Julia Bronnmann

The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany

It is well known that the price of a food in general and fish in particular is a function of a number of attributes such as species, product form, processing form and size. However, limited attention has been given to the influence of private labels, production method, eco-labels and promotions. We use a unique dataset which identifies these attributes in the German seafood market. We estimate a hedonic price function, and our results highlight the importance of brand and labels for seafood prices in Germany. Our results also suggest that private label products are discounted by 20%, while branded products achieve substantial price premiums, as do fish products from aquaculture.

Market Integration between Farmed and Wild Fish: Evidence from the Whitefish Market in Germany

ABSTRACT Following decade-long growth in worldwide farming of pangasius and tilapia, imports to Germany, a main European market, have been reduced since 2010. One reason for this might be supply growth of wild species at the total German whitefish market, if market integration exists between farmed and wild-caught whitefish. This article examines market integration between farmed (pangasius and tilapia) and wild-caught (Alaska pollock, cod, and saithe) frozen whitefish in Germany and finds close integration. Hence, prices of frozen pangasius and tilapia fillets in Germany are determined not only by supply of these species, but more importantly by the much larger supplies of wild-caught cod and Alaska pollock. The implication of the presence of market integration is that the small-scale Asian farmers are secured against severe price reductions in Germany arising from farm productivity growth. However, market integration also makes them dependent on quotas and supply of competing wild-caught whitefish. JEL Codes: C32, F15, Q21, Q22.

Characteristics of Demand Structure and Preferences for Wild and Farmed Seafood in Germany: An Application of QUAIDS Modeling with Correction for Sample Selection

ABSTRACT The production of farmed fish is growing rapidly and presents a sustainable and possibly low-cost alternative to wild fish. Thus, we may expect retail prices of farmed to be lower than prices of wild fish and demand to be less elastic. Otherwise, marketing of farmed fish may generate some extra value that justifies higher prices and may exhibit more elastic demand. To test these hypotheses, we employ monthly household scanner panel data for Germany from 2006 to 2010 for six frozen seafood products that include farmed and wild fish. A QUAIDS model is estimated by a consistent two-step procedure to account for censoring of the dependent variable. We find consumers to be price sensitive, particularly with regard to the high-value seafood species salmon and shrimp. This price elastic market implies that the German seafood industry still has the potential for growing revenues if production increases. JEL Codes: C32, C33, D12, Q22.

Asymmetries in import-retail cost pass-through: Analysis of the seafood value chain in Germany

ABSTRACT This study examines the degree of price transmission in the German Alaska pollock, cod and salmon value chains. Moreover, in addition to aggregated market prices used in most studies, access to prices by retailer type allows investigation of different adjustment patterns by value chain. Using monthly average prices, the Johansen and consistent threshold cointegration models are estimated. The results indicate the presence of price transmission relationship and equilibrium adjustment asymmetries, such that agents only react to shocks when the deviation from equilibrium is above or below a certain nonzero threshold value. In most cases, retail outlets exercise market leadership in the Alaska pollock and cod chains while some bidirectional adjustments are observed in the salmon value chains. Overall, import prices adjust to deviations above the threshold value following a shock to the retail prices for Alaska pollock and cod. For salmon, deviations above the threshold value are generally not transmitted.

The German whitefish market: An application of the LA/AIDS model using retail-scanner-data

ABSTRACT Whitefish is one of the largest segments in the global seafood market. The whitefish market includes traditional wild-caught species; cod, pollock and Alaska pollock, and the more recent introduction of aquaculture species; pangasius and tilapia. This study specifically addresses price elasticity estimates for wild and aquacultured whitefish on the German market. For demand estimation, the general form of the Almost Ideal Demand System (AIDS) with linear approximation (LA) is used. The demand for whitefish on the German market is found to be relatively elastic. The uncompensated cross-price elasticities indicate substantial substitution between pangasius and the three wild species, yet tilapia does not seem to be a part of the larger whitefish market in Germany.

Price premiums for ecolabelled seafood: MSC certification in Germany

Whether ecolabelled seafood actually provides incentives to improve the management of fisheries remains a controversial issue. A number of stated preference studies indicate a substantial willingness to pay for ecolabelled seafood. Early evidence from actual market data supports the existence of a premium, while more recent papers provide a more nuanced picture. In this paper, a hedonic price model for whitefish species on the German market is estimated that includes information on Marine Stewardship Council (MSC) labelling, the leading seafood ecolabel in Germany. The model also allows the potential premium to vary by species. Results indicate that MSC premiums in Germany vary substantially between species, from a hefty 30.6 per cent for the high-end species cod, to a 4 per cent premium for Alaska pollock, and no premiums for saithe.

Consumer preferences for farmed and ecolabeled turbot: A North German perspective

ABSTRACT This paper investigates the importance of different attributes, including farmed and wild caught, and non ecolabeled and ecolabeled, for turbot in the German market as well as consumers’ willingness to pay for specific attributes. The empirical analysis is based upon discrete choice experiments with 485 participants from northern Germany. A mixed logit estimation reveals a strong positive effect of ecolabeled seafood and the results indicate that respondents are willing to pay more for wild-caught fish than farmed fish. The analysis provides more interesting results: Consumers’ attitude toward frozen fish is quite negative despite the fact that this is the best-selling processed form on the German fish market. Furthermore, socioeconomic characteristics have limited influence on the purchase decision of respondents. Providing information to the consumers enhances the effect of the product attributes and the resulting probability of purchase.

Product differentiation in the German soft drink market: which attributes matter?

ABSTRACT In this study, we apply a hedonic pricing model to a unique data set of the German carbonated soft drink market. We distinguish between traditional brands and private label brands and include a variety of product attributes such as flavour, sugar content and bottle size in our analysis. Our results show that most traditional brands yield highest price premiums. However, organic niche products seem to be even more profitable. Also, unconventional flavours, small bottle sizes and retailing in supermarkets lead to higher price premiums. Private label brands are associated with highest negative price premiums.