13. Trade and Fisheries Flashcards
Give an oversight of trade and fisheries
- Fish and fishery products are some of the most traded food commodities in the world
- 2018: 38% of fisheries and aquaculture production enter international trade
- 35% of total fish production expected to be exported in 2030
How big is the seafood export from developing countries?
- Seafood export from developing countries, US$75 billion per year
- Coffee exports are US$6 billion per year
- Rubber, cocoa, bananas, meat and tea, each < US$5 billion per year
How many people do the industry employ?
58.5 million people, 35% in aquaculture, 65% in capture fisheries
How does it benefit the world as a food source?
Provide 3.3 billion people with almost 20% average per capita intake of animal protein
What is the current developments in seafood trading?
- Increasing demand
- Increasing supply
- 1970: 3.5 million tonnes, 5.1% of total seafood supply
- 2017: 80.1 million tonnes, 46% of total seafood supply
- Increased exports from developing countries, mainly from aquaculture
Export from developing countries and import of developed countries
- Value share of exports from developing countries:
- 1976: 37% 2016: 53%
- Developed countries with 73% of all imports in 2016
Seafood trading in Norway
- The second major exporter since 2004
- Catches: small pelagics and groundfish species such as cod
- Aquaculture: salmonids (salmon, trout, etc.)
Who is the major fish producer and exporter
China
Seafood trading in Norway- export by species development
From 2007:
In quantity: salmon and trout increased, whitefish steady, pelagic decreased
In Value (NOK): salmon and trout increased, whitefish and pelagic steady
What are some fishermen’s sales organizations in Norway?
- Norges Råfisklag (Tromsø)
- Sunnmøre og Romsdal Fiskesalslag (Ålesund)
- Vest-Norges Fiskesalslag (Måløy)
- Norges Sildesalgslag, nationally (Bergen)
- Fiskehav (Kristiansand)
What is Norges Råfisklag (The Norwegian Raw Fish Association)
- Norwegian Fishermen’s Sales organization
- Monopoly of all first-hand sales of
- Codfish
- small whales
- shellfish
- delivered along the Norwegian coast between Nordmøre and Finnmark
- Annually 1 million tons of fish and shellfish sold through the organization
Who does the marketing in Norway?
Norwegian Seafood Council (Norges Sjømatråd)
The Buffalo Hunt. What, when, where and the three conditions.
- USA, 1870-1886.
- 16th century: 25-30 million buffalo in Nort America
- 19th century: fewer than 100
- Characterized by a lack of regulation. With fewer and fewer buffalos, the price increased.
Three jointly necessary and sufficient conditions:
a) Newly invented process: the buffalo leather - Previously useless, now valuable
- New entrants pour in
- Harvest of buffalo booms
b) Fixed price for buffalo products: large world market - The “fixed price” theory refers to the fact that during this period, the price of buffalo hides was set by world markets and did not fluctuate based on supply and demand. This made buffalo hunting a highly profitable enterprise, as hunters could be assured of a consistent price for their hides regardless of the number of animals they killed.
c) Open access conditions with no regulations: US policy failure
What does the buffalo hunt prove?
That international trade can magnify any market failure.
How can the US buffalo hunt be related to today?
- Many developing countries rely heavily on resource exports. Many of these countries lack good regulations governing resource use, and they face similar globalization pressures and policy choices as the US did in the late 19th century.
- The experience of the US buffalo hunt shows that putting development before environmental protection can be risky, as international markets and demand from high-income countries can destroy resources in a few short years that would have taken decades to deplete.
