A comparison of socioeconomic dynamics and market performance in lobster and giant freshwater prawn value chains in Sri Lanka
DOI:
https://doi.org/10.47193/mafis.3842025011007Keywords:
Differentiation strategies, high-value crustaceans, sustainabilityAbstract
Wild-captured lobster fisheries and cultured giant freshwater prawns (GFP) in Sri Lanka cater to high-end markets with significant exports. However, there is a notable gap in existing literature on value chain analysis and market performance aspects in both sectors. This study identified actor profiles and value chain dynamics in both sectors using structural mapping. Market performance was assessed through costs, margins, price spread, and marketing efficiency, with differentiation strategies proposed for sectoral growth. Data collection involved interviewer-administered questionnaires and in-depth interviews with 748 fishers, 44 collectors, and 12 exporters from December 2022 to March 2024. Results highlighted that the lobster value chain was highly export-driven, with a concentration on live trade and premium pricing. Fishers and collectors faced risks from fluctuating stocks and strict regulations, while exporters dealt with logistical and market volatility. Upstream actors often overexploit resources to increase yields, rather than improve quality, leading to unsustainable practices. To mitigate market challenges, actions like promoting products under branding tags such as ‘wild-caught lobster’ and ‘conventionally cultured GFP’, maintaining food safety and quality standards and optimizing logistics are essential for enhancing competitiveness. The GFP sector operates in both domestic and export markets, competing with commodity shrimp. While it provides employment, its financial performance is moderate, limited by high farming costs and pricing competitiveness. Differentiation efforts should focus on sustainable labeling, value-added products, direct exports, and catering to niche markets to boost profitability and reduce dependence on bulk markets.
Downloads
References
Abeyrathne AHMTG, Jayasinghe-Mudalige UK, Wijenayake WMHK, De Croos MDST. 2020. Sustainable livelihood and market chain analysis of giant freshwater prawn culture-based systems in two selected reservoirs in Puttalam District, Sri Lanka. Sri Lanka J Aquat Sci. 25 (1): 33-42. DOI: https://doi.org/10.4038/sljas.v25i1.7574
Acharya SS. 2016. Policy analysis-what and how: a case of agricultural price and marketing policies in India. [accessed 2024 Sep 20]. Indian J Agric Market. 30 (3): 26-47. https://journals.indexcopernicus.com/search/article?articleId=2436640
Acharya SS, Agarwal NL. 2016. Agricultural marketing in India. New Delhi: Oxford and IBH Publishing Corporation Private Limited. 322 p.
Ahmed MK, Sultana S, Halim S, Islam MM. 2016. Marketing systems of freshwater prawns in three coastal districts of Bangladesh. Aquac Econ Manag. 20 (3): 272-282. DOI: https://doi.org/10.1080/13657305.2016.1177858
Ahmed N, Ahammed F, Lecouffe C. 2007. Socioeconomic aspects of small-scale freshwater prawn marketing systems in Mymensingh, Bangladesh. Aquac Econ Manag. 11 (4): 335-353. DOI: https://doi.org/10.1080/13657300701530324
Ahmed N, Bunting SW, Rahman S, Garforth CJ. 2014. Community‐based climate change adaptation strategies for integrated prawn-fish-rice farming in Bangladesh to promote social-ecological resilience. Rev Aquac. 6 (1): 20-35. DOI: https://doi.org/10.1111/raq.12022
Amarasinghe US. 2014. Fisheries resources in alleviation of hunger and malnutrition in Sri Lanka-accomplishment and challenges. Sri Lanka J Aquat Sci. 18: 1-5. DOI: https://doi.org/10.4038/sljas.v18i0.7034
Ariyaratne MHS, Amaraweera R. 2015. Fish offal-based aqua-feed for rearing post-larvae of freshwater prawn, Macrobrachium rosenbergii. Sri Lanka J Aquat. 20 (2): 39-47. DOI: https://doi.org/10.4038/sljas.v20i2.7477
Ariyawardana A, Collins R. 2013. Value chain analysis across borders: the case of Australian red lentils to Sri Lanka. Asia Pac Bus Rev. 14 (1): 25-39. DOI: https://doi.org/10.1080/10599231.2012.717839
Bakala F, Tadesse B. 2019. Market chain analysis for potato: a case study in Masha District, South-western Ethiopia. Econ Bus Manage. 7 (1): 9-21. DOI: https://doi.org/10.33495/jeibm_v7i1.19.104
Basnayake BMRL, De Silva DAM. 2023. Best practices for lobsters: a precautionary approach for lobster fisheries management in Sri Lanka. Proceedings of the International Conference on Building Resilience in Tropical Agroecosystems, Colombo, Sri Lanka: University of Ruhuna. 23 p.
