Determinants of Retail Price and Sales Volume of Catfish Products in the United States: An Application of Retail Scanner Data

Aquaculture Economics & Management

Misund

Øglend

2016

This study examines the Fish Pool salmon futures contract with respect to how well the market performs in terms of the futures price being an unbiased estimator of the spot price and whether the market provides a price discovery function. Using data for 2006-2014 and with futures prices with maturities up to 6 months we find that spot and lagged futures prices are cointegrated and that the futures price provides an unbiased estimate of the spot price. We also find that, with the exception of the front month, that the causality is one-directional. The spot prices lead futures prices between 1-6 months maturity. Hence, while the spot and lagged futures prices are unbiased estimates, we do not find support for the hypothesis that futures prices provide a price discovery function. Rather, it seems that innovations in the spot price influence futures prices. This finding is not uncommon in new and immature futures contracts markets. Hence, the salmon futures market is still immature and has not yet reached the stage where futures prices are able to predict future spot prices.

Section: Notesmentioning

confidence: 94%

The spot-forward relationship in the Atlantic salmon market

Aquaculture Economics & Management

Misund

Øglend

2016

“…Price forecasting in the fish industry to manage price risk has been studied in a few articles (Vukina & Anderson, 1993;Gu & Anderson, 1995;Guttormsen, 1999), and more recent work consider forward trading for salmon (Oglend & Sikveland, 2008;Solibakke, 2012;Oglend, 2013;Asche, Oglend & Zhang, 2015). In addition, bilateral contracts and vertical integration has increased in the industry (Kvaløy & Tveteras, 2008;Olsson & Criddel, 2008;Larsen & Asche, 2011;Straume, 2014), and changed price transmission in some supply chains Dey et al, 2014). Thus, future contracts, long-term contracts and partnerships are increasingly used in order to reduce market risk.…”

Section: Introductionmentioning

confidence: 98%

Price Volatility in Seafood Markets: Farmed vs. Wild Fish

Aquaculture Economics & Management

Dahl

Steen

2015

& Price volatility has an important impact on seafood markets and the aquaculture industry. This article investigates price volatility regimes along three dimensions; technology, species and product form. We identify regimes using the Iterated Cumulative Sum of Squares (ICSS), which allow us to compare the volatility found in aquaculture products, as well as comparing against fish-meal and soybeans. The results help identify the level of price risk found within the aquaculture industry across species and products. In addition, we differentiate between technologies comparing wild-caught fish with aquaculture products. The results also help us consider the relative riskiness of aquaculture compared to other industries. The results indicate that in aggregate, price volatility for aquacultured products is substantially lower than for wild. However, this varies substantially between species.

“…salmon (Asche and Sebulonsen, 1998;Bronnmann and Asche, 2017;Uchida et al, 2014) and source-differentiated demand (Dey et al, 2014;Muhammad and Jones, 2011;Zhang, Tveteras, and Lien, 2014), indicating that a disease shock has the potential to segment the market. Moreover, the decrease in demand because of a disease outbreak can result in a substantial lowering of the price.…”

Section: Introductionmentioning

confidence: 99%

Market Shocks in Salmon Aquaculture: The Impact of the Chilean Disease Crisis

Cojocaru

Sikveland

2018

J. Agric. Appl. Econ.

Abstract.Several studies indicate an integrated global market for salmon. However, there is increasing evidence of market segmentation for various seafood species. A disease crisis in Chile that reduced production by two-thirds provides a strong market shock that can shed light on how strongly integrated the salmon market is. Our results indicate that Chilean producers changed the product mix and export markets as a result of the disease shock. Yet, the relative prices remained constant, indicating a high degree of market integration. Moreover, Chilean prices are endogenous to the Norwegian price, indicating that prices are determined at the global market.