Methodological and ideological options exploring supply chain models for Sydney rock oysters

Abstract

The processing/wholesale supply chain model has been historically adopted by farmers of Australia's Sydney rock oyster (SRO) (Saccostrea glomerata) industry to transfer their product to consumers. The model has been criticized for restricting farmer's price bargaining power and for offering limited added value to the product. Recent anecdotal reports suggest that there has been a change in how oysters are supplied by farmers to the market. This case study aimed to map the supply chain of SROs at an industry level, to identify and to describe the existing supply and value chain models within the broader supply network structure, and to investigate factors that determine how farmers choose supply chain models. A literature review, a web-content search, and semi-structured interviews with supply chain stakeholders were undertaken to achieve these aims. Results suggest that the processing/wholesale model still plays a dominant role within the broader supply network. However, other models of supply chain coordination that generate higher returns have emerged in response to farmer's dissatisfaction with the processor/wholesaler model. Findings suggest that oyster farmers choose specific distribution models based on the net financial value they generate and other considerations such as farmers' skills, interest in maximizing profits, knowledge about consumer demand, time/effort to develop network links and existing trust-based relationships.