Research Article
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Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises

Year 2024, Volume: 13 Issue: 1, 102 - 110, 31.03.2024

Ümüt Yiğit

https://doi.org/10.33714/masteb.1441264

Abstract

This study evaluates the linkage between brent crude oil prices and volatility spillover on the global aquaculture volume -and values during world economic crises. Besides the main variable costs comprising feed expenses with over the half of total costs in aquaculture facilities, the energy expenditures are among the important operational costs that influence farm profits through feed costs overall, but also with direct effects in recirculating systems as electricity use. Findings in this study evidenced that global aquaculture volume and value is closely related to global brent crude oil price variations during the periods of crises, as a result of increase in production costs. The correlations between brent crude oil prices and percent changes in volume -or values of farmed fish covering the crises periods between 2008 and 2021 were highest as 0.798 (R=0.798134676) and 0.716 (R=0.715832960), respectively, which are close to zero “0”, showing strong correlations between the investigated structures. However, no correlation was found between the investigated structures during the pre-crisis, post-crisis or inter-crisis periods. Over the last ten years, there were three periods when brent oil prices dropped remarkably, with interrelated effects on world aquaculture production volume or values with severe price dip following the brent oil trends. Hence, the results from this study reveal that any severe change in the energy sector will in turn hit the aquaculture industry with significant influences on both production volume -and values. Therefore, information regarding the interrelation of brent crude oil price variations and global aquaculture production provided in this study, may support building management strategies for sustainable fish farming business with foresights to world economic crises.

Keywords

Aquaculture volume Brent petrol Market value Oil price Economic crisis

Ethical Statement

Not applicable

Supporting Institution

No funding available for this study.

