This paper focus on motivation factors for market oriented value adding (MOVA) in the fishing industry of the limited fish resources. Analytical the paper interpreter the market orientation concept into the Structure- Conduct-Performance model from industrial economics. It shows that most established fisheries management systems as Olympic style, licenses and transferable quotas and licenses systems reduce the motivation for market oriented value adding and by this waste resource rent. An improved management model is introduced which make it possible to motivate market-orientation and cost-efficiency together with sustainability and fair social allocation. This model combines Seasonal Quota Auction (SQA) and administrative allocation (AA) through licenses and community or fisher group quota. In contrast to a pure ITQ model, this model offer a solution to motivate fishers to: (i) Increase resource rent without privatizing the fish resources on few private hands (ii) Ease seasonal quotas instead of purchasing permanent quotas as in ITQ. (iii) Improve rent generating from the most market oriented and efficient fishers by leasing quotas on credit. The auction mechanism makes it possible to collect the resource rent for use through fisher’s co-operatives or regions, ITQ owners, government or redistributed as bonus to all fishers. This model is expected to impose increased social costs for the less competitive in each fisher group, generate both less resource rent and less social costs in the long run compared with free market solutions working without other constraints than maintaining biological TAC.
Key words: Market orientation, value adding, sustainable development, resource rent, fisheries management, institutional economics, fish auctions and fisheries marketing
Trondsen, T. Market Orientated Value Adding (MOVA) and Fisheries Management. In: Microbehavior and Macroresults: Proceedings of the Tenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 10-14, 2000, Corvallis, Oregon, USA. Compiled by Richard S. Johnston and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2001.