Value Chain Analysis of Fishery in Puri and Ganjam District of Orissa

Draft Report on “Fishery Supply Chain”
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without undergoing any cost of production and hence the first level will be determined at the
landing center rather than the sea.
The design and product development can be assumed to be a component of fish quality, size,
variety, species, etc. which intersects the element of production. Production element entails
procurement, processing and packaging of the product depending on the final market, species
quality, etc. The production element of the value chain is the feeder to the supply chain of direct
marketing and the purchases made by the exporters and bulk buyers for resale after value
addition.
7.3 Barriers to entry, mobility and exit
The value chain is an important construct for understanding the distribution
of returns arising from design, production, marketing, coordination and
recycling. Essentially, the primary returns accrue to those parties who are
able to protect themselves from competition. This ability to insulate
activities can be encapsulated by the concept of rent, which arises from the
possession of scarce attributes and involves barriers to entry.
Ricardo argued that
economic rent accrues
on the basis of unequal
ownership/access or
control over an existing
scarce resource
There are a variety of forms of rent. It may range from high cost of operation, high fixed cost,
control and access over ancillary chains, access to premium services, access to information and
marketing intelligence, etc. These barriers to entry will inhibit the new player to enter the trade
easily.
The barrier to mobility makes it difficult for the existing player to move the trade operation from
one location and other. In fishery value chain, the mobility barriers are the credit flow to its supplier
/ fisherman, transportation barrier to move the product from the other landing centers, availability
of other infrastructures, government licensing regulation for the fisherman, etc.
Exit barriers are the barriers that make it difficult for the existing players to quit the business
operation. In case of fishery value chain, the exit barrier lies in form of huge capital investment,
etc. which makes it difficult for the operator to quit business.
Table 7.1 Barriers to trade
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Submitted to -: OXFAM (India) Trust 41