Abstract
Small-scale fishers and fish farmers typically earn less than other seafood value chain participants, and limited research exists on seaweed value chains. This study examines the structure and pricing within the Chilean kelp (Lessonia berteroana) value chain, which is important for the hydrocolloid industry and global trade, particularly with China. Despite Chile’s prominent role as a kelp supplier, the mechanisms of value transmission in the supply chain remain unclear, with small-scale fishers receiving the lowest incomes. Using cointegration analysis and detailed price data across ex-vessel, processing, and export stages from 2012–2020, the study finds the value chain is not fully integrated: export prices are poorly linked to domestic prices, and transmission ends at the processing stage. This lack of integration results from labor-intensive production, concentrated exporter power, and collectors’ dependence on intermediaries. To address these issues, the article recommends enhancing price transparency, reforming registration systems, curbing informality and illegal trade, and empowering collectors to reduce reliance on intermediaries.
