MARKET SHOCKS IN SALMON AQUACULTURE: THE IMPACT OF THE CHILEAN DISEASE CRISIS. (13th March 2018)

• Record Type: Journal Article
• Authors: ASCHE, F.; COJOCARU, A.L.; SIKVELAND, M.
• Is Part Of: Journal of agricultural and applied economics. Volume 50:Number 2(2018)
• Page Start: 255
• Page End: 269
• Publication Date: 2018-03-13
• Subjects: Disease, -- market integration, -- salmon aquaculture; Q22; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2017.33
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract: Several studies indicate an integrated global market for salmon. However, there is increasing evidence of market segmentation for various seafood species. A disease crisis in Chile that reduced production by two-thirds provides a strong market shock that can shed light on how strongly integrated the salmon market is. Our results indicate that Chilean producers changed the product mix and export markets as a result of the disease shock. Yet, the relative prices remained constant, indicating a high degree of market integration. Moreover, Chilean prices are endogenous to the Norwegian price, indicating that prices are determined at the global market.