Analysis of demand and supply issues in the fisheries industries in Australia and Taiwan

  • Jie Li

    Student thesis: Coursework Masters - CDU

    Abstract

    This research estimates the demand and supply functions for Australian domestic fish markets. It also examines the size and nature of the Taiwanese market and identifies seafood market trends. The research has been carried out in a background where there is an increased awareness of the health benefits of seafood and this awareness has contributed to the growth in seafood consumption in Australia. There is also rapid economic growth and changing demographic structures in East Asian regions which has major implications for consumption patterns; these trends in the development of the East Asian region are of great significance for the Australian fisheries industry, particularly in the area of trade.

    To estimate the supply function, the Price of fish and Time (as representative of Technology) have been identified as the most important determinants of supply. Meanwhile, in estimating the demand functions, the Price of fish, Income and Price of Substitutes (such as poultry and beef) have been identified as the factors which affect the demand for fish. To examine the size and characteristics of the Taiwanese market, various aspects such as seafood trade trends, changing demographic structure, seafood consumption trends, and seafood trade barriers in Taiwan have been investigated; the demand trends of the Taiwanese market by type and species of seafood have also been identified. The research draws on material from previous related studies, and both domestic and overseas time series statistical data. A series of linear regression calculations and analyses have been conducted to test the relationship between a number of variables.

    The research concludes that, based on the estimated demand functions, there is a positive relationship between gross domestic product (GDP) and per capita fish consumption; the per capita demand for fish in the Australian market is relatively inelastic with respect to changes in the price of fish; and there is some substitution between beef and fish.

    My research also concludes that, based on the estimated supply function, with the passage of Time (and hence the development of Technology), the Supply of fish will increase. Thus the development and expansion of the fisheries industry may be expected to continue provided technology development is maintained and the industry is managed astutely.

    For the Taiwanese seafood market, it is estimated that there will be an increased trend in exports of whole rock lobster, canned abalone and whole fish from Australia to Taiwan. There is also a trend of expected future increases in fish and seafood consumption in Taiwan.

    Some associated recommendations include the need for the Australian fishery industry to give special attention to the markets of East Asian countries as that region is undergoing rapid economic growth; active promotion by various sections of the fisheries industry should be continued in order to maintain the public's greater awareness of fishery products as 'healthier' foods; and the fact that the demand for fish in the Australian market is relatively inelastic with respect to changes in the price of fish should be taken into account by existing and potential operators in the fisheries industry.
    Date of Award1996
    Original languageEnglish
    SupervisorSajid Anwar (Supervisor)

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