Effects of income growth and tariffs on the world salmon market

Abstract

The effects of income growth and tariffs on salmon prices, production, and trade flows are analysed using total elasticities derived from an equilibrium displacement model of the world salmon market. Results suggest the total income elasticity in world trade for salmon is about one, which means imports worldwide will grow at about the same pace as world income. However, owing in part to policies that restrict supply response, not all exporters will share evenly in this growth, with UK producers benefiting the most and Norwegian producers the least. Within importing countries, imports are more responsive to income growth than is domestic production, which means protectionist pressures are apt to increase with affluence. US tariffs on imports from Norway and Chile are counterproductive in that they reduce world imports with little effect on the US price. Norway's feed quota reduces the efficacy of US tariffs, makes imports less responsive to income, and increases price volatility. Hence, quota elimination may yield producer benefits in excess of producer losses associated with a lower world price.

Prediction of biomass in Norwegian fish farms

“…The market for farmed salmon is growing, but is less mature than many other agricultural markets and has experienced imperfections because of trade conflicts (Kinnucan and Myrland 2005) and outbreaks of fish diseases. In any case, the increased production of farmed salmon has reduced wild salmon prices (Guillotreau 2004;Asche et al 2005).…”

International fish trade and exchange rates: an application to the trade with salmon and fishmeal

“…In the first empirical application we address the salmon market, of which there exist a number of studies like Bjorndal et al (1993), DeVoretz and Salvanes (1993), Asche et al (1997), Asche et al (1999), Kinnucan and Myrland (2005). We investigate the price relationships for high valued frozen salmon in Japan.…”

Unintended consequences: The spillover effects of common property regulations

“…In structuring our empirical model, we are guided by the work of Dale Squares and his colleagues [23,24], and the work on international trade for other fish species by Kinnucan and Myrland [4,25,26] as well as Sarmiento [14] on swordfish. In the latter model, Sarmiento [14] followed Enders et al [27] in estimating a transfer function for monthly individual country imports.…”

“…For instance, over the period 1994-2001 preceding the closure of the Hawaii longline swordfish fishery, sea turtle bycatch rate averaged 0.17 turtles per mt of swordfish caught, whereas estimates for other major producers range from 0.8 to 1.2 turtles per mt of swordfish caught in Uruguay, 23.2 turtles per mt of swordfish in Brazil [4], and 1.58 turtles per mt of swordfish in South Africa [5].…”