Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Nimal Chandraratne Pinumkarage
Development of shrimp aquaculture in the rural area through establishment of a model of clustershrimp farm and the involvement ofan experienced investor, engaged in shrimp farming to manage and strengthen the cluster farm
Back ground of shrimp aquaculture industry in Sri Lanka • The shrimp aquaculture industry initially emerged in the Eastern Province • It collapsed due to civil war • The industry was revived in the north western province in 1980 • The industry recorded its peak economic performances in the year 2000 by earning Mn US 69.4 worth of foreign exchange – 4855 mt
Continue….. • Still major threat is WSD and it was firstly appeared and affected shrimp aquaculture in 1996. • Shrimp production came down up to 1570 mt in 2005 • Through implementation of Zoning, crop calendar, BMPs, stake holder consultation regulation etc. now industry is sustained • Shrimp production in NWP of Sri Lanka in 2011 is 4100mt
Continue….. • National Aquaculture Development Authority of Sri Lanka (NAQDA) which comes under purview of Ministry of Fisheries and Aquatic Resource Development is the main government organization responsible for development of Inland Fisheries and aquaculture in Sri Lanka
Continue….. • To expand shrimp aquaculture industry to Batticaloa District, a zonal plan was developed. • It was realized that need of intervention of experienced investors for rebuild shrimp aquaculture industry again in the District and it is way forward.
Proposal• It was proposed to construct infrastructure facilities needed for a block out a area of village namely Wattawan , comprising of 50 ha, to develop the infrastructure such as roads, common inlets and outlets for water intake and release, sedimentation canals and 3- phase electricity to facilitate shrimp farming and established a cluster shrimp farm system
• The project was funded by Post Tsunami Coastal Rehabilitation & Resource Management Programme and Post Tsunami Livelihood Support & Partnership Programme Under the IFARD• The cost for the development of infrastructure facilities - SL Rs 71 million (Common reservoir, canals, sedimentation area Roads, electricity)
What is Cluster Farming System in Shrimp Aquaculture In sustainable systems, there is a balance in economic, environmental and social aspects. With respect to Economic sustainability in shrimp farming more emphasis should be given to control of diseases and efficient use of inputs. Environmental sustainability requires the efficient use of resources, including farming within the carrying capacity of the ecosystem and avoidance of irreversible damages to the environment due release of untreated effluent, heavy usage of chemicals and drugs, pumping of bore water etc. Social sustainability requires cohesive community participation and
• Best management practices and also the community participation are the main driven components of the Cluster Farming System in Shrimp Aquaculture
Project Implementation1. Identification of beneficiaries NAQDA together with the Divisional Secretary has identified 27 beneficiaries. Criteria for the selection of beneficiaries were as follows;• Willingness to engage in shrimp farming• Should belong to the coastal communities affected by Tsunami Continue …..
• Priority has been given to coastal community affected by Tsunami in Vakarai Divisional Secretary’s Division • Second priority has been given to the Tsunami affected coastal community of the District • Experience in shrimp farming2. Distribution of land• 0.5 ha has been given to a beneficiary under an annual permit by divisional secretary• Land area of the model farm is owned by NAQDA and transfer to the investor• Land area for infrastructure is owned by NAQDA3. Established Cluster Farm System • This cluster system has two major components a) model farm b) cluster farm. Continue …..
NAQDA together with Divisional Secretary selected a suitable investor. Criteria for selection of an investor• Financial capability to provide working capital for cluster• Financial capability to construct model farm and operation of model farm.• Experience in shrimp farming• Willingness to share knowledge• Ability to market the product• Priority has been given to the investor from the same area• Willingness to share Profit (50:50)
• It was formed an Aquaculture Development Society which should be registered with NAQDA under the ‘Regulations for Registering of Aquaculture Development Committees’ under NAQDA Act. This society membership was comprised of all the beneficiaries.• A company was formed with the investor and the society as shareholders.
Registration of Aquaculture Societies Regulations 2009
• Infra structure facilities which are required for cluster system were developed.• It was realistic that Tsunami affected people cannot bear cost of pond construction . Therefore, arrangements were made to provide 0.5 million to the beneficiaries under the credit line of a Government Bank (Bank of Ceylon) as a loan.• The funds were transferred to the society by the Bank. This amount and the portion of land in which ponds constructed were the contribution of the beneficiaries to the company. Each beneficiary signed an MOU with the Aquaculture Development Society.
Continue ….. • The company is responsible for construction of ponds. The investor supports the beneficiaries for grow out by providing seed, feed, technical advice (working capital). The several key persons of the society, beside the investor, are also being Co- Directors of the company. Another member of the Director Board was appointed by NAQDA to ensure good governance of the company.
Tri Party Agreement King Aqua Services (Pvt) Ltd Vattavan Vakarai Shrimp Farmers’ Association Members
Structure of Cluster Farm System at Wattavanvillage in the Batticaloa District of the Eastern Province of Sri Lanka NAQDA SFMEU Divisional Secretary DOFAR Main society for cluster Investor Chairman Secretary Treasurer Other members
Input by Government• 50 ha land• Development of access roads• Development of common inlet and outlets for water inflow and outflow• Development of common sedimentation canals/ponds• Development of water storage area• Supply of electricity
VattawanCommon Inlet Sub Inlet Canal Canal Water Storage
Out put of the project• Livelihood generation for around 200 families rural(coastal ) communities• Coastal communities trained in shrimp farming• Production of 200 Mt of raw shrimp for the export market
Project cost borne by the investor/cluster farmer• Capital Investment Cluster farm - SL.Rs. 35million /Bank, Beneficiaries Model Farm - SL.Rs. 15 million/ Investor• Working Capital Cluster farm - SL.Rs. 32 million/ Investor Model Farm - SL.Rs. 10 million/ Investor• Expected Total Profit from one crop Cluster farm - SL.Rs. 25 million Model Farm - SL.Rs. 5 million
Conclusion• Establishment of cluster farming system described above will demonstrate the benefit of such a system• It is anticipated that rural communities in other areas suitable for shrimp farming will adopt such a system in order to overcome constraints such as lack of technology, lack of technology, lack of entrepreneurship, lack of management capacity and the capital.