Demand elasticities for farmed salmon in world trade

Abstract

The generalised demand specification of Barten and Eales et al. is used to estimate the world demand curves faced by major exporters of farmed salmon. Results suggest that the demand for farmed salmon has become less price elastic over time, fresh salmon from the UK faces the most competition in world markets and fresh salmon from Chile the least. Promotion programmes sponsored by the Norwegian Seafood Export Council appear to have increased the demand for fresh salmon at the expense of frozen salmon. Although the estimated promotion effects are small, the programme appears to have been remunerative from the Norwegian producer perspective.

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