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

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  • Julia Bronnmann
  • Jens-Peter Loy
  • Karen J. Schroeder

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.

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  • Julia Bronnmann & Jens-Peter Loy & Karen J. Schroeder, 2016. "Characteristics of Demand Structure and Preferences for Wild and Farmed Seafood in Germany: An Application of QUAIDS Modeling with Correction for Sample Selection," Marine Resource Economics, University of Chicago Press, vol. 31(3), pages 281-300.
    • Handle: RePEc:ucp:mresec:doi:10.1086/686692
    DOI: 10.1086/686692
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    Cited by:

    1. Peltner, Jonas & Thiele , Silke, 2021. "Elasticities of Food Demand in Germany – A Demand System Analysis Using Disaggregated Household Scanner Data," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 70(01), January.
    2. María Angélica Arbeláez & Alejandro Becerra & Miguel Benítez & Ximena Cadena & María José Mejía, 2021. "Elementos para el diseno de un impuesto a alimentos y bebidas altos en sodio, grasas y/o azúcares en Colombia," Coyuntura Económica, Fedesarrollo, vol. 51, pages 37-79, December.
    3. Kira Lancker & Julia Bronnmann, 2022. "Substitution Preferences for Fish in Senegal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 1015-1045, August.
    4. Santeramo, Fabio Gaetano & Carlucci, Domenico & De Devitiis, Biagia & Nardone, Gianluca & Viscecchia, Rosaria, 2017. "On consumption patterns in oyster markets: the role of attitudes," MPRA Paper 76789, University Library of Munich, Germany.
    5. Frank Asche & Julia Bronnmann, 2017. "Price premiums for ecolabelled seafood: MSC certification in Germany," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), pages 576-589, October.
    6. Ping Wang & Nhuong Tran & Dolapo Enahoro & Chin Yee Chan & Kelvin Mashisia Shikuku & Karl M. Rich & Kendra Byrd & Shakuntala H. Thilsted, 2022. "Spatial and temporal patterns of consumption of animal‐source foods in Tanzania," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 328-348, April.
    7. Julia Bronnmann & Stefan Guettler & Jens-Peter Loy, 2019. "Efficiency of correction for sample selection in QUAIDS models: an example for the fish demand in Germany," Empirical Economics, Springer, vol. 57(4), pages 1469-1493, October.
    8. Lancker, Kira & Bronmann, Julia, 2020. "Quantifying consumers’ love for marine biodiversity," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304214, Agricultural and Applied Economics Association.
    9. Peltner, Jonas & Thiele, Silke, 2021. "Elasticities of Food Demand in Germany – A Demand System Analysis Using Disaggregated Household Scanner Data," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 70(01), January.
    10. Arbeláez, María Angélica & Cadena, Ximena & Alejandro, Becerra & Benitez, Miguel & Mejía, María José, 2022. "Elementos para el diseño de un impuesto a alimentos y bebidas altos en sodio, grasas y/o azúcares en Colombia," Informes de Investigación 21027, Fedesarrollo.

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