Basnayake BMRL, De Silva DAM. 2024. Consumer perception vs supply of lobster and giant freshwater prawns. Proceedings of the First International Conference on University-Industry Collaborations for Sustainable Development. 2024 March 15-17, Colombo, Sri Lanka. p. 132-142.
Chand K, Kumar S, Suresh A, Dastagiri MB. 2020. Marketing efficiency of vegetables in developing economies: Evidences for critical intervention from Rajasthan, India. Indian J. Agric Sci. 90: 55-63. DOI: https://doi.org/10.56093/ijas.v90i8.105908
Cheffo A, Zemedu L, Geta E. 2014. Market chain analysis of koka reservoir fish in ethiopia. Am J Sci Res Essays. 1 (1): 42-53.
Dasgupta S, Davis KJ, Wirth FF. 2007. Selling freshwater prawn in food festivals: a marketing experiment in Kentucky. Aquac Econ Manag. 11 (1): 3-16. DOI: https://doi.org/10.1080/13657300701202635
Dasgupta S, Williams BR. 2008. The economics and management of small-scale freshwater prawn (Macrobrachium rosenbergii) processing using data from Kentucky. Aquac Econ Manag. 12 (1): 1-24. DOI: https://doi.org/10.1080/13657300801959605
Freeman MA, Coatney K, Schilling M, Allen P, Ciaramella M. 2017. Willingness-to-pay for value-added freshwater prawns. Aquac Econ Manag. 21 (4): 419-432. DOI: https://doi.org/10.1080/13657305.2016.1180645
Gordon DV. 2021. Price and revenue projections under alternative policy shocks due to the coronavirus: Canadian lobster and snow crab. Mar Policy. 130: 104556. DOI: https://doi.org/10.1016/j.marpol.2021.104556
Gori UR, Kharkwal S. 2016. A comparative study of the structure and performance of two major fruits and vegetables markets under Uttarakhand APMC. Indian J Econ Dev. 4 (6): 1-15.
Haslawati B, Saadiah I, Siti-Dina RP, Othman M, Latif MT. 2022. Environmental assessment of giant freshwater prawn, Macrobrachium rosenbergii farming through life cycle assessment. Sustainability. 14 (22): 14776. DOI: https://doi.org/10.3390/su142214776
Hewapathirana SK, Ekanayake KBSSJ, Liyanage U, De Silva DAM. 2022. catch diversity of small-scale lobster fishery in the southern coast of Sri Lanka. Proceedings of the 26th International Forestry and Environment Symposium, Colombo, Sri Lanka, University of Sri Jayawardhanapura. p. 150.
Jayakody DS. 1989. Size at onset of sexual maturity and onset of spawning in female Panulirus homarus (Crustacea: Decapoda: Palinuridae) in Sri Lanka. Mar Ecol Prog Series. 57 (1): 83-87.
Jayawickrema SJC. 1991. Fishery and population dynamics of Panulirus homarus (Linnaeus) from Mutwal, Sri Lanka. J Nat Sci Coun Sri Lanka. 19 (1): 52-61. DOI: https://doi.org/10.4038/jnsfsr.v19i1.8172
Jeyanthi P, Gopal N. 2012. Growth and instability in Indian frozen scampi export. Fish Technol. 49: 187-192.
Kerutagi MG, Jangale AS, Gayathri S, Jagadeshwaran P, Sengar RS. 2023. Modern approaches in agricultural economics. New Delhi: Elite Publishing House. 270 p.
Koralagama DN, Amaraslnghe O, Jayakody S. 2007. Export market of lobsters in Sri Lanka, with special reference to slipper lobsters. Proceedings of the Fourth Academic Sessions, Technical Session III (NARA). 2007 March 2. Colombo, Sri Lanka. p. 84-90.
Liao DS, Smith TIJ. 1981. Test marketing of freshwater shrimp, Macrobrachium rosenbergii, in South Carolina. Aquaculture. 23 (1-4): 373-379. DOI: https://doi.org/10.1016/0044-8486(81)90031-4
Liyanage USPK, Long B. 2009. Status of the South Coast lobster fishery. CENARA Project Reports on Lobsters, National Aquatic Resources Research and Development Agency. 9-19 p.
National Aquaculture Development Authority. 2023. Annual aquaculture export statistics, Sri Lanka. [excel sheet]. NAQDA. [accessed 2024 Dec 17]. https://www.naqda.gov.lk/statistics.xlsx.
