Price dynamics and cointegration in the major markets of aquaculture species in the Philippines
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This study explored the interdependencies of aquaculture markets in the Philippines by establishing price cointegration between wholesale and retail prices of three major species commonly farmed in the country, i.e., milkfish, tilapia and shrimp. The co-movements of wholesale prices between and among key markets for each species were also investigated. Moreover, exogeneity in prices was established using Granger-causation model to determine the existence of price leaders among these markets. Such information are crucial in farm management decisions of producers and traders through better understanding of the efficiency in price formation across production and consumption centers which in turn defines the movements in prices and products among markets. Appropriate policies for the development of markets for the three aquaculture species were also identified. Such policies are expected to contribute towards the attainment of efficient pricing and distribution of benefits among market players and stakeholders. These benefits are expected to manifest through the system of grading standards for fish traded in local markets and in the choice of cost-effective technologies in grow-out and post-production practices.
CitationGarcia, Y. T., & Salayo, N. D. (2009). Price dynamics and cointegration in the major markets of aquaculture species in the Philippines.
PublisherSoutheast Asian Regional Center for Graduate Study and Research in Agriculture
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Conference paperS Pawiro - In LMB Garcia (Ed.), Responsible Aquaculture Development in Southeast Asia. Proceedings of the Seminar-Workshop on Aquaculture Development … Southeast Asia organized by the SEAFDEC Aquaculture Department, 12-14 October 1999, Iloilo City, Philippines, 2001 - SEAFDEC Aquaculture DepartmentDespite the fact that Southeast Asian countries are among the main producers and exporters of fish and fishery products in the world, the region has also increasingly become an important market. According to the Food and Agriculture Organization (FAO), imports of fish and fishery products into countries comprising the Association of Southeast Asian Nations (ASEAN) increased from only US$471 million in 1984 to more than US$2 billion in 1997. High per capita fish consumption, huge market size (population), increasingly strong purchasing power, coupled with relatively liberal trade policies are among the factors behind this trend. Even though the economic crisis in the region has scaled down the degree of market expansion for the last two years, it has, on the other hand, provided trade opportunities among the regional countries for fishery products, including those from aquaculture. Ten species are being cultured commercialIy in the region, but only a few are important in the intra-regional trade. Shrimp, particularly black tiger shrimp (Penaeus monodon), is the most important species being cultured and traded in the region, both in terms of volume and value. The other major species are carps, tilapia, and milkfish, but these are mostly consumed locally and only a limited quantity is traded between countries in the region. Meanwhile, cultured Asian sea bass, grouper, snappers and mud crab are relatively small in production, but these are important species in the intraregional trade. This paper reviews the current trends in Southeast/Far East Asian markets for major aquaculture products, including marketing issues on demand and product trends, safety and quaIity issues as well as marketing access in major Asian markets.
Book chapterND Salayo - In IC Liao & EM Leaño (Eds.), Milkfish aquaculture in Asia, 2010 - National Taiwan University; The Fisheries Society of Taiwan; Asian Fisheries Society; World Aquaculture SocietyMilkfish produced from aquaculture is one of the most traded fish in local markets and it also provides export earnings for the Philippines. Annual per capita consumption of milkfish among Filipinos is 4 kg which comprise the major portion of the 25 kg annual intake of all types of fresh fish. Increasing milkfish production from aquaculture constitutes the strategies for securing fish food supply, especially for the growing middle- and low-income households. However, there are diverging analyses and criticisms on the effectiveness and performance of the milkfish industry in improving access to fish and protein sources among the poor in the Philippines. The generally increasing volumes of milkfish production due to improved technologies are indeed desirable. But higher levels of production does not guaranty the availability and access to fish food supply, especially in geographically dispersed production and consumption centers around the archipelago. Efficiency in marketing perishable fishery products is a crucial factor to ensure availability of safe and fresh milkfish in deficit areas. This review of milkfish marketing literature showed that meeting the milkfish demand-supply gaps, in geographic and temporal sense, is an immediate market objective for the Philippines. The spatial and inter-temporal variations in production volumes influence investment decisions on infrastructures and other public support systems. There is enormous challenge for the industry in view of the declining productivity of capture fisheries, the emerging preference for organic food and value-added forms arising from socio-cultural transformations and lifestyle changes among consumers. This chapter elaborates on the potentials of the milkfish industry by presenting the challenges for traders who should deal with the issues on the demand side of the market; and the challenges for milkfish farmers and processors who should act on the supply side. The constraints and corresponding strategies to meet potentials are also discussed.