Transcript of "Ornamental fish industry in Sri Lanka "
BY THUSINI RANASHIGHE
Outlook of the Sri Lankan Economy
Ornamental fish industry of Sri Lanka
World Ornamental fish industry
Challenges, barriers and risks in the domestic industry
Special Characteristics & trade terms in the Ornamental Fish Industry
SWOT Analysis and PESTEL of the Ornamental fish industry
Export and import policies implemented by the Sri Lankan government
Possible modes of entry to the market
International Business Strategy
01. Sri Lankan Economy
Finishing of the civil war 2009, Sri Lanka started to
Development in the economic environment
Infrastructure development & Regional development
7.80% growth rate in GDP 2013
: - 4.70% as per 2013.12.31
: - 6.50% as per 2013
: - 3.80% as per 2013
: - 1031.80 USD million as per 2013
: - 1647.50 USD million as per 2013
Balance of payment USD 615.70 million
02. Ornamental fish industry in Sri Lanka
The industry was first started in 1952, the country exports marine,
fresh water, brackish water fish species and marine invertebrates.
The fish has rich bio-diversity giving an competitive advantage to
Fresh water fish are guppies, swordtails, platys thorns tetras, angels,
gourami's, catfishes. These fish are colourful and eye-catching. The
most demanded fish in the global market are guppies.
Sri Lanka has two seasons, Northeast (December to March) and
Southwest (June to October) monsoons.
Animal Quarantine health standards goes to every shipment.
Hobbies and to reduce mental stress
02. Ornamental fish industry in Sri Lanka
The industry is supported by coral reefs, sand bars,
lagoons around Sri Lanka and the island comprise of
inland water, streams, waterways and reservoirs help for
reproducing of marine, brackish water and freshwater
species in Sri Lanka.
Contribution from ornamental fish exports 0.4%
03. World Ornamental Fish Industry
Aquaculture products are demanded all around the world. The
industry worth in 2003, US$ 3 Billion. Exports worth US$200 million.
Singapore is the market leader in exporting ornamental fish.
The leading importer is United States owning 25% of market share
Divers are finding new ways to catch fish without harming the
World demands for ornamental fish are of fresh water fish (90%)
and marine (10%).
New methods are introduced to importer, buyer and retailers.
Further many other industries are supported by the ornamental
04. Challenges & Barriers
Quality of supply and holding facility
Establishing a market
Lack of exporters
Risk in Ornamental industry
Sudden changes in the market
Not entering in to contract
Industrial rules and regulations by organizations, countries and
the local authority
Quarantine procedures taken by the exports.
Playing the supplier after reserving the shipment
Industry prefers always direct payments.
Transportation and Export is done through air
No return policies
06. SWOT Analysis of the Ornamental fish industry
07. The Import and export policies implemented by the
Sri Lankan government specific to the industry
Regulation in the imports due to invasive varieties being
introduced to the water
Endangered species available which are protected and not
allowed to export
Permits being issued for restricted verities
Certificates required in order to export and import
08. Country analysis
United States (US) performance
US has European colonization from 16th to 18th century.
US has a large market, political-legal system, vast area to
cultivate, natural resources and entrepreneurial qualities and
material, capital and technology.
Early 1990 till late 2000, US began Globalisation.
During these the national debt expanded by 75%, GDP climbed
by 69%, and the stock market system as measured by the S&P
500 developed more than triple.
The country faced recession in 2008.
The Gross Domestic Product (GDP)
3rd quarter 2013- 4.1 percent growth
4th quarter 2013- 3.2 percent growth
The personal income of in:
December 2013- 0.0 percent (individual income)
November 2013- 0.2 percent (individual income
In 2013, total 20 to 22 industry groups lead to 2.8 percent rise
in real GDP.
The Balance of Payments in US,
3rd quarter of 2013-$94.8billion
2nd quarter of 2013 -$96.6 billion.
The current account deficit decreased by $1.8 billion from
third quarter to the fourth
State personal income, personal income growth has
2nd quarter 2013- 1.2 percent
3rd quarter 2013- 1.1 percent
In 2007 it was recorded that the service sector contributed
toward country nearly 78.5% and the industrial sector
contributed about 20.5% to GDP.
Economic drivers are exports, innovation, service sector.
Macro economic policies- Fiscal and Monetary Policy
United States Ornamental fish industry
Ornamental fish industry is most popular in the State of
Florida, recording 95% of all ornamental produce in
The industry is worth US$47.2 million.
Warm weather to breed the fish. The industry is based in
Ornamental fish industry in US jointly breeds hundreds of
different species and different kind of fish from different
US is the largest importer in ornamental fish due to high
Performance of the US ornamental fish industry
United States considers ornamental fish industry to be a cash cow
to the country in the aquaculture economy.
The largest importer in ornamental fish is US with 25% market
Southeast Asia accounting to about 75% freshwater fish. The
country imports approximately 1500 different species annually.
Most demanded Guppy, Neon Tetra, Platy, Siamese fighting fish,
Goldfish, Chinese Algae-eater, Short finned Molly, Cardinal Tetra,
Glassfish, Tiger Barb.
Approximately 201 million fish amounting to $44.7 million,
The Los Angeles port handles 39% of all aquaculture
trade, Miami 22%, New York 16%, Tampa 6% and
Fresh water is amounted to about 96% of the total
capacity and 80% of imports.
Florida is the only State that produces ornamental
Analyse the countries competitors, competitiveness
and the external factors:
Porter’s five forces
Porter’s five forces
Rivalry among existing competitors- High
Singapore, Malaysia, Thailand, Philippines, Vietnam,
China, and Japan, China and Singapore.
Singapore is the largest exporter.
Threats of new entrant - High
1976 there have only been 28 exporters, and in 2004
there are 146 exporters.
The industry provides employment hence
Porter’s five forces
Bargaining power of the buyer- High
Long term suppliers who have created good
Threat of substitute products- High
Plastic fish tanks
Genetically injected fish
Bargaining power of suppliers- High
Wide variety of fish
High quality at low prices
Delivery without harming the fish
Firm strategy, structure and rivalry
Private Limited Company
High competition, governments promote
Related and supported industries
Live/dead coral, aquatic plant, sea weeds and live
Ceramic and plastic ornaments
Fresh water and sea water
Nutrition and aquatic diseases
•High political pressure on local breeders and farmers.
•High rules and regulations on standardization of fish
•Low government sport to the industry
•Cost of production is high due to low price imports.
•High labor cost
•Lack of awareness about the local industry
•The amount breading of species are less
•Waste water management policies
•Poor technical maintenance of the facility
•High cost on technology
•None updates acts and policies
•Lack of monitoring in fish handling
•Bad weather conditions such as tornedos, floods, etc
•Lack of inadequate sewage management
Imports large quantities
Cost of production
09. Possible Modes of Entry to International Markets
Demanded ornamental fish
Ways to get to know about the industry
Visiting international Exhibitions
10. International Business Strategy
Collaborating with legal bodies or legal institutes
Expanding the assortment of the ornamental fish
Healthy relationship with the exporters and the suppliers
Challenges, risks and barriers of the International arena
Offering a better product
long lasting business relationship
widest range of varieties of ornamental fish
Increase in the packing densities
Non-payments of the invoices
Reporting of the dead fish on arrival without proper proof
Non signing of contracts
Finding and exporting new products
Participating in international exhibitions and pet shows
Reach new markets such as Japan, Middle East, Norway
Implement policies and standardization for the fish and the
Introducing Insurance facilities and risk baring facilities.
Improving technology in transportation.
Government should find new byers and then encourage the
farmers to bread more fish