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Importing seafood from Mauritania and re-exporting it to Germany and France

Importing seafood from Mauritania and re-exporting it to Germany and France

Samenvatting

When a company decided to enter the foreign market, the company has different options for entry mode. Generally, there are four most common foreign market entry modes, these are exporting, contractual agreement, strategic alliances, and foreign direct investment. This paper focuses on the import/export entry mode. Import/export can be categorized into two direct as well as indirect. Direct import/export can be defined as importing raw materials/finished goods directly from suppliers of a foreign country for further process or re-exporting it directly to customers in foreign markets. Whereas, indirect import/export refers to importing goods or services from intermediaries in a foreign country and re-exporting the goods or services through independent local middlemen. No one entry mode is superior to one another, a company’s choice for direct or indirect import/export entry mode depends on its strategy as well as budget (Cateora et al, 2011). Importing and Exporting play a crucial role in growing national economies and expanding global markets. It accounts for around 10 percent of global economic activities. Seafood is one of the most traded food commodities in the world, and the trade keeps on growing. Global fish and shellfish trade reached a value of USD 153bn in 2017, increasing by a CAGR of 4% in the last five years (2012-2017). Although trade is likely to change, it is expected that global seafood demand and supply to continue to grow in the coming five years (Rabobank, 2019). Seafood trade is characterized by the import of large quantities of seafood from developing countries to developed countries, in other words, 54% of the total value of seafood is imported from underdeveloped/developing countries to developed countries (Reg A. Watson, 2017). There might be different ways to eliminate poverty in underdeveloped/developing countries. However, the best way to eliminate poverty in those countries is through trade, because these countries need trade does not need aid. The trade could be in different sectors, like minerals, seafood or agri-food. Mauritania is one of the underdeveloped countries, the country enjoys an Exclusive Economic Zone (EEZ). Mauritania has 754 (Km) of the Atlantic coastal line. This sea contains highly demanded seafood species like Red spiny lobsters, shrimp, demersal fish, tuna and small pelagic fish. These species are highly demanded in the EU market (EUROPEAN COMMISION , 2018). Currently, the Dutch seafood trading companies are importing seafood from non-EU countries like Vietnam, India morocco, etc. These companies can also import seafood from Mauritania at a reasonable price. The exporting companies of fresh or chilled fish to the European Union member states should be authorized by the Ministry of Fisheries and Maritime Economy of Mauritania. These companies also respect the sanitary standards in compliance with EEC law N 91/493//EEC (CDTs member states business guides, 2020). This reveals that the Mauritanian seafood suppliers meet the EU food safety standards. While importing seafood from Mauritania, the companies should also take into consideration the supply chain risks. Seafood companies face two types of risk-macro and micro. Macro risks are like an earthquake, sea waves, political, legal risks, whereas, micro risk includes manufacturing, infrastructure as well as demand/supply risks. Generally, comparing to macro risk, the micro risk has less impact and can be controlled. The process to manage any risks are 1) Caring a buffer stock and improving inventory management. 2) Using an alternative source of supply. 3) Use of a contract to manage price fluctuation. 4) Chose a supplier who meets the required quality standards. 5) Investing in insurance companies (Weele, 2017).

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OrganisatieAeres Hogeschool
AfdelingBedrijfskunde en Agribusiness
PartnersAeres University of Applied Sciences Dronten
Datum2020-06-09
TypeBachelor
TaalEngels

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