THE RUSSIAN SEAFOOD REVOLUTION: SHIFTING CONSUMPTION TOWARDS AQUACULTURE PRODUCTS

A food consumption revolution is taking place in Russia. After decades of severe constraints on food consumption options under the communist regime Russian consumers are now adopting new food products—including seafood products – at a high pace. Since Russian consumers have previously had very limited seafood consumption choices, the market can be seen as an interesting laboratory for investigating consumer responses to products that have previously not been available. Among imported seafood products are both wild and farmed species. Furthermore, Russian imports include both traditional species such as herring, and ‘new’ species such as pangasius. We analyze market integration among seafood products using Russian monthly import prices from 2002 to 2007 on several products, such as herring, salmonids and pangasius. We find that pangasius compete in the white fish segment, and is a price leader. In the salmonids market, farmed salmon trout appears to be the price leader, both in the fresh and frozen market segment.     

Media Coverage of PCB Contamination of Farmed Salmon: The Response of U.S. Import Demand

This article evaluates the effects of extensive media coverage of a study published in 2004 regarding the presence of polychlorinated biphenyls (PCBs) and other organic contaminates in farmed salmon on U.S. import demand for fresh farmed salmon. The study indicated that levels of PCBs differed according to source, with highest PCB levels found in salmon from Northern Europe and lowest in those from Chile. Using a newspaper article index as a proxy for information, a two-stage demand model is estimated. In the first stage, total U.S. import demand for fresh farmed salmon is estimated to determine the overall effect of the information, while the second stage determines if there were any significant changes in market shares of source countries. Results indicate that imports declined by approximately one-third of what would have been in the absence of the PCB media stories during 2004–2006, and that some changes in exporters’ market shares occurred. Health implications for U.S. seafood consumers are discussed.     

Competition between farmed and wild fish: The French sea bass and sea bream markets

ABSTRACT

Aquaculture is contributing at an increasing rate to the world seafood supply. The interaction between fisheries and aquaculture is especially important for the seafood market where supply of wild and farmed fish can affect price dynamics. We examine market interactions in the French fresh sea bass and sea bream markets. We test for long-term price parity between farmed and wild products for these two species, applying a bivariate cointegration approach to market delineation. We also conduct the Law of One Price (LOP) test between price series. Our data base consists of monthly domestic price series for fish purchased by French households from 2007 to 2012. Our empirical results show that the fresh fish markets for whole wild and farmed sea bream are partially integrated, yet those for whole wild and farmed sea bass are not integrated. The substantially higher price for wild sea bass relative to farmed sea bass suggests that consumers may be more sensitive to seafood production processes when it comes to higher-value species.     

Labeling farmed seafood: A review

Food labels help consumers choose products in line with their food attitudes and preferences. As the market for farmed seafood grows, it is important for producers to meet consumer demand for credence characteristics like safety, nutrition, origin, and sustainability. Consumer preferences for credence characteristics are heterogeneous, and stakeholders in the farmed seafood industry can look to both agriculture and marine labels when they seek ways of positioning their products. In this article, we conduct a review of consumer studies related to mandatory and voluntary labels used for farmed seafood. In most developed countries, mandatory seafood labels include information about species, farmed or wild, and area of origin. Voluntary labels include information regarding sustainability, organic production, animal welfare, traceability, and safety. We point to emerging research topics and possibilities. Challenges related to the labeling of farmed seafood are also discussed.     

CERTIFICATION OF SHRIMP AND SALMON FOR BEST AQUACULTURE PRACTICES: ASSESSING CONSUMER PREFERENCES IN RHODE ISLAND

This study uses a conjoint experiment to evaluate seafood consumers’ preferences for wild versus farmed seafood in Rhode Island, while providing an option for farmed products to be certified for best aquaculture practices, focusing upon salmon and shrimp. The definition for best aquaculture practices provided to respondents in the survey is broadly based upon standards currently in use by aquaculture certification groups, highlighting sustainability of fish feed, and control of antibiotic use, water quality and stocking density. Using data from an in-person intercept survey, a conditional logit model shows that a sample of 250 seafood consumers in Rhode Island choose wild products over farmed even when farmed products are certified, and by an entity preferred by the consumer. Results warrant both further study of consumer preferences for certified aquaculture products across a broader population, and study of the effect of different explanations of ‘best aquaculture practices’ upon preferences.     

