The presentation is a brief summary of an initiative being carried out in Malawi with fish farmers, with an aim of ensuring sustainability of fish farming practices and increased incomes.

1. FISH ANCHOR FIRM
MODEL
MOVING FROM RESEARCH TO
COMMERCIALISATION OF SMALL-
SCALE FISH FARMING

2. BACKGROUND
• Anchor Firm: a company aggregating
products from small scale
farmers/firms to access higher value
markets.
• Addresses the challenges faced by
small-scale farmers such as lack of
markets and extension services, and
emphasizes on commercialization of
activities.

3. CARP-ANCHOR FIRM RELATIONSHIP
CARP-a three year program from
2010-2013 applying value chain
through the fish farming sector.
Anchor Firm to build on lessons learnt
from CARP project
Anchor firm to be a success story for/
and facilitated by CARP for
sustainable fish farming systems by
small scale farmers

4. LESSONS LEARNT FROM CARP
1. Farmers Unable to Access Markets
(High Value Markets)
Fish farmers relied on CARP to sell the
fish on their behalf.
Farmers constrained from accessing high
value markets due to conditions set by
markets (quality, quantity and
consistency

5. LESSONS LEARNT FROM CARP
2. Extension services influence
quality of output by farmers.
Significant differences were observed
between Mchinji (No extension worker)
and Dowa(extension worker) output.
Farmers require constant supervision,
to ensure adherence to proper pond
management practices

6. LESSONS LEARNT FROM CARP
3. Need for Microfinance
Institutions
Farmers require start-up capital to
engage in fish farming i.e. purchase
inputs such as high quality
fingerlings, feed and manure.
MFIs to empower farmers to engage
in VLSs and village banks

7. ANCHOR FIRM ASSUMPTIONS
“The company will act as generator of
spill over, as a role model, as network
orchestrator, cluster enabler, a magnet
for supply, service and technical
backstopping, and as an entrepreneurial
incubator”.

8. ANCHOR FIRM
ASSUMPTIONS
1. Farmers To Be In Clusters
Farmers to be placed in clusters to
facilitate farmer support.
2. Value-addition
Market for value added products not
fully explored by farmers.

9. ANCHOR FIRM MODEL

10. FARMERS BENEFITS
1) Increased Returns
2) Sustainable fish farming
-Anchor firm will allow for sustainability as
their will be focus on profits and
commercialization
3) Value-added products
-Anchor firm will diversify fish products range
(Smoked, filleted etc.).

11. Operational Structure of Firm

12. Shareholder structure of Firm:
Board of Directors
NAME EXPERTISE
Fishing
Accounting and Finance
Legal
Policy
Community Development

13. Anchor Firm Operations
 Phased approach to be taken due to
unfavorable macroeconomic
conditions.
 Anchor Firm to start being
operational in 2013, and the phased
approach to take place in three years
i.e. 2013, 2014 and 2015.

14. REQUIRED START-UP
CAPITAL
There will be a requirement of MK35
million kwacha (US$87,500) for the
firm to start its operations in 2013.
The Firm will start working with
CARP farmers as a business
incubation phase, and will extend
area of influence to other areas in
the subsequent years.

15. Anchor Firm: Impacts
The Anchor Firm will contribute to the
overall aquaculture production to the
national production by over 1000 tons
by the end of three years through:
Sustained farming activities by
farmers due to increased incomes.
Production of fish by anchor firm in
the subsequent years.
.

16. Anchor Firm: Impacts
The Anchor firm also seeks to have a
large role in the commercialization of
aquatic activities in Malawi, and the
general improvement of the
livelihoods of the small scale farmers

17. CHALLENGES
Lack of start-up of capital: too high
interest rates prevailing in Malawi.
Investors: Most prospective investors
need proof of viability of business before
investing.

18. PROGRESS
Naming of company
Fish Marketing For Rural Transformation
– FISHMART
Production of company prospectus, Non-
Confidentiality agreements and
projections.
Process of company registration
initiated.
Identification of farmers to supply fish
to company initiated.

19. THANK YOU.