oa Agriprobe - The impact of asset and time specificity in supply chains of emergent farmers : a case of Masiza Mussel Growers

Volume 2, Issue 4
  • ISSN : 1810-9799



This paper examines the role of asset, time, and site specificity in the mussel supply chain in Saldanha Bay. The approach adopted is that of transaction cost economics and a case study methodology. This case study consists of three main parties namely, Blue Bay Aqua Farm (technical partner), La Vie Sea Food Products (processor), and Masiza Mussel Growers (small growers). The existing asset, time and site specificity are considered as strong parameters in enhancing co-ordination, commitment and relative dependency within the mussel supply chain. In examining these specificities a three likert scale was used with the following interpretations, + = enhancing, - = constrains, 0 = neutral. It was found that the mussel supply chain is characterized by a high level of asset, time and site specificity, which favors vertical integration or long term relationships. The paper also proposes appropriate governance structures by which MMG would interface and transact with large commercial firms within the supply chain. In addition, an overview of the possible impact and implications of asset specificity with regard to supply chain formation on land reform projects is presented.

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