dagaa value chain analysis and proposal for trade … · 2017-11-28 · implementation of a...

DAGAA VALUE CHAIN ANALYSIS ANDPROPOSAL FOR TRADE DEVELOPMENT

August 2011

REPORT/RAPPORT : SF/2011/19

EuropeanUnion

Funded by

Implementation of a Regional Fisheries Stategy For The Eastern-Southern Africa And Indian Ocean Region

10th European Development FundAgreement No: RSO/FED/2009/021-330

“This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the author and can in no way be taken to the views of the European Union.”

Implementation of a Regional Fisheries Strategyfor the Eastern-Southern Africa and Indian Ocean Region

Programme pour la mise en oeuvre d'une stratégie de pêche pour larégion Afrique orientale-australe et Océan Indien

Dagaa Value Chain Analysisand Proposal for

Trade DevelopmentSF/2011/19

Damien Legros & Joseph Luomba

This report has been prepared with the technical assistance ofLe présent rapport a été réalisé par l'assistance technique de

August 2011

EuropeanUnion

Funded by

Table of ConTenTs

List of Acronyms.......................................................................................................... 5

Preface......................................................................................................................... 6

Acknowledgements..................................................................................................... 7

Executive Summary...................................................................................................... 8

Résumé Exécutif...................................................................................................... 10

Introduction and Background...................................................................................... 12

Objectives of the Field Mission.................................................................................... 14

Methodology................................................................................................................ 15

• Deskreview.............................................................................................. 15

• Fieldvisits.................................................................................................. 15

• Stakeholders’workshop............................................................................. 15

• Finalreport................................................................................................ 15

Dagaa (Rastrineobola argentea)................................................................................... 16

Fisheries....................................................................................................................... 16

• Fishers’profile........................................................................................... 16

• Keyissuesandconstraints.......................................................................... 17

Processing.................................................................................................................... 17

• Differentdryingmethods........................................................................... 17

• Processorsprofiles..................................................................................... 18

• Keyissuesandconstraints.......................................................................... 18

Trading......................................................................................................................... 18

• DistributionChains................................................................................... 18

• Localmarkets............................................................................................ 19

Regional Markets......................................................................................................... 19

• Rwanda..................................................................................................... 20

• Zimbabwe................................................................................................ 20

• Animalfeedindustry.................................................................................. 21

Dagaa Opportunities for International Exports........................................................... 21

Key Issues and Constraints......................................................................................... 22

• Datainformation....................................................................................... 22

• Qualityissues............................................................................................ 22

• Transport.................................................................................................. 22

Value Chain Analysis.................................................................................................... 22

• Areasofpossibleimprovementswithinthevaluechain............................... 24

• Fishinglevelqualityissues........................................................................... 24

• Processinglevelqualityissues..................................................................... 25

• Tradingimprovements............................................................................... 25

• Datacollectionandrecording.................................................................... 26

• Dataaccessibility/Marketinformation....................................................... 26

Workshop held in Mwanza on 25th and 26th of August............................................. 26

Recommendations...................................................................................................... 27

• Globalmarketsurvey................................................................................ 27

• Fishqualityonfishingvessels..................................................................... 28

• Processingimprovements......................................................................... 28

• Creationofaninternetplatform................................................................ 28

• Organisationoftradefairscoupledwithworkshops/conferences............... 28

• Toursforpotentialinvestors...................................................................... 29

• Regionalproductinformation.................................................................... 29

• Stakeholdervisitstocompaniesadvancedinsimilarfishingand

processingactivities................................................................................... 30

• Technicalauditformechanicaldrying......................................................... 30

Annex 1A: List of people met during the field mission............................................... 32

Annex 1B: List of people attending the Mwanza Workshop...................................... 33

Annex 2: Workshop Programme............................................................................... . 35

Annex 3: Workshop Summary.................................................................................... 36

Annex 4: Simplified Business plan trial for a 10t/day drying operation....................... 39

Annex 5: Terms of Reference..................................................................................... 41

List of Publications...................................................................................................... 46

5 Programme SmartFish Rapport SF/2011/19

Dagaa Value Chain Analysis And Proposal For Trade Development

List of Acronyms

ACP African,Caribbean,andPacificBMU BeachManagementUnitCAS CatchAssessmentSurveyDRC DemocraticRepublicofCongoEAC EastAfricaCommunityESA-IO EasternandSouthernAfrica–IndianOceanEU EuropeanUnionFDA FisheriesDevelopmentAuthorityFoB FreeonBoardFMP FisheriesManagementPlanRWF RwandaFrancsIFMP ImplementationofFisheriesManagementPlanIOC IndianOceanCommissionIRFS ImplementationofaRegionalFisheriesStrategyLVFO LakeVictoriaFisheriesOrganisationNAFIRRI NationalFisheriesResourcesResearchInstitutePMU ProjectManagementUnitRPOA RegionalPlanofActionRSA RepublicofSouthAfricaTAFIRI TanzaniaFisheriesResearchInstituteTIFPA TanzaniaFishProcessorsAssociationTOR TermsofReferenceTZS TanzanianShillingsUFPEA UgandaFishProcessorsExportsAssociationUGS UgandaShillingsUSD UnitedStatesDollarsVAT ValueAddedTaxVCA ValueChainAnalysis


Preface

This report has been prepared under the SmartFish programme (Implementation of a RegionalFisheriesStrategyfortheEastern-SouthernAfricaandIndianOceanregion(ESA-IO)).Result4oftheprogrammedealswiththedevelopmentofregionalfishtradewithregionallyintegratedapproachesformingthebasisforimplementation.

Ingeneral,thetraditionalfocusonlargeinternationaltradingblocshasreducedeffortsfromdevelopingaregionaltradeapproachintheESA-IO.Regionaltradeholdsgreatpotentialfordevelopmentandtheintegrationwithstrategicmarketingplansattheregionalandnationallevelwillallowcountriestoplansustainablefuturesfortheirfisheriessectorwitharegionallyintegratedapproach.Thesmallpelagicfish(Rastrineobola argentea)iscalledbydifferentnamesregionally:DagaainTanzania,MukeneinUgandaandOmenainKenya,thisspeciesoffishisanincrediblesourceofnutritionandeconomicbenefittothepeoplethroughoutthegreatlakesregionofAfrica.ThisreportistheresultofaDagaavaluechainstudyinTanzania,whichhasaimedatidentifyingareasinthevaluechainthatcanbeassistedintermsofimprovingtheconditionsforenhancingregionaltradeinthefish.

Ofall thespecies inLakeVictoria,R. argentea is themostprolificandcontributestoavery largeindustry in the region for local consumption but also for trade fromZimbabwe in the south toNigeriainthewest.RegionallyDRCongoisbyfarthelargestmarket,butalsoRwandaandSudanofferimportantmarketsforthetraders.Unfortunatelymuchofthistradeisinformalandthereforethetrueimpactandimportanceisnotfullyunderstood.SmartFishintendstointerveneinanumberofareasinthisfisheryoverthecomingmonthsbasedontherecommendationsofthisreport;thisincludesimprovinghandlingsystemspriortodrying,improvingdryingsystemsandotherprocessingtechniquesaimedatqualityimprovementsforregionaltradeenhancement.



acknowledgements

ThestudywascommissionedaspartoftheEU-fundedSmartFishprogramme(ImplementationofaRegionalFisheriesStrategyforESA-IO).ThisassignmentwascarriedoutwiththefullsupportandparticipationofMr.Chris Short,Tradeexpertof the IndianOceanCommission (IOC)TechnicalAssistance Team. The draft Value Chain Analysis was reviewed through regional stakeholderconsultationsandinputswereincorporated.Thisreportwasalsomadepossiblewiththesupportandparticipationof theDagaafishers,processorsand tradersandotherstakeholdersworking inDagaaprocessingandmarketing

EuropeanUnion’scontinuedfinancialsupporttodevelopmentactivitiesinAfricaishighlyappreciated.The support of the implementing agency (IOC) is highly appreciated. The cooperation andparticipationofDagaafishers,processors,tradersandotherstakeholdersinprovidinginformationtotheconsultantsissincerelyacknowledged.


eXeCUTIVe sUMMaRYThe Indian Ocean Commission (IOC), through its SmartFish Programme, has identified Dagaa(Rastrineobola argentea), a small pelagic fish endemic to Lake Victoria, as a species of primaryimportancetothenationalandregionaleconomiesandforregionaltradedevelopment.

This report presents the findings of amission conducted in Tanzania and some of the regionalmarketsthatshouldleadtoabetterunderstandingofthewholeDagaavaluechain,fromcapturetoconsumption.Thereportalsopresentssomeconcreterecommendationstoimprovetheregionaltradeandalsosomespecificactionsonthevaluechain.

Themethodologyusedinvolvedthefollowingsteps:

• Deskreviewofpublishedandnon-publisheddocuments;• Nationalandregionalfieldvisitstolandingsitesandregionalmarkets;• Organisationofaworkshoptogetspecialistsandstakeholdersinputs,and;• Writingthefinalreportbasedonfieldexperienceandstakeholdersinputs.

TheDagaafisheryisstillanartisanalactivity.Bothfishingandprocessingarestillbasedontraditionalmethodsthatarenotsuitableforaresponsibleglobalmarket.Fishhandlingandprocessingarestillfarfromtheminimalhygienicstandards.Moreover,duetotheartisanalnatureaswellasthelowvalueoftheproduct,datacollectionremainsachallenge.Thison-goingproblemconcernsalllevelsofthevaluechain.Despitetheissuesmentionedabove,thepotentialofthisfisheryisverylargeandstillunderexploited,especiallyinUganda.ResearchonthenutritionalvalueofDagaaandsimilarsmallpelagicfishhighlighttheexceptionalqualityofthesefishifprocessedwell.Thefactthatthefishiseatenwholeensurestheintakeofessentialmicroelementsandvitamins.

TheDagaavaluechainisrathercomplexandcanhavedifferentstructures.Itismostlyaninformalchainthatinvolvesmanyplayers.Thevaluechainstartswithfishers,continueswithprocessors,traders,transporters,importers,retailersandendswithconsumers.Someactorsaccumulatesometimes2oreven3oftheseactivitiesandtherecanbeseveralintermediariesinthetradingactivities.

