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Restructuring the Value Chain Governance: The Impact of Food safety regime on fishery sector of Kerala, India

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Abstract
  • In this study we have considered the theoretical aspects of Global Value Chain and empirically validated the concepts by taking up a case study of Kerala in India. We have initiated this study with the hypothesis that, the evolving stringent food safety standards imposed by the export markets of developed countries are trade restrictive to the Indian seafood export and such a rise in standard will, not only affect the export firms alone, but also the entire supply chain will have to adjust accordingly. While examining the evolution of value chain dynamics we have found different types of co ordinations have governed the seafood export chain of Kerala over a period of time (late 1950s onwards). The evolution of Kerala's seafood industry from mid 1950s to late 1960s provides a good example of how captive form of coordination can evolve towards inter-firm governance structure. From early 1970s onwards, the value chain coordination shifted from earlier captive form to a modular type. In the recent food safety regulations regime, the pre-processing node of the value chain is getting integrated to the processing sector causing a major restructuring of the value chain. At the upstream end of the chain we may observe different type of coordination. Varying from arm's length transaction through relational coordination to even vertical integration. Indian fishery sector should upgrade the national system for testing, certification and laboratory accreditation so as to be at par with the prevailing international trade regulatory safety parameters.
  • Keywords: Markets and Trade, Value Chain Analysis, Fisheries Economics
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  • Somasekharan, Jayasekhar. 2014. Restructuring the Value Chain Governance: The Impact of Food safety regime on fishery sector of Kerala, India. In: Towards ecosystem based management of fisheries: what role can economics play?: Proceedings of the Seventeenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 7-11, 2014, Brisbane, Australia. Complied by Ann L. Shriver & Melissa Errend. Corvallis, OR: International Institute of Fisheries.
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  • Fisheries Research & Development Corporation, World Wildlife Fund, MG Kailis Group, AquaFish Innovation Lab, NOAA Fisheries, The European Association of Fisheries Economists, Japan International Fisheries Research Society, United Nations University, NORAD
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