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Global integration of European tuna markets

Author

Listed:
  • Ramòn Jiménez-Toribio

    (MEMPES- AEA - university of Huelva - University of Huelva)

  • Patrice Guillotreau

    (IRD - Institut de Recherche pour le Développement)

  • Rémi Mongruel

    () (AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - CNRS - Centre National de la Recherche Scientifique - UBO - Université de Brest - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - IUEM - Institut Universitaire Européen de la Mer - CNRS - Centre National de la Recherche Scientifique - IRD - Institut de Recherche pour le Développement - UBO - Université de Brest)

Abstract

This paper evaluates the degree of integration between the world market and the major European marketplaces of frozen and canned tuna through both vertical and horizontal price relationships. Spatial linkages are investigated horizontally in order to estimate the connection between the European market and the world-wide market on the primary tage of the value chain. One of the key results is the high level of market integration at the exvessel stage, and the price leadership of yellowfin tuna over skipjack tuna. The same approach is applied at the ex-factory level. Basically, the European market for final goods appears to be segmented between the Northern countries consuming low-priced canned skipjack tuna imported from Asia (mainly Thailand) and the Southern countries (Italy, Spain) processing and importing yellowfin-based products sold at higher prices. France appears to be an intermediate market where both products are consumed. The former market is found to be well integrated to the world market and can be considered to be competitive, but there is a suspicion of market power being exercised on the latter. Price relationships are therefore tested vertically between the price of frozen tuna paid by the canneries and the price of canned fish in both Italy and France. The two species show an opposite pattern in prices transmission along the value chain: price changes along the chain are far better transmitted for the “global” skipjack tuna than for the more European” yellowfin tuna. The results are discussed, along with their implications for the fishing industry.

Suggested Citation

  • Ramòn Jiménez-Toribio & Patrice Guillotreau & Rémi Mongruel, 2009. "Global integration of European tuna markets," Working Papers hal-00430014, HAL.
  • Handle: RePEc:hal:wpaper:hal-00430014
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00430014
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    Cited by:

    1. Chin-Hwa Jenny Sun & Fu-Sung Chiang & Dale Squires, 2017. "More Landings for Higher Profit? Inverse Demand Analysis of the Bluefin Tuna Auction Price in Japan and Economic Incentives in Global Bluefin Tuna Fisheries Management," Working Papers 1701, Institute of Applied Economics, National Taiwan Ocean University, Taiwan, revised Aug 2017.
    2. Guillotreau, Patrice & Jiménez-Toribio, Ramón, 2011. "The price effect of expanding fish auction markets," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 211-225, August.
    3. Luca Mulazzani & Rosa Manrique & Giovanna Trevisan & Giulio Malorgio, 2015. "Fish market integration and demand analysis: a Mediterranean case study," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 39-52, January.
    4. Chin-Hwa Jenny Sun & Fu-Sung Chiang & Patrice Guillotreau & Dale Squires, 2015. "Fewer Fish for Higher Profits? Price Response and Economic Incentives in Global Tuna Fisheries Management," Working Papers hal-01110771, HAL.

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