ThefinaluseofdriedDagaacaneitherbehumanfoodoranimalfeed.Asitisnow,itseemsthatalargemajorityofthedriedDagaagoesintoanimalfeed(upto80%mentionedinmanyreports).However,thefieldmissionrevealedthatthefinaldestinationofDagaacanchangebothgeographicallyandconsumptionwise.Despitethegenerallylowqualityofthedriedproduct,itseemsthatthefishisreachingmoreandmoredistantmarketsintheregionincludingRepublicofSouthAfrica,Zimbabweforinstance.SalesinCambodiaandVietnamwerealsoreportedtotheconsultantsduringtheirvisittoKirumbamarketinMwanza.

Thereisanevidentlackofinvestmentinfishhandlingandprocessingthatiscertainlyduetothelackoftrainingandmarketawarenessoftheplayers.IndeedhighqualityDagaacanfetchgoodpricesonregionalmarkets.

ThisreportidentifiesanumberofrecommendationsthatcouldbeimplementedbytheSmartFishProgrammetoenhancethefisheryandregionaltrade.Theseincludeaglobaltradesurveyonsmallpelagicfishintheregionwiththeconstitutionofatradedatabase,training infishprocessingand



handling practices, organisation of potential investors’ visits, building of an internetweb site thatprovidestradeandmarketinginformationonDagaaandotherfisheriesproductsandorganizationofregionalfishtradefairs.


RÉsUMÉ eXÉCUTIfLa Commission de l’Océan Indien (COI), à travers le Programme SmartFish, a identifié le Dagaa (Rastrineobolaargentea), un petit poisson pélagique endémique du lac Victoria, comme une espèce de première importance pour les économies nationales et régionales et pour le développement du commerce régional.

Ce rapport présente les résultats d’une mission effectuée en Tanzanie et sur quelques-uns des marchés régionaux devant conduire à une meilleure compréhension de la totalité de la chaîne de valeur du Dagaa, de la capture à la consommation. Le rapport présente également des recommandations concrètes pour améliorer le commerce régional ainsi que des actions spécifiques sur la chaîne de valeur.

La méthodologie utilisée comprenait les étapes suivantes:• L’examen des documents publiés et non publiés;• Des visites de terrain nationales et régionales sur les sites de débarquement et les marchés

régionaux ;• L’organisation d’un atelier pour obtenir les contributions des spécialistes et des parties prenantes ; et• La rédaction du rapport final basé sur le travail de terrain ainsi que les contributions des parties

prenantes.

La pêche au Dagaa est encore une activité artisanale. La pêche et la transformation sont encore basées sur des méthodes traditionnelles qui ne conviennent pas pour un marché mondial responsable. La manipulation et la transformation du poisson sont encore loin des normes d’hygiène minimales. En outre, en raison de la nature artisanale ainsi que de la faible valeur du produit, la collecte des données reste un défi. Ce problème permanent concerne tous les niveaux de la chaîne de valeur. Malgré les problèmes mentionnés ci-dessus, le potentiel de cette pêche est très grand et toujours sous-exploité, en particulier en Ouganda. La recherche sur la valeur nutritionnelle du Dagaa et des petits poissons pélagiques similaires souligne la qualité exceptionnelle de ces poissons lorsqu’ils sont bien traités. Le fait que le poisson est consommé en entier assure l’apport en oligoéléments et vitamines essentiels.

La chaîne de valeur du Dagaa est assez complexe et peut avoir des structures différentes. C’est essentiellement une chaîne informelle qui implique de nombreux acteurs. La chaîne de valeur commence avec les pêcheurs, se poursuit avec les transformateurs, les commerçants, les transporteurs, les importateurs, les détaillants et se termine avec les consommateurs. Certains acteurs accumulent parfois 2 ou même 3 de ces activités et il peut y avoir plusieurs intermédiaires dans les activités commerciales. L’utilisation finale du Dagaa séché peut être soit la consommation humaine, soit l’alimentation pour animaux. Actuellement, il semblerait qu’une grande majorité du Dagaa séché serve à l’alimentation animale (dans de nombreux rapports on mentionne jusqu’à 80%). Toutefois, la mission de terrain a révélé que la destination finale du Dagaa pouvait changer tant au niveau géographique que du point de vue de sa consommation. Malgré la qualité généralement médiocre du produit séché, il semble que le poisson arrive sur des marchés de plus en plus lointains dans la région, y compris en République d’Afrique du Sud et au Zimbabwe, par exemple. Des ventes au Cambodge et au Vietnam ont également été rapportées aux consultants lors de leur visite au marché Kirumba de Mwanza.

Il y a un manque évident d’investissement dans la manipulation et la transformation du poisson, certainement dû à l’absence de formation et de connaissance du marché parmi les acteurs. En effet, le Dagaa de haute qualité peut atteindre de bons prix sur les marchés régionaux.



Ce rapport identifie un certain nombre de recommandations qui pourraient être mises en œuvre par le Programme Smartfish pour améliorer la pêcherie et le commerce régional. Celles-ci comprennent une étude globale du commerce des petits poissons pélagiques dans la région avec la constitution d’une base de données sur le commerce, des formations sur les pratiques de transformation et de manipulation du poisson, l’organisation des visites d’investisseurs potentiels, la construction d’un site internet qui fournit des informations sur le commerce et le marketing du Dagaa ainsi que d’autres produits de la pêche, et l’organisation de foires régionales du commerce du poisson.


Introduction and background

LakeVictoria,thesecondlargest freshwaterbodyintheworldwith69,000km²ofsurfacearea,is also one of themost productive lakes in terms of biomass. The fish species diversity is alsoremarkablewitharound500speciesoffish.Fisherieshavethereforebenefitedfromthisexceptionalproductionandthe lakehasprovided important incomestothesurroundingpopulationsandtheharvestslargelydistributedinneighbouringregions.DuringthelasttwodecadesNilePerch,whichwasintroducedinthe1950’s,hasbeenintensivelyfishedandwidelyexportedasfarastheEU,theMiddleEastandJapan.TheNilePerchfisherieshavebeendevelopedthankstoastronginternationaldemandandtheprocessingstandardshavebeendramatically improvedasaresult,supportedbyvariousprogrammes.Since2005,theNilePerchfisherieshavestartedtodeclineprogressivelyandconstrainingmeasureshavebeenimplementedbytheindustrytomovetowardssustainability.Itisalong-termeffortthatshouldpaydividends,butitseemsthattheresourcehasshownitslimits.

Themostimportantresourceavailableinvolume,Dagaa(Rastrineobola agrentea),hasbeenmainlyasubsistencefisheryactivityuntilthe1960’sandhasstartedtobecommerciallyexploitedinthe1970’s.Sincethen,ithasbeenprogressivelydevelopedtoreachanestimatedharvestlevelofapproximately600,000tonnesperyearoverthethreeripariancountries(LVFO,2007).Thisrepresentsthegreatestresourceavailableinafreshwaterbodyandasasinglespeciesintheregion.

ThisreportpresentstheresultsofastudyandanalysisoftheLakeVictoriaDagaaValueChainasdetailedintheTermsofReference(TOR).ThevaluechainanalysisoftheLakeVictoriaDagaafisherywasundertakenaspartoftheEU-funded‘ImplementationofaRegionalFisheriesStrategyforESA-IO’(SmartFish). Thepurposeof thestudy is todeterminethevalueandshareofbenefitsalongthewholecommoditychainofDagaa, fromcapture toconsumption in thenationalandregionalmarkets,andtoidentifykeymarketingissuesforfurtherintervention.

Theconsultants,Mr.DamienLegros(teamleader)andMr.JosephLuombaundertookthemissionover August to September 2011, following an online briefing by the ProjectManagementUnit(PMU).Thestudywascomprisedof;a)literaturereview;b)aninvestigationofDagaalandingsitesandincountrymarkets;c)asurveyofexportsintoregionalmarkets;andd)analysis.Ateachstagecomprehensivestakeholderconsultationswereundertaken includingwiththefishers,processors,traders,fisheriesmanagersandpublicadministrators.InformationontheindividualsmetindifferentlocationsduringthesurveyisincludedintheAnnex1A.

ThisstudywasdeemednecessarybecausedespitetheincreasedcontributionofDagaatothetotallandingsinLakeVictoriaregionabout60%(LVFOdata),thefisheryhasnotbeenabletocontributemorecommerciallyasNileperch.Thisissobecausethebulkoftheproductsaredistributedtotheanimalfeedsindustryduetothepoorhandlingandprocessingmethodsappliedtothefishery.Thereisalsoalackofunderstandingonthegeneralwealthdistributionfromthisfisherybetweentheplayersalongthedistributionchannels.

The study aims to generate a better understanding of themarketing ofDagaa and its productsfromcapturetoconsumptionwithaviewtogeneratingastrategyforimprovingitsmarketingandregionaltrade.ThisassignmentfallsunderResult4(regionalfishtradecomponent)oftheSmartFishprogrammerelatedtoimplementingstrategicimprovementstoproductionandsupplyoffish,whereinterventions to improve aspectsof the capture/ production, processing, transportation and finalsellingoffishisrecognizedasamajorconcernthataffectstheabilitytodevelopnationalandregionaltrade.Thestudyalsoidentifiestrainingneedswithinthechain.



The field studywas followedby a stakeholders’workshop thatwasorganized to collect furtherinformationfromvariousexpertsintheDagaavaluechain.Theparticipantsincludedfishers,processors,traders,scientists,biologists,socio-economists,FisheriesandPublicServicesrepresentatives.AlistofparticipantsfromthatworkshopisincludedinAnnex1B.

Theworkshopwasheldover twodays; thefirstdayallowedvarious specialists toexpress theirviewsontheactualsituationoftheDagaaresourcesandindustry.Strengthsandweaknesseswerehighlightedanddiscussionswereconductedaftereachpresentation.

Theseconddaywasdedicatedtogroupdiscussionsondifferentthemes:fishery,processing,tradinganddatacollectionissuesweretackled.Eachgrouppresentedtheirfindingsanddiscussionswereheld.Thiswasfollowedbyasynthesisconductedbytheconsultantsandtowhichthewholeassemblyparticipated.Conclusionsandplansofactionwerepresented.


objectives of the field Mission

ThepurposeofthestudyistodeterminethevalueandshareofbenefitsfromthisvaluealongthewholechainofDagaa,fromcapturetoconsumptioninthenationalandregionalmarkets.

