Acronym NA
Category
Seafood Processing
Title Salmon Price Cycles Programme National Programme
Instrument (FP6)
Contact Type (FP7)
Strand (Interreg)
NA
Theme (FP7)
Activity Area (FP6)
Regional Area (Interreg)
Action (COST)
NA
Specific Programme (FP7)
NA
Funding source National Coordinator Ragnar Tveterås Coordinator email ragnar.tveteras@uis.no
Coordinator institution
UiS - University of Stavanger (Norway)
Institutions involved
SNF - Institute for Research in Economics and Business Administration (Norway) ,
NMBU - Norwegian University of Life Sciences (Norway) ,
UF - University of Florida (United States of America) ,
Start year 2011 End year 2015 Funding (€) € 728,040 Website https://www.fhf.no/prosjekter/prosjektbasen/900589/ Summary The main objective of this project is to obtain better knowledge about salmon price volatility in general, and in particular to investigate to what extent the relative price cycles between different weight classes are changing over time and why the salmon price peak during the summer months in some years (2000, 2006, 2009, 2010), but not in all years. A number of different hypothesis will be tested including the impact of changes in smolt release, production practices, regulations and temperatures. Two main approaches will be used:1. Based on a growth function, price expectations and a model of farmer behaviour, one can determine optimal harvesting behaviour. Given such a model, one can investigate the farmers? optimal responses to changes in production technology, regulations and environmental factors. For instance, how will harvesting patterns be influenced by colder temperatures that leads to lower growth rates? Does this depend on season, when the fish were transferred to sea and regulatory structure? 2. The behaviour of the individual farmer aggregate up to give total supply of salmon. We do know that demand in the short run is relatively stable, and therefore that most short run movements in prices are caused by the suppliers. Using the insights from optimal harvesting models and general economic theories of price volatility, one can empirically investigate factors that influence price variation and volatility. In particular, one can investigate the causes for the patterns in the relative prices and the peaks in the salmon prices in some years. The project will utilize a relatively recent date set, as systematic collection of data on a high frequency of salmon by cohort and size only commenced in 2001. The main questions addressed in this project cannot be addressed with the data that was available earlier
Goals:
To investigate the following main topics:
1) Why do we observe a price peak in some years?
2) Has the pattern in relative prices been influenced by the timing of the smolt release, changing temperatures or the maximum allowed biomass (MAB) regulations?
3) Has optimal harvesting behavior and thereby (relative) prices changed over time? And how is this influenced by the MAB in average years as years with particularly good growth?
4) How is short run price movements and farmer behavior influenced by shocks over the year, MAB's and fish growth?
5) What is the effect of different designs of the MAB in average years as well as high growth years?
Keywords
Aquaculture industry;
Market;
Fish products;
Fish;
Policy;
Salmon;
Economy;
Marine Region
76
Not associated to marine areas
0
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