dc.contributor.author | Haarstad, Aleksander | |
dc.contributor.author | Lavrutich, Maria | |
dc.contributor.author | Strypet, Kristian | |
dc.contributor.author | Strøm, Eivind | |
dc.date.accessioned | 2021-03-29T12:11:28Z | |
dc.date.available | 2021-03-29T12:11:28Z | |
dc.date.created | 2021-03-16T15:17:07Z | |
dc.date.issued | 2021 | |
dc.identifier.issn | 2405-8513 | |
dc.identifier.uri | https://hdl.handle.net/11250/2735989 | |
dc.description.abstract | Cost management has received limited attention in the aquaculture industry due to historically high profit margins. This trend, however, is not likely to continue. This creates a need for knowledge on optimally managing financial risks. In this study, we address the joint input-output price hedging problem of salmon farmers. Along with salmon, we consider three essential commodities used in fish feed mixtures. We use state-of-the-art copula models to examine multi-commodity hedging strategies. Our results show significant potential in reducing the joint price risk. Our key finding is that multi-commodity hedging improves hedging effectiveness for short horizons and risk-return trade-off for longer horizons. Salmon farmers face a trade-off where longer hedging horizons yield increased effectiveness and lower costs, yet require increased pre-planning of slaughtering volumes. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Elsevier | en_US |
dc.rights | Navngivelse 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by/4.0/deed.no | * |
dc.title | Multi-commodity price risk hedging in the Atlantic salmon farming industry | en_US |
dc.type | Peer reviewed | en_US |
dc.type | Journal article | en_US |
dc.description.version | publishedVersion | en_US |
dc.source.journal | Journal of Commodity Markets | en_US |
dc.identifier.doi | https://doi.org/10.1016/j.jcomm.2021.100182 | |
dc.identifier.cristin | 1898405 | |
dc.description.localcode | © 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/) | en_US |
cristin.ispublished | true | |
cristin.fulltext | original | |
cristin.qualitycode | 1 | |