, indicating a substantial range in the size of individual operations.

Hughes reported that labor was the single greatest expense incurred by producers, accounting on average for roughly 20 percent of production costs. At approximately 16 percent of operating expenditures, feed was generally the second highest cost category, followed by transportation, at roughly 10 percent. Shipping, fuel, utilities, medications, and repairs and maintenance each accounted for less than 5 percent of operating costs.

Profitability has historically been difficult to gauge, both for producers and brokers. Because demand continues to vary, supplies have been volatile from year to year. Nonetheless, long-term production growth suggests attractive profitability levels for producers. 

Demand 

Most of the continued demand is attributed to buyers in China and other Asian nations. In contrast to other countries in the Americas and Europe where turtles are marketed as pets, these countries typically grow hatchlings out as livestock, for eventual slaughter and human consumption. Few alternative sources exist for turtle hatchlings other than those produced in Louisiana, although nine other states reported having two to five turtle farms in their state. Louisiana’s industry is currently responsible for an estimated 85 to 90 percent of the global pet turtle market. 

Drivers of Demand

While breeding operations have been established in China, observers suggest it will take several years for that country to reach a point where it can supply its own hatchling demand. As living standards continue to improve throughout Asia, demand for turtle meat should continue to rise. 

Supply

Production of turtle hatchlings has grown over the years, reflecting the relative ease of establishing breeding ponds and sanitizing/incubating facilities. Suitable sites and access to technology are available to anyone wishing to develop a turtle hatchling business. Producers in Louisiana must certify their hatchlings as salmonella-free, which has helped in development of overseas markets for the pet trade. This requirement, however, may not prove as important for livestock uses, and other sources of supply for the Asian grow-out markets may eventually emerge.   

Industry Concentration

Currently, the turtle hatchling industry is highly concentrated in three regions within Louisiana. A few producers can be found in other states, but they face the marketing disadvantage of not participating in a formal certification program as has been established for Louisiana producers. 

Although more than 60 turtle hatchling producers are licensed in Louisiana, the capacity of individual operations varies greatly. It is estimated that fewer than 10 operations account for more than 40 percent of the total production. The traditional marketing situation, with growers selling to one of only a few brokers, has changed in recent years as independent producers gain expertise in locating and communicating with customers throughout the globe and in arranging shipments. 

Barriers to Entry/Ease of Entry

Perhaps the largest barrier to entry for a prospective turtle producer involves the need to maintain breeding stocks and facilities through protracted start-up operations. Broodstock are generally collected from the wild or, occasionally, purchased from other turtle farms. Adult turtles are stocked at 18,500 to 37,000 animals per water-hectare. Even when raised in captivity, brood turtles often require one to three years to become acclimated to breeding ponds and reproduce reliably. 

In response to concerns about development of antibiotic-resistant strains of salmonella, alternatives to currently used antibiotics are being evaluated for use in vacuum-treating eggs. Protocols being evaluated under FDA supervision should eventually provide a level of proof necessary to put any lingering concerns about salmonella in pet turtles to rest. This could potentially re-open a huge market throughout the United States, but only if methods to keep pet turtles salmonella-free after they are sold can be demonstrated to FDA. This will require development of acceptable disinfectants for turtle bowl water, not to mention their regular use, to prevent subsequent infections.   

Techniques developed for producing baby red-eared sliders have been adapted in recent years to accommodate other turtle species, and the industry will probably continue to diversify in this area.
 

Sources

Census of Aquaculture (2005), USDA, October 2006.
 

Hughes, D.W. 1999. The contribution of the pet turtle industry to the Louisiana economy. Aquaculture Economics and Management 3(3):205-214 
 

Profile created September 2003 and revised December 2007.