Aligning end-to-end seafood supply through a series of markets

Abstract

This study considers the alignment of commodity-like goods in seafood networks by analysing the exchange economy embedded in a set of sequentially interdependent markets. A case study in seafood production is analysed from an end-to-end perspective in the flow of seafood from Norway to Japan to investigate how practitioners describe trading and the terminology used on trading embedded across the complete supply network. Four subcases that focus on how goods are traded are studied. Two subcases consider raw material supply, aquaculture-supplied salmon and wild-caught pelagic fish. The third subcase concerns the export of frozen mackerel to Japan, and the final subcase concerns seafood trading at a regional wholesale market in Japan. Analysis is based on the view that in supply an exchange (management) economy is distinct from a production (value-creation) economy, and these economies are interdependent. The fundamental importance of sequential interdependencies in seafood production is demonstrated. The four subcases are first analysed individually, applying relational contracting theory to understand patterns of exchange leading to transfer of title at markets. Developed relationships and trust, but also an acceptance of partner switching, characterizes exchange in all four market-related subcases. An understanding of how these loosely coupled markets may be viewed as aligned is developed. Markets emerge as nodes in the supply network with complex patterns of exchange facilitated by well-developed business relationships where a common norm is acceptance of disloyalty not impeding trust. These norms of exchange facilitate agile seafood distribution.