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China Squeeze: What Happens When Your Biggest Customer Says No?

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Abstract
  • Over the last decade direct exports to China and Hong Kong of Pacific Geoduck have grown to encompass more than 80 percent of U.S. geoduck production. In December 2013 China shut its doors to U.S. geoduck over possible arsenic contamination and imports from the U.S. fell from over 250 MT per month to less than one MT per month. What are producers to do when they lose the biggest customer for a $250 million dollar industry? Do prices crater? Did producers find new markets? Are geoducks left in the ground to grow another year? Did regulators in Washington’s wild fishery delay planned auctions or accept lower auction values as the price for keeping revenues flowing. This presentation explores how fishermen, growers, and managers adapted to China’s ban on geoduck imports and the fact that overnight their largest customer could no longer legally accept their product.
  • Keywords: Seafood Markets/Trade, Fisheries Economics, Globalization and Trade
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  • King, Jonathan. 2015. China Squeeze: What Happens When Your Biggest Customer Says No? In: Proceedings of the Eighth Biennial Forum of the North American Association of Fisheries Economists, May 20-22, 2015, Ketchikan, Alaska: Economic Sustainability, Fishing Communities and Working Waterfronts. Compiled by Ann L. Shriver and Melissa Errend. North American Association of Fisheries Economists, Corvallis, Oregon, USA, 2015.
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  • Alaska Sea Grant, North Pacific Fishery Management Council, North Pacific Research Board, Northern Economics, Pollock Conservation Cooperative Research Center, Rasmuson Foundation, University of Alaska Fairbanks, School of Fisheries and Ocean Sciences, University of Alaska Southeast, Ketchikan
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