Market integration between the major domestic fish markets in Australia

Abstract

The Southern and Eastern Scalefish and Shark Fishery (SESSF) is the main domestic supplier of fresh wild-caught fish to the Sydney and Melbourne markets. The fishery is managed through a series of total allowable catches (TACs) for key species, with an objective of achieving maximum economic yield (MEY) with biomass and fishing mortality at MEY as management targets. However, the sensitivity of seafood prices in identifying MEY for this fishery and Australian fisheries in general has been largely ignored and understudied. This article explores the spatial integration of domestic fish prices across the two main fish wholesale markets in Australia located in Sydney and Melbourne, using relatively simple market integration analysis of historical monthly price data (1999–2010). Price data collection in the Melbourne Fish Market ceased in 2010 after the privatization of the market and more recent data are not available. The analysis determined if there were any fundamental differences between the two major domestic fish markets in Australia, and to draw implications for bioeconomic modelling to identify MEY-based targets.