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

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.

Automated summary

This study develops a dynamic Inverse Almost Ideal Demand System model to analyze the price flexibilities of wild-caught fish, Australian farmed salmon, and imported fresh and frozen fish. The findings suggest that the growth of fresh fish imports and Australian farmed salmon production have negatively affected the prices received for Australian wild-caught species, especially those with lower value.