Ornamental fish industry in Sri Lanka


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Ornamental fish industry in Sri Lanka

  2. 2. Overview 1. Outlook of the Sri Lankan Economy 2. Ornamental fish industry of Sri Lanka 3. World Ornamental fish industry 4. Challenges, barriers and risks in the domestic industry 5. Special Characteristics & trade terms in the Ornamental Fish Industry 6. SWOT Analysis and PESTEL of the Ornamental fish industry 7. Export and import policies implemented by the Sri Lankan government 8. Country analysis 9. Possible modes of entry to the market 10. International Business Strategy 11. Conclusion 12. Recommendations
  3. 3. 01. Sri Lankan Economy Finishing of the civil war 2009, Sri Lanka started to development rapidly.  Development in the economic environment  Infrastructure development & Regional development  7.80% growth rate in GDP 2013   Inflation  Interest rates  Unemployment  Exports  Imports  : - 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
  4. 4. 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 the exporters.  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
  5. 5. 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%
  6. 6. 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 environment.  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 fish industry.
  7. 7. 04. Challenges & Barriers  Quality of supply and holding facility  Packing method  High competition  Establishing a market  Lack of exporters Risk in Ornamental industry • • • • Vulnerability Payments Sudden changes in the market Not entering in to contract
  8. 8. 05. Characteristics  Industrial rules and regulations by organizations, countries and the local authority  Quarantine procedures taken by the exports.  Playing the supplier after reserving the shipment Trade Terms  Industry prefers always direct payments.  Transportation and Export is done through air  Discounts.  No return policies
  9. 9. 06. SWOT Analysis of the Ornamental fish industry
  10. 10. Ornamental fish Industry - Porter’s 5 Forces
  11. 11. 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
  12. 12. 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.
  13. 13.  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
  14. 14.  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
  15. 15. United States Ornamental fish industry     1. Ornamental fish industry is most popular in the State of Florida, recording 95% of all ornamental produce in United States. The industry is worth US$47.2 million. Warm weather to breed the fish. The industry is based in Florida. Ornamental fish industry in US jointly breeds hundreds of different species and different kind of fish from different geographic regions. US is the largest importer in ornamental fish due to high demand.
  16. 16. Ornamental fish structure and value chain
  17. 17. 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 share.  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, imported.
  18. 18.  The Los Angeles port handles 39% of all aquaculture trade, Miami 22%, New York 16%, Tampa 6% and Honolulu 6%.  Fresh water is amounted to about 96% of the total capacity and 80% of imports.  Florida is the only State that produces ornamental fish.
  19. 19. Country Analysis Analyse the countries competitors, competitiveness and the external factors:  Porter’s five forces  Diamond theory  PESTEL
  20. 20. 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 government encourages.
  21. 21. Porter’s five forces Bargaining power of the buyer- High  Long term suppliers who have created good relationships.  Loyal customers 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
  22. 22. Diamond theory Firm strategy, structure and rivalry  Private Limited Company  High competition, governments promote Demand condition  Best quality  Best prices  Many varieties
  23. 23. Diamond theory Related and supported industries  Live/dead coral, aquatic plant, sea weeds and live rocks  Ceramic and plastic ornaments Factor conditions  Technology- weather  Fresh water and sea water  Space  Food  Nutrition and aquatic diseases
  24. 24. Political •High political pressure on local breeders and farmers. •High rules and regulations on standardization of fish •Low government sport to the industry Economical •Cost of production is high due to low price imports. •High labor cost Sociological PESTEL •Lack of awareness about the local industry •The amount breading of species are less •Waste water management policies Technological •Poor technical maintenance of the facility •High cost on technology Legal •None updates acts and policies •Lack of monitoring in fish handling Environmental •Bad weather conditions such as tornedos, floods, etc •Lack of inadequate sewage management
  25. 25. Growth prospects  Geographically large  Recession  Imports large quantities  Cost of production  Varieties
  26. 26. 09. Possible Modes of Entry to International Markets  Exporting 1. Direct 2. Indirect  Demanded ornamental fish  Ways to get to know about the industry 1. Internet 2. Visiting international Exhibitions 3. Magazines
  27. 27. 10. International Business Strategy  Exporting  Collaborating with legal bodies or legal institutes  Expanding the assortment of the ornamental fish  Healthy relationship with the exporters and the suppliers
  28. 28. Ornamental fish Industry -Diamond Theory
  29. 29. Challenges, risks and barriers of the International arena Challenges  Offering a better product  Competitive prices  long lasting business relationship  widest range of varieties of ornamental fish  Increase in the packing densities Risks/Barriers  Non-payments of the invoices  Reporting of the dead fish on arrival without proper proof  Non signing of contracts
  30. 30. Conclusion
  31. 31. Recommendation  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 industry  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
  32. 32. Thank You