References

  • Al-Maadid, A., Caporale, G. M., Spagnolo, F., & Spagnolo, N. (2017). Spillovers between food and energy prices and structural breaks. Journal of International Economics, 150, 1–18. https://doi.org/10.1016/j.inteco.2016.06.005
  • Aye, G. C., & Odhiambo, N. M. (2021). Oil prices and agricultural growth in South Africa: A threshold analysis. Resources Policy, 73, 102196. https://doi.org/10.1016/j.resourpol.2021.102196
  • Baffes, J., Kose, M. A., Ohnsorge, F., & Stocker, M. (2015). The great plunge in oil prices - causes, consequences, and policy responses. Policy Research Note No.1, World Bank.
  • Baumeister, C., & Kilian, L. (2014). Do oil price increases cause higher food prices? Economic Policy, 29, 691–747. https://doi.org/10.1111/1468-0327.12039.
  • Ben Hassen, T., & El Bilali, H. (2022). Impacts of the Russia-Ukraine war on global food security: towards more sustainable and resilient food systems? Foods, 11, 2301. https://doi.org/10.3390/foods11152301
  • Bergmann, D., O’Connor, D., & Thummel, A. (2016). An analysis of price and volatility transmission in butter, palm oil and crude oil markets. Agricultural and Food Economics, 4, 23. https://doi.org/10.1186/s40100-016-0067-4
  • Camp, K. M. (2019). The relationship between crude oil prices and export prices of major agricultural commodities. Beyond the Numbers: Global Economy, 8(7) (U.S. Bureau of Labor Statistics, April 2019). Retrieved on January 14, 2024, from https://www.bls.gov/opub/btn/volume-8/the-relationship-between-crude-oil-and-export-prices-of-major-agricultural-commodities.htm
  • Du, X., Yu, C. Y., & Hayes, D. J. (2011). Speculation and volatility spillover in the crude oil and agricultural commodity markets: A Bayesian analysis. Energy Economics, 33(3), 497-503. https://doi.org/10.1016/j.eneco.2010.12.015
  • El Montasser, G., Belhoula, M. M., & Charfeddine, L. (2023). Co-explosivity versus leading effects: Evidence from crude oil and agricultural commodities. Resources Policy, 81, 103331. https://doi.org/10.1016/j.resourpol.2023.103331
  • Fabiosa, J. F. (2009). The impact of the crude oil price on the livestock sector under a regime of integrated energy and grain markets. Agricultural & Applied Economics Association 2009 AAEA & ACCI Joint Annual Meeting, USA. https://doi.org/10.22004/ag.econ.49240
  • FAO. (2023a). Statistical Query Panel - Global aquaculture production (Quantity). FAO Fisheries and Aquaculture Division [online]. Retrieved on July 10, 2023, from https://www.fao.org/fishery/statistics-query/en/aquaculture/aquaculture_quantity
  • FAO. (2023b). Statistical Query Panel - Global aquaculture production (Value). FAO Fisheries and Aquaculture Division [online]. Retrieved on July 10, 2023, from https://www.fao.org/fishery/statistics-query/en/aquaculture/aquaculture_value
  • Jahangir, S.R., & Dural, B.Y. (2018). Crude oil, natural gas, and economic growth: Impact and causality analysis in Caspian Sea region. International Journal of Management and Economics, 54(3), 169–184. https://doi.org/10.2478/ijme-2018-0019
  • Loo, A. (2020). 2008-2009 Global Financial Crisis: The Great Recession. Economics, Retrieved on July 02, 2023, from https://corporatefinanceinstitute.com/resources/economics/2008-2009-global-financial-crisis/
  • López Cabrera, B., & Schulz, F. (2016). Volatility linkages between energy and agricultural commodity prices. Energy Economics, 54, 190–203. https://doi.org/10.1016/j.eneco.2015.11.018
  • Mănescu, C. B., & Nuño, G. (2015). Quantitative effects of the shale oil revolution. European Central Bank Working Paper Series, No: 1855. Retrieved on January 22, 2024, from https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1855.en.pdf
  • Nazlioglu, S., Erdem, C., & Soytaş, U. (2013). Volatility spillover between oil and agricultural commodity markets. Energy Economics, 36, 658-665. https://doi.org/10.1016/j.eneco.2012.11.009
  • Nazlioglu, S., & Soytas, U. (2011). World oil prices and agricultural commodity prices: Evidence from an emerging market. Energy Economics, 33, 488–496. https://doi.org/10.1016/j.eneco.2010.11.012.
  • Nwoko, I.C., Aye, G.C., & Asogwa, B.C. (2016). Effect of oil price on Nigeria’s food price volatility. Cogent Food Agriculture, 2(1), 1146057. https://doi.org/10.1080/23311932.2016.1146057
  • Panneer, S., Kantamaneni, K., Akkayasamy, V. S., Susairaj, A. X., Panda, P. K., Acharya, S. S., Rice, L., Liyanage, C., & Pushparaj, R. R. B. (2022). The great lockdown in the wake of COVID-19 and its implications: Lessons for low and middle-income countries. International Journal of Environmental Research and Public Health, 19, 610. https://doi.org/10.3390/ijerph19010610
  • Roman, M., Górecka, A., & Domagała, J. (2020). The linkages between crude oil and food prices. Energies, 13, 6545. https://doi.org/10.3390/en13246545
  • Statista (2023). Average annual Brent crude oil price from 1976 to 2023. Retrieved on July 01, 2023, from https://www.statista.com/statistics/262860/uk-brent-crude-oil-price-changes-since-1976/
  • Taghizadeh-Hesary, F., Rasoulinezhad, E., & Yoshino, N. (2018). Volatility linkages between energy and food prices: Case of selected Asian countries. ADBI Working Paper 829. Retrieved on January 16, 2024, from https://www.adb.org/sites/default/files/publication/411176/adbi-wp829.pdf
  • Vo, D. H., Vu, T. N., Vo, A. T., & McAleer, M. (2019). Modeling the relationship between crude oil and agricultural commodity prices. Energies, 12, 1344. https://doi.org/10.3390/en12071344
  • Xu, S., Du, Z., & Zhang, H. (2020). Can crude oil serve as a hedging asset for underlying securities? Research on the heterogenous correlation between crude oil and stock index. Energies, 13, 3139. https://doi.org/10.3390/en13123139
  • Yigit, Ü., & Kusku, H. (2022). Comparison of production trends in Japan with long history in aquaculture and challenging success of Türkiye as a fairly new country in fish farming. Marine Reports, 1(2), 99-109. https://doi.org/10.5281/zenodo.7393998
  • Yigit, Ü., Yigit, M., Ergün, S., Sanver, F., & Taylor, N. (2023). Competitive economic trends of steelhead farming in Türkiye and Norway. Marine Reports, 2(1), 16-25. https://doi.org/10.5281/zenodo.8050627
  • Zhang, Z., Lohr, L., Escalante, C., & Wetzstein, M. (2010). Food versus fuel: What do prices tell us? Energy Policy, 38(1), 445–451. https://doi.org/10.1016/j.enpol.2009.09.034

