Multi-commodity price risk hedging in the Atlantic salmon farming industry

摘要: Abstract Cost management has received limited attention in the aquaculture industry due to historically high profit margins. This trend, however, is not likely continue. creates a need for knowledge on optimally managing financial risks. In this study, we address joint input-output price hedging problem of salmon farmers. Along with salmon, consider three essential commodities used fish feed mixtures. We use state-of-the-art copula models examine multi-commodity strategies. Our results show significant potential reducing risk. key finding that improves effectiveness short horizons and risk-return trade-off longer horizons. Salmon farmers face where yield increased lower costs, yet require pre-planning slaughtering volumes.