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New directions for the Alaska King crab industry
Author(s) -
Greenberg Joshua A.,
Herrmann Mark,
Matulich Scott C.,
Mittelhammer Ron C.
Publication year - 1994
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199403/04)10:2<167::aid-agr2720100206>3.0.co;2-t
Subject(s) - economics , liberalization , product (mathematics) , fishing , price formation , fishing industry , econometric model , international trade , economy , financial economics , market economy , fishery , econometrics , geometry , mathematics , biology
The Alaska king crab industry historically has been one of the most lucrative fishing industries in the United States. Low 1991 exvessel prices stunned the industry. An econometric model of Alaska king crab price formation is developed in this article to provide insight into potential causes of price movements. Wholesale price formation and allocation for the two largest markets, Japan and the United States, are explicitly modelled. Specific market conditions are shown to have resulted in an unusual market structure encompassing processors' price formation and product allocation. Recent events, including the deterioration of the US wholesale king crab market and economic liberalization in Russia, may have a profound impact on this industry. Model results are used in a discussion of potential ramifications of these events to industry participants.