Specifically,thestudyhasfocusedmainlyontheTORs,whichrequired:

• ConveningDagaastakeholdersmeetingsinselectedareastoidentifythecurrentproblemswithmarketingwithinthisfishery.

• Assessthemainconstraintsandopportunitiesforfishersinhandling,processingandmarketingofDagaanationallyandregionally.

• DefinethestructureofthedistributionchainforDagaafromcatchtoregionalmarkets,using2or3examplesinthecountry.

• InvestigatepricesforDagaaproductsthroughoutthedistributionchannelsandreviewcostsandmarginsassociatedwiththeprocesstoreachregionalmarkets.

• Collect information on domestic / exportmarkets, and compile information on individuals /groupsinvolvedinDagaatrade,productsprocessed,andsuccesses,failures…

• CollectinformationonprocessedDagaaproductsandassesspossibilitiesforimprovedDagaaprocessingtechniquesinsecuringcurrent/futuremarketsnationally/regionally.

• Outline a simple business model(s) (capital costs / revenue/ operating costs / margins) thatrepresentthekeyprocessingactivitiesinthefisheryrequiredtosustainandimprovetrade.

• Reviewrequiredpersonalinvestmentinthefisheryformarketentry,aswellastosecurecurrent/futuremarketsnational/regionallyandassesstherequirementsforinvestmentinthisfisheryincludingaccesstofundsandfinancingopportunitiesforsuchpersonalinvestment.

• Identifyother infrastructurerequirements tosupport the industryandprovideanestimateofcapitalcosts–suchaslandingsitesandotherlogisticalinfrastructure(ice,dryingfacilities,storage,transportation,wholesalemarkets,etc.).

• Determine the costs and benefits onDagaa fishery to estimate the break-evenpoint in thefisherytoimproveunderstandingofthefishery.Thiswillincludeestimatingthecostsandbenefitsateachstageofproductionandmarketingchain (i.e.valuechain)andhow it impactsonthefishers’.

• Towards the end of the study period, prepare and present the key findings of the study tostakeholders at a feedbackworkshop. Viewsof stakeholders shouldbe included in thefinalreport.Organizeworkshopparticipants,materials,etc.–toincluderegionalinterestedpartiesfromregionalcountries.

• Produceafinalreportfromthestudyactivities.• Produceafinalreportformtheworkshopuponreceivingstakeholders’comments.

AlistofparticipantsthatweremetduringthefieldmissionsisprovidedinAnnex1A.



Methodology

Thestudywasconductedinfourkeystages.

Desk review

The first stage involved a literature review and collection and collation of secondary data andinformation. This principally involved reviewing published and unpublished manuscripts, officialgovernment records and publications. Information was also gleaned from several data sources,includingpreviousstudiesundertakenunder the ImplementationofaFisheriesManagementPlan(IFMP)project,andconsultantsworkunderLakeVictoriaFisheriesOrganization(LVFO).Thestudyalsomadeuseofdataandreports fromother IFMPcomponents suchas theCatchAssessmentSurveyandtheFrameSurveysreports.Someusefulstatisticalinformationwasalsoobtainedfromtheneighbouringcountrieswherefishisexported.

field visits

Inthesecondstagetheconsultantsmadeshortvisitstokeyareas.ThevisitsweremademainlytoDagaalandingsites,nationalandregionalmarkets,Fisheriesandotherrelevantgovernmentminis-triesanddepartments,especiallythoseresponsibleforstatistics.

Table 1: List of places visited during the field mission

Area Name of the beach, market and border

involvedMwanza Kirumbamarket

SweyalandingsiteMara Kibuyilandingsite

SirarifisheriesofficeBusekeralandingsite

Kagera MuganzamarketRwanda KigalimarketsandtradersZimbabwe Kariba,production

Harare,marketsandtraders

stakeholders’ workshop

Thethirdstage involvedcompilingdataonkeyvariablesand indicatorsandpresentingthemtoastakeholders’workshop.

final report

Inthefinalstageareportwrittenbasedonthefieldsurveyandworkshopinputsispresented.


Dagaa (Rastrineobola argentea)

DagaaisthemostimportantfishresourceinLakeVictoria.Itsbiomassisestimatedatover1.3milliontonnes.Therapidgrowthand lifecycleofDagaa,allows itsexploitationatayearly levelof70%,accordingtoLVFO’sstudies.

Asa zooplanktivoreDagaa is low in the foodchainand it contributes to the lakeeutrophicationcontrol.Itsharvestthencontributesdirectlytobiomassremoval.

Its nutritional value is high as thewhole fish isbeingeatenand thereforeprovidesmoremicro-elementsandvitamins(containedinviscera,eyesandheads)thanfishfleshonly.Itsproteincontentvariesfromabout53%to63%accordingtotheseason(personalcommunication,Masette).Itsfatcontent isapproximately14%andcanalsovaryaccording toseasonality.Energy isaround1400kj/100g(driedDagaa).

ItsabundanceanditsnutritionalvaluemakeDagaaaprioritychoiceforafisheryaslongasthewholeharvest,processinganddistributioncanbeimprovedandmaintainedatsustainablelevels.ThecaseinTanzaniaisthatpost-harvesthandlingandprocessingneedstobeimprovedratherthanincreasingthefishingeffort.InUgandacatchesareonly19%oftotalcatches,despitehavingaccessto51%oftheresources,suggestingthatincreasedeffortinthatcountrycouldbetoleratedsustainably.

fisheries

Dagaafishingisbasedonattractionbyuseofartificiallight.Thefishersusekerosenepressurelampsattachedtoafloaterforthepurposeofattractingfish.Thefisheryisstillartisanalwithlocallymadeboatsusingtraditionalfishingmethodsandgears.Thefishersusedifferenttypesofgearforcatchingfish.Thecommonlyusedgearsandfishingmethods include;a)beach(Dagaa)seinenetsmostlyoperatedonsandybeaches,b)scoopnets,c)liftnetsintroducedfromLakeTanganyikaandmostlyused inCatamaranboats locallyknownas ‘Kipe’,d)encirclingnetsoperated indeepwatersandsimilartopurseseinenets(alsoknownas‘hurryup’)

Someofthesemethods,particularlybeachseinefishing(illegal)andin-shorefishinginshallowbays,arenotsustainableandconstituteaserioushazardtojuvenilesofvariousspecies.By-catcheswhenusingthesemethodscanbeashighas70%(personallywitnessedinUganda).Off-shorefishingisasustainablepracticeassuchasitcapturesmaturefishandby-catchesarereducedtolessthan1%.

Oncethefishislandedatthelandingsitesthecarriers,mostlywomenandsomemen,transferthecatchfromthefishingboatstothedryingareausingplasticbasinsorjerry-cansontheirheads.

Fishers’ profile

Dagaafishershavesomeexperiences/knowledgeon theseasonalityof thefisheryand theactualharvestingofthefish/fishingmethods.Thefishersareawareoftheendemicnatureofthefishandthesettingofthefishinggears,lampsandhauling.Onceanewfishercomesonboardheisgivensomebasictrainingonfishingmethods.

AccordingtotheFramesurvey2010(biennialcensusoffishersandfishinggears)itisestimatedthatthereareabout31,891fishersand8,272fishingvesselstargetingDagaa.Thisimpliesanaverage



offourfishersperboat.Thesestatisticshowever,donotincludethoseinvolvedinthepost-harvestactivitiessuchas;carriers,processors,tradersandthoseinvolvedinoff-loadingandpackingofDagaainsacks.ThereareseveralindividualsandgroupsthatareinvolvedintradingDagaabothatthelocalandregionalmarkets.

Key issues and constraints

The statistics of catch levels recorded by CAS (Lake wide quarterly Catch Assessment Survey)indicatesthatDagaaisthemostlandedfishspeciesinthelake.Tanzaniacontributesto70%oftotallandingofDagaainthelakealthoughUganda’sDagaapopulationisindicatedasthehighest(51%ofthetotal1.3milliontonnes).

Fromobservationandconversationswithfishermen, there is a lackofplanning in theiractivities.Theydonotmakeanyprovisionforequipmentreplacementordepreciationoftheirprincipalassets.Asaresult,theyhavetoborrowmoneywhentheirboatenginehastobewrittenoff.Borrowingisanissueastheyhavetorepayfast,onaweeklybasisandhavenograceperiods.

Financingisanissueandtheywouldneedtohaveaccesstosoftloans.Trainingonbasicmanagementpracticescouldalsobenefitthefishermenastheycouldmaybehavebetterplanning.However,thesecommunitiesdonotalwayshaveaccesstobankfacilitiessothatcashmanagementisanotherissue.Onthequalityside,thereisverylittleincentivetopromotefishqualityandpreservationandthereislittleawarenessthatthestorageinboatisverypoor.Whenfishisgoingtogetdriedonthesand,thereislittlemotivationtoevenlookatbetterhandlingonboard,obviously.

Securityonboardisoftenaproblemduetolackoflifejacketsandexposuretostorms.

Wehavetriedtofigureouttheprofitabilityoffisheriesitselfand,ifdepreciationonequipmentwastakenintoaccount,fishersmightoperateatalossfromtimetotime.Thisisbasedonfreshsellingpricethatweregiventoconsultantsduringthefieldvisits.Whencombinedwithprocessingthatdoesnotrequirespecificequipment,thereturnsseembetterandsomehowviable.

Processing

Different drying methods

Afterlanding,thefishisthenspreadondryingsurfacessuchasrocks,sand,grassandinrarecasesraised racks in order to dry. There are also some other handling/processingmethodswherebyprocessors/traderstakewetDagaaandsaltitbeforeeithersmokingorfryingbutthisisinsignificant.The drying process can take 6 to 8 hours, but can extend to 72 hours depending onweatherconditions.Rainsobviouslyaffectthedryingprocessandthereforethequalityofthefinishedproduct,mostofwhichwillonlybesuitableforanimalfeed.ItisimportanttonotethatbadlyprocessedDagaacanhavelostalotofitsnutritionalvalueorevenhavedevelopedfungus,toxins,etc.Thisisthecaseevenwhenforanimalfeedpurposesaswellasforhumanconsumption.

