Price Setting in Markets for Egyptian Farmed Fish

Abstract

This article investigates the relation between fish supply volumes and sales values in El-Obour wholesale market. The study also examines market cointegration between farmed tilapia and imported wild frozen fish (tilapia, mackerel, Mediterranean horse mackerel, sardine and lizardfish). Regression and Johansen cointegration analysis was used for market data analysis. Market data includes fish sales volume and prices in El-Obour wholesale market in 2012. The results indicate that there is a negative relationship between the volume of farmed tilapia supplied to the market and sales values. Cointegration analysis shows that tilapia grade 1 and 2 prices compete together in market while catfish does not compete with farmed tilapia. Frozen lizardfish and sardines prices are cointegrated with tilapia grades 1 and 2 while tilapia grade 3 competes with lizardfish and Mediterranean horse mackerel, but there was no evidence of market cointegration between catfish and frozen wild fish. The implications are important as increased tilapia supplies to the market leads to declining sales prices. In addition, there is market competition between wild frozen fish and farmed tilapia, however they are not fully integrated. Increasing imports of frozen fish could reduce the selling price of farmed tilapia and negatively influence investment in fish farms.

Economic and financial risks of commercial tilapia cage culture in a neotropical reservoir

“…The demand from a local market, exportation, and logistic costs cannot be associated only with the variations in the size of the projects. Variations in the selling price include available market, accessibility, seasonal fluctuations in supply, frozen wild fish, and fresh tilapia [ 46 , 47 ]. Therefore, other studies addressing these aspects should be considered when evaluating the risks.…”