Price Volatility in Seafood Markets: Farmed vs. Wild Fish

Asche, Frank; Dahl, Roy Endré; Steen, Marie

doi:10.1080/13657305.2015.1057879

Cited by 60 publications

(27 citation statements)

References 58 publications

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“…The introduction of aquaculture has led to a higher total seafood supply, lower seafood prices and lower price volatility (Dahl and Oglend, 2014;Asche, Dahl and Steen, 2015). Aquaculture has become one of the fastest growing food production sectors in the world (Asche, 2008).…”

Section: Discussionmentioning

confidence: 99%

Market integration between wild and farmed seabream and seabass in Spain

Bjørndal

Guillén

2017

Applied Economics

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Gilthead seabream (Sparus aurata) and European seabass (Dicentrarchus labrax) production from aquaculture has been increasing since the 1990s. Nowadays, about 95% of their production comes from aquaculture. In this study we analyze if the rapid growth in the aquaculture production of both species has affected the capture fisheries prices of both species. In other words, we investigate if there is market integration between wild and farmed gilthead seabream and European seabass. In order to do this analysis, we use data from the main gilthead seabream and European seabass markets in Spain. Results show that there is no or limited market integration between wild and farmed gilthead seabream and European seabass. This implies that capture fisheries are not significantly affected by increases in the aquaculture production of both species. But gilthead seabream and European seabass aquaculture producers face a smaller demand that explains the difficulties this aquaculture segment is facing.

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Section: Discussionmentioning

confidence: 99%

Market integration between wild and farmed seabream and seabass in Spain

Bjørndal

Guillén

2017

Applied Economics

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“…Futures contracts provide an additional tool to hedge risk and reduce transaction costs. The salmon price is volatile and contributes substantially to a salmon farmer's risk (Sikveland & Oglend, 2008;Solibakke, 2012;Oglend, 2013), although there are other seafood prices that are more volatile (Dahl & Oglend, 2014;Asche, Dahl, & Steen, 2015a), and price forecasting is difficult (Gu & Anderson, 1995;Guttormsen, 1999). 1 The hedging opportunity provided by a futures contract can accordingly smooth revenue flows and reduce risk management costs.…”

Section: Introductionmentioning

confidence: 99%

The spot-forward relationship in the Atlantic salmon market

Asche

Misund

Øglend

2016

Aquaculture Economics & Management

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This study examines the Fish Pool salmon futures contract with respect to how well the market performs in terms of the futures price being an unbiased estimator of the spot price and whether the market provides a price discovery function. Using data for 2006-2014 and with futures prices with maturities up to 6 months we find that spot and lagged futures prices are cointegrated and that the futures price provides an unbiased estimate of the spot price. We also find that, with the exception of the front month, that the causality is one-directional. The spot prices lead futures prices between 1-6 months maturity. Hence, while the spot and lagged futures prices are unbiased estimates, we do not find support for the hypothesis that futures prices provide a price discovery function. Rather, it seems that innovations in the spot price influence futures prices. This finding is not uncommon in new and immature futures contracts markets. Hence, the salmon futures market is still immature and has not yet reached the stage where futures prices are able to predict future spot prices.

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“…Therefore, while a complete picture of aquaculture imports to NVNs is not currently possible, only a small portion of aquaculture exported by NVNs remains available to nutritionally vulnerable populations. Further, considering the fact that 73% of world seafood imports are destined for developed nations, and aquaculture products are disproportionately highvalue exports destined for international markets, the substantial contribution to NVNs via imports appears unlikely (FAO, 2007;Asche et al, 2015b). FAO further states that while aquaculture may represent an important component of food security, it is likely through consumption of low-value domestic species rather than import (Smith et al, 2010;FAO, 2016b).…”

Section: The Role Of Aquaculture In Nutritionally Vulnerable Nationsmentioning

confidence: 99%

Does Aquaculture Support the Needs of Nutritionally Vulnerable Nations?

et al. 2017

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Aquaculture now supplies half of the fish consumed directly by humans. We evaluate whether aquaculture, given current patterns of production and distribution, supports the needs of poor and food-insecure populations throughout the world. We begin by identifying 41 seafood-reliant nutritionally vulnerable nations (NVNs), and ask whether aquaculture meets human nutritional demand directly via domestic production or trade, or indirectly via purchase of nutritionally rich dietary substitutes. We find that a limited number of NVNs have domestically farmed seafood, and of those, only specific aquaculture approaches (e.g., freshwater) in some locations have the potential to benefit nutritionally vulnerable populations. While assessment of aquaculture's direct contribution via trade is constrained by data limitations, we find that it is unlikely to contribute substantially to human nutrition in vulnerable groups, as most exported aquaculture consists of high-value species for international markets. We also determine that subpopulations who benefit from aquaculture profits are likely not the same subpopulations who are nutritionally vulnerable, and more research is needed to understand the impacts of aquaculture income gains. Finally, we discuss the relationship of aquaculture to existing trends in capture fisheries in NVNs, and suggest strategies to create lasting solutions to nutritional security, without exacerbating existing challenges in access to food and land resources.

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Price Volatility in Seafood Markets: Farmed vs. Wild Fish

Cited by 60 publications

References 58 publications

Market integration between wild and farmed seabream and seabass in Spain

Market integration between wild and farmed seabream and seabass in Spain

The spot-forward relationship in the Atlantic salmon market

Does Aquaculture Support the Needs of Nutritionally Vulnerable Nations?

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