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Modeling Market Structure of the Spanish Salt Fish Market

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Abstract
  • A significant pattern in Spanish salt fish demand over the last decade has been a steady increase in consumption of frozen light salted fillet, mainly at the expense of traditional wet salted whole consumption. Our findings suggest that a significant trend exists that consumers in Spain prefer purchasing the light salted fillet to traditional whole salted. The cross price effect of frozen light salted fillet in our Norwegian salted whole equation is significantly positive and is large in value. This suggests that the light salted fillet is a strong substitute for Norwegian salted whole. Strong substitution effects also exist between the salted whole from Norway, Iceland and Faroe Island. Overall the results indicate a strong challenge of Norwegian salted fish industry in maintaining its position is the Spanish market. The model were estimated using the Almost Ideal Demand System (AIDS).
  • Keywords: Fisheries Economics, Price Determination, Markets and Trade
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  • Xie, Jinghua and Øystein Myrland. 2010. Modeling Market Structure of the Spanish Salt Fish Market. In: Proceedings of the Fifteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 13-16, 2010, Montpellier, France: Economics of Fish Resources and Aquatic Ecosystems: Balancing Uses, Balancing Costs. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2010.
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  • US National Oceanic and Atmospheric Administration (NOAA) Fisheries Division, Agence Française de Développement, Ministère de l’Enseignement Supérieur et de la Recherche, Ministère de L’Alimentation de L’Agriculture et de la Pêche, Ministère de l’Énergie, du Développement Durable et de la Mer, La Région Languedoc Rouslilon, Département Hérault, Montpellier Agglomèration, The Department of Fisheries and Oceans, Canada, and AquaFish Collaborative Research Support Program (CRSP).
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