Price interactions between wild and farmed products: Turkish sea bass and sea bream markets

Abstract

We investigate empirically market interactions in the Turkish wild and farmed sea bass and sea bream markets. For gilthead sea bream and European sea bass, we conduct a Granger causality test between the prices of the wild and farmed products, based on the estimation of a vector autoregressive model. Our data set consists of annual fish prices from 1996 to 2016. Our empirical results show that the wild and farmed sea bass are neither substitutes nor complements : the markets for each product are independent. However, in the case of sea bream, the price variations for farmed sea bream have a causal impact on the price of wild sea bream. Moreover, the price of wild sea bream Granger-causes the price variation of farmed sea bream. Thus, the wild and farmed sea bream markets are integrated.

Assessment of the economic performance of the seabream and seabass aquaculture industry in the European Union

“…The production of farmed seabream and seabass was 376,984 tonnes valued at 2,066 million USD in 2016 2 . The capture sector is relatively unimportant for these species as it represented less than 4% of total volumes, and the catches are mostly found to compete in a separate market (Bjørndal and Guillen, 2017;Regnier and Bayramoglu, 2017;Bayramoglu, 2019). About 95% of the production is located in the Mediterranean.…”

Gilthead seabream price dynamics in the Spanish market: The role of retailers and international trade on price linkages

“…Despite competition at seabream markets in the Mediterranean has increased significantly in recent decades, the literature that helps to understand the competitive relations across this value chain is scarce. Most of the studies focused in competition between wild and farmed seabream, and found that they form two differentiated products in the Spanish market (Rodriguez et al 2013;Regnier and Bayramoglu, 2017;Bjørndal and Guillen, 2017a,b;Bayramoglu, 2019). However, few studies have focused on analyzing market integration between different geographic areas (Bjørndal et al 2019) and price interactions along the value chain.…”

Are farmed European seabass (Dicentrarchus labrax) prices in European Union markets affected by Turkish exports of farmed European seabass?

“…Studies have mostly focused on salmon in the EU and US (Gordon, Salvanes, & Atkins, 1993;Mickwitz, 1996;Jaffry, Pascoe, Taylor, & Zabala, 2000;Asche, 2001;Setälä et al, 2003;Virtanen, Setälä, Saarni, & Honkanen, 2005), shrimps in the EU and US (Béné, Cadren, & Lantz, 2000;Kennedy & Lee, 2005;Asche, Bennear, Oglend, & Smith, 2012;Ankamah-Yeboah, Ståhl, & Nielsen, 2017;Ankamah-Yeboah & Bronnman, 2018), and catfish/tilapia in the US (Ligeon, Jolly, & Jackson, 1996;Quagrainie & Engle, 2002;Kennedy & Lee, 2005;Hong & Duc, 2009;Norman-López & Bjørndal, 2009). In 3 Studies show that farmed European seabass does not compete with wild seabass species in France (Regnier and Schubert, 2016;Regnier and Bayramoglu, 2017), Italy (Brigante and Lem, 2001), Spain (Rodriguez Rodriguez and Bande Ramudo, 2015;Bjørndal and Guillen, 2017a) and Turkey (Bayramoglu, 2018). many cases, substitutability between farmed imports and domestic produce is confirmed, even if there are some exceptions (see for a review Bjørndal and Guillen, 2016).…”