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The purpose of this study is to analyze a possible substitution relationship between farmed gilthead seabream (Sparus aurata) and farmed European seabass (Dicentrarchus labrax) in Mediterranean markets. Seabream and seabass are the two most important aquaculture species in the Mediterranean area. Greece and Turkey are the main producing and exporting countries, while the main consumer markets are in Spain and Italy. Despite the fact that both species are produced by the same companies and use the same international logistics chains, there are no previous analysis regarding a potential competitive relationship between the two species. This work performs a cointegration analysis and tests for market integration between the two species in the frame of the competition across Greece and Turkey in the international market, considering Spanish and Italian seabream imports prices in the period 2009–2021. Results indicates that the substitution between seabass and seabream only takes place in a context of competition between producing and exporting countries, in which species from one country can indistinctly substitute any species from the competing country. On the contrary, when the supply of a given country is differentiated from the rest of the market, the two species will have a differentiated behavior. [ABSTRACT FROM AUTHOR]

This work presents the results of price integration analysis in the gilthead seabream market in Spain (Sparus aurata). The main objective of this work is to analyze market delimitation and price transmission from the primary sector to the retail stage. It also aims to test the influence of international trade on domestic prices for different intra and extra EU seabream trade flows. International competition depending of the country of origin was studied considering Spanish ex-farm prices and Spanish import prices from Greece and Turkey. Price interactions mechanisms were studied by applying price transmission analyses considering ex-farm, wholesale and retail Spanish prices. Empirical analyses were developed using monthly prices for the period 2009–2016. The analysis at the import/ex-farm levels allows concluding that the fresh seabream market is delimited and price competitive. Domestic farmed seabream is affected by import prices. The evolution of prices is correlated and the products behave as substitutes. International competition is led by Turkish exports. The rest of participants, Greek exporters and Spanish farmers, adjust their prices according to the changes in those of Turkey. The analysis of price behavior along the value chain shows asymmetry in the transmission of prices. Spanish farmers are not transferring their costs to the following steps in the value chain since the price at wholesale and retail levels are not affected by changes in the ex-farm price. In contrast, the prices of domestic farmers are affected by those of imports and domestic traders. • This study considers market integration and price transmission in the Spanish seabream market • Fresh seabream market in Spain is delimitated, price competitive and affected by import prices • Spanish farmers are not transferring their costs down the value chain • In contrast, the prices of domestic farmers are affected by those of imports [ABSTRACT FROM AUTHOR]

This paper extends the literature on price-integration in the gilthead seabream (Sparus aurata) market in Spain by shedding new light on established relationships using additional data allowing investigation of the importance of origin. Although the conclusions for the overall market are in the line of those previously reported for market integration and price transmission in the domestic value chain, there are significant differences in the relationships across the price series when the market is disaggregated by countries of origin. While the overall model, with minor differences, confirms Turkey's price leadership and the influence of domestic wholesalers on the changes in the price along the value chain, alternative models with more specific focus on the country of origin show how organization along the value chain and differentiation of domestic product provide different distribution channels and different mechanisms of price transmission. Domestic and international producers establish alliances with downstream agents both at national and international level depending on to the market targeted. Differentiation is exerted by domestic producers based on the origin of the product. Although producers have lower ability to influence downstream prices, they may be moving into a less volatile price scenario. • Seabream prices are transmitted upstream in the Spanish domestic value chain. • International trade affects price linkages along the value chain in different ways. • Turkish imports exercise price leadership in the value chain. • Spanish retailers influence the price of Greek imports through large supply contracts. • Certain degree of differentiation is moving Spanish farmers to less price volatility. [ABSTRACT FROM AUTHOR]