Farmed fish to supermarket: Testing for price leadership and price transmission in the salmon supply chain

In this article, we measure the extent of price transmission and test price leadership in the salmon supply chain. The data represent monthly observations (2005–2014) on export price of fresh salmon from Norway and on retail prices for a variety of salmon products in France and United Kingdom. The contribution is to use a Johansen bivariate time-series approach to quantify the degree of price transmission on a broader set of consumer salmon products than has been previously studied. Of the original 17 retail products examined only 8 cointegrate with export prices. Of these, all but one reject a null of full price transmission and all show price causality from export to retail level. Price transmission to retail prices decreases, as more processing is involved and increases for packaged salmon products compared to salmon sold in the fresh fish counter.     

Price transmission among different Atlantic salmon products in the U.S. import market

The cross-commodity price transmission is an approach to derive meaningful results from the price information, and is mostly influenced by the substitutability and complementary relations among products. Using time series data collected from the National Marine Fisheries Statistics, the present study specified and estimated cross-commodity price transmission models for 13 salmon products imported in the U.S. market. The salmon products are differentiated by form, cut, source/origin, and production environment. The estimated cross-product price transmission elasticity and degree of substitutability among them varied considerably. Whole fresh farmed Canadian and Norwegian Atlantic salmon did not have any close import substitutes in the U.S. market among the salmon products considered in the study. A reduced pricing strategy would result in an increase in U.S. salmon import market share of Chilean and U.K. Atlantic fillet fresh, if the U.S. import demand for it is relatively own-price elastic.     

Price interactions between salmon and wild caught fish species on the Spanish market

Abstract

The introduction and rapid expansion of farmed salmon production in the mid 1980s has transformed the international market for salmon. Spain is one of the most important markets for fish within Europe and the world, and has seen a substantial increase in its demand for salmon. As in other European countries, this has raised concerns that the increased supply of salmon to Spain may have detrimental effects on the market prices of traditional (wild‐caught) species.

In this paper, the extent to which salmon competes with the main traditional fish species in the Spanish market is examined using market delineation methodologies. In particular, the potential interactions between species is examined in a multivariate cointegration framework. The results suggest that salmon is at best only a weak substitute for tuna, hake and whiting, but no significant interaction could be found.     

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

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.     

A marketing survey on Greek consumers' attitudes towards fish

The commercial fish industry in Greece traditionally represents one of the most important natural resource-based industries. The process by which the wide variety of seafood products moves from the deck of a trawler, or the fish farm, to the consumer's dish is rather complicated. Considering the various species marketed, the seasonal nature of the many domestic and foreign supplies, the specific quality and safety attributes, and a multitude of processing methods and products, the effective marketing of seafood products becomes very demanding. The present survey evaluates the Greek consumers' attitude towards wild and farmed fish in order to understand and satisfy market needs. The results of this study mainly indicate that fish consumption pattern is age-dependent. In addition, four consumer clusters are identified, with clear-cut socio-demographic profiles.     

Possibility of anisakid larvae infection in farmed salmon

SUMMARY: Nematodes belonging to the family Anisakidae including Anisakis simplex and Pseudoterranova decipiens are known to cause anisakiasis when their live larvae are ingested by humans. We estimated the possibility of anisakid infection to salmonids, farmed in sea net-pens at Onagawa Bay, Miyagi, Japan, in 1992, 1998 and 1999, by direct examination of the edible muscle and examination of the contents of the alimentary canal. From direct examination of the muscle, no nematode was found in the 249 farmed coho salmon Oncorhynchus kisutch and 40 farmed rainbow trout Oncorhynchus mykiss . In contrast, third-stage larvae of Anisakis simplex were found in seven of 14 wild coho salmon caught in Russia and all the 40 wild chum salmon Oncorhynchus keta caught at Nemuro and Kesennuma in 1998. The stomach and intestines of 521 farmed coho salmon and 40 farmed rainbow trout were examined carefully for the existence of possible carrier organisms such as crustaceans, fish or squid. Such carrier organisms were not found in the stomach and intestines of farmed fish. Thus, we conclude that the possibility of anisakid infection is very low in farmed salmonids.     

