Sustainability of seaweed supply and price dynamics in the Chinese hydrocolloid industry

Submitted by Cristóbal Vásquez on

The non-food segment of the Chinese seaweed market, which is crucial for developing the hydrocolloid industry, relies heavily on the seaweed supply from Chile, Peru, and, to a much lesser extent, Indonesia, in addition to domestic production. In this paper we investigate the degree of market integration between seaweed from these countries. We find that the market is highly integrated as the Law of One Price holds, suggesting a global market. Furthermore, the import price from Chile and Indonesia follows the lead of the import price from Peru.

Fisheries