Abalone is a primary commodity that is almost traded as live fishes. So the application of 'addition' is common in local transaction of abalone. Nevertheless, an excessive application of addition leads to some social problems. The abalone industry is one of the most rapidly growing industry in fisheries. This growth is caused by propagation of sea cage and mechanization of feeding. As a result, the abalone distributers are increased. However, the distributers have great bargaining power, so they sometimes claim excessive addition rates to aquacultural abalone producers. Difference in fitted level of the addition rates between distributers and producers cause some problems as an aversion to shipping of abalone. Also, the words about addition have not clear definition yet. So many related terminologies, for example, addition, deviation, and loss, those have different meaning are in used. And unfortunately many industry insiders use the words, 'addition', mixed with other related terminologies on transaction. The main objective of this study is to clearly define addition's meaning on the abalone transaction and to analyze the correlations between the addition and the abalone prices, outputs, and exports. Analysis results show addition negatively affects abalone prices and outputs. Furthermore, addition contributes to abalone exports negatively contrary to expectation. Such results can provide information that 'stabilization of supply and price of abalone' is realistically better method than 'increasing of additional rates' to expand abalone exports. Negative correlations between variables tell that a dictionary definition of addition, a free as seller's benevolence, is divorced from reality of abalone industry. Therefore "Loss", that means preservation in unintentional loss of abalone objects, is more suitable than "Addition" on abalone transaction.
Journal of the Korean Society of Fisheries and Ocean Technology
/
v.48
no.1
/
pp.72-81
/
2012
Using artificial neural network (ANN) technique, auction prices for common mackerel were forecasted with the daily total sale and auction price data at the Busan Cooperative Fish Market before introducing Total Allowable Catch (TAC) system, when catch data had no limit in Korea. Virtual input data produced from actual data were used to improve the accuracy of prediction and the suitable neural network was induced for the prediction. We tested 35 networks to be retained 10, and found good performance network with regression ratio of 0.904 and determination coefficient of 0.695. There were significant variations between training and verification errors in this network. Ideally, it should require more training cases to avoid over-learning, which leads to improve performance and makes the results more reliable. And the precision of prediction was improved when environmental factors including physical and biological variables were added. This network for prediction of price and catch was considered to be applicable for other fishes.
This study aimed to evaluate the TAC policy and to examine the effective annual TAC quota in the sandfish stock rebuilding plan using a bioeconomic modelling method. In the analysis, first, a sandfish bioeconomic model was developed by combining a sandfish stock population model and economic models by fishery and second, achieving stock rebuilding targets and changes of fishing revenues by the level of annual TAC quota were examined. Model results indicated that the TAC 1,500ton policy would have the greatest impact on the increase of sandfish stock biomass comparing to the status quo and other TAC policies. In addition, it was evaluated that the total fishing revenues of coastal gillnet and danish seine fisheries could be increased the most in the TAC 2,500ton policy. In both cases of TAC 3,500ton and 4,000ton, the fishing revenues of both fisheries were inversely reduced due to the decrease of catch by coastal gillnet and the decline of market prices by danish seine's excessive catch. Furthermore, they would have a negative impact on sandfish stock biomass.
