FISHERIES MANAGEMENT AND MARKET-ORIENTED VALUE ADDING (MOVA)

This paper focuses on fisheries management systems as a motivation factor for market-oriented value adding (MOVA). Analytically, the paper relies on the marketing and industrial economics literature. It shows how established fisheries management systems reduce motivation for market-oriented value adding (MOVA) and thereby waste resource rent. An improved management model is introduced which motivates MOVA, cost-efficiency, sustainability, and fair social allocation. This model combines a Seasonal Quota Auction (SQA) and administrative allocation of licenses and quotas to communities or fisher groups. This model offers the following advantages in comparison with a pure Individual Transferable Quota (ITQ) model: (i) increases resource rent without privatizing the fish resources to a few private holders; (ii) leases seasonal quotas instead of selling permanent quotas as with ITQ; (iii) improves rent generation by motivating the most market-oriented and efficient fishers by leasing quotas on credit; and (iv) offers the choice of collecting resource rent through fisher's cooperatives, regions, ITQ owners, government, or redistribution of rent as a bonus to all fishers.Resource /Energy Economics and Policy,

Price Links between Auction and Direct Sales of Fresh and Frozen Fish in North Norway (1997–2003)

In North Norway the dominant method of exchange for fresh and frozen fish at the ex-vessel level is by direct (contract) sale, whereby price is negotiated between fish processors and the fishermen. More recently, an auction for frozen fish has been introduced. In this paper we investigate the relationship of prices between these methods of exchange and, in particular, whether the prices develop in a stable pattern between auction and direct sale by means of a cointegration analysis. Monthly prices of size-graded cod and haddock landed in the period 1997–2003 are analysed. For most months, frozen fish sold through auctions realised the highest price, followed by direct sales of fresh and frozen, respectively. Fish sold by auction exhibits a larger monthly variation in price than fish sold directly. Prices for cod were cointegrated to a larger degree than for haddock, and the cointegration was strongest for frozen cod. The analysis also demonstrates that the auction prices for frozen cod and haddock drive the direct sale prices of similar fish, both frozen and fresh, even though the quantity sold via direct sales is greater than that of auctions. Law of one price (LOP) and weak exogeneity were present for cod and haddock.Market linkages, cointegration, auction sale, direct sale, fresh fish, frozen fish, cod, haddock, North Norway, Resource /Energy Economics and Policy, Q22, C32, D44,

Price links between auction and direct sales of fresh and frozen fish in North Norway (1997-2003)

In North Norway the dominant method of exchange for fresh and frozen fish at the ex-vessel level is by direct (contract) sale, whereby price is negotiated between fish processors and the fishermen. More recently, an auction for frozen fish has been introduced. In this paper we investigate the relationship of prices between these methods of exchange and, in particular, whether the prices develop in a stable pattern between auction and direct sale by means of a cointegration analysis. Monthly prices of size-graded cod and haddock landed in the period 1997- 2003 are analysed. For most months, frozen fish sold through auctions realised the highest price, followed by direct sales of fresh and frozen, respectively. Fish sold by auction exhibits a larger monthly variation in price than fish sold directly. Prices for cod were cointegrated to a larger degree than for haddock, and the cointegration was strongest for frozen cod. The analysis also demonstrates that the auction prices for frozen cod and haddock drive the direct sale prices of similar fish, both frozen and fresh, even though the quantity sold via direct sales is greater than that of auctions. Law of one price (LOP) and weak exogeneity were present for cod and haddock

Market Orientation in the Mental Models of Decision Makers: two cross-border value chains

