IDEAS home Printed from https://ideas.repec.org/a/eee/marpol/v50y2014ipap270-279.html
   My bibliography  Save this article

An analysis of the structural changes in the offshore demersal hake (Merluccius capensis and M. paradoxus) trawl fishery in South Africa

Author

Listed:
  • Cooper, Rachel
  • Leiman, Anthony
  • Jarre, Astrid

Abstract

The hake (Merluccius capensis and M. paradoxus) directed offshore demersal trawl is the most economically important fishing sector in South Africa, generating 30,000 jobs and comprising more than 50% of fisheries value. The industry changed to long term rights (LTRA), allocated in 2006 for a 15 year period. This study investigates the structure of the industry half-way between allocations. Data obtained through government and industry consultation are used to generate a structural representation of this sector, its fleet, vertical integration and horizontal consolidation (e.g. catch-share agreements and product value-adding), and heterogeneity of business models. Vertical integration is an important characteristic of the industry. Nine business clusters were identified, of which three represent 75.7% of rights and 70% of vessels. The findings indicate consolidation is likely at a higher level than rightsholder numbers imply, due to horizontal clustering. This is consistent with an economically mature industry of scale. Retirement and industry led effort-restriction in relation to MSC certification, catch-cost efficiency and a shift to frozen product, led to a decline in vessel numbers, especially wetfish vessels. Industry׳s response to a broadening of rights access has been to maintain efficiency and profitability through economies of scope and scale by forming clusters, retiring old vessels and engaging in MSC certification to broaden or retain market access. The trend of consolidation since the 2006 LTRA and the record of consolidations and absorptions of smaller businesses suggest that consolidation is probable to continue at a slow but steady pace.