Purpose - The Korean government has revised the distribution industry development law to regulate large-scale retailer operations to protecting medium- and small-scale retailers and traditional markets. According to the revised law, large-scale retailers must follow regulations on operating hours and compulsory store closures two days per month. Based on the revised distribution industry development law, most local governments regulate operation hours and they have adopted compulsory closure programs for large-scale retail stores. However, it is argued that fresh food producers suffer from a decrease in sales based on the compulsory closure of stores operated by large-scale retailers. Large-scale retailers reduce their fresh food orders from agricultural and fishery producers because of the compulsory store closures. Fresh food producers also suffer from a decrease in prices because reduced orders lead to a decrease in auction prices based on the availability of excess goods in wholesale markets. This paper investigates the effects of operation regulations for large-scale retailers on agricultural producers by surveying agricultural and fishery producer organizations. Research design, data, methodology - A survey was conducted on 117 producer organizations of fruits and vegetables, cereals, fisheries, and livestock products from September 10 to October 4, 2012. Survey items are annual sales, shares of sales accounted for by large-scale retailers, reduction of orders and prices from large-scale retailers, methods to deal with the sales reduction, unfair trade practices of large-scale retailers, opinion of the large-scale retailer regulations, and so on. The average sales of the sampled producer organizations are 13.7 billion won and the average share of sales accounted for by large-scale retailers is 35.4%. Results - Survey results show that the sample producer organizations' sales decreased 10.1% because of the compulsory closures of stores operated by large-scale retailers. It is estimated that the total sales of producer organizations decreased 371.2 billion won because of the regulations on the operation of large-scale retailers. In addition to the direct effect of a sales decrease due to order reduction, agricultural and fishery producer organizations suffered from the secondary effect of price reduction in wholesale markets. When orders from large-scale retailers decreased, most agricultural and fishery producer organizations shipped redundant products to wholesale markets, decreasing auction prices. It was estimated that the price received decreased 21.9% when sold in other marketing channels. As producer organization sales decreased, it was reported that the labor force employed by producer organizations also decreased by 15.1%. Therefore, we can conclude that the regulations for large-scale retailer operations resulted in negative impacts on agricultural producers. Conclusions - Although the sales reduction due to the regulations for large-scale retailer operations are not great, the cumulative effects due to the continued compulsory closure of stores operated by large-scale retailers could be great. This paper suggests governmental programs that could help agricultural producer organizations to find new and effective marketing channels such as direct marketing, farmers' markets, exports, Internet shopping, and so on.
This study aimed to analyze the economic feasibility of Mackerel offshore aquaculture production performance in Jeju region, Korea. Based on the collected biological, costs and market price data, farming revenue and expenses during the farming period were evaluated, and the net present value and the internal rate of return of a 10-year cash inflow and cash outflow were estimated to determine the economic feasibility of Mackerel offshore aquaculture production system. Model results indicated that the Mackerel offshore aquaculture production performance would have high profitability under the current production and market situation. This is because of the relatively high survival rate, relatively low feed conversion ratio and good market prices. However, sensitivity analyses of main important biological and economic variables showed that the economic viability of Mackerel offshore aquaculture production system would be highly vulnerable to production and market condition changes.
Inverse demand models are well established as market demands in theory and practice of the existing literature. However, the derivation and its interpretation of individual demands from the market demands are not well known in the literature. This paper analyzes the fish market in Korea by the inverse demand model and shows how we deduce the consumer's responses from the market responses when the markets determine the prices by the quantities demanded. It illustrates empirically how this can be done applying to the korean fish market data. The empirical results show that all fishes are price inflexible and mackerels and hairtails are scale flexible in the market demand while mackerels, hairtails, and croakers are price elastic and mackerels and hairtails are income inelastic in the individual demand. The methodology and empirics used in the paper will make a contribution to the existing literature especially for the purpose of recovering consumer's demand from the market demand, thus implementing the policies to administer the fish markets.
This study is aimed to estimate market integration of wild caught fish species on the Korean market, using both multivariate and bivariate cointegration analysis. For the analysis of market integration between wild caught fish species, major four fish species those are most popular fish in the market and caught by the large purse seine fishery-chub mackerel, jack mackerel, hairtail and spanish mackerel-were selected as analytical target fish species. And their real monthly price data from January 2000 to December 2011 were used in the analysis. The results of the multivariate cointegration test for four wild caught fish species showed that there would be long-term equilibrium relationships among prices of four wild caught fish species, and consequently, the markets for wild caught fish species were estimated to be integrated. The results of exclusion test and bivariate cointegration test also supported that there would be a clear evidence to suggest that all target wild caught fish species were cointegrated each other.
