Price flexibility and international shrimp supply

Abstract

This paper provides an in-depth analysis of shrimp price flexibility and the impact of decreases in quantity supplied of shrimp on world price. Seemingly Unrelated Regression (SUR) is utilized to determine price flexibility of shrimp and changes in quantity supplied on world shrimp price. The key objective of this paper is to use Huang's direct procedure and Eales' indirect technique for calculating price flexibilities to evaluate the effects of a reduction in quantity supplied of 5%, 10%, 20%, and 30% from shrimp aquaculture sources on world price. Estimated price flexibility for the quantity supplied of aquaculture shrimp was -0.32. A 5% decrease in quantity supplied increases price by 6%, while a 10 % decrease, increases price by 14%. A decrease in quantity supplied of 20%, increases price by 22%, but a 30% decrease, increases price by 36%. The results indicate that if world supply should plummet, due to deteriorating environmental conditions, such as disease or pollution, world shrimp price will increase substantially.

Factors Driving Aquaculture Technology Adoption

“…In aquaculture, expectation of greater profits from integrating aquaculture with agriculture was an important reason for adoption in Malawi (Dey et al , ). The expectation of greater profits driven by the increasing demand for black‐tiger shrimp in the US and Japanese markets resulted in adoption of more intensive shrimp production practices in Asia (Csavas ; Keefe and Jolly ). Similarly, strong commercial intent and expectations of greater profits were important determinants of the adoption of shrimp farming in India (Katiha et al ) and tilapia farming in Cameroon (Wandji et al ).…”

“…Availability of a sufficiently large and low‐cost labor force with low opportunity costs of labor aided the development of shrimp farming in Asia (Keefe and Jolly ). Semi‐intensive aquaculture practices in Asia were found to increase the marginal productivity of labor and provided more income, employment, and food securities to rural households (Ahmed and Lorica ).…”

“…The negative influence of age of adopters was found with adoption of new aquaculture technologies in Africa (Harrison ), shrimp farming in Asia (Keefe and Jolly ), soft shell crab farming in the USA (Caffey and Kazmierczak ), and semi‐intensive tilapia and carp faming in Asia (Pemsl et al ; Iliyasu and Mohamed ). The level of understanding and awareness of changing aquaculture practices were lower among older farmers in Bangladesh (Alam et al ).…”

Impact of coastal shrimp fishing on women and youth livelihoods and food security in Tárcoles, Costa Rica

“…This is tough for many people who depend on the shrimp resource for economic support and for recreational enjoyment. Because of its high price, most women and youth decide to sell most if not all of their catch (Keefe& Jolly, 2000). However, some women choose to bring shrimp to the house to feed their families often times in addition to selling some of the day's catch.…”