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Price–Cost Margins and Structural Change: Sub‐Contracting within the Salmon Marketing Chain

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  • Patrice Guillotreau
  • Laurent Le Grel
  • Michel Simioni

Abstract

Some recent studies have benefited from advances in time series econometrics in order to evaluate price transmission mechanisms along the marketing chain. Due to the length of time series, structural changes may affect the evaluation of price–cost margins. In the case of the fresh salmon trade between Norway and France, the gross margin between producers and retailers has changed in level between January 1988 and December 1999. This article accurately identifies the date of a structural change using a range of recent ADF testing procedures (Gregory–Hansen tests, forward and backward recursive tests), before looking for the causes of the change through a survey. Two major factors can be identified: the product form and the marketing channel. Interestingly, both the increasing level of processing and the development of supermarket chains have resulted in a new role for the intermediaries, shifting from mere commercial intermediation to sub‐contracting for the big retailers.

Suggested Citation

  • Patrice Guillotreau & Laurent Le Grel & Michel Simioni, 2005. "Price–Cost Margins and Structural Change: Sub‐Contracting within the Salmon Marketing Chain," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 581-597, November.
    • Handle: RePEc:bla:rdevec:v:9:y:2005:i:4:p:581-597
    DOI: 10.1111/j.1467-9361.2005.00295.x
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    Cited by:

    1. Anderson, James L. & Asche, Frank & Garlock, Taryn, 2018. "Globalization and commoditization: The transformation of the seafood market," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 2-8.
    2. Ramòn Jiménez-Toribio & Patrice Guillotreau & Rémi Mongruel, 2009. "Global integration of European tuna markets," Working Papers hal-00430014, HAL.
    3. Bakucs, Lajos Zoltan & Ferto, Imre, 2008. "Price transmission on the Hungarian milk market," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44175, European Association of Agricultural Economists.
    4. Julia Bronnmann & Frank Asche, 2016. "The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 231-244, February.
    5. repec:bla:eurcho:v:8:y:2009:i:3:p:14-19 is not listed on IDEAS
    6. Götz, Linde & von Cramon-Taubadel, Stephan & Kachel, Yael, 2014. "Vertical Price Transmission in the International Fresh Fruit and Vegetable Supply Chain: Israeli Grapefruit Exports to the EU after Export Liberalisation," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(2), pages 1-22, May.
    7. Straume, Hans-Martin, 2013. "Currency invoicing in Norwegian salmon export," Working Papers in Economics 11/13, University of Bergen, Department of Economics.
    8. repec:aer:wpaper:294 is not listed on IDEAS

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