Market Interaction Between Tilapia Imports and US Catfish Production Public Deposited

http://ir.library.oregonstate.edu/concern/conference_proceedings_or_journals/ns064691f

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  • Tilapia exports to the US have been claimed to double in the last three years following the two bans on Vietnamese catfish imports in November 2001 and June 2003. The aim of these bans was to restrict imports from the major exporter of Catfish (Vietnam) reducing competition for US catfish producers in the market. Interestingly, the bans on Vietnamese catfish may have indirectly benefited tilapia imports and in particular, frozen fillets as catfish is mainly imported as frozen fillets into the US market. This could explain how frozen fillets of tilapia have astonishingly grown by 391% in the last three years. In this study, we investigate relationships between the prices of frozen fillets from US produced and Vietnamese imported catfish as well as imports of tilapia frozen fillets to obtain information about their market structure. Prices were found to be non-stationary so the Johansen test was used as the empirical tool to investigate possible market integration between these three products. The results indicate frozen fillets of US produced and Vietnamese catfish imports are integrated, though not perfectly, in the same market. On the other hand, frozen fillets of tilapia imports have not been found to compete with either US produced or Vietnamese catfish imports. Tilapia must therefore be taking market share from a different product in the US market, such as red snapper. These results have important policy implications as a ban on tilapia imports would not benefit American catfish producers conversely it would severely affect an industry that is largely taking off in developing countries around Asia and South and Central America.
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  • Norman-Lopez, Ana. 2006. Market Interaction Between Tilapia Imports and US Catfish Production. In: Proceedings of the Thirteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 11-14, 2006, Portsmouth, UK: Rebuilding Fisheries in an Uncertain Environment. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2006. CD ROM. ISBN 0-9763432-3-1
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