ThepresenceofsandintheDagaacanalsoprogressivelydamageprocessingmachinesinthelongterm.


Processors profiles

InTanzania,justlikeinotherriparianstates,processingofDagaaismostlyareserveforwomenatmany landingsites.However,therearealsosomemenwhoare involvedaswell.Mostof thesewomen were displaced from the Nile perch processing after the establishment of processingindustries.Interviewswithfishersrevealedthattheprocessingsectorishighlydominatedbywomenbecausemostmenbelieveit’safemaleoccupation.

Key issues and constraints

According to processors (who can be the fishermen themselves or their employees) access tomarketsisoneofthemainissuesthattheyface.Lackofcapitalandlackofeconomiesofscaledonotallowthemormotivatethemtoaccessmorelucrativeoutletsfortheirproduction.Asaresult,fishesaresoldtotradersonwhichtheydeclaretobefairtoodependent.

On quality, processors are just following old practices and do not look at improving right now,because they don’t see any incentives to do so.Althoughprices are relatively low, the demandcontinuestobebuoyantandtheprospectofreceivingahigherpricebyprocessingahigherqualityfishisnotevidenttothem.

Forthoseprocessorswhobuyfreshfishfromfishermen,cashflowisanissueasitisthroughoutthewholevaluechain.Itdoesnotlooklikethereareanycashreservesinthesystembecause:

1. Marginsandvolumesaresaidtobetoosmallsothattheprofitsareusedforimmediatedomesticneeds,and;

2. Thereisnoaccesstobankingfacilitiesformostofthemresultinginaninabilitytosavecash.

Thereis littleawarenessofdifferentprocessingmethods.Whenquestionedonthetopic,peopledeclarethattheydon’tknowaboutthepossibleuseofsaltwhichisregardedasjustanadditionalexpense.Moreover,themarketisusedtounsaltedproducts.

Thesameappliestotheuseofdryingracks.Peopledon’tseethepoint,astheyareexpensivetobuildandmaintain,buttherearedoubtswhetherthequalityobtainedwillcompensatethesandpickupandweightadditiononsellingprice.

There is certainly a possibility to “industrialise” the processing through drying racks, possibly ingreenhousesorevenmechanicaldrying,butthatwillneedtocomefrominvestorswithaccesstocapital.However,itwouldalsocreatejobs,justastheNileperchindustryhasdone.

Trading

Distribution Chains

TheDagaadistributionchainconsistsofcrew,fishingvesselowners,traders,processors,transporters,importers,retailersandconsumers.Thesupplychainisacomplexwebspanningdozensofinternalandexternalmarketsinothercountriesandinvolvingmanythousandsofindividuals.Themarketingoffishisathreetiersystemnamely;localandnationalmarkets,regionalmarketsandanimalfeedindustries.



local markets

Atthelocalmarket,bothwetanddryDagaaissoldtoconsumersinvolumes.Theunitofmeasurementvariesfromvolumesof50gramsintinsto20kilogramsinbucket.ThesellersinTanzaniaconsistofbothgendersbutmostlythefunctionisdominatedbywomen.ThewetDagaahoweveristransportedbymalebicyclevendorstodifferentestateswherethereareeasilyboughtbyconsumerswhoprefertoprocessthefishthemselves.DagaasoldtoothertownsaretradedbywholesaletraderslocatedatKirumbaandMuganzamarketsinMwanzaandGeitaregionsrespectively,andinBusekeraandKibuyilandingsitesinMararegion.

These wholesale traders mostly buy Dagaa from small scale processors and traders who havecollectedthefishfromthefishersatlandingsites.However,fewwholesalerscollectfishthemselvesfromfishers.Dagaatransactedbetweenthetwoismostlypackedinsacksofbetween45and70Kilograms.

DagaaistransportedtoalmosteveryregioninTanzania.Butthemajormarketingpointsinclude;DaresSalaam,Tanga,Mtwara,Tabora,Morogoro,Mbeya,Shinyanga,Songea,Mbeya,andArusha.Thefishistransportedbyhiredtrucksofdifferenttonnagesrangingfrom3to25.Thefishdistributionchannel starts from the fisher then to small-scale processors/traderswho in turn either sells toconsumersdirectlyortowholesalersandthechaincontinuedowntoretailersandconsumers.

Regional Markets

Dagaatoregionalmarkets ismostlysoldatKirumbaandMuganzaMarkets inMwanzaandGeitaRegions respectively.AtKirumbamarket there isonlyonegroup involved in theDagaabusinesscalledUshirikaWauzaSamakiwithamembershipof170traders,whileatMuganzamarkettherearefourgroupswithlicensestoexportfishnamely;Upendo,Uaminifu,JikomboeandTumainiwithmembershipsof35,60,and85respectivelyforthefirstthreegroups.MembersofTumainiwereabsentduringtheinterviewsomembershipwasnotrecorded.

Distributionoffishproductsforregionalmarketsstartsfromtheexporters.Theycollecttheproductsfrom fishers, clear the goods at the border and then transport to the border of the destinationcountry.WhenDagaaarrivesatthedestinationcountriestheimporterstakefullcontrolofproductandtransporttohis/herstoreswheretheyselltheproductstoeitherotherexportertakingtootherneighbouringcountrieslikeDRCortoretailers.

Interestingly, importers indicated that they sendmoney toexporters tobuy andmake transportarrangementsfortheproducttoarriveonhis/hercountry.Theimportersgetacommission110RWFequivalentto460TZSakiloforthisfunction.Itwasrevealedthatthesearrangementsexistbecausetheimportersarenotallowedtohaveexportinglicensesinaforeigncountry.WithexceptionofKenyaabout80%oftheDagaaexportedtotheothercountriesareusedforhumanconsumption.

Themajorimportingcountriesinclude;DRC,Burundi,Zambia,SouthSudan,Kenya,Rwanda,andMalawi.AlsoZimbabweandSouthAfricanhavenowstartedtobeimportersofDagaa.


Rwanda

Dagaa isnotapreferredfishamongmanypeople.Themajorityconsiders theDagaa fromLakeVictoriatohavemoresandcomparedtoNdagalafromBurundi.Asaresult80%oftheimportedDagaafromLakeVictoriaisexportedtoDRCthroughtwoborderpointsthatisBukavuandChangugu.

TherearefourDagaatradinggroupsinRwandathathaveworkingrelationshipwiththeMuganzafishinggroups fromTanzania.This relationship iswelldefinedwitheachotherwell awareof theoperationsfromcapturetodelivery.TheTanzanianfishinggroupstakescareoftheproductwhileitisstillwithinthecountrybutafterenteringRwandaitistheresponsibilityRwandangroups.RetailingfishishoweverdifferentfromtheoneexperiencedinTanzania.Theysellthefishinweightandnotinvolumes,andthepriceofakilo(750RWF)ifconvertedtoTanzaniashillingsisalmosttwotimesthesellingpriceinTanzania.ThereisgreaterpossibilityofincreasingtheconsumptionofthefishinRwandaiftheproductisprocessedinaqualitywayandthenationalcampaignspearheadedbythehealthministryonthenutritionalvalueofthefishbearsfruit.

Zimbabwe

In Zimbabwe, Kapenta (Limnothrissa miodon) is a very popular fish and is part of the local diet.Kapenta,oncedried,lookssimilartoDagaa.ThesourcesofsuppliesaremainlyLakeKaribaandLakeCaboraBassainMozambique.

FisheriesonLakeKariba andCaboraBassa areverydifferentlyorganisedcompared toTanzania.FishingcompaniesoperateKapentarigsandemployfishermentooperatethem.TheKapentarigsarerathersophisticatedfishingplatformswithmechanicallyoperatedcircularnetsattachedtoametalringofabout8mofdiameter.Fishingoccursalsoatnightusinglightattraction.Thesegearsallowdeepfishing(upto25m)andreduceby-catches.

Catchesarehauledonboardandimmediatelysalted.Assoonastheboatsreturntotheirlandbase,thefishisdriedondryingracks.

OverfishingseemstobeanimportantissueonLakeKaribaasNationalParksandWildlifeManagement,theauthorityresponsibleforthemonitoringoffishingonthelake,hasverylittlemeanstopreventtheexcessivenumberoflicencesdelivered.AtthemomentNationalParksrecommendtheuseofamaximumof300boatsontheZimbabweansideandthereareactuallyover360andmorearebeinglaunched.Someoperatorsareusingtheirpoliticalconnectionstoobtainthem.Moreover,fishbreedingandrestrictedzonesarenotrespectedbyalotoffishingcrews.AgaintheAuthoritiesfacegreatdifficultiestoenforcetherulesduetocorruptionandothermalpracticesdespitepenaltiesthatreach2500USDandeventuallytheconfiscationoftheboat.

ThemarketinZimbabweishoweververybuoyantwithahighdemandandhighsellingprices(USD6.50toUSD8.20/kgobservedduringthemissioninHararesupermarkets).Attheleveloftraders,thepriceshaverecentlyrangedbetweenUSD4.00to4.80USD/kg.

ItisfeltthattheSouthernAfricanmarkets(Zambia,Zimbabwe,RSAandMalawi)couldhaveaneffectonDagaapricesifthequalityreachesthemarketdemand(sandfree,sundriedonracks).



animal feed industry

Dagaausedasanimalfeedcontainsgravelandsand.Theproductispackagedtogetherwithsandandshellsatarationprovidedbythebuyer.Inmostcasestheproductiseitherpurchasedbyagentstransportingtoanimalfeedindustriesorbyindividualpoultryfarmers.ThisproductisoflowqualityandismostlytransportedtoDaresSalaamandArushainTanzania.InKenyaitgoestofactoriesinNairobi,Nakuru,Thika,Eldoret,Kisumu,andMombassa.OthersalsofindtheirwayinRwandaandBurundi.

Figure 1 – Distribution Diagram

Dagaa opportunities for International exports

TheAfricandiasporainEuropeancitiesisveryimportant,especiallyincapitalcitiessuchasLondon,ParisorBrussels.Thesepeople liketofind“home”specialitiesamongstwhich isDagaa.There isthereforeapotentialfordriedDagaainthesemarketsbuttheEUhealthstandardsarehighpreventingtheexportofdriedDagaa.InordertohaveaccesstotheEUmarket,post-harvestmeasuresshouldbetakenintheboatsandEUlicencedprocessingfactoriesshouldbeprocessingit indoorstoEUstandardsconditions.

