Practitioner Perspectives - Impact investing in small-scale aquaculture enterprises

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). 9

Milkﬁsh value chain development in India

Issues in Consumer Perspec2ves Solu2ons from fish market business Price High prices of marine fish Affordable fish •  especially Marine fish •  <100-‐150 Rs/kg at retail (150-‐1000 Rs/kg at retail) Supply Inconsistent & Consistent & unsustainable supply sustainable supply •  scarcity and erra-c supply of fish from fish farms caused by overfishing from limited wild resources, fishing ban and climate change impact Quality Poor quality fish Fresh fish •  due to prolonged fishing period •  supplied to any part of (3-‐15 days), poor harvest and post-‐ India within 48 hours. harvest handling by tradi-onal fisheries prac-ces. 11

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. 12

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). 13

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

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Practitioner Perspectives - Impact investing in small-scale aquaculture enterprises

by WorldFish on Sep 07, 2012

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