Sales Organizations, Industrial Organization and Economic Value in Norway

Type/nr A05/21
Skrevet av Corbett Grainger
In Norway fish sales organizations have the right to set the terms of all transactions between member fishers and prospective buyers. This report studies the impact of sales organizations on the value of the harvest sector. We study how two of the largest sales organizations, Norges Sildesalgslag and Sunnmøre og Romsdal Fiskesalslag (SUROFI), affect the value of the harvest of its member fishers. We find that sales organizations create significant value for member fishers. By organizing auctions, fishing firms are able to receive higher prices for their harvests than if the same fish were sold through contracts. We also find that prices reflect market fundamentals such as the degree of competition on both the buyer and seller sides. This may have consequences for future developments in a market characterized by consolidation on both sides.
Språk Skrevet på engelsk