473 research outputs found
TRADE DISPUTES AND PRODUCTIVITY GAINS: THE CURSE OF FARMED SALMON PRODUCTION?
No full textInternational Relations/Trade, Resource /Energy Economics and Policy,
Father Flynn and Austin Asche
No full textFunction at the former State Library of the Northern Territory, 25 Cavenagh Street, to mark its closure prior to its reopening as the Northern Territory Library in Parliament House, Darwin; Father Frank Flynn, left, and Austin Asche, right.Unknown
MODELING PRODUCTION RISK WITH A TWO-STEP PROCEDURE
No full textThis study deals with modeling of production risk by means of a two-step procedure. In contrast to earlier studies of production risk, we do not immediately adopt restrictive functional forms for the risky production technology. We first test for the presence of production risk. If production risk is found to be present, the mean and risk functions are estimated separately. This allows the use of more flexible functional forms for both the mean and the risk functions than commonly found in the literature. An empirical application to Norwegian salmon farming, where restrictive specifications of the technology are rejected, demonstrates the validity of our approach. Presence of production risk many primary production sectors implies that this approach should be considered in productivity studies.Production Economics,
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Consumer Preferences for Ecolabeled Seafood in the United States and Norway: A Comparison
No full textThe authors are research assistant, professor and department chair, and assistant professor in the Department of Environmental and Natural Resource Economics at the University of Rhode Island, respectively. Frank Asche is professor in the Department of Economics at the University of Stavanger, Norway. Funding for this project was provided by the Rhode Island Sea Grand Program under the Rhode Island Agricultural Experiment Station (contribution No. 3764) and the Norwegian Research Council, Oslo, Norway
TESTING THE EFFECT OF AN ANTI-DUMPING DUTY: THE US SALMON MARKET
No full textAfter holding a market share of over 50% for farmed salmon in USA, the market was closed for Norwegian salmon in 1991 when a countervailing duty was imposed. The objective for U.S. farmers was to increase prices and U.S. market shares. This paper investigates whether U.S. farmers reached these goals.International Relations/Trade, Resource /Energy Economics and Policy,
DYNAMIC ADJUSTMENT IN DEMAND EQUATIONS
No full textThe focus of this paper is the dynamic adjustment of demand. It is shown that a dynamic specification of the demand equation provides information on: (i) the level of response to a price or expenditure change taking place instantaneously, (ii) how much the adjustment has taken place after any number of periods, and (iii) how long it takes for the price change to be fully reflected in the demand. The importance of the dynamic adjustment is shown for the import demand for fresh and frozen salmon in the European Union. The results indicate that, for these product forms, only about 10% of the adjustment from a price or expenditure change takes place instantaneously, that over 60% of the adjustment has taken place after three months, but that it takes almost a year before the change is fully reflected in the demand.Demand and Price Analysis, Resource /Energy Economics and Policy,
ALLOCATION OF FISH BETWEEN MARKETS AND PRODUCT FORMS
No full textIn this paper, we investigate the suppliers' allocation decisions between different product forms and markets using supply equations derived from a translog revenue function. This is of interest based on the hypothesis that fish processors and importers respond to changes in relative prices, diverting more fish into products or to markets where the price has risen. This can also at least partially explain the strong degree of correlation between prices of different product forms and markets that is observed in many seafood markets. An empirical analysis is carried out for cod for three main producers, Canada, Iceland, and Norway. The supply of cod exhibits substantial variation, and it is processed into a number of product forms. How the landings are allocated between product forms is then of substantial interest in itself, but also with respect to the influence of new species in the whitefish market, like pollock.Resource /Energy Economics and Policy,
Essays on International Trade of Salmon and Wine
No full textThis thesis deals with the trade of two products, salmon and wine, exported from and to Norway. The World has benefitted from innovations and productivity growth in the Norwegian salmon aquaculture industry, increasing the availability of salmon worldwide at more affordable prices. In the same way, Norway has benefitted from the global surge in wine production stemming from competition between ‘new’ and ’old’ wine-producing countries, resulting in more affordable and higher quality wines. Thus, export of a commodity, such as salmon, allows welfare-enhancing imports of another, such as wine. This trade encapsulates the workings of a small open economy like Norway’s.
The topics covered in this thesis deal specifically with trade relationships. First, it deals with trade relationships between the Norwegian salmon exports, trout exports and the destination markets. Second, it deals with relationships between wine exporters in different wine-producing countries and wine importers in Norway. In particular, we focus on market links, through the interaction between prices in different levels of the international value chain, and links between agents, through the interaction between exporting firms and importing firms. The analyses of these relationships involve different methodological approaches, including descriptive statistics, regression, cointegration analysis and duration analysis.
The results from the analyses show strong links between Norwegian export prices of salmon and the retail prices in key markets like France and UK. Moreover, the export prices tend to lead the retail prices, so the supply is key to understand changes in prices facing the final consumers. However, it also shows that price transmission from export prices diminishes with processing, as salmon increasingly is just one of several inputs in the final retail product. The findings also show that Atlantic salmon is the price leader of rainbow trout, with the export prices of the two species tightly integrated.
In terms of agents in trade, the salmon exports show that larger firms appear to obtain no price bonuses in the export markets. This observation corresponds to earlier research showing larger exporters sell a larger share on contracts and long-term agreements. Many smaller exporters operate in the spot markets resulting in many single trades, that nevertheless can be surprisingly large in value. In the wine imports, we find that the duration of importer-exporter trade relationships decreases when an increasing number of importers compete for wine from a wine-producing country. However, the more valuable the wine becomes, the more importers and exporters seem to invest to maintain their trading partnership
Farming the Sea
No full textDuring the last decades aquaculture has been one of the world’s fastest growing food production technologies. This is primarily due to increased control over the production process that has enabled innovations, productivity growth, and reduced production costs. Compared to agriculture, production technology, research, and development in aquaculture are still not very sophisticated, and control over the production process is still limited. This implies that there still is potential for further innovations and productivity growth in aquaculture. Although one must face similar environmental challenges as agriculture, there is no doubt that intensive aquaculture can be sustainable. Moreover, increased food production from the sea can reduce pressure on marginal terrestrial land and deforestation. As the productivity potential in aquaculture is exploited, aquaculture production is set to continue its increase, and humanity will, to an increasing extent, also farm the sea.Aquaculture, farming, innovation, productivity, Food Consumption/Nutrition/Food Safety, Production Economics, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, Q18, Q22,
Contracts in the Salmon Aquaculture Industry: An Analysis of Norwegian Salmon Exports
No full textSales and distribution innovations have increased productivity in the salmon aquaculture industry. In this article, we investigate the use of fixed price contracts for Norwegian salmon exports to France based on all export transactions between the two countries. Our analysis shows that almost 25% of these exports were traded using fixed price contracts and contract prices were renegotiated at different intervals, including as infrequently as once a year. Some contracts allow the contracting parties to adjust contract prices when the export price moves significantly. Benchmark analysis, which shows a marginal 0.5% difference between average unit revenue for the year from spot sales relative to contract sales, indicates that contracts primarily change revenue time profiles. The use of contracts creates a wedge between salmon export prices and spot prices in periods of price volatility, which in turn reduces price transmission.Contracts, salmon aquaculture, International Relations/Trade, Productivity Analysis, Research Methods/ Statistical Methods, L14, Q22,
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