Russia's antitrust watchdog has identified the significant role intermediaries play in inflating the cost of fish products.
The agency previously conducted a detailed analysis of the pricing structure for the most heavily caught fish species, including pollock, cod, haddock, herring, and pink salmon.
The findings revealed that intermediaries between fishermen and retail chains are the primary contributors to price formation. In some cases, the supply chain includes up to six intermediaries, with markups ranging from 5% to 50%. As a result, the price of fish products can increase by 2 to 3.5 times during distribution.
The service proposes reducing the length of the supply chain and minimizing the number of intermediaries through the development of alternative sales channels. This includes the promotion of exchange-based trading mechanisms for fish products, which would allow market participants to purchase directly from producers.
The Federal Antimonopoly Service argues that regulations for fish sales on exchanges should be introduced, along with minimum purchase volumes for retail networks.
"Trading fish products through organized markets will ensure suppliers receive timely payments, provide guarantees for contract fulfillment, and protect against unscrupulous counterparties,"
the agency stated in a press release.
Additionally, the agency suggests implementing a mechanism for registering over-the-counter transactions and expanding aquaculture in the Central Federal District, as 70% of the catch is sourced from the Far Eastern fishery basin, while most of the demand for fish products is concentrated in central Russia.
To further shorten the supply chain between fishermen and consumers, the Federal Antimonopoly Service proposes the development of "specialized non-network trade outlets," such as fairs and fish markets, as well as the establishment of federal chains of fish product stores.
Source: FAS
