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Market Integration between Farmed and Wild Fish: Evidence from the Whitefish Market in Germany

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  • Julia Bronnmann
  • Isaac Ankamah-Yeboah
  • Max Nielsen

Abstract

Following decade-long growth in worldwide farming of pangasius and tilapia, imports to Germany, a main European market, have been reduced since 2010. One reason for this might be supply growth of wild species at the total German whitefish market, if market integration exists between farmed and wild-caught whitefish. This article examines market integration between farmed (pangasius and tilapia) and wild-caught (Alaska pollock, cod, and saithe) frozen whitefish in Germany and finds close integration. Hence, prices of frozen pangasius and tilapia fillets in Germany are determined not only by supply of these species, but more importantly by the much larger supplies of wild-caught cod and Alaska pollock. The implication of the presence of market integration is that the small-scale Asian farmers are secured against severe price reductions in Germany arising from farm productivity growth. However, market integration also makes them dependent on quotas and supply of competing wild-caught whitefish.

Suggested Citation

  • Julia Bronnmann & Isaac Ankamah-Yeboah & Max Nielsen, 2016. "Market Integration between Farmed and Wild Fish: Evidence from the Whitefish Market in Germany," Marine Resource Economics, University of Chicago Press, vol. 31(4), pages 421-432.
  • Handle: RePEc:ucp:mresec:doi:10.1086/687929
    DOI: 10.1086/687929
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    References listed on IDEAS

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    1. Frank Asche & Helge Bremnes & Cathy R. Wessells, 1999. "Product Aggregation, Market Integration, and Relationships between Prices: An Application to World Salmon Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 568-581.
    2. Max Nielsen & Jos Smit & Jordi Guillen, 2009. "Market Integration of Fish in Europe," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 367-385, June.
    3. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    4. Max Nielsen & Frank Jensen & Jari Setala & Jarno Virtanen, 2009. "Causality in demand: a co-integrated demand system for trout in Germany," Applied Economics, Taylor & Francis Journals, vol. 43(7), pages 797-809.
    5. Juselius, Katarina, 2006. "The Cointegrated VAR Model: Methodology and Applications," OUP Catalogue, Oxford University Press, number 9780199285679.
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    1. repec:eee:jocoma:v:12:y:2018:i:c:p:2-8 is not listed on IDEAS
    2. repec:eee:jfpoli:v:76:y:2018:i:c:p:1-7 is not listed on IDEAS
    3. repec:eee:ecolec:v:142:y:2017:i:c:p:113-119 is not listed on IDEAS
    4. repec:eee:jocoma:v:12:y:2018:i:c:p:71-79 is not listed on IDEAS

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