TherecouldbesomeperspectivesforfrozenDagaafortheEUifimprovementsaremadeandthefishisprocessedinEUapprovedplants.However,marketresistancemightoccurasthemarketisfordriedproducts.


Key Issues and Constraints

Themainconstraintsidentifiedduringthemissionwere:

Data information

Even inwell organisedmarkets such as Kirumba inMwanza,where data is collected on all fishmovements,thereisnoproperhandlingandstorageofthisinformation.Thisvaluableinformationisnotcomputerisedorsystematicallyrecordedandthereforenotprocessedinanyusefulway.Whengeneralinformationisneeded,itisnotreadilyavailableandthehardcopyofrecordsgoesmissing.Improvementstodatamanagementatthemarketwouldprovideusefulinformationtotradersandpublicofficialstoallowforbetterplanningandorganizationofthemarketfunctions.Fishers and processors do not have access to market information, especially regarding exportsmarketwithintheregion.Theydonotknowwhatthefinaldestinationoftheirproductis.PotentialimportersinregionalcountriesalsolackinformationonthepotentialofLakeVictoriaDagaa.Dagaainneighbouringcountriescanalsohaveanegativequalityimage.Finally,theconsumersarenotawareofthehighnutritionalvalueoftheproduct,whichagaincontributestoitsgenerallylowprice.

Quality issues

Toreachhighvaluemarkets(suchasindicatedabove,Zimbabwe,SouthAfricaandothers)thefishhastobeofverygoodquality.ThefishavailablefromTanzaniaatthistimedoesnotcomplywiththesemarketstandards.Thisqualityissueisdiscussedfurtherinthisreport.

Transport

TransportinAfricaisalwaysanissue.Roadconnectionsarenotalwaysverygoodanddistantmarketsaredifficulttoreach.Thiscontributestohightransportcostsinthedistributionsystemsaswellasdelaysandbreakdowns,whichagainaddtothefinalcoststotheconsumer.

Value Chain analysis

Duringpersonalinterviewswithvariousplayersinthevaluechain,theconsultantshaveattemptedtocollectinformationonthebusinesssideoftheDagaafishery.Ithasprovedrelativelydifficulttomakesenseofthisinformationwhencompiledtoformavaluechainanalysisorprofitsharestructure.Thereasonsbeingthefollowing:

• Unitsofmeasurementarevariableandlackaccuracybecausetheyarebasedonroughvolumes.The units can be buckets, sacks, and various containers of different capacities depending onwhat is available. Fish can either be heavily compacted or not, following the interest of theseller.Translation fromvolumestomass isveryvariabletherefore,preventinganymeaningfulcomparisonsandstructuredjudgments.

• Peoplealsomakemistakesintheirstatementsregardingtheirbusinessorsimplyprefertohidethetruth.Thereisalwaysacertainlevelofsuspiciononwhatthisinformationisgoingtobeusedforandtheconsultantsexperienceagreatdealofreluctancetoshareinformation.

• Packingandrepackingareoftenusedsothatunitschangealongthechain,thusfurthercomplicatingtheprocessofdefiningexactlyhowmanyfishandwhatvolumesaresold.

• Peoplehaveanapproximateapproachoftheiroperation;i.e.aprocessorcanbuyafullboatloadbyvisualappreciationanddonotcountbucketsoff-loaded.



• Fishermendonotreallyaccountfortheirinvestmentsanddepreciation,butaremoreconcernedaboutdirectoperationalcosts.Thereforetruebusinesscostingandunderstandingofwhatprofitsaremadeisdifficulttodetermine.

• There isadearthofreasonablerecordeddata. Itcanbededucedthatmostdatacollected isinaccurateandnotvalid.

• There is a systematicunder-valuationof volumeswhen it comes to trading.Customofficersindicatedthattheirrecordsmightbe70%ofwhatisgoingthroughtheborder.Theyhaveverylittlemeanstophysicallychecktheshipments.

Despitetheextremelydifficulttaskofcollectinggooddatatoperformarealisticvaluechainanalysis,thefollowingtableattemptstoillustratethecostsalongthevaluechainfromharvestingtotheregionalmarkets:

Table 2: Estimated Value Chain Cost from Fishing through to Customer

Unit Cost Annual Depreciation Cost per Kg

FISHING

Investment Cost

Boat 3,000,000 600,000 13.89

Engine 4,000,000 571,428 13.23

Fishinggears 1,000,000 1,000,000 23.15

Otherequipment 1,000,000 1,000,000 23.15

Total 9,000,000 3,171,428 73.42

Operating Costs

Fuel 55,000 137.50

Licence 80,000 1.85

Crewfood 10,000 25.00

R&M 350,000 8.10

Total 495,000 172.45

GRAND TOTAL FISHERY

245.87

(Costsexcludinglabour–fishermentoliveonmargin)

Unit Cost Cost per Kg

PROCESSING

Wetfishvalue(atcost) 245.87

Bags 1,000.00 14.29

Labour estimated 25.00

TOTAL (245.87+14.29+25.00)/30% (drying) 950.51

Unit Cost Cost per Kg

TRADING

Purchases(atcost) 950.51

Transport(in) 36.00

LabourHandling 8.00


Repacking 15.00

Loading/levy 24.00

Transport(Inter) 220.00

Taxes 5.00

TOTAL 1,258.51

GRAND TOTAL COSTS Delivered Duty Paid (DDP) 1,258.51

The purpose of this table is to translate the information collected from the fishers in terms ofinvestmentandoperationalcostsintoa“perkgcost”.Theexerciseisnotaccurate,asbothvolumeandmassmeasurementsarevariableandinaccuratethemselves,andalsothedifferentcommercialvaluescollectedvaryconsiderablyaccordingtothelocationwheretheywerecollected.Thereisalsoaseasonalityelement.NoteinthetableabovethatwetDagaa,oncedriedrepresentapproximately30%oftheweightofthewetfish.Thisresultsintheprocessingcostbeingmultipliedby3inthecalculationabove.

Thetablegiveanestimate/indicationofthespreadofproductioncoststhroughoutthevaluechain.Thefollowingtableisanattempttocompareestimatedproductioncostsandsalesfigurescollectedonthefield:

AEstimatedProductionCost(TZS/kg)

BIndicatedSellingPricerange(TZS/kg)

B-AMargin(TZS/kg)

WetlandedDagaa 245 150-800 (95)-555

DriedDagaaonsite 950 875-2,000 (75)-1,050

DiedDagaaonlocalmarket 1,025 750-1,250 (275)-150

DriedDagaasold-regionalmarket 1,260 1,600-1,800 340-540

Thisshowsthatmarginsexistatbothlevels,buttheycanbenegativeattimes,accordingtomarketconditions and seasonality. It however appears that the fisher is certainly themost exposed toeventuallosseswithinthechain.Forexample,iftheweatherturnshumid,thefisherscannoteasilysell theircatchesorwillatvery lowpriceand if theydry theDagaa themselves, thenthequalitysuffersinhumidconditions.

areas of possible improvements within the value chain

As indicatedearlier, theDagaamarket isexpanding froma traditionalnationalmarket toregionalmarkets in Africa. This is seen as a positive opportunity for the industry. The Southern Africancountriesdemandahigherqualityandareusedtowellorganisedfisheriesandprocessingpractices.However,thesecountriesoffergoodprices(ZimbabweretailmarketpricesrangefromUSD6.30toUSD8.26perkgfordried,retailpackedKapenta(August2011).Thereareanumberofissuestobeaddressedallalongthechainfromfishingtomarketsifimprovedregionaltradeistobesuccessfulandsustainable.

fishing level quality issues

Atthefishinglevel,fishstorageonboardcanbeimprovedbyusingadequatecontainerssothatit



isnot incontactwithbarewood, fuelsandpeople.Addingsalt couldalso reducebacteriologicaldevelopmentonthefishwhilehelpingwiththedryingprocessalso.Toachievethisfishingvesselsneedtobeequippedwithappropriatecontainerstostorethefishandsalthastobemadeavailable.Sensitizingthefisherstotheseideasisalsoachallengetobeconsidered.

Processing level quality issues

Dryingmethodscanbeimprovedsignificantlythroughutilisationofdryingracksormechanicaldrying,rather than the traditionalmethodsmostlyontheground,sand,rocks,etc.Dryingracksarenotdifficulttoimplementbutitrequiressomeminorinvestmentsandsomemaintenance.Mechanicaldryingwouldbeanexcellentoption,butitrequiressignificantinvestmentsandalsoanenergysourcethat isnoteasilyavailableon landingsites.Theneed forenergyalsoadds tocost.However, thequalityofthefishwouldexceedallqualitylevelsobtainedsofarinAfrica.IfonewouldtargettheEUmarket,thatwouldbetheonlyoptionasitistheonlyonethatcanguarantyanon-contaminationbybirdsandinsects.Analternativecouldbetheuseofgreenhouseswhilethefishwouldbekeptofftheground.Thisisalsoasolutionagainstrainsthataffectalotthedryingprocessandthequalityproduced.

ThemainchallengeistoreversethepercentageofDagaathatgoesintoanimalfeed(upto80%)andtheonethatgoestohumanfeedinordertogetamorenutritionalproductandbettervalue.Dagaarepresentsanexcellencesourceoffoodandwithqualityimprovementscouldbecomeaveryvaluablesourceoffoodsecurity,withsignificanteconomicimpact.Itisactuallynoknownwhattheexactproportionforanimalfeedversushumanfoodis,asproductindicatedasanimalfeedmaywellendupashumanfood.Forinstance,theendconsumersintheDRChavethereputationofbeingquitetoleranttowardsDagaaandotherfishproductsqualityandmayconsumemorethanisactuallyknown.

Trading improvements

Whenabetterqualityisreached,demandwillincreaseandpriceswillincrease.ThisisespeciallytrueofthosemarketsthatdemandahigherqualitysuchasthesouthernAfricacountries.Thiswillrequirecarefulpromotiontocreateawarenessofthequalityimprovementsintheindustrytogetherwiththeexcellentnutritionalvalueoftheproduct.Thereisnodoubtthatthepotentialforincreasedtradeisthere.Ifonly70%ofLakeVictoria’sproductioncouldbeimprovedandbeadequateforhumanconsumption,itwouldrepresent420,000tofwetDagaa(translatingto140,000tofdriedproduct)peryearbeingavailabletoregionalmarkets.

