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Logistic Costs of Live Fish Trades in Thailand

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  • This study addresses the matter of logistic improvement of live food fish trade by economic analyses of pertinent information provided by the live fish traders in 2004 on three species of live fish: sand goby, sea bass, and grouper. The analyses take into consideration the logistics cost, break-even point, market margins, and sensitivity. The study was found that live fish trade in Thailand is family business all the way through the whole operation from gathering of the live fish, value-added activities (grading by size and quality), and dispatching of commodities to the clients. The logistic cost comprises personnel (largely family members), purchase, storage, sale, and information as well as other variable cost, e.g. gasoline, wages etc. The logistical cost per market margin for sand goby, sea bass, grouper and all species is 76.96%, 33.08% 54.84% and 55.09% respectively. The costs of all wholesale businesses nowadays exceed the break-even points as the cost of gasoline alone has already made up 31.13%, 34.36%, 80.00% and 76.39% of all logistical costs respectively. Reduction of gasoline cost is therefore a strategic move for increasing the business efficiencies, and for the sustainability of the business. Cartel is another option for cost reduction strategy.
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  • Laowapong, Amporn. 2006. Logistic Costs of Live Fish Trades in Thailand. In: Proceedings of the Thirteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 11-14, 2006, Portsmouth, UK: Rebuilding Fisheries in an Uncertain Environment. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2006. CD ROM. ISBN 0-9763432-3-1
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  • The National Oceanic & Atmospheric Administration Marine Fisheries Service, United States Department of Commerce (NOAA Fisheries); United Kingdom Department for Environment, Food and Rural Affairs (DEFRA); The United States Agency for International Development supported Aquaculture Collaborative Research and Support Program (ACRSP).
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