A comparison of socioeconomic dynamics and market performance in lobster and giant freshwater prawn value chains in Sri Lanka

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.