Year 2024, Volume: 13 Issue: 1, 102 - 110, 31.03.2024

Ümüt Yiğit

https://doi.org/10.33714/masteb.1441264

Abstract

References

  • Al-Maadid, A., Caporale, G. M., Spagnolo, F., & Spagnolo, N. (2017). Spillovers between food and energy prices and structural breaks. Journal of International Economics, 150, 1–18. https://doi.org/10.1016/j.inteco.2016.06.005
  • Aye, G. C., & Odhiambo, N. M. (2021). Oil prices and agricultural growth in South Africa: A threshold analysis. Resources Policy, 73, 102196. https://doi.org/10.1016/j.resourpol.2021.102196
  • Baffes, J., Kose, M. A., Ohnsorge, F., & Stocker, M. (2015). The great plunge in oil prices - causes, consequences, and policy responses. Policy Research Note No.1, World Bank.
  • Baumeister, C., & Kilian, L. (2014). Do oil price increases cause higher food prices? Economic Policy, 29, 691–747. https://doi.org/10.1111/1468-0327.12039.
  • Ben Hassen, T., & El Bilali, H. (2022). Impacts of the Russia-Ukraine war on global food security: towards more sustainable and resilient food systems? Foods, 11, 2301. https://doi.org/10.3390/foods11152301
  • Bergmann, D., O’Connor, D., & Thummel, A. (2016). An analysis of price and volatility transmission in butter, palm oil and crude oil markets. Agricultural and Food Economics, 4, 23. https://doi.org/10.1186/s40100-016-0067-4
  • Camp, K. M. (2019). The relationship between crude oil prices and export prices of major agricultural commodities. Beyond the Numbers: Global Economy, 8(7) (U.S. Bureau of Labor Statistics, April 2019). Retrieved on January 14, 2024, from https://www.bls.gov/opub/btn/volume-8/the-relationship-between-crude-oil-and-export-prices-of-major-agricultural-commodities.htm
  • Du, X., Yu, C. Y., & Hayes, D. J. (2011). Speculation and volatility spillover in the crude oil and agricultural commodity markets: A Bayesian analysis. Energy Economics, 33(3), 497-503. https://doi.org/10.1016/j.eneco.2010.12.015
  • El Montasser, G., Belhoula, M. M., & Charfeddine, L. (2023). Co-explosivity versus leading effects: Evidence from crude oil and agricultural commodities. Resources Policy, 81, 103331. https://doi.org/10.1016/j.resourpol.2023.103331
  • Fabiosa, J. F. (2009). The impact of the crude oil price on the livestock sector under a regime of integrated energy and grain markets. Agricultural & Applied Economics Association 2009 AAEA & ACCI Joint Annual Meeting, USA. https://doi.org/10.22004/ag.econ.49240
  • FAO. (2023a). Statistical Query Panel - Global aquaculture production (Quantity). FAO Fisheries and Aquaculture Division [online]. Retrieved on July 10, 2023, from https://www.fao.org/fishery/statistics-query/en/aquaculture/aquaculture_quantity
  • FAO. (2023b). Statistical Query Panel - Global aquaculture production (Value). FAO Fisheries and Aquaculture Division [online]. Retrieved on July 10, 2023, from https://www.fao.org/fishery/statistics-query/en/aquaculture/aquaculture_value
  • Jahangir, S.R., & Dural, B.Y. (2018). Crude oil, natural gas, and economic growth: Impact and causality analysis in Caspian Sea region. International Journal of Management and Economics, 54(3), 169–184. https://doi.org/10.2478/ijme-2018-0019
  • Loo, A. (2020). 2008-2009 Global Financial Crisis: The Great Recession. Economics, Retrieved on July 02, 2023, from https://corporatefinanceinstitute.com/resources/economics/2008-2009-global-financial-crisis/
  • López Cabrera, B., & Schulz, F. (2016). Volatility linkages between energy and agricultural commodity prices. Energy Economics, 54, 190–203. https://doi.org/10.1016/j.eneco.2015.11.018
  • Mănescu, C. B., & Nuño, G. (2015). Quantitative effects of the shale oil revolution. European Central Bank Working Paper Series, No: 1855. Retrieved on January 22, 2024, from https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1855.en.pdf
  • Nazlioglu, S., Erdem, C., & Soytaş, U. (2013). Volatility spillover between oil and agricultural commodity markets. Energy Economics, 36, 658-665. https://doi.org/10.1016/j.eneco.2012.11.009
  • Nazlioglu, S., & Soytas, U. (2011). World oil prices and agricultural commodity prices: Evidence from an emerging market. Energy Economics, 33, 488–496. https://doi.org/10.1016/j.eneco.2010.11.012.
  • Nwoko, I.C., Aye, G.C., & Asogwa, B.C. (2016). Effect of oil price on Nigeria’s food price volatility. Cogent Food Agriculture, 2(1), 1146057. https://doi.org/10.1080/23311932.2016.1146057
  • Panneer, S., Kantamaneni, K., Akkayasamy, V. S., Susairaj, A. X., Panda, P. K., Acharya, S. S., Rice, L., Liyanage, C., & Pushparaj, R. R. B. (2022). The great lockdown in the wake of COVID-19 and its implications: Lessons for low and middle-income countries. International Journal of Environmental Research and Public Health, 19, 610. https://doi.org/10.3390/ijerph19010610
  • Roman, M., Górecka, A., & Domagała, J. (2020). The linkages between crude oil and food prices. Energies, 13, 6545. https://doi.org/10.3390/en13246545
  • Statista (2023). Average annual Brent crude oil price from 1976 to 2023. Retrieved on July 01, 2023, from https://www.statista.com/statistics/262860/uk-brent-crude-oil-price-changes-since-1976/
  • Taghizadeh-Hesary, F., Rasoulinezhad, E., & Yoshino, N. (2018). Volatility linkages between energy and food prices: Case of selected Asian countries. ADBI Working Paper 829. Retrieved on January 16, 2024, from https://www.adb.org/sites/default/files/publication/411176/adbi-wp829.pdf
  • Vo, D. H., Vu, T. N., Vo, A. T., & McAleer, M. (2019). Modeling the relationship between crude oil and agricultural commodity prices. Energies, 12, 1344. https://doi.org/10.3390/en12071344
  • Xu, S., Du, Z., & Zhang, H. (2020). Can crude oil serve as a hedging asset for underlying securities? Research on the heterogenous correlation between crude oil and stock index. Energies, 13, 3139. https://doi.org/10.3390/en13123139
  • Yigit, Ü., & Kusku, H. (2022). Comparison of production trends in Japan with long history in aquaculture and challenging success of Türkiye as a fairly new country in fish farming. Marine Reports, 1(2), 99-109. https://doi.org/10.5281/zenodo.7393998
  • Yigit, Ü., Yigit, M., Ergün, S., Sanver, F., & Taylor, N. (2023). Competitive economic trends of steelhead farming in Türkiye and Norway. Marine Reports, 2(1), 16-25. https://doi.org/10.5281/zenodo.8050627
  • Zhang, Z., Lohr, L., Escalante, C., & Wetzstein, M. (2010). Food versus fuel: What do prices tell us? Energy Policy, 38(1), 445–451. https://doi.org/10.1016/j.enpol.2009.09.034
There are 28 citations in total.

