The fishmeal market : an integrated part of the vegetable oilmeal market?

Abstract

In this report the concept and implications of market integration is discussed in some detail with an application to the fishmeal and soymeal market. Both are important inputs in the animal and aquaculture feed market. This analysis uses only information that lies in prices through their relationship with each other. A high degree of integration between these markets with the Law of One Price prevailing should entail that they are strong substitutes. The results from the cointegration tests of fishmeal and soymeal prices give evidence of a highly integrated world market for protein meals.