Frozenproductscouldalsodevelop.Therewillbeconsumers’resistanceasthisisnotanestablishedor traditional product. Transport of frozen goods is also more demanding and storage moreproblematicthandriedproducts.However,frozenproductshavealongshelflife(2years)andtheprocessallowsefficientcleaningoftheDagaaandthereforeguarantiesasafeproducts.Thereisafishfreezingover-capacityinTanzania,UgandaandKenyaasaconsequenceofover-investmentanddecliningcatchesintheNileperchindustry.Withfreezingcapacityavailableitprovidesanexcellentopportunityfortheindustry.

Onamarketpointofview,frozenproductwouldbedestinedtourbanareasratherthanrural.OnemustalsonotethatfrozenDagaacouldfinditswaytotheAfricandiasporaintheEU.


Data collection and recording

Datacollectionand recording is an importantactivity that isused toguidefisheriesmanagementmeasures aswell as sustaining fisheries resources.However, thefisheryofDagaa like anyotherfisheryofthelakeishinderedbyagenerallackofreliableinformationontheactualfishharvestedandtradedintothenationalandregionalmarkets.Thedataatsomelandingsitesandmarketsisnotwelldocumentedandisnotinaformthatiseasilyretrievedwhenrequired.Thisinformationisnormallyrecordedincounterbooks,whichsometimesgetlost.However,inothersthedataisnon-existentandthereisnoplanforthatactivity.Lackofdatarecordingismostlyattributedtolackofmoderndatastorageandpeopleskilledatusingsuchequipmentandsystems.

Data accessibility / Market information

Accessibilitytofisheriesdataoncatches,pricesandproductstraded isvital foranybodywillingtoinvestinthefisheriesaswellasgettingfirst-handinformationonthecontributionofthefisheriestothenationaleconomies.Thisinformationshouldbestored/recordedindatastoragefacilitieswhereitcanbeopentoanybodywhoneeds it.However,withintheLakeVictoriafisheries there isnosystemwheretheinformationisreadilyaccessibletotheresourceusers.Fishers,processors,andtradersdonothaveaccesstoinformationrelatedtocatch,pricesortradelevels.Thisinformationisonlyavailabletoresearchersandacademiciansifitisavailable.

Workshop held in Mwanza on 25th and 26th of august

Theworkshopwasconductedover2daysinMwanza,closetoKirumbamarket,whichisfamousforitslargevolumeofDagaastorage,distributionandtrade.

Day 1 of theworkshopwas dedicated to the presentation of the fieldmission’s findings by theconsultantsaswellaseightpresentationsfromvariousspecialistsinDagaa.Herebelowisthelistofpresentersandthetitleoftheirpresentations.

Thesepresentationshaveallowedtheparticipanttohaveabroadviewonthewholevaluechainfromtheresourcestothemarketsaswellastacklingissuessuchasmicrofinance.

Day2startedwithaquestionnairethatwashandedtosmallgroupsofparticipants(4groupsof5-8people),witheachaspecificareatocover.Thegroupswereaskedtopresenttheirfindingsduringafollowingsessionincludingalltheparticipants.Discussionsanddebateswereheldandsynthesiswasmadeattheendoftheworkshop.Annex1Bincludesalistofparticipantsattheworkshop,Annexes2and3indicatetheworkshopagendaandkeyoutcomesrespectively.

Theworkshopallowedtheconsultantstounderstandsomemoredetailed informationabouttheDagaafisheryandreceivefeedbackfromthekeyfindingsofthefieldmission.Theworkshophelpedtohighlightkeyareasfor further interventionandsomeoftheconstraintsthatarehamperingthedevelopmentofthefishery.

Therewassignificantenthusiasmintheworkshop,whichincludedfishers,processorsandtraders,aswellasrepresentativesfrompublicoffice.



Recommendations

AnumberofrecommendationshavecomeoutofthisDagaaassessmentandarepresentedbelowforconsideration.

Global market survey

ThefisheryofsmallpelagicfishinEasternandSouthernAfricahasalwaysintendedtoberegionalandit’sgettingincreasinglyglobal.FishharvestedinTanzaniaisdistributedinmanyneighbouringcountriesandthesameappliesforsimilarfishharvestedinotherLakessuchasCaboraBassaKapentabeingsold inZimbabweorMalawi,ZambianKapentabeingsold inMalawiortheDRC.It is thereforerecommended that the SmartFishProgramme takes a global approachof theseproductions andmarkets.

Inordertohaveaglobalviewonsmallpelagicfishdistributionwithintheregion,itisproposedthattheSmartFishprogrammeextendsitssurveytotheproductionareaswhereitisindustriallyharvestedandsurveyfishmovementsinthetradeactivities.

Theproductionareasare:- LakeVictoria:Uganda,TanzaniaandKenya- LakeAlbert:UgandaandCongo- LakeKivu:Rwanda,Congo- LakeTanganyika:Tanzania,Burundi,CongoandZambia- LakeKariba:Zimbabwe,Zambia- (LakeCaboraBassa:outoftheSmartFishscope)

Asfortrading,mostofthecountriescouldbeconcerned:Burundi,(Comoros),(Djibouti,)DRCongo,Eritrea,Ethiopia,Kenya,(Madagascar),Malawi,(Mauritius),Rwanda,(Seychelles),Somalia,Sudan,Swaziland,Tanzania,Uganda,ZambiaandZimbabwe.Thecountriesin()arehoweverunlikelytobeconcerned.

Thismissionislikelytohighlightthelackofreliablestatisticsinmostofthesecountries.Theobjectiveswouldbetounderstandwhattheobstaclestotherecordingofproperstatisticsinvolve.Amongstthem, thearisingpoints couldbe: the lackofmeans (basicofficeequipment,human resources),corruption,illegaltrade,etc.

Upontheconclusionsofthismission,theSmartFishprogrammecouldchoosetoassistinsomeareasbyprovidingtrainingtoBMU’s,Fisheriesofficers,etc.aswellasprovidingsomeofficeequipmentandtraining.Meanstoincentivizepeoplearealsotobefound.

Theultimateobjectiveofthismissionwouldbetoidentifythevariousproductionsareasandsmallpelagicfishmovementacrossthewholeregion.Quantificationoftheseactualproductflowswouldbeveryusefulfortheimplementationofthenextproposedactions.Mostimportantly,themissionwillidentifyproducers,tradersanddistributors.AdatabaseofthosevaluechainactorswouldbeusedforfurtherSmartFishactionsasproposedbelow.


Fish quality on fishing vessels

Fish isbeingharvestedandstored in theboatwithoutanyspecialcare. Itcanbe incontactwithpeople’sfeet,kerosene,fuelandanyothermatters.Thereisanurgentneedforadesignofappropriatecontainerssothatthefishcanbeimmediatelystoredandeventreatedwithsaltafterharvest.Thatwouldassureamuchbetterqualityforfurtherprocessingoncetheboatscomebackforoff-loading.Thatrequiresaprojecttodesignasuitablesystemthatcanfitthetypicalvesselsandcanbecosteffectivelyinstalled.Communicationofbenefitstothefisherswouldalsobepartofthisinitiative.

Processing improvements

Theotherareaforimprovementistheprocessingitself.TrialshavebeenmadeinothercountriessuchassolarracksinKenya.ThiscouldbeimplementedinacoupleoflandingsitesinTanzaniafordemonstrationandtrainingpurposes.Whenthestakeholderscanactuallyseethatamuchbetterpricecanbeachievedthroughbetterprocessingandfishhandling,itislikelythattheymightconsidertheinvestment,whichisnotoutofreach(about130USDfora2x4msolarrackmadeofwood,plasticmeshandpolyethylenesheets).

Creation of an internet platform

Thecreationofaninternetplatformthatcompilesinformationofsmallpelagicfish(andotherfishproducts)wouldcertainlybebeneficialtoproducers,tradersanddistributors,aswellasscientistsandauthorities.Thisplatformcouldofferthefollowingservices:

• Informationonfisheriesstatisticsintheregion• Informationonbestfishhandlingandprocessingmethods• Scientificinformationoncommercialspecies(accesstoavirtuallibraryofexistingstudies)• Databaseoffishproducers,traders,distributors,retailersinthewholeregion• FishingNewsintheregion• Advertisementsfromprivatefirms(wouldalsofinanceapartofthewebsiteadministrationcosts)

organisation of trade fairs coupled with workshops/conferences

Theorganisationof trade fairs coupledwithworkshopor conferences could really enhance thecirculationof informationand facilitatebusiness in theregion.Fish isakeyproduct in theAfricandiet and it justifies the organisation of such events. This should be accessible to companies andstakeholdersfromthewholeregion.

SmartFishcouldbethefacilitatorsofsuchfairsforacoupleofyearsbyfindinganappropriatelocationforthiseventtobeheld,contactawiderangeofcompaniesinvolvedinfishproductionandtradingandfinanceapartofthiseventonabudgettobedefined.

TherearepotentialgoodlocationsforSmartFishfairssuchasEntebbe,Harare,LusakaorNairobi.Thealternativeoptionofwell-knowninternationalSeafoodshows,suchasBrusselsorBostonisnotidealastheseshowsaregenerallyexpensivetoattendsonotavailabletomostsmall-scaletradersintheregion.Aregionaleventwouldbeanencouragingsteptowardsamoreintegratedandregionalfocusedtradedevelopmentenvironment.



Tours for potential investors

TheDagaafishingactivitiesarequiteprofessionalinTanzania.Fishershaveanextensiveknowledgeofthelakeandtheyknowhowtofish.Therearesometrainingareasthatwouldbeneeded,especiallyonthefishhandlingissueonboard,aswellassomeresourcemanagementawarenessthatcouldbenefitthesectoronthelongterm.

Theprocessingofthefishoncelandedisanareaofmuchconcernbasedonqualityreductionandlosses;acompletetransformationofthatpartofthevaluechainisrequired.

