The demands they are a-changin’

Abstract

Smooth operators such as time trends are often applied to deal with unidentified demand shifters. However, if unknown factors affect demand irregularly, a time trend fails to capture the variation. We present an index approach for estimating irregular demand shifts, decomposing total demand shifts into predicted and unexplained effects. This allows separating demand shifts caused by known factors like income and substitution effects from unknown impacts on demand. Our application on farmed salmon shows unknown factors impact demand irregularly both between regions and within regions over time. Unknowns contribute to more than half of global salmon demand growth in recent years.

Implications of Entry Restrictions to Address Externalities in Aquaculture: The Case of Salmon Aquaculture

“…On the market side, high demand for salmon has resulted in record high salmon prices (Braekkan and Thyholdt 2014;Asche and Oglend 2016;Braekkan et al 2018). Norway is the world's largest producer of farmed salmon (around 60% production share), and production trends in Norway will have price effects.…”

Differentiation in the Atlantic salmon industry: A synopsis

“…Typically, most improvements happen with suppliers, such as targeted feed, improved fingerlings and production technology (Sandvold, 2016;Tveterås & Heshmati, 2002), or downstream in the supply chain in the form of improved logistics or transaction methods (Landazuri-Tveterås et al, 2018;Oglend and Straume, 2020;Straume, 2017). Moreover, market size was increased by reaching new customers through reduced prices, new product development, new distribution channels and sales outlets (Asche & Bjørndal, 2011;Braekkan & Thyholdt, 2014;Braekkan et al, 2018). Norway is the leading producer of farmed salmon, with this species accounting for over 60% of the Norwegian export value of seafood since 2004 (Straume et al, 2020).…”

Agglomeration and trade performance – evidence from the Norwegian salmon aquaculture industry

“…While most of the focus has been on productivity growth in the production phase (Asche & Roll, 2013;Asche, Roll, & Tveteras, 2009;Rocha Aponte & Tveterås, 2019;Roll, 2013;Tveteras, 1999;Vassdal & Holst, 2011), the importance of innovation in the supply chain (Asche, Cojocaru, & Roth, 2018;Asche, Roll, & Tveteras, 2007;Kvaløy & Tveteras, 2008;Olson & Criddle, 2008) and demand growth have also been recognized (Asche, Dahl, Gordon, Trollvik, & Aandahl, 2011;Braekkan, Thyholdt, Asche, & Myrland, 2018;Braekkan & Thyholdt, 2014). 1,2 There are also a few studies that more specifically investigate agglomeration effects at the production level in Norwegian salmon aquaculture.…”