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New Zealand seafood firm competitiveness in export markets: The role of the quota management system and aquaculture legislation

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  • Bess, Randall

Abstract

New Zealand's quota management system (QMS) was implemented in 1986 to address problems caused by a regulated open entry management system in place for the previous two decades. Excess capacity in the inshore fisheries caused several stocks to become depleted and conflicts to intensify between fishing sectors. The allocation of individual transferable quota (ITQ) was viewed as the best way to improve efficiency within the over-capitalised inshore fisheries and provide incentives for developing the deepwater fisheries. The expected benefits of the QMS fit with the political climate at that time, as the government was using market forces to address the deteriorating economy. This article outlines the results of a research project that involved four medium to large-sized, highly vertically integrated New Zealand seafood firms. The purpose of the project was to identify these firms' sources of competitiveness in export markets and the process the firms used to develop sources of competitiveness, while adapting to rapid and radical changes to the political and business environment and transformation of the fisheries management system. The project's results show that the basis to seafood firm competitiveness is the security of supply to the fisheries resource provided by the QMS and aquaculture legislation. The project also outlines the role that government policies have in sustaining firm- and industry-level competitiveness. This article contributes to the broader discussion on the application of ITQ and other types of long-term access rights to the management of fisheries and does not express the views of the Ministry of Fisheries.

Suggested Citation

  • Bess, Randall, 2006. "New Zealand seafood firm competitiveness in export markets: The role of the quota management system and aquaculture legislation," Marine Policy, Elsevier, vol. 30(4), pages 367-378, July.
    • Handle: RePEc:eee:marpol:v:30:y:2006:i:4:p:367-378
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    Citations

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    Cited by:

    1. Torkington, Barry, 2016. "New Zealand׳s quota management system – incoherent and conflicted," Marine Policy, Elsevier, vol. 63(C), pages 180-183.
    2. Hamilton-Hart, Natasha & Stringer, Christina, 2016. "Upgrading and exploitation in the fishing industry: Contributions of value chain analysis," Marine Policy, Elsevier, vol. 63(C), pages 166-171.
    3. Lau, Chi Keung Marco & Suvankulov, Farrukh & Karabag, Solmaz Filiz, 2012. "Determinants of firm competitiveness: case of the Turkish textile and apparel industry," MPRA Paper 46974, University Library of Munich, Germany.
    4. Jim McAloon, 2022. "Export development in New Zealand: Kiwifruit and seafood 1975–1985," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 62(1), pages 80-100, March.
    5. Boaz Golany & Konstantin Kogan & Uriel G. Rothblum, 2011. "A Generalized Two-Agent Location Problem: Asymmetric Dynamics and Coordination," Journal of Optimization Theory and Applications, Springer, vol. 148(2), pages 336-363, February.
    6. Simmons, Glenn & Stringer, Christina, 2014. "New Zealand׳s fisheries management system: Forced labour an ignored or overlooked dimension?," Marine Policy, Elsevier, vol. 50(PA), pages 74-80.

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