Mostof the time, theprocessorsarefishermen themselvesor theiremployees.Sometimes, theprocessorsarealsotraders.Thereisnotacleardefinitionofwhattheprofileoftheprocessoris.Thisactivityinthevaluechainismostcriticalasitiswherequalityisgainedorlostforever.

Theneedtoattractspecialisedprocessorsisclearlyidentifiedbythismission.Potentialinvestorsinfishprocessinghavetobeinformedonthelargepotentialofthisindustry.Theconsultantsthereforeproposethatidentificationofsuchinvestorsismadethrough,andaspartof,theproposedmissiondescribedabove(furtherstudies).

Helpwiththepreparationofbusinessplansbasedonreliabledata(partof informationmissionasabove)would be necessary aswell as assistancewith sites identification for potential processinginvestments.

Included in Annex 4 is a preliminary reviewof a potential investment in theDagaa fishery. It ispreparedbasedonbasicdatacollectedduringthefieldmissionandthroughextensivediscussionswith existing processors. It is based on a proposed 10t per day (wetweight)Dagaa processingoperation,wherethefishwouldbepurchaseddirectlyfromfishersontheLakeinTanzania.Capitalandoperatingcostsareconservativeinthemodel.Indicationsarethatsuchanoperationhasmeritforfurtherdetailedanalysisandsuchananalysisshouldincludedifferentoptionsforsizingtheproposedproject,aswellasmoredetailsofactualscheduledstart-upandgrowthoveraperiodofmonths.Keysensitivityanalysiswouldalsobeusefultoprovideanindicationofpotentialriskfactorsforsuchanoperation,aswellasanoptiontoreviewcapitalandoperatingcostsforanintegratedfishingandprocessingoperation.

Regional product information

Dagaa nutritional value has been studiedwell and shows that the product is of high quality forhumansaswellasanimals.Thefactthatthefishiseatenaswhole,includingeyes,visceraandbrains,actuallysuppliesanincreasedamountofmicroelementsandvitaminstothebody.Smallpelagicfishisthereforeaveryvaluablesourceofnutritionalfood.Unfortunatelythisknowledgehasnotreachedthegeneralpopulation.

CompilinginformationonthestudiesbeenmadeandtranslatingthisintoasimplemessagetoendconsumerwoulddefinitelyaddvaluetotheDagaaregionally.Thesearerathermarketingissuesandcanonlybeimplementedifthequalityoftheproductsofferedhasbeenincreased.The simplestway to implement such campaigns is throughpackaging.Besidenutritional aspects,information can be printed in appropriate languages. There are many other means of mediaadvertising(newspaper,radioorevenTVadvertising).Thatcouldbedoneonspecifictargetmarkets.Costingwouldneedtobemade.


Stakeholder visits to companies advanced in similar fishing and processing activities

ArrowAquaculture,whoattendedtheworkshopinMwanza,hasindicatedduringtheworkshopthatitwouldwelcomeotherstakeholderstovisittheiroperationinKiyindi(Uganda).SimilarenquiriescouldbemadeinKariba–Zimbabwe.Thisindicatesawillingnesstoshareforthebettermentofthewholeindustryintheregion.Improvedfishingandprocessingpracticescouldbenefittheindustryasawholeandgenerateapositivebrandforthewholeregion.Combiningshipmentsfromdifferentprocessorscouldalsogivemarketaccesstolargercustomers.

FikiriMagafuisafishermanfromMwanzawhohasshowedcommitmenttoimprovedDagaaquality.He has proposed to take a small group of 5 of his colleagues having similar aspiration towardsimprovedqualityandvisitArrowAquaculture(mukenefishingandprocessinginUganda)tolearnfromthiscompany.Itisproposedtoassistsuchinitiativesbyhelpingontravelcosts.

Technical audit for mechanical drying

MechanicaldryinghasneverbeenimplementedonDagaa.Atbest,sometrialshavebeenmadeintheEU(personalcommunication).TheclimateconditionsaroundLakeVictoria,especially in thewesternpart,areoftennotappropriateforsundrying.Asaresult,eitherfishermendonotgooutfishingorthecatchesarespoiledthroughslowdryingandfungusorbacteriadevelopment.

Therewouldbesignificantmerittodevelopanimproveddryingmethodthatincludesmechanicaldrying.Powerisoftenalimitingfactorforthesemethods,buttherecouldbesomewaystoreducethepowerneedoreventuallyfind“co-generation”systemswherepowerisgeneratedonsite.

Itisproposed,followingthisstudythatSmartFishconsidersupportingtheinterventionofaspecialistin(fish)drying.Thisinterventioncouldconsistofan“onsitevisit”tounderstandtheconstraintsaswellassometechnicaltrialsanddemonstrations.

Figure 2: Diagram of possible Smart Fish Interventions



anneXes


Annex 1A: List of people met during the field mission

NAME NAME OF COMPANY TEL. NO. E-MAIL ADDRESS

FredJohnkanute BMUChairSweyabeach +255752175968

JumaOwino BMUSecretarySweya

JacobMgome UshirikaWauzaSamaki +255754895114

FikiriMagafu UshirikaWauzaSamaki +255782928559

OmaryKamata FisheriesOfficerMwanza +255782011776 [email protected]

MathiasWanchogu WardFisheriesOfficer

ApolinaryKyojo Surveillancein-chargeMara +255784204404

MamaAziza AADP&E-Mararegion

Adammakaja Fisheriesofficer-Musoma +255784901314

GodphreyBwathondi WardFisheriesOfficer +255783490017

AdamuMalicha BMUChairKibuyi

AlexErnestWang’ongi BMUSecretaryKibuyi +255789829268

HamisiKBakari Fishtrader

EvelynePatrice FishTrader +255788867009

NeziaBoniphace Fishprocessor/trader

PeruziJacob FishTrader

BarakaSimon Fishtrader

SuzanaMuge Processor

EmmanuelMshashi Fisher

MashauriMasuke Fishtrader

RajabuMarco Fisher

SuleimanHamadi ChairJikomboeFishtradersGroup +255754079168

ZembiMsabaha UpendoFishtradersGroup +255754740009

MrishoHaruna UaminifuFishtradersGroup +255755028905

AbdulSimhoni BMUKasenda/Muganza +255757032011

GeraldNkomola WardFisheriesofficer

RodrickMahimbali Surveillancein-chargeKagera +255754434125

JeanClaudeNdorimana FisheriesRwanda +250788455119 [email protected]

AllanKimenyi SUMIimporterGroup

SaidiBayingana MIRIMOSADAGroup

KubwimanaYussuf FishtradingGroup

WinnieKanyereko ExportertoDRC

PasteurBizimana LocalTrader



annex 1b: list of people attending the Mwanza Workshop

LIST OF PARTICIPANTS

1 HoseaGonzaMbilinyi

Director of Fisheries, Tanzania

+255 22 286 0471 [email protected]

2 AngelousMahatane

Regional Fisheries Advisor-Protocol

+2552 82 50 33 14 [email protected]

3 DrBenjaminNgatunga

Director General TAFIRI +2552 22 65 00 43 [email protected]

4 JuliusMairi Focal Point, Tanzania +255 713 45 59 08 [email protected]

5 Mr.EgidKatunzi TAFIRI Center Director +255 754 39 83 12 [email protected]

6 Mr.RobertKayanda

Fisheries stock assessment and Monitoring expert-TAFIRI


7 Mr.AndreasMadundo

Rorya District Fisheries Officer


8 Mr.OmaryKamata

Mwanza City Fisheries Officer

9 MsKhadijaMgamba

Dagaa processing expert +255 755 32 37 57 [email protected]

10 Mr.JohnMakene Expertise Dagaa Fisheries +255 787 68 00 58 [email protected]

11 Mr.OswaldNgwala

Micro Finance expert- REAL people

12 EmmanuelMondoka

Expertise Dagaa Fisheries

13 Mr.StephenLukanga

Fish Processing Quality Assurance Laboratory)


14 JosephLUOMBA

Study Consultant TAFIRI +255 2 82 55 01 53 [email protected]

15 DamienLEGROS

Aquaculture and Fisheries Consultant


16 ChrisSHORT SmartFish PMU, Indian Ocean Commission

+230 250 7180 [email protected]

17 Dr.KonstantineOdogkara

Fisheries Socio economist Uganda

18 Mr.KennethWeirimo

Fish quality and post-harvest losses expert

19 MrErnestYongo Fisheries socio economist Kenya

20 Mr.NevilleKeth Fisheries and processing

21 MargaretMasette

Food technologist +256 414 56 68 44 [email protected]

22 KenMthuzi Director of Fisheries Malawi



23 CarolineKirema-Mukasa

LVFO Senior Socio-econ-omist


24 IgnatioRwina Fisheries Officer Muleba district council


25 AuroreMartingale

SmartFish PMU, Indian Ocean Commission

+230 748 78 55 [email protected]

26 JeanClaudeNdorimana

27 KoffiMulumbaCasimir

chef de division, contrôle et surveillance des peches


28 GeraldKamukala Operations Manager Baspik sardines fisheries


29 FikiriFrancisMagafu

+255 782 92 85 59

30 SuleimanHamad

31 MrishoMoshiHaruna

Katibu, UAMINIFU Fish Trader's Group

32 FelicianMutagisa +255 688 06 78 17

33 MairaBwere livestock development and Fisheries

+255 685 13 94 79

34 EvalinePatriceAkoth

Processor +255 788 86 70 08

35 ErnestAlexWagongi

Secretary B.M.U +255 789 82 98 68

36 FredJohnKanuti B.M.U CHAIRMAN +255 752 17 59 68



annex 2: Workshop Programme SmartFishProgramme(ImplementationofaRegionalFisheriesStrategyforESA-IO)DAGAAVALUECHAINANALYSIS:TECHNICALWORKSHOP25TH-26THAUGUST2011,LAKAIROHOTEL,MWANZA,TANZANIA

Time Item Proposed speaker

August 25th EgidKatunziModerator 1st Day

8:30–9:00 Registration All

09:00–9:45 OpeningPrayerRemarksbyDirectorofFisheries

ChrisShort–SmartFish

RemarkfromChiefGuest

ParticipantIntroductions

14:40–15:00 Presentation6 ErnestYongo

15:00 – 15:20 Coffee / tea break

15:20–15:40 Presentation7 KenethWerimo

15:40–16:00 Presentation8 OswaldNgwala

16:00–16:30 Discussions

16:30–17:00 SummingupDay1/ReviewDay2activities

August 26th AngelousMahatane Moderator 2nd Day

09:00–10:00 GroupDiscussions ALL


10:20–12:00 Group’spresentations Group’srepresentative

12:00 – 13:00 LUNCH

13:00–14:00 Discussion

14:00–15:30 Planninginterventions ALL


16:00–16:30 DraftingPlans/Actions Damien/Joseph

16:30 – 17:00 Summing up the Workshop Chris

17:00 EndWorkshop

18:00–20:00 Reception ALL


annex 3: Workshop summary

SMARTFISHDAGAAVALUECHAINWORKSHOP-GROUPDISCUSSIONS&PROPOSALS

PARTICULARQUESTIONSONFISHING

Do you need any training in fishing practices?