Otumawu-Apreku K, McWhinnie SF. 2020. Profit efficiency of the south Australian rock lobster fishery: a nerlovian and directional distance function approach. Mar Policy. 117: 103962. DOI: https://doi.org/10.1016/j.marpol.2020.103962
Prowse M, Moyer‐Lee J. 2014. A comparative value chain analysis of smallholder burley tobacco production in Malawi 2003/4 and 2009/10. J Agrar Change. 14 (3): 323-346. DOI: https://doi.org/10.1111/joac.12022
Pushpalatha KBC, Chandrasoma J, Fernando WAJR, Sanjeewa KD. 2017. Impacts and importance of the introduction of culture-based fisheries in three medium-sized perennial reservoirs in Sri Lanka. Asian Fish Sci. 30 (139): 139-151. DOI: https://doi.org/10.33997/j.afs.2017.30.3.001
Rajeevan R, Edirisinghe U, Athauda ARSB. 2019. Performance of Macrobrachium rosenbergii in perennial reservoirs: a comparative assessment of fisheries in five perennial reservoirs in the Northern Province of Sri Lanka. Trop Agric Res. 30 (3): 69-79. DOI: https://doi.org/10.4038/tar.v30i3.8320
Rajeevan R, Edirisinghe U, Athauda ARSB. 2021. Role of giant freshwater prawn (Macrobrachium rosenbergii) in livelihoods of the rural fishers of Northern Province of Sri Lanka. Int J Fish Aquat Stud. 9 (2): 44-51. DOI: https://doi.org/10.22271/fish.2021.v9.i2a.2441
Salladarré F, Guillotreau P, Loisel P, Ollivier P. 2017. The declining price anomaly in sequential auctions of identical commodities with asymmetric bidders: empirical evidence from the Nephrops norvegicus market in France. Agric Econ. 48 (6): 731-741. DOI: https://doi.org/10.1111/agec.12370
Senevirathna JDM, Munasinghe DHN. 2013. Identification of taxonomic status of spiny lobster species in Sri Lanka using DNA barcoding and its implications on fisheries and conservation programs. Trop Agric Res. 25 (1): 96-108. DOI: https://doi.org/10.4038/tar.v25i1.8033
Tammaroopa K, Suwanmaneepong S, Mankeb P. 2016. Socio-economic factors influencing white shrimp production in Chachoengsao Province, Thailand. Int J Agric. 12 (7.2): 1809-1820.
Thakur P, Mehta P, Guleria A, Singh P, Sharma P. 2022. Farmers’ choice for output marketing channels of cauliflower in Himachal Pradesh, India: a multinomial logit model analysis. Econ Aff. 67 (5): 731-738. DOI: https://doi.org/10.46852/0424-2513.5.2022.6
Thakur P, Mehta P, Lal P, Chaudhary R, Pani SK, Singh AG, Devi C, Verma K, Sharma P. 2024. Agricultural produce supply chain network of capsicum: empirical evidence from India. Economies. 12 (1): 24. DOI: https://doi.org/10.3390/economies12010024
Urgessa M. 2011. Market chain analysis of teff and wheat production in Halaba Special Woreda, southern Ethiopia [MSc thesis]. Haramaya University. 104 p.
Wang O, Somogyi S, Charlebois S. 2019. Mapping the value chain of imported shellfish in China. Mar Policy. 99: 69-75. DOI: https://doi.org/10.1016/j.marpol.2018.10.024
Wijenayake WMHK, Jayasinghe UAD, Amarasinghe US, Athula JA, Pushpalatha KBC, De Silva SS. 2005. Culture‐based fisheries in non‐perennial reservoirs in Sri Lanka: production and relative performance of stocked species. Fish Manag Ecol. 12 (4): 249-258. DOI: https://doi.org/10.1111/j.1365-2400.2005.00447.x
Published
Issue
Section
License
Copyright (c) 2025 Ruwini Basnayake, Achini De Silva
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors of articles published in Marine and Fishery Sciences retain copyright on their articles, except for any third-party images and other materials added by Marine and Fishery Sciences, which are subject to copyright of their respective owners. Authors are therefore free to disseminate and re-publish their articles, subject to any requirements of third-party copyright owners and subject to the original publication being fully cited. Visitors may also download and forward articles subject to the citation requirements. The ability to copy, download, forward or otherwise distribute any materials is always subject to any copyright notices displayed. Copyright notices must be displayed prominently and may not be obliterated, deleted or hidden, totally or partially.
This journal offers authors an Open Access policy. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles, or use them for any other legal purpose within the Creative Commons 4.0 license (BY-NC-SA), without asking prior permission from the publisher or the author. This is in accordance with the BOAI definition of Open Access.
How to Cite
