Price transmission and asymmetry in a changing seafood supply chain

Abstract

This study investigates price transmission and asymmetry in the cod value chain between the export market of Norway and the retail market of Portugal. Using monthly data from January 2011 to December 2022, it analyzes the value chains of salted dried cod, salted wet cod, and the relationship between the export price of salted wet cod and the retail price of salted dried cod using a non-linear ARDL model. The findings reveal that price transmission occurs across all investigated value chains, though the timing and extent of adjustments vary. Furthermore, the findings indicate that the export market plays a leading role along the value chains. Notably, no evidence of price asymmetry is observed in any of the product chains, indicating efficient price transmission mechanisms.