Multi-tier captive relations in the global value chain of tuna: The case of Fair Trade certification of small-scale tuna fishery in Indonesia

Abstract

Voluntary sustainability standards have been used as a governance mechanism to ensure the sustainability of fisheries products traded from developing countries. Different standards have become market forces that actors along the value chain are expected to follow to access markets and remain competitive. Recent attention is also being paid to small-scale fisheries, but there is relatively little information about the efficacy of the translation of standards by all actors in the value chain. This study examines how a voluntary sustainability standard is translated from an international buyer down to the producer and the effectiveness of this on social and environmental sustainability. The global value chain (GVC) modular framework is applied to assess the implementation of and compliance with the standard. The analysis is done at the micro, meso, and macro levels. We use the first-ever Fair Trade USA certification for handline small-scale tuna fishery in Maluku, Indonesia, as our case study. The findings indicate that the captive forms of governance prevailing at the micro and meso levels of the value chain vary considerably. This adds a layer of complexity to the extent to which a sustainability standard changes the structure and governance of the value chain. The efficacy of such changes in promoting social and environmental sustainability is constrained by the unequal power dynamics among the various actors operating at the different levels. The findings from this study may contribute to optimizing the value chain for greater sustainability outcomes by involving local actors and accommodating various governance mechanisms to organize the value chain.