This study of Chilean cultivation of blue mussel (Mytilus edulis) analyses the relative importance of small-scale producers in the industry and the institutional factors that enabled the current level of development. To these ends, the study incorporates a value chain analysis, a descriptive statistics analysis of production, a production function analysis, and an analysis of institutional arrangements and factors. Value chain analysis was centered on product flow and marketing chain analysis. Production analyses were conducted at the “Farm” and “Firm” levels. Official data from 2009 to 2014 on production, aquaculture efforts, farm size (understood as surface area of the water concession) and ownership were used.
Blue mussel aquaculture is conducted by “Micro”, “Small”, “Medium”, and “Large” size firms. Micro and Small size firms are the most common, though Large, Medium, and Small size firms are most relevant in terms of production. Of these different-sized firms, though there was no concentration in numbers or ownership, concentration was high in production and exports.
A value chain was defined for this industry and a mussel industry cluster has been forming for the last 10 years. Prices and costs data along the marketing chain suggest that farm producers and processors-exporters have normal utility margins; notwithstanding, high levels of concentration determined at both levels call for further research in this area.
Production function analysis indicates blue mussel farmers are rational producers.
The government of Chile has been supporting the development of the blue mussel industry through research, training and programs to strengthen production, marketing and cluster formation.
