A comparison of socioeconomic dynamics and market performance in lobster and giant freshwater prawn value chains in Sri Lanka

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Wild-captured lobster fisheries and cultured giant freshwater prawns (GFP) in Sri Lanka cater to high-end markets with significant exports. However, there is a notable gap in existing literature on value chain analysis and market performance aspects in both sectors. This study identified actor profiles and value chain dynamics in both sectors using structural mapping. Market performance was assessed through costs, margins, price spread, and marketing efficiency, with differentiation strategies proposed for sectoral growth. Data collection involved interviewer-administered questionnaires and in-depth interviews with 748 fishers, 44 collectors, and 12 exporters from December 2022 to March 2024. Results highlighted that the lobster value chain was highly export-driven, with a concentration on live trade and premium pricing. Fishers and collectors faced risks from fluctuating stocks and strict regulations, while exporters dealt with logistical and market volatility. Upstream actors often overexploit resources to increase yields, rather than improve quality, leading to unsustainable practices. To mitigate market challenges, actions like promoting products under branding tags such as ‘wild-caught lobster’ and ‘conventionally cultured GFP’, maintaining food safety and quality standards and optimizing logistics are essential for enhancing competitiveness. The GFP sector operates in both domestic and export markets, competing with commodity shrimp. While it provides employment, its financial performance is moderate, limited by high farming costs and pricing competitiveness. Differentiation efforts should focus on sustainable labeling, value-added products, direct exports, and catering to niche markets to boost profitability and reduce dependence on bulk markets.

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Value chain analysis has a central role in determining the distribution of benefits of the participants to upgrade solutions to the value chain. This paper is based on an integrated approach of methods and results of research on agricultural product value chain analysis. Research focuses on analyzing value chain approaches commodity chain analysis, Porter’s value chain model, Global value chain and GTZ organization, the number of actors in the value chain, profit distribution among actors participating in the chain, some popular tools in value chain analysis, and solutions to upgrade the chain. On that basis, the paper also points out the gaps in the current agricultural value chain research: 1) There is no combination of SCP analysis framework with other approaches; 2) Researchers have not analyzed the causes of the markup through the actors or the market power of the actors; 3) There are few studies combine all three models: Porter’s five forces, PEST and SWOT to have a complete basis for proposing solutions to upgrade the value chain.

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  • Cite Count Icon 2
  • 10.46223/hcmcoujs.econ.en.13.1.1963.2023
Review of agricultural value chain analysis
  • Jul 29, 2022
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  • Nguyen Thi Tuoi + 1 more

Value chain analysis has a central role in determining the distribution of benefits of the participants to upgrade solutions to the value chain. This paper is based on an integrated approach of methods and results of research on agricultural product value chain analysis. Research focuses on analyzing value chain approaches commodity chain analysis, Porter’s value chain model, Global value chain and GTZ organization, the number of actors in the value chain, profit distribution among actors participating in the chain, some popular tools in value chain analysis, and solutions to upgrade the chain. On that basis, the paper also points out the gaps in the current agricultural value chain research: 1) There is no combination of SCP analysis framework with other approaches; 2) Researchers have not analyzed the causes of the markup through the actors or the market power of the actors; 3) There are few studies combine all three models: Porter’s five forces, PEST and SWOT to have a complete basis for proposing solutions to upgrade the value chain.

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