Purpose: This study determines whether predictions about different degrees of market orientation in two cross-border value chains also appear in the mental models of decision makers at two levels of these value chains. Design: The laddering method elicits mental models of actors in two value chains: Norwegian salmon exported to Japan and Danish pork exported to Japan. The analysis of the mental models centers on potential overlap and linkages between actors in the value chain, including elements in the mental models that may relate to the actors’ market orientation. Findings: In both value chains, decision makers exhibit overlap in their views of what drives their business. The pork chain appears dominated by a focus on efficiency, technology, and quality control, though it also acknowledges communication as important. The salmon chain places more emphasis on new product development and good relations between chain partners. Research limitations/implications: While confirming prior results regarding the role of competitive pressure, end-user heterogeneity/dynamism, regulations, and trade associations, the results also generate new insights into the possible role of relational governance in promoting the market orientation of value chains. Originality: This article offers three novel ideas: using the concept of mental models as a possible mediator between factors that influence the degree of market orientation and marketoriented activity; using a laddering method to elicit mental models; and considering concepts shared among actors in a value chain as possible indicators of the degree of market orientation

Price links between auction and direct sales of fresh and frozen fish in North Norway (1997-2003)

In North Norway the dominant method of exchange for fresh and frozen fish at the ex-vessel level is by direct (contract) sale, whereby price is negotiated between fish processors and the fishermen. More recently, an auction for frozen fish has been introduced. In this paper we investigate the relationship of prices between these methods of exchange and, in particular, whether the prices develop in a stable pattern between auction and direct sale by means of a cointegration analysis. Monthly prices of size-graded cod and haddock landed in the period 1997- 2003 are analysed. For most months, frozen fish sold through auctions realised the highest price, followed by direct sales of fresh and frozen, respectively. Fish sold by auction exhibits a larger monthly variation in price than fish sold directly. Prices for cod were cointegrated to a larger degree than for haddock, and the cointegration was strongest for frozen cod. The analysis also demonstrates that the auction prices for frozen cod and haddock drive the direct sale prices of similar fish, both frozen and fresh, even though the quantity sold via direct sales is greater than that of auctions. Law of one price (LOP) and weak exogeneity were present for cod and haddock

Market-oriented regional fisheries management - An analysis of four fish regions in the North Atlantic

What influence do exchange methods have on ex-vessel prices and what are the potential implications for the regional management of the fisheries? This paper undertakes an empirical analysis of exchange methods and ex-vessel prices for specific demersal fish controlled for fish size and quantity in four North Atlantic regions, including Iceland, North-Norway and Scotland. The methodology consists of a comparative analysis of total average price (TAP) and Anova analysis of monthly average prices of cod and plaice landed fresh during the period 1990-1999. Scotland's auctions have the highest TAPs for the species analysed whilst the lowest TAPs are returned from contract sales in Iceland and North-Norway. Icelandic auctions and More-Romsdal auctions adopt intermediate positions in this price hierarchy. Price differences are still present even when correcting for factors such as legal barriers, transport costs - from different geographical locations, exchange fees and seasonal variations in supplies. The implications of these findings for current and prospective systems of regional resource and coastal management are then considered and the scope and need for further study is established

Towards a market-oriented management model for straddling fish stocks

Management of straddling fish stocks has been noted for its political complexity. Negotiations frequently falter as each party seeks to focus upon their own individual and shorter-term, goals than the collective interest of the sector. Entrenched positions are often only deepened as new entrants participate to establish their own claims to any emergent share of resource. Unsurprisingly, deadlocks are common and typically compromises are reached only after the real period of biological then economic crisis has passed. Examples to illustrate this tendency can be found in most of the world's oceans and is writ large within the current impasse over blue whiting (Micromesistius poutassou) in the North Atlantic. The development of this fishery is discussed and it is shown that despite the scope to add value to the resource base through a pattern of exploitation focussed more upon human consumption than fish meal and oil, there seems little incentive to extricate participants from the cycle of demise that has engulfed negotiations so far. In an attempt to consider how such seemingly intractable problems might be resolved, attention is next turned to the construction of a new model for resource management specifically intended to contend with the problems thrown up by straddling stocks. Central to this is the need to ensure motivation and incentivisation of value chain members in both national economic zones and international waters. It is proposed that a Multinational Resource Cooperative (MRC) is established and would be the key element in the management model. The MRC, on behalf of the national stakeholders, would auction quota so that fish enterprises call purchase quota units defined in terms of species, quantity, catch area and the time of catch. The MRC would also be financed through a quota auction fee as explained below and arrange its own quota control and enforcement services. By auctioning rights to stakeholders the MRC will enable control and enforcement of the TAC; allocations of fair national shares of resource and critically, motivate fish enterprises to devise and implement market-oriented value adding strategies. Adoption of such a scheme should result in a more efficient use of the remaining straddling stocks whilst there is still time to do so. Importantly, the proposed rent distribution mechanism would also shift the focus of negotiations from being dominated by quotas and access rights to more evident pecuniary metrics

Towards a market-oriented management model for straddling fish stocks

Management of straddling fish stocks has been noted for its political complexity. Negotiations frequently falter as each party seeks to focus upon their own individual and shorter-term goals than the collective interest of the sector. Entrenched positions are often only deepened as new entrants participate to establish their own claims to any emergent share of resource. Unsurprisingly, deadlocks are common and typically compromises are reached only after the real period of biological then economic crisis has passed. Examples to illustrate this tendency can be found in most of the world's oceans and is writ large within the current impasse over blue whiting (Micromesistius poutassou) in the North Atlantic. The development of this fishery is discussed and it is shown that despite the scope to add value to the resource base through a pattern of exploitation focussed more upon human consumption than fish meal and oil, there seems little incentive to extricate participants from the cycle of demise that has engulfed negotiations so far. In an attempt to consider how such seemingly intractable problems might be resolved, attention is next turned to the construction of a new model for resource management specifically intended to contend with the problems thrown up by straddling stocks. Central to this is the need to ensure motivation and incentivisation of value chain members in both national economic zones and international waters. It is proposed that a Multinational Resource Cooperative (MRC) is established and would be the key element in the management model. The MRC, on behalf of the national stakeholders, would auction quota so that fish enterprises can purchase quota units defined in terms of species, quantity, catch area and the time of catch. The MRC would also be financed through a quota auction fee as explained below and arrange its own quota control and enforcement services. By auctioning rights to stakeholders the MRC will enable control and enforcement of the TAC; allocations of fair national shares of resource and critically, motivate fish enterprises to devise and implement market-oriented value adding strategies. Adoption of such a scheme should result in a more efficient use of the remaining straddling stocks whilst there is still time to do so. Importantly, the proposed rent distribution mechanism would also shift the focus of negotiations from being dominated by quotas and access rights to more evident pecuniary metrics.Fisheries behaviour Fisheries management Straddling fish stocks Market orientation RFMO Law of the Sea

Market orientation of value chains: A conceptual framework based on four case studies from the food industry

Purpose - This paper extends the concept of market orientation from the firm to the value chain level and seeks to develop empirically founded propositions on determinants of different levels of market orientation of value chains. Design/methodology/approach - Four case studies on value chains within the areas of agribusiness and fisheries are conducted. For each value chain, desk research is combined with interviews with decision-makers of all types of value chain members. Interview guidelines were derived from a conceptual model of potential determinants of value chain market orientation. Findings - Degree of market orientation of value chains is found to be related to degree of heterogeneity and dynamism of end-users served, nature of chain relationships, regulations and prevailing mental models of decision-makers. Short and balanced chains are believed to further upstream market orientation. Research limitations/implications - The results point at two areas, where additional research on market orientation is called for: a better conceptualization of market intelligence and theorizing on most cost effective ways of being market oriented, including implications for the distribution of market oriented activities among value chain members. Practical implications - The paper underlines the importance of managing channel relationships, up to and including vertical integration, when serving markets with high degrees of end-user volatility. Originality/value - This paper is the first empirical contribution to the market orientation literature employing a perspective encompassing the whole value chain