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Can Quality Revitalize the Alaskan Salmon Industry?

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Author Info
Bruce A. Babcock () (Center for Agricultural and Rural Development (CARD), Midwest Agribusiness Trade Research and Information Center (MATRIC))
Quinn Weninger

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Abstract

Declining salmon prices, due primarily to expansion of farmed salmon production, have reduced revenues for Alaska's wild salmon fisheries by roughly 62 percent over the past 10 years. One possibility for reversing this trend is to differentiate wild and farmed salmon in consumer markets through quality improvements and marketing. We use a simple conceptual model to highlight the challenges that Alaska's wild salmon industry must overcome before the industry is likely to see significant revenue gains from increased quality. Our tentative conclusion is that product differentiation could increase profits for wild salmon. However, implementation may require significant departures from traditional production and management practices and possibly an amendment to the Alaska state constitution.

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File URL: http://www.card.iastate.edu/publications/DBS/PDFFiles/04wp359.pdf
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Publisher Info
Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 04-wp359.

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Date of creation: Apr 2004
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Handle: RePEc:ias:cpaper:04-wp359

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Related research
Keywords: product differentiation; salmon; quality assurance.;

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References listed on IDEAS
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  1. Rothschild, Michael & Stiglitz, Joseph E., 1971. "Increasing risk II: Its economic consequences," Journal of Economic Theory, Elsevier, vol. 3(1), pages 66-84, March. [Downloadable!] (restricted)
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  1. Pennerstorfer, Dieter & Weiss, Christoph R., 2007. "Do Cooperatives Offer High Quality Products?," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9403, European Association of Agricultural Economists. [Downloadable!]
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This page was last updated on 2009-12-22.


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