Migratory behaviour of adult wild and escaped farmed Atlantic salmon, Salmo salar L., before, during and after spawning in a Norwegian river

The migratory behaviour of adult wild and escaped farmed Atlantic salmon, Salmo salar L., before, during after spawning in the River Namsen, Norway, was analysed using radio telemetry. The fish were caught, radio tagged and released into the fjord between 7 and 25 km from the river mouth. A significantly higher proportion of wild (74%) than farmed (43%) salmon was subsequently recorded in the river. Wild salmon (33%) were more frequently captured in the sea and in rivers than farmed salmon (14%). The migration speed from release to passing a data logger 11 km upstream from the river mouth was not significantly different between wild (20.6 km day^?1) and farmed (19.8 km day^?1) salmon. Wild salmon tagged when water flow in the river was increasing had a significantly higher migration speed than wild salmon tagged when water flow was decreasing. This was not true for farmed salmon. Farmed salmon were distributed significantly higher up the river than wild salmon during spawning, although both types of fish were found together in spawning areas. Thus, there was no geographical isolation to prevent spawning between wild and escaped farmed salmon. Farmed salmon had significantly more and longer up- and downstream movements than wild salmon during the spawning period. Unlike farmed salmon, the number of riverine movements by wild salmon increased significantly when variation in water flow increased. A smaller proportion of wild (9%) than farmed (77%) salmon survived through the winter after spawning.     

Salmon importation and consumption in Taiwan

ABSTRACT

Few studies have investigated salmon consumption and trade in unconventional emerging markets. Using import data, we calculate average per capita monthly salmon consumption in Taiwan, where all supply is imported, and use weighted least squares regression to relate it to economic variables, such as price, income, product types, and the exchange rate. By doing so, we interpret importers’ willingness to import and the features of salmon consumption. Results show complementarity between frozen and fresh salmon import quantities, insignificant exchange rate pass-through effects, and strong seasonal factors affecting salmon import quantity. In addition, the import price elasticity of fresh salmon is slightly larger than one, and the income elasticity is 1.33. We conclude that salmon has already become an important item for Taiwanese consumers, representing a case of globalization and liberalization. By explicating attributes of emerging seafood markets, this analysis will support stakeholders to formulate seafood trade policies and marketing strategies.     

Incidence of escaped farmed salmon, Salmo salar L., in commercial salmon catches and fresh water in Northern Ireland

External morphological characteristics were used to identify escaped farmed Atlantic salmon, Salmo salar L., in a coastal salmon fishery in County Antrim, Northern Ireland during four fishing seasons and at an adjacent freshwater location (R. Bush) during a 5-year period. Out of a total of 36 326 adult salmon examined in the fishery, 883 (2.4%) were identified as having escaped from sea cages. Annual average values ranged from 0.26% to 4.04% of the fish caught. Occurrence of escapees entering an adult trap in fresh water averaged 0.88%, with a range of 0.13–2.62%, depending on year. No correlation between presence in the marine fishery and in fresh water was evident, the latter year-round figures probably being more indicative of presence of escapees in spawning stocks. Entry to fresh water was significantly later on average for escaped farmed salmon, compared with wild salmon.     

ORIGINS MATTER: (NO) MARKET INTEGRATION BETWEEN CULTURED AND WILD GILTHEAD SEA BREAM IN THE SPANISH SEAFOOD MARKET

Interactions between fisheries and aquaculture have become a major issue that is still insufficiently studied. Therefore, the objective of this article is to test whether the cultured and wild gilthead sea bream in the Spanish seafood markets are integrated. By using the Johansen methodology, cointegration of the price series of farmed and wild gilthead sea bream was tested. In contrast to previous studies, our econometric results show that wild and the farmed gilthead sea bream form two heterogeneous products in the Spanish market. These new results question the generalization currently accepted by the scientific literature that farmed and wild fish are substitutes when they belong to the same species. The binomial product-market, along with some specific features of the Spanish market, such as the negative perceptions of aquaculture by some significant groups of consumers, appeared to have a great explanatory power for justifying these different results.     