Details

Primary Language English
Subjects Pisciculture
Journal Section Research Article
Authors

Ümüt Yiğit 0000-0002-1378-2422

Early Pub Date March 31, 2024
Publication Date March 31, 2024
Submission Date February 22, 2024
Acceptance Date March 30, 2024
Published in Issue Year 2024 Volume: 13 Issue: 1

Cite

APA Yiğit, Ü. (2024). Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises. Marine Science and Technology Bulletin, 13(1), 102-110. https://doi.org/10.33714/masteb.1441264
AMA Yiğit Ü. Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises. Mar. Sci. Tech. Bull. March 2024;13(1):102-110. doi:10.33714/masteb.1441264
Chicago Yiğit, Ümüt. “Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises”. Marine Science and Technology Bulletin 13, no. 1 (March 2024): 102-10. https://doi.org/10.33714/masteb.1441264.
EndNote Yiğit Ü (March 1, 2024) Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises. Marine Science and Technology Bulletin 13 1 102–110.
IEEE Ü. Yiğit, “Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises”, Mar. Sci. Tech. Bull., vol. 13, no. 1, pp. 102–110, 2024, doi: 10.33714/masteb.1441264.
ISNAD Yiğit, Ümüt. “Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises”. Marine Science and Technology Bulletin 13/1 (March 2024), 102-110. https://doi.org/10.33714/masteb.1441264.
JAMA Yiğit Ü. Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises. Mar. Sci. Tech. Bull. 2024;13:102–110.
MLA Yiğit, Ümüt. “Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises”. Marine Science and Technology Bulletin, vol. 13, no. 1, 2024, pp. 102-10, doi:10.33714/masteb.1441264.
Vancouver Yiğit Ü. Impacts of Brent Crude Oil Price Fluctuations on Global Aquaculture Production During World Economic Crises. Mar. Sci. Tech. Bull. 2024;13(1):102-10.
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