Impact  inves-ng  in  small-­‐scale  aquaculture  enterprises:  

Prac--oner  perspec-ves    

Arun  Padiyar  Mogalthur  Aqua  Farmer’s  Welfare  Society,  India  

arunpadiyar@gmail.com  

Three  experiences  

•  Export  oriented,  high-­‐value  commodity  (shrimp)  –  Indian  Shrimp  farmer  Socie-es  –  Indonesian  aquaculture  

•  Domes-c  market  oriented,  low-­‐value  commodity  – Milkfish  value  chain  development  in  India  

 

Small-­‐scale  Shrimp  farming  in  India  and  Aceh  

•  Public  sector  investment  –  India  (2001  onwards)  :    

•  MPEDA,  Govt.  of  India  and  NACA  

– Aceh  (2007  onwards)  :    •  MMAF,  Govt.  of  Indonesia,  IGO,  NGO  and  donors  (ADB,  ACIAR,  FAO,  ARC,  WorldFish,  NACA,  WWF,  OISCA)  

 

Investment  Objec-ves  and  Ac-ons  

•  Objec2ve  –  Improved  livelihoods  through  sustainable  aquaculture  

•  Ac2ons  – Promo-on  of  Be5er  Management  Prac2ces  (BMPs)  – Organizing  farmers  for  Cluster  Management  (farmer  groups  /  Socie-es  /  Kelompoks)  

•  Extension  services  to  farmers  

 

Progress  in  Aceh  2007   2008   2009   2010  

Villages   11   34   84   93  Farmers   47   260   1135   2639  Hectares   22   184   1027   2441  

Environmental  and  Social  Impacts  

•  Social: –  Democratic and transparent societies –  Increased in communication among stakeholders and along the

value chain –  Sharing of cost for common cause –  Harmony among farmers and other local resource users

•  Environmental –  Efficient use of resources (feed and energy) –  Reduced use of chemicals –  Reduced discharge of contaminated water into waterways –  Increased awareness among stakeholders on environmental

care

Lessons  learned  

•  There  can  be  significant  impacts,  but:  –  It  takes  -me  for  solid  results  

•  Slow  change  in  Knowledge,  actude  and  prac-ce  among  farmers  

– Good  and  reliable  services  at  grass-­‐root  brings  the  real  change  

– Finding  good  “lead  farmers”  is  important  – Working  with  all  the  stakeholders  along  the  value  chain  can  bring  beder  and  quick  results  

– Direct  financial/in-­‐kind  support  to  farmers  brought  nega-ve  results.  

Current  opportunity  

•  Public  Private  Partnership  –  Cer-fica-on,  Branding  and  Marke-ng  the  Society/Kelompok  shrimps  in  interna-onal  markets.  

– Widening  the  programme  (BMP,  cluster  management)  to  include  other  locally  farmed  species  (carps,  pangasius,  scampi,  seabass,  crab  etc).  

– Domes-c  market  development  •  Marke-ng  farm  inputs  (Feed,  seed,  fer-lisers  etc)    •  Marke-ng  of  farm  out-­‐put  (fish  and  shrimp  sale  in  domes-c  market).  

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Milkfish  value  chain  development  in  India  

Issues  in  fish  market  

Consumer  Perspec2ves   Solu2ons  from  business  

Price   High  prices  of  marine  fish    •   especially  Marine  fish    (150-­‐1000  Rs/kg  at  retail)  

Affordable  fish      •   <100-­‐150  Rs/kg  at  retail  

Supply   Inconsistent    &  unsustainable  supply  •   scarcity  and  erra-c  supply  of  fish  caused  by  overfishing  from  limited  wild  resources,  fishing  ban  and  climate  change  impact  

Consistent    &  sustainable  supply  from  fish  farms  

Quality   Poor  quality  fish      •   due  to  prolonged  fishing  period  (3-­‐15  days),  poor  harvest  and  post-­‐harvest  handling  by  tradi-onal  fisheries  prac-ces.  

Fresh  fish      •   supplied  to  any  part  of  India  within  48  hours.  

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Value  proposi-on  of  the  investment  

•  Affordable,  fresh,  sustainable  and  all-­‐-me  available  marine  fish  which  contributes  to  the  food  and  nutri-onal  security  of  India  and  South  Asia  and  helps  in  genera-ng  employment  especially  in  rural  areas.  

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Why  Milkfish  (Chanos  chanos)?  

•  Easy  to  Farm:    –  Disease  resistant,  high  yielding  (10-­‐15  ton/

Hectare),  2-­‐10  months  of  crop  period  depending  on  market  size.  

•  Widely  Adaptable:    –  Can  be  grown  in  seawater  as  well  as  in  

freshwater.  Can  cater  to  Pan-­‐Indian  consumer  taste  buds.  

•  Cost  effec-ve:    –  Cost  of  farm  produc-on  is  about  USD  1/kg.  

•  Sustainable:    –  Depends  on  vegetable  based  feed  and  has  

high  feed  conversion  efficiency  (1.2-­‐1.5  kg  feed  for  1  kg  fish  growth).  

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An-cipated    Investment  Impacts  

•  Domes-c  fish  market  size  (2009)    (Source:  FAO  FishStat  2011)  –  USD  15  Billion  –  7    million  metric  ton  

•  Es-mated  contribu-on  of  the  value  chain  proposi-on  to  fisheries  sector  at  its  maturity  (2020)  –  7.5%  by  value  and  quan-ty  –  i.e.,  USD  1.25  Billion  at  retail  and  527,000  metric  ton  of  milkfish  –  100,000  farmers  and  stakeholders  employed  along  the  value  chain    

•  Es-mated  market  share  of  business  proposi-on  at  maturity  (2020)  –  0.35%  of  the  retail  value  of  the  fish  promoted  by  the  BP  –  i.e.,    USD  40  million/year  

•  Es-mated  investment  requirement  on  business  proposi-on  (brood  bank  and  hatchery)    –  USD  3  million  over  10  years  

Thank  you