Price transmission relationships among Taiwan seafood marketing: Barramundi (Lates calcarifer) and Japanese seaperch (Lateolabrax japonicus)

In this study, daily data of farm gate, wholesale and retail prices of barramundi (Lates Calcarifer) and Japanese seaperch (Lateolabrax japonicus), which are the main farmed fish species in Taiwan, are analyzed to investigate their price transmission between different markets. The results show that the supply chain values of barramundi and Japanese seaperch are mainly characterized by a high proportion of value distributed to retailers. In addition, the cointegration analysis between the different market prices of barramundi and Japanese seaperch reveal an integrated market. Granger causality test found bi-directional feedback relationships between the wholesale and retail prices of barramundi, between the wholesale and retail prices and the farm gate and retail prices of Japanese seaperch, and unidirectional Granger causality between the farm gate and wholesale prices of both barramundi and Japanese seaperch. No direct Granger causality was found between the farm gate and retail prices of barramundi. Finally, the results show that differences in aquatic products sold to domestic or international markets affect the ability of wholesalers to control either the aquatic product prices or the price transmission relationship between retailers and producers.