Aquaculture 2022

February 28 - March 4, 2022

San Diego, California

VERTICAL AND HORIZONTAL PRICE LINKAGES AND DEMAND GROWTH FOR DIFFERENT SALMON PRODUCT FORMS IN EUROPE

Ursula Landazuri-Tveteraas*, Frank Asche, Atle Blomgren, and Ingrid Pettersen

NORCE Norwegian Research Center

 Prof. Olav Hanssensvei 15, 4021 Stavanger, Norway
 urla@norceresearch.no



 

 It has been reported in the literature that the degree of price transmission for salmon is reduced for more highly processed product forms, potentially also limiting market t integration at the retail level.  This paper analyzes  price linkages for Norwegian exported salmon to Great Britain, Germany, France, Italy, and Spain. We use  price  data on the export and retail level to analyze  price transmission  in the  most important European salmon markets, as well as market integration between the different product forms in the market. Salmon is  mostly  exported from Norway as  whole fresh with little processing involved.  However,  the salmon is processed closer to the consumer and  the retail level contains a wider range of salmon products. The data shows that in most of these European countries, natural fresh salmon products such as fillets have increased their share of the retail market compared to more processed salmon products. Interestingly, prices of most of the processed  products are  found to be  stationary, while  most of  the prices of natural fresh products with little processes are nonstationary. This indicates consumers are more willing to absorb price increases of natural salmon products with little processing involved. Using the Johansen cointegration framework, the results show price transmission  tend to be greater for less processed products like  natural fresh fillet compared to  more processed  salmon  products. An exception is Great Britain where frozen salmon fish fingers have appeared and become a hit during the pandemic. The trends between the countries differ in other ways. If we compare the overall salmon consumption trends from 2014 to 2020, the markets in Great Britain and Italy have grown, Germany and Spain have remained relatively stable, while France has decreased.  While the retail price trends are similar across countries there are differences in price levels which sources are not obvious.