Suggested Citation

  • Cooper, Rachel & Leiman, Anthony & Jarre, Astrid, 2014. "An analysis of the structural changes in the offshore demersal hake (Merluccius capensis and M. paradoxus) trawl fishery in South Africa," Marine Policy, Elsevier, vol. 50(PA), pages 270-279.
    • Handle: RePEc:eee:marpol:v:50:y:2014:i:pa:p:270-279
    DOI: 10.1016/j.marpol.2014.06.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308597X14001705
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.marpol.2014.06.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mafaniso Hara & Jesper Raakjær, 2009. "Policy evolution in South African fisheries: the governance of the sector for small pelagics," Development Southern Africa, Taylor & Francis Journals, vol. 26(4), pages 649-662.
    2. Newell, Richard G. & Sanchirico, James N. & Kerr, Suzi, 2005. "Fishing quota markets," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 437-462, May.
    3. Branch, George M. & Clark, Barry M., 2006. "Fish stocks and their management: The changing face of fisheries in South Africa," Marine Policy, Elsevier, vol. 30(1), pages 3-17, January.
    4. Stephen A. Rhoades, 1993. "The Herfindahl-Hirschman index," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Mar, pages 188-189.
    5. Nielsen, Jesper Raakjær & Hara, Mafaniso, 2006. "Transformation of South African industrial fisheries," Marine Policy, Elsevier, vol. 30(1), pages 43-50, January.
    6. Crosoer, David & van Sittert, Lance & Ponte, Stefano, 2006. "The integration of South African fisheries into the global economy: Past, present and future," Marine Policy, Elsevier, vol. 30(1), pages 18-29, January.
    7. Pinkerton, Evelyn & Edwards, Danielle N., 2009. "The elephant in the room: The hidden costs of leasing individual transferable fishing quotas," Marine Policy, Elsevier, vol. 33(4), pages 707-713, July.
    8. Isaacs, Moenieba, 2006. "Small-scale fisheries reform: Expectations, hopes and dreams of "a better life for all"," Marine Policy, Elsevier, vol. 30(1), pages 51-59, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cooper, Rachel & Jarre, Astrid, 2017. "An Agent-based Model of the South African Offshore Hake Trawl Industry: Part II Drivers and Trade-offs in Profit and Risk," Ecological Economics, Elsevier, vol. 142(C), pages 257-267.
    2. Thando Vilakazi & Stefano Ponte, 2022. "Black Economic Empowerment and Quota Allocations in South Africa's Industrial Fisheries," Development and Change, International Institute of Social Studies, vol. 53(5), pages 1059-1086, September.
    3. Cooper, Rachel & Jarre, Astrid, 2017. "An Agent-based Model of the South African Offshore Hake Trawl Industry: Part I Model Description and Validation," Ecological Economics, Elsevier, vol. 142(C), pages 268-281.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sowman, Merle & Sunde, Jackie & Raemaekers, Serge & Schultz, Oliver, 2014. "Fishing for equality: Policy for poverty alleviation for South Africa's small-scale fisheries," Marine Policy, Elsevier, vol. 46(C), pages 31-42.
    2. de Coning, Eve & Witbooi, Emma, 2015. "Towards a new’fisheries crime’ paradigm: South Africa as an illustrative example," Marine Policy, Elsevier, vol. 60(C), pages 208-215.
    3. Ropicki, Andrew & Larkin, Sherry, 2015. "Implied Discount Rates in the Gulf of Mexico Commercial Red Snapper IFQ Program," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205711, Agricultural and Applied Economics Association.
    4. Green, Lesley, 2015. "Fisheries science, Parliament and fishers׳ knowledge in South Africa: An attempt at scholarly diplomacy," Marine Policy, Elsevier, vol. 60(C), pages 345-352.
    5. Oostdijk, Maartje & Santos, Maria J. & Agnarsson, Sveinn & Woods, Pamela J., 2019. "Structure and evolution of cod quota market networks in Iceland over times of financial volatility," Ecological Economics, Elsevier, vol. 159(C), pages 279-290.
    6. Lesley Welman & Sanette LA Ferreira, 2017. "Sea Harvest: Back(fish)bone in Saldanha Bay’s local and regional economy?," Local Economy, London South Bank University, vol. 32(6), pages 487-504, September.
    7. Salamon, P. & Angulo, L., 2018. "Impact of Technical Innovations to Protect Resources: The Case of Plaice in the EU," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276024, International Association of Agricultural Economists.
    8. Péreau, J.-C. & Doyen, L. & Little, L.R. & Thébaud, O., 2012. "The triple bottom line: Meeting ecological, economic and social goals with individual transferable quotas," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 419-434.
    9. Soliman, Adam, 2014. "Using individual transferable quotas (ITQs) to achieve social policy objectives: A proposed intervention," Marine Policy, Elsevier, vol. 45(C), pages 76-81.
    10. Heinen, Eva & Chatterjee, Kiron, 2015. "The same mode again? An exploration of mode choice variability in Great Britain using the National Travel Survey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 266-282.
    11. Liu, Yan & Wang, Siqin & Xie, Bin, 2019. "Evaluating the effects of public transport fare policy change together with built and non-built environment features on ridership: The case in South East Queensland, Australia," Transport Policy, Elsevier, vol. 76(C), pages 78-89.
    12. Khushalani, Jaya & Ozcan, Yasar A., 2017. "Are hospitals producing quality care efficiently? An analysis using Dynamic Network Data Envelopment Analysis (DEA)," Socio-Economic Planning Sciences, Elsevier, vol. 60(C), pages 15-23.
    13. Lorena Mitrione & George Tanewski & Jacqueline Birt, 2014. "The relevance to firm valuation of research and development expenditure in the Australian health-care industry," Australian Journal of Management, Australian School of Business, vol. 39(3), pages 425-452, August.
    14. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    15. Dafna Eshel, 2005. "Optimal Allocation of Tradable Pollution Rights and Market Structures," Journal of Regulatory Economics, Springer, vol. 28(2), pages 205-223, September.
    16. Youchung Kwon & Bo Kyung Kim, 2024. "When we unite, not divide: status homophily, group average status, and group performance in the Korean film industry," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 9-31, February.
    17. Radisti A. Praptiwi & Carya Maharja & Matt Fortnam & Tomas Chaigneau & Louisa Evans & Leuserina Garniati & Jito Sugardjito, 2021. "Tourism-Based Alternative Livelihoods for Small Island Communities Transitioning towards a Blue Economy," Sustainability, MDPI, vol. 13(12), pages 1-11, June.
    18. Christopher Costello & Corbett A. Grainger, 2018. "Property Rights, Regulatory Capture, and Exploitation of Natural Resources," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 441-479.
    19. Gritsenko, Daria & Efimova, Elena, 2020. "Is there Arctic resource curse? Evidence from the Russian Arctic regions," Resources Policy, Elsevier, vol. 65(C).
    20. Asproudis, Elias & Filippiadis, Eleftherios, 2021. "Bargaining for Community Fishing Quotas," MPRA Paper 107409, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:marpol:v:50:y:2014:i:pa:p:270-279. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/marpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.