Impact of changes in imports and farmed salmon on wild-caught fish prices in Australia

Abstract

Abstract In this study, we develop a dynamic Inverse Almost Ideal Demand System model to derive own- and cross-price flexibilities for wild-caught fish, Australian farmed salmon and imports of fresh and frozen fish. We find that the growth of fresh fish imports and Australian farmed salmon production have both individually had a significant negative impact on the prices received for Australian wild-caught species, particularly the lower valued species. Continued growth in imports and the farmed salmon sector may negatively impact prices and hence profitability in wild-caught fisheries in Australia in the future.