Marketing research paradigms for aquaculture

Abstract

A basic premise of this review is that the traditional agricultural economics marketing research paradigm is of limited value for addressing many of the key marketing issues affecting aquaculture. These issues include how to get consumers to recognize and accept new or slightly differentiated products, and how to design products that more nearly match consumer preferences. Accordingly, we stress an ‘industrial style’ market‐development approach to aquacultural marketing research that emphasizes product differentiation and market segmentation. The focus is pragmatic in that we bring into play managerial strategies (e.g. demand‐function modification and segment development) that are integral to implementing research findings. Empirical studies pertaining to seafood demand and preference articulation are selectively reviewed to illustrate concepts and to highlight research applications.     

RECENT TRENDS IN SALMON PRICE VOLATILITY

The price of farmed Atlantic salmon from Norway has increased in recent years. This new regime follows several years of consistently falling prices. At the same time price volatility has increased substantially. This article models the volatility of salmon prices and establishes empirically that volatility is on an increasing trend. Further empirical analysis suggests that the volatility trend is largely accounted for by the common trend in other food prices relevant to salmon, including meats, cereals, oils and fish meal observed in recent years. Other potentially contributing factors to volatility are also discussed. This includes the role of the 2005 maximum total allowable biomass restriction, the 2006 introduction of the Fish Pool ASA futures market for salmon, the Chilean Salmon crisis and the increasing use of bilateral contracts.     

Salmon prices in France and the UK: Does origin or market place matter?

Abstract

There have been several attempts to distinguish farmed Atlantic salmon by origin using trademarks. Whether there exist different regional markets for salmon, and in particular whether the UK market is separate from the market in continental Europe, is also an issue that has received attention. To address these questions, we investigate the relationship between Norwegian and Scottish salmon both in France and the UK, and between Scottish salmon in France and the UK. The analysis is carried out by investigating how the development of prices is related using co‐integration tests.     

By-Products and Seafood Production in Japan

Japanese output of fishery products in 1993 amounted to 8.7 million metric tons valued at 2.5 trillion yen, and has gradually decreased for the last five years. Annual imported fishery products in that year amounted to 3.1 million metric tons (1.6 trillion yen). Prawn, tuna, salmon, mackerel and cod were the most prominent fishes imported mainly from the US, Taiwan and Republic of China. These accounted for 40% of total imports. A Japanese self-supplying rate for fishery products was about 64% in 1993. Under these severe conditions surrounding the fisheries of Japan, the Government operates several projects to develop increased utilization of initialized aquatic natural resources and to increase the value of marine products. These include better utilization for human consumption of initialized flying squid, headlight fish and low-quality spawned salmon; development of a large-scale extraction and purification technology for docosahexaenoic acid from marine products; and development of novel seafood by using high hydrostatic pressure technology. For the topics of by-products from aquatic resources, products from chitin and chitosan, fish oils, both for medical and food uses, liquid crystal, protamines from fish testicles for antibacterial for foods, growth hormones for fish farming, and several pharmaceutical compounds from marine organisms are introduced.     

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

Abstract

Often, increases in farmed seabass and seabream production surpluses from Turkey and Greece have been blamed to lead to price declines and aquaculture sector crises. In this study, we investigate whether Turkish exports of farmed European seabass affect prices of European Union (EU) farmed European seabass. This is done by examining the existence of market integration between the prices of Turkish exports of farmed European seabass into the EU and the prices of farmed European seabass commercialized in wholesale markets in Barcelona, Madrid and Paris. Market integration and competition studies in fisheries and aquaculture products have generally focused on analyzing substitutability between species and between wild and farmed conspecifics. Few studies have focused on analyzing market integration between different geographic areas. Market integration analyses between different geographic areas have proven useful in anti-dumping investigations. Results show the lack of market integration between EU imports of Turkish farmed European seabass and main EU wholesale markets; in other words, farmed European seabass prices in EU markets do not seem to be affected by export prices of Turkish farmed seabass.