• Trainingpracticesareneededasfishersneedtounderstandfishbiology(breedingperiods,etc.)tooptimisefishingefforts(beachlevel).

• Fishersneedtounderstandthebasiceconomicsoftheiractivitytoplanfinancially,understandtheiroperatingcostsorinvestmentneeds.Cashmanagement(beachlevel).

• Trainingonfishhandling(beachlevel).Consultexistingmodulesfirst.• BMUsshouldbegivencontinuing trainingongoodfishingpractices inorder topreserve theresource.

• Need of harmonisation of fishing period over the 3 riparian countries (Kenya closesDagaafisheriesfrom1/01to30/06).

• Asasidecomment:needtocheckDagaastocksinthelakeandlifespan.• Trainingneedstobeadaptedtoeducationlevel(targetedgroups?).

Do you need specific equipment that you don’t have access too? (fishing, fish preservation,…)?

• GPS:needseemstobedictatedbyborderscrossingissues.TrainingforGPSuseshouldthenbeneededtoo.

• Needoflargerboatsinordertohavebettercatchstoragecapacity.• Designed containers specifically adapted to theDagaa storage on board. That should allowprimaryfishpreservationtreatment(salt,ice,…).

• Underwaterlights.

Would you prefer to sell you fish wet or do you see value in processing and/or trading yourselves?

• ItisfeltbyfishersthatitisdifficulttomaintainqualityandvalueonwetDagaa.Thereisthereforeneedfordryingfacilities(operatedbythemselvesorspecialisedprocessors).

• HealthissueshavebeenhighlightedasitlookslikeblameisbeingputonDagaaforhealthhazardsuchasappendicitisinRwanda.

• Accesstofinanceneededforinvestmentsandworkingcapital…• Attractinginvestors…businessplanmodels?• Awarenesscampaign.

PARTICULARQUESTIONSONPROCESSING

Do you think that you will get more value if you improve your processing and therefore your quality?

NeedforTrainingin• Handlingpractices• Hygienepractices



• Batchseparationfromcatches(especiallyifsaltingspecificationwereinplace)• Saltingonboard• Dryingoffground• Packingin20–30kg• Mechanicaldrying(trials)• Storageanddistributionimprovements

Will you be able to compete against the lower quality fish?

Yes,if:• Promotionisdone• Highlightnutritionalbenefits• Appropriatepackagingisused• Suppliesandqualityareconstant

What do you think would be the simplest and cost effective fish processing technology for Dagaa?

• Implementation:Redesignfishingvessels/containers• Provisionofdryingfacilitiestobeusedeconomically• Installappropriatestoragefacilities• Usingweightasmeasuresratherthanvolumes

PARTICULARQUESTIONSONTRADING

What are the required improvements to facilitate trading?

• Storagefacilities,hygienicpackingequipment,packagingfacilitiesandequipment• Infrastructurefortransport• Financeaspect• Marketinformation• OwnershipofGroupvehiclesorsourcing• Branding/certifications• IssuesofharmonisationonLocalGovernmentlevy

How can these interventions be implemented?

• Financialsupport(broad…private,institutions,public,…)• Trainingintrading/marketing….• Marketresearch• Networking,…marketaccess• Studytourstomarketstounderstandothermarketrequirements• Assetspurchases(machinery,…)• Regionalcommercialfishfairs


QUESTIONSONSTATISTICS

How to improve data collection and treatment? (At fishery level and market level)?

• Datacollectors(BMUmembers)tocompilemonthlydataandsendatdistrictlevel;topossiblyincludethedestinationofproductsalso.

• Permanentmarketsatallexitpoints.• Informationtobemadeavailabletofishersfortheirowninformation/motivation.• Sensitisefisherstoreporttheircatches–wetweight.Ifnot,licencenotrenewed.• Processorsshouldbeknownandrecorded.• Dagaatraderscountsandregister.• HarmonizedDagaacatchesrecords.• SystemiswellimplementedforNileperchbutnotforDagaaprobablyduetolowervalue.• KenyansystemfundedbyGov.:Marketingdatasystem(volumes,pricesonparticular landingsites/markets)viatelephone…couldbeextendedtoTZandUG.AppliestoNileperch,TilapiaandDagaa.

• Increasemeansfordatarecordsatmainmarkets(KirumbaandMuganza).



Annex 4: Simplified Business plan trial for a 10t/day drying operation

10tperday isa largeoperation,butconsideredtobeaworthy levelof investment.Thecapitalexpenditureincludesanumberofbuildings,etc.whichsignificantlyincreasetheinitialcosts.Thesecouldbephasedinasrequiredanddonothavetoalloccurbeforeoperationscommence.

Assumptionsarelistedhere:

Assumptions

Landcostisunknownsohasbeensetaszerointhisanalysis

Operationaldaysperyear 215

Labour 25 Wages $200 /month 4,000.00

Management 2 Salary $2,000 /month 5,000.00

Processing(drying)yield: 30%

Sellingprice(exworks)USD/kg $2.50

PurchasePriceperKg(wetfish) $0.35

(PurchasepriceatUSD0.35/kgislargelyovertheindicatedpricesduringthemissionofUSD0.15/kgindicated)

Capital expenditure Unit costs Required Total Depreciation Depreciation

USD/m² USD time (y) (/year)

Land $-

Dryingracks 10 5000 $50,000.00 10 $5,000.00

Building $50,000.00 30 $1,666.67

Equipment $30,000.00 10 $3,000.00

Vehicle $35,000.00 7 $5,000.00

Tractorandtrailer $50,000.00 10 $5,000.00

Managementhouseandoffices

$50,000.00 30 $1,666.67

TOTAL CAPEX $265,000.00 $21,333.33

Aprojectedoperatingstatementisfollowswhichisconsideredconservativegiventheactualcostoffish.Thisbusiness modelindicatesdirectpurchaseoffishfromfishers,ratherthanfurtherinvestmentinfishingvessels.Asabusinessdevelops,vertical integrationwouldprovidemorecontrol to theprocessoroverthequalityoftheirfishandhelptoguaranteevolumesavailabletoprocessing.


PROFIT & LOSS ANALYSIS

Month Year

Sales USD USD

Sales(kg) 48,375 580,500

Sales(USD/kg) $2.50 2.50

TOTAL REVENUE $120,938 $1,451,250

Direct Costs

Fishpurchase(kg) 179,167 2,150,004

Fishpurchase(USD/kg) $0.35 $0.35

TotalFishpurchase $62,708 $752,501

Saltpurchase $3,000 $36,000

Wages $4,000 $48,000

COST OF SALES $69,708 $836,501

GROSS MARGIN $51,229 $614,749

Administrative Costs

Salaries $5,000 $60,000

OtherLabour(Benefits,medical) $1,000 $12,000

Depreciation(USD/kg) $1,778 $21,333

Repairsandmaintenance $2,000 $24,000

Fuelforvehicle $800 $9,600

Packaging $2,700 $32,400

OtherAdministration $1,500 $18,000

Insurance(Buildings&Vehicles) $800 $9,600

Communicationandmarketing $2,000 $24,000

Marketingtravel $2,000 $24,000

Total Administrative Costs $19,578 $234,933

Profit Margin (before tax) $31,651 $379,815

Tax 0% $ - $ -

Net Profit $31,651 $379,815

ProfitMarginperkg(USD) $0.65



annex 5: Terms of Reference

AGROTEC CONSORTIUM

AssignmentName ImplementationofaRegionalFisheriesStrategy(IRFS)forESA-IO

MissionScheduleNumber 4M2.2.1-TOR

Coordinator ChrisShort,KE3;CoordinatorofRESULT4:RegionalTradeStrategy

TechnicalVerifier ChrisShort,KE3;CoordinatorofRESULT4:RegionalTradeStrategy

Backgroundtoassignment The IRFS program was launched in February 2011 with the aim of contributing toan increased level of social, economic and environmental development and deeperregionalintegrationintheESA-IOregionthroughthesustainableexploitationoffisheriesresources.TheprogramisfinancedbytheEuropeanUnionunderthe10thEuropeanDevelopmentFundwithinatotalfinancialcontributionofEuro21million.Theprogramis implemented by the Indian Ocean Commission (IOC) in collaboration with theCommonMarketforEastandSouthernAfrica(COMESA),theEastAfricaCommunity(EAC)andtheInter-GovernmentalAuthorityonDevelopment(IGAD).Otherregionalinstitutions involved include the Southern AfricanDevelopmentCommunity (SADC)and regional fisheries management organizations, such as the Indian Ocean TunaCommission (IOTC), theSouthwest IndianOceanFisheriesCommission (SWIOFC),the Lake Victoria Fisheries Organization (LVFO), and the Lake Tanganyika FisheriesOrganization(LTFO).ThefirstphaseoftheProgramwillbeimplementedoveraperiodof31months(March2011-September2013).

The overall objective of the program is to contribute to an increased level of social,economicandenvironmentaldevelopmentanddeeperregionalintegrationintheESA-IO region through the sustainable exploitation of fisheries resources. The expectedresults and outcome of the program falls into the following five categories: fisheriesgovernance;fisheriesmanagement;monitoring,controlandsurveillance; regionalfishtradeandfoodsecurity.

ThisassignmentfallsundertheResult4(regionalfishtradecomponent)oftheproject.Thedevelopmentofaregionaltradestrategyisthethrustoftheprogram.

This assignment falls under themoduleofