Price transmission and market integration: Vertical and horizontal price linkages for gilthead seabream (Sparus aurata) in the Spanish market.

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]