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Practitioner Perspectives - Impact investing in small-scale aquaculture enterprises


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Presentation by Arun Padiyar from Mogalthur Aqua Famer's Welfare Society India, presented at the Seafood Summit 2012 in Hong Kong, 7 September, 2012.

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Practitioner Perspectives - Impact investing in small-scale aquaculture enterprises

  1. 1. Impact  inves-ng  in  small-­‐scale  aquaculture  enterprises:   Prac--oner  perspec-ves     Arun  Padiyar   Mogalthur  Aqua  Farmer’s  Welfare  Society,  India  
  2. 2. 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    
  3. 3. 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)    
  4. 4. 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    
  5. 5. Progress  in  Aceh   2007   2008   2009   2010  Villages   11   34   84   93  Farmers   47   260   1135   2639  Hectares   22   184   1027   2441  
  6. 6. 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
  7. 7. 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.  
  8. 8. 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  
  9. 9. Milkfish  value  chain  development  in   India  
  10. 10. 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  
  11. 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  
  12. 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  
  13. 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  
  14. 14. Thank  you