Are US Wild Salmon Products Affected by Farmed Salmon? A Cointegration Analysis

Abstract

This paper investigates the degree of market integration between several product forms of US wild salmon and Norwegian farmed salmon. While several studies have investigated the link between farmed salmon and fresh and/or frozen wild salmon markets, we expand the literature with the inclusion of the products canned salmon and salmon roe. Understanding how canned salmon and salmon roe are related to the broader salmon market is of importance to US fisheries, as these products are high-price exports for the United States. Our results find evidence of cointegration between the Norwegian farmed salmon market and all US salmon products. Domestic and international economic conditions, such as production technological advances within farmed salmon production, environmental challenges, and changes in trade regulations, which affect the market for farmed salmon, will hence also influence US prices of frozen and canned salmon, as well as salmon roe.