Fish is food--the FAO's fish price index

Area of Science:

• Agricultural Economics
• Fisheries Science
• Food Security

Background:

• World food prices reached record highs in 2011, with seafood being a primary protein source for 3 billion people.
• The Food and Agriculture Organization (FAO) has not historically tracked global seafood prices, creating a data gap.

Purpose of the Study:

• To develop a global seafood price index (Fish Price Index - FPI) to address the lack of seafood price tracking.
• To aid in understanding and potentially averting food crises through better price monitoring.

Main Methods:

• Developed the FPI using international trade statistics as a proxy for domestic seafood prices.
• Validated the approach by calculating price competition extent in various countries.

Main Results:

• The FPI demonstrates lower volatility and fewer price spikes compared to indices for oils, cereals, and dairy.
• Analysis reveals increased scarcity in capture fisheries but concurrent growth in aquaculture meeting demand.
• Regional seafood price volatility differs, with some prices showing negative correlations, indicating the impact of regional supply shocks.

Conclusions:

• The FPI provides a valuable tool for monitoring global seafood prices and scarcity.
• Findings highlight the growing importance of aquaculture in meeting global seafood demand.
• Regional factors significantly influence seafood prices despite high international tradability.