This article examines the impact of the ASC ecolabel on the export price of farmed salmon products from Chile to the United States. Ecolabels intends to inform consumers about the actual characteristics of the products they are considering. These labels serve as a signal that the products have been certified as sustainable, meaning they meet the necessary environmental and/or social standards to obtain the label (Asche et al., 2021; Hammarlund et al., 2024). In the seafood market, ecolabels act as a tool to promote sustainable fishing and aquaculture practices by providing consumers with otherwise unobservable information about the environmental sustainability of seafood products (Amundsen et al., 2019; Blomquist et al., 2020). Furthermore, consumers are expected to respond by purchasing eco-labeled products, reducing demand for non-labeled products, and creating a price premium for certified products (Gudmundsson & Wessells, 2000). Eco-certifications can affect premium prices, market access, and opinions on salmon farming practices (Ankamah-Yeboah et al., 2019; Asche et al., 2021; Bronnmann et al., 2021; Hammarlund et al., 2024; Ishihara et al., 2022; Rector et al., 2023; Roheim & Zhang, 2018). One well-known eco-certification in aquaculture is the Aquaculture Stewardship Council (ASC) certification.
To measure the effect of ASC on the export price of salmon products, we used pooled OLS to estimate the natural logarithm of the average price per export of products derived from Atlantic salmon (FOB USD/kg.) as a function of a set of explanatory variables such as salmon cut, type of salmon preservation, month and year of shipment. We include two additional control variables to explain better price variations: a dummy variable that identifies whether Chilean producers belong to the consortium Salmonchile—a Chilean association of companies that enforces quality standards through self-regulation among its members—and a specific variable for firms that may have been affected by the algal bloom that occurred in Chile in 2016.
The study found that salmon-exporting companies with ASC certification receive higher prices for their products, indicating higher returns on sales. The premium price can go from 2.1 to 16.6% of the export price, depending on the econometric specification. Additionally, the price premium for ASC-certified salmon is even higher for high-quality cuts, such as fresh salmon fillets. Unlike existing literature, our analysis was focused on export prices instead of retail prices. The presence of price premiums for salmon products reflects the concept that for salmon producers to remain profitable, aquaculture must command higher prices passed on through the value chain from the retail market (Ankamah-Yeboah et al., 2016). The basic idea is that companies pay for certification; in return, producers must receive benefits that outweigh the cost. The most obvious benefit is the price premium (Andersson & Hammarlund, 2023). Our findings provide valuable insights into Chile’s eco-label-certified salmon production dynamics. We documented a price premium associated with exports of ASC-certified salmon products. Higher prices may motivate uncertified companies to pursue certification, which, in line with ASC principles, enhances seafood farming and fosters environmental sustainability and social responsibility in aquaculture.