Economics of pearl farming

New technologies and more widespread access to technologies for cultivating pearls have played a major role in altering the economic structure of the cultured pearl industry. The structure and nature of the pearl industry varies between countries but on a global scale, the pearl oyster industry is dominated by a few large vertically integrated companies. Australia is the world's major supplier of South Sea pearls. Technological change has resulted in the industry becoming more capital intensive in Australia. When such economies in marketing are also taken into account, significant economies of scale seem to be experienced by this industry. Pearl culture has the potential to provide increased economic opportunities to remote marine communities. For such communities, pearls have the advantage that their value is high relative to their weight and they are easily stored. Even though pearls do not satisfy any basic needs, they are highly valued. Their value derives from their inherent beauty and the social "messages" they convey when worn or given. Their relative scarcity, especially of sought after specimens, adds to their economic value. The market shares of pearls from different species of pearl oysters have changed considerably in recent decades, as have the shares of the main countries producing cultured pearls. On the socioeconomic side, it was found that in some countries, substantial numbers of small-scale producers of pearl oysters have been able to survive economically. However, they are at an economic disadvantage compared to large producers. A positive feature of the industry is that it fosters decentralization and provides economic opportunities in remote areas