Squid is a popular seafood in Korea. However, since the 2000s, the squid production has been declining. The unstable supply of the squid products may cause price fluctuations of fresh and chilled squid. These price fluctuations may be relatively more severe than them of other commodities, because the fresh and chilled squid can not be stored for a long period of time. Thus, this study analyzes the structural characteristics of price volatility and price asymmetry of fresh squid based on off-diagonal GARCH model. Data used to analysis of this study are daily wholesale and retail prices of fresh squid from January 1, 2006 to December 31, 2016 provided in the KAMIS. As theoretical approaches of this study, first of all, the stability of the time series is confirmed by the unit root test. Secondly, the causality between distribution channels is checked by the Granger causality test. Thirdly, the VAR model and the off-diagonal GARCH model are adopted to estimate asymmetry effect and price volatility spillover between distribution channels. Finally, the stability of the model is confirmed by multivariate Q-statistic and ARCH-LM test. In conclusion, fresh squid is found to have shock and volatility spillover between wholesale and retail prices as well as its own price. Also, volatility asymmetry effect is shown in own wholesale or retail price of fresh squid. Finally, this study shows that the decrease in the fresh squid retail price of t-1 period than the increase in the t-1 period has a greater impact on the volatility of the fresh squid wholesale price in t period.
The purpose of this study is to build an oyster outlook model. In particular, by limiting oyster items, it was designed as a partial equilibrium model based on a panel analysis of a fixed effect model on aquaculture facilities. The model was built with a dynamic ecological equation (DEEM) system that considers aquaculture and harvesting processes. As a result of the estimation of the initial aquaculture facilities based on the panel analysis, the elasticity of the remaining facility volume in the previous month was estimated to be 0.63. According to Nerlove's model, the adjustment coefficient was interpreted as 0.31 and the adjustment speed was analyzed to be very slow. Also, the relative income coefficient was estimated to be 2.41. In terms of elasticity, it was estimated as 0.08% in Gyeongnam, 0.32% in Jeonnam, and 1.98% in other regions. It was analyzed that the elasticity of relative income was accordingly higher in non-main production area. In case of the estimation of the monthly harvest facility volume, the elasticity of the remaining facility volume in the previous month was estimated as 0.53, and the elasticity of the farm-gate price was estimated as 0.23. Both fresh and chilled and frozen oysters' exports were estimated to be sensitive to fluctuations in domestic prices and exchange rates, while Japanese wholesale prices were estimated to be relatively low in sensitivity, especially to the exchange rate with Japan. In estimating the farm-gate price, the price elasticity coefficient of monthly production was estimated to be inelastic at 0.25.
Journal of the Korean Society of Fisheries and Ocean Technology
/
v.47
no.4
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pp.435-442
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2011
In an attempt to respond to the increase in international oil prices and reduce operating expenses, ship remodeling was carried out on a 740ton class tuna purse seiner. To strengthen the competitiveness of the fisheries industry by improving vessel performance, a bulbous bow was newly equipped. The slipway and rudder area were also lengthened and enlarged with the propeller and main engine remained unchanged. To reduce the hull resistance, a circle type bulbous bow was attached on the hull behind bow thruster and thus the cost for exchanging electrical equipment for bow thruster was reduced. The new rudder area was expanded 15% more than the old one within the extent that the existing mechanical control part and rudder stock were not changed. To prevent fishing net damage and stabilize wake field, slipway was lengthened to the optimal position. All of the new design of remodeling parts went through the model tests in towing tank and CWC. Besides resistance test, all of necessary model test results were delivered for hydrodynamic character for the modified ship. The maneuvering simulation to verify that the remodeled ship satisfies the IMO rules was performed in both zigzag and turning tests. The estimated resistance with new bulbous bow and lengthened stern was reduced by 4.8% in the 2-dimensional analysis and 17.4% in the 3-dimensional analysis in comparison of conventional ship. The average reduction of resistance was estimated about 10%. Maneuvering character of modified hull form was found to satisfy all regulations under IMO. The remodeling of tuna purse seiner can not only improve fishing performance but also contribute to reduction of operating cost by saving energy for the fisheries industry.
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