Abstract

The article discusses the impact of competition in the market of aquatic biological resources on the end-user price of fish products and the introduction of an auction quota mechanism for the catch of aquatic biological resources proposed by the Federal Antimonopoly Service of Russia to increase competition in the industry and cut prices in retail fish markets. The study aims to test the hypothesis that the fishing industry has a high level of monopolisation and low competition based on the data on the allocation of quotas for the aquatic biological resources of the largest fishery region—the Far East fishery basin. Technical issues of conducting research in the Far East fish products market are considered using concentration coefficients and taking into account its specificity, geographical location, and trade flows of fish products. Based on the distribution of quotas for the total allowable catch of the magister armhook squid (Berryteuthis magister), walleye pollock, Pacific herring, cod, Kamchatka crab, and smear dab in the subzones of the Far East fishing area, (1) market shares of fishing enterprises are analysed, leading producers are identified in each of the analysed segments with an estimate of their specific share in the total volume of quotas for aquatic biological resources, (2) the CR3 concentration ratio and the Herfindahl-Hirschman index are calculated, with the variance of the quotas, the mode and the median of the distribution of the quotas additionally calculated. Assessment of the CR3 concentration index and the Herfindahl–Hirschman index for the producers of Pacific herring, walleye pollock, cod, Kamchatka crab,and smear dab allowed classifying these markets as non-concentrated, while a significantly higher concentration was found for the magister armhook squid producers. The study did not confirm the assumption of monopolisation and high concentration of the fishing industry. The formation of the retail market price of fish products is influenced by various factors, including logistics, the number of resellers, and some others. Alternative distribution channels for fishing companies, reduction of the number of intermediaries between producers and retail consumers, and the creation of fish markets may prove an effective way to develop the industry.

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