Seafood Value Chain and Areas of Value Leakage.
Alejandro Delgado????
| Experienced Import-Export Manager | Helping Seafood Business Grow & Optimize Global Trade | President ANFABASA | Seafood International Trade Expert | Worldwide Seafood & Fisheries Network Provider | World Tuna Trade |
??In the frozen seafood value chain , key players have distinct roles in the process from capture to distribution.
Fishermen and fishing fleets??, representing the initial link, are responsible for catching seafood in different oceanic zones. Subsequently, processing companies step in to clean, sort, and freeze the seafood.
In the next link of the chain, ??distributors and wholesalers, take over to manage storage and distribute the product nationally and internationally. Additionally, ??retailers and supermarket chains, make frozen seafood available to end consumers.
About player margins, these vary based on their position in the supply chain. Fishing fleets may face operational and fuel costs, while processing companies can influence margins through production efficiencies and the quality of the final product.
Distributors and retailers seek to maximize margins through marketing strategies and efficient inventory management. Competition among these players and their ability to adapt to market dynamics play a crucial role in determining margins across the entire frozen seafood value chain.
Regarding the areas of seafood value leakage??, main areas are:
1. Inefficient Logistics.??
- Transportation Costs, Ineffective logistics management can lead to higher transportation costs. Optimizing shipping routes and modes can contribute to cost savings.
- Cold Chain Management: Ensuring proper cold chain management minimizes the risk of spoilage during transportation, reducing potential losses.
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2. Quality Control and Traceability.??????
- Quality Degradation: Lack of rigorous quality control measures can result in a decrease in the quality of the tuna during various stages of the supply chain.
- Traceability Issues: Inability to trace the origin and handling of tuna can impact its market value. Implementing robust traceability systems enhances accountability and quality assurance.
3. Market Timing and Pricing.??
?? - Market Fluctuations: Failing to adapt to market trends and timely adjust pricing strategies can lead to missed opportunities for maximizing revenue.
- Risk Management: Not having effective risk management strategies in place to hedge against price volatility can result in financial losses.
4. Regulatory Compliance.??????
?? - Legal and Compliance Risks: Failure to comply with international regulations, especially related to sustainable fishing practices, can lead to reputational damage and potential legal issues.
- Documentation and Certifications: Incomplete or inaccurate documentation may result in delays, fines, or rejection of products at borders.
Addressing these areas of value leakage involves implementing efficient logistics, stringent quality control measures, adapting to market dynamics, and ensuring compliance with regulations. Doing so can unlock value, enhance overall efficiency, and contribute to cost savings in the frozen seafood value chain.