Ana Norman-López

Competition Between Imported Tilapia and US Catfish in the US Market

This paper investigates the competition between domestic catfish fillets and imported tilapia fillets in the US market. The market segmentation between fresh and frozen fillets of both species is also considered. The substitutability between catfish and tilapia is of interest because market reports have recently suggested that the rapid increase in tilapia imports in the last few years is the result of tilapia taking market share from domestically produced catfish. The competition between fresh and frozen fillets of catfish and tilapia imports in the same market is examined using market integration and demand analysis. The results indicate that imports of fresh and frozen tilapia fillets lie in different market segments, while fresh and frozen catfish fillets compete in the same market. Furthermore, fresh and frozen fillets of catfish and tilapia imports do not compete in the same market.

Competition between Different Farmed and Wild Species: The US Tilapia Market

Abstract This article is an extension of previous work on tilapia in the US market (Norman-López and Asche 2008). This study investigates the degree of market integration between fresh farmed tilapia fillets and fresh fillets of farmed catfish, wild sea dab, wild blackback flounder, and wild whole fresh red snapper in the US market. The literature suggests farmed and wild fish of alternative species do not compete. However, this may be changing as new farmed species are introduced to new markets. The results indicate no relationship between prices of fresh tilapia and catfish. Hence, there is no evidence that fresh tilapia fillets compete in the same market as catfish fillets. Conversely, fresh farmed tilapia fillets compete with wild whole red snapper, wild fresh fillets of sea dab, and blackback flounder. The implications are important for managing these overexploited wild fish species, as prices will most likely decline with increased imports of fresh tilapia fillets. This could lead to lower investments in fishing fleets and a reduction in fishing effort over time. JEL Classification Codes: D12, Q11, Q22

IS TILAPIA THE SAME PRODUCT WORLDWIDE OR ARE MARKETS SEGMENTED

Tilapia is one of the fastest growing aquaculture species in the world. It is produced and consumed in all continents and in more countries than most other species, making the market more heterogeneous than for other successful aquaculture species such as salmon and shrimp. This paper investigates the degree of market integration between tilapia from the three largest production regions, Asia, Africa and South and Central America. We consider differences in the production methods, transport costs and qualities of these regions and determine whether tilapia products from different producers can essentially be considered the “same” product. This is important if the rapid worldwide development of farmed tilapia and its future development prospects are to be better understood.

A quantitative metric to identify critical elements within seafood supply networks

A theoretical basis is required for comparing key features and critical elements in wild fisheries and aquaculture supply chains under a changing climate. Here we develop a new quantitative metric that is analogous to indices used to analyse food-webs and identify key species. The Supply Chain Index (SCI) identifies critical elements as those elements with large throughput rates, as well as greater connectivity. The sum of the scores for a supply chain provides a single metric that roughly captures both the resilience and connectedness of a supply chain. Standardised scores can facilitate cross-comparisons both under current conditions as well as under a changing climate. Identification of key elements along the supply chain may assist in informing adaptation strategies to reduce anticipated future risks posed by climate change. The SCI also provides information on the relative stability of different supply chains based on whether there is a fairly even spread in the individual scores of the top few key elements, compared with a more critical dependence on a few key individual supply chain elements. We use as a case study the Australian southern rock lobster Jasus edwardsii fishery, which is challenged by a number of climate change drivers such as impacts on recruitment and growth due to changes in large-scale and local oceanographic features. The SCI identifies airports, processors and Chinese consumers as the key elements in the lobster supply chain that merit attention to enhance stability and potentially enable growth. We also apply the index to an additional four real-world Australian commercial fishery and two aquaculture industry supply chains to highlight the utility of a systematic method for describing supply chains. Overall, our simple methodological approach to empirically-based supply chain research provides an objective method for comparing the resilience of supply chains and highlighting components that may be critical.

Facing the wave of change: stakeholder perspectives on climate adaptation for Australian seafood supply chains

Climate change is one of the most important issues confronting the sustainable supply of seafood, with projections suggesting major effects on wild and farmed fisheries worldwide. While climate change has been a consideration for Australian fisheries and aquaculture management, emphasis in both research and adaptation effort has been at the production end of supply chains—impacts further along the chain have been overlooked to date. A holistic biophysical and socio-economic system view of seafood industries, as represented by end-to-end supply chains, may lead to an additional set of options in the face of climate change, thus maximizing opportunities for improved fishery profitability, while also reducing the potential for maladaptation. In this paper, we explore Australian seafood industry stakeholder perspectives on potential options for adaptation along seafood supply chains based on future potential scenarios. Stakeholders, representing wild capture and aquaculture industries, provided a range of actions targeting different stages of the supply chain. Overall, proposed strategies were predominantly related to the production end of the supply chain, suggesting that greater attention in developing adaptation options is needed at post-production stages. However, there are chain-wide adaptation strategies that can present win–win scenarios, where commercial objectives beyond adaptation can also be addressed alongside direct or indirect impacts of climate. Likewise, certain adaptation strategies in place at one stage of the chain may have varying implications on other stages of the chain. These findings represent an important step in understanding the role of supply chains in effective adaptation of fisheries and aquaculture industries to climate change.

Economic and conservation implications of a variable effort penalty system in effort-controlled fisheries

Bycatch of threatened, endangered or protected species by commercial fishers is a universal problem. Technical solutions are often applied that may impose inefficiencies across the fleet, even in periods or areas when the risk of bycatch is low. These may include gear specifically designed to avoid the bycatch which may also reduce the targeted catch, or designation of marine protected areas that exclude fishing from whole areas. In this article, we examine the effectiveness of a variable penalty system that can provide incentives for fishers to redirect their effort away from problem areas. The system is examined using a case study of fishery, which is currently subjected to gear and closure controls to limit bycatch of turtles and seabirds. An alternative incentive-based management policy using a series of differential hook penalties has been proposed as a flexible tool to discourage vessels operating in certain areas. The effects of various hook penalties and closures in key areas on fishing effort in those areas and elsewhere as well as vessel economic performance are assessed using a location choice model. The results suggest that incentive-based approaches may result in lower costs to industry than closures provided some level of residual bycatch is acceptable.

Potential Economic Impacts Of Climate Change On Australian Fisheries And The Need For Adaptive Management

The effects of climate change on marine fisheries can be either mitigated by global action on greenhouse gas emission, or managed by encouraging appropriate adaptation. While fishers will autonomously adjust their activities in response to climate change, fisheries management systems may also need to be changed to facilitate adjustment. Identifying the scope of these management changes require some understanding of the impacts of climate change in the absence of any management changes. In this paper, we estimate the climate-related economic impact on Australian marine fisheries and associated sectors for the year 2030, ceteris paribus, based on expected biophysical changes to the resource and using an Input-Output model to capture impacts on the broader economy. Despite considerable uncertainties surrounding potential changes to the biological productivity of capture fisheries, the results suggest that most Australian fisheries and their related sectors could benefit from climate change. Appropriate adaptations could further enhance the benefits and reduce the losses to the fisheries investigated.

The environmental impact of two Australian rock lobster fishery supply chains under a changing climate

Understanding the potential future impacts of climate change along the supply chain for highly traded fisheries products can inform choices to enhance future global seafood security.We examine the supply chains of the Australian tropical rock lobster fishery (TRL) and southern rock lobster fishery (SRL), with similar destination markets but different catch methods and fishing communities. A boat-to-market analysis allows for comparison and illustration of the effects of single supply-chain aspects. We used life cycle assessment to provide an overview of the environmental footprint, expressed as global warming potential (GWP), eutrophication, and cumulative energy demand, for two lobster products: live animals and frozen tails. The export phase contributed 44% and 56% of GWP of live-weight lobster for SRL and TRL, respectively. The SRL fishery currently produces 68% of the combined 1,806.7 tonnes of lobster product and 78% of the combined global warming for the two fisheries over the whole supply chain. We develop climate adaptation options that: (1) reduce the overall footprint; (2) consider alternative supply-chain strategies (e.g., reduce cost); and (3) predicted impact of future climate change. Adaptation options include: more direct export routes and change in the export transport mode. Value adding and product differentiation, which can level out seasonality and thus spread risk, is likely to become increasingly important for both increases and decreases in predicted climate-induced abundance of fish species.