Transformation of Value Chain Governance: The Impact of Food Safety Regime on Fishery Sector of Kerala

Considering the theoretical aspects of Global Value Chain, this study has attempted to empirically validate the concepts by taking up a case study of Kerala in India. While examining the evolution of value chain dynamics, the study has found that different types of coordinations have governed the seafood export chain of Kerala from 1950s onwards. The evolution of Kerala’s seafood industry from mid-1950s to late1960s provides a good example of how a captive form of coordination can evolve towards the inter-firm governance structure. From early-1970s, the value chain governance structure shifted from the captive form to more or less a modular one. The vertical disintegration and division of labour have been observed to be the striking features of the sector from 1970s onwards. Subsequently, a large number of new entrants were attracted to the business until the mid-1990s. In the recent international food safety regulatory regime, the seafood value chain has been completely transformed. Concentration and consolidation are taking place at the processing node of the chain, wherein the number of exporters has come down and professional players are upgrading their positions in the value chain. The pre-processing node of the chain is getting integrated to the processing sector, causing a major transformation of the existing value chain. The study has categorically proved that the international food policies can restructure the entire fish commodity chain of a developing country.