Information on sellers and buyers characteristics: added value to explain price formation at primary fish markets in managed French scallop fisheries

Abstract

The aim of this article is to explore, through a hedonic approach, the factors that might explain the price variability for the French-managed fishery of scallop at primary fish markets. In addition to factors classically identified in the current literature like intrinsic product characteristics or markets situation, the characteristics of operators are tested. The relationships of loyalty between sellers and buyers, and market assiduity are notably considered.

Disentangling Environmental, Economic, and Technological Factors Driving Scallop (Argopecten purpuratus) Aquaculture in Chile

“…The reason for this change is that the markets of southern European countries are highly specialised in the consumption of bivalves with rooted cultural preferences of their residents (i.e., fresh consumption and in all its forms), differing from the residents of northern countries, who prefer the consumption of fresh fish and other seafood [79]. In particular, the French market demands scallops throughout the year despite showing seasonality in its national production and its consumption increases in price and quantity during key months of the year (e.g., summer and Christmas) [80]. In Spain, given the scarcity and high demand of an appreciated known local species called "Zamburiña" (Mimachlamys varia), A. purpuratus is marketed both in domestic markets and HORECA channels (hotels and restaurants) [81].…”

“…These environmental changes are the main reason that facilitated the entrance of the Chilean scallop in the Spanish market. The volume of scallop imports into the EU comes mainly from Asian and South Pacific countries and supplies the internal deficit of molluscs [79] generated by fisheries management systems (e.g., Pecten maximus) [80]. In addition, the historical trade trend of maintaining a single market as a buyer for a high percentage of Chilean scallop exports presented itself as an imperfect market, exposing the sector to a high dependence of a single buyer.…”

“…Another effect of an oligopsonistic market structure is the negative impact on selling prices due to the divergence between selling prices and competition prices [83,84], transferring part of the economic rent or surplus from the producer to the buyer [85]. The French market also has a negative effect on scallop prices, mainly when large volumes are exchanged with individual sellers [80]. Another market effect caused by disadvantages in product payment is the more significant negative impact generated on fishing cooperatives or small first-hand fish suppliers [86,87] because of their relatively high production costs.…”

Challenging the ‘artisanal vs. industrial’ dichotomy in French Atlantic fisheries: An organizational typology of multi-vessel fishing firms

“…For fisher-processors (Type 3), forward vertical integration may be understood as a way to increase efficiency and consolidate market dominance after having gathered vessels with ample fishing opportunities. It mostly concerns non-TAC species (e.g., crustaceans, scallops) for which markets are traditionally dominated by retailers and processors (e.g., [109]). However, dominant fishing firms may try to capture economic rents by integrating (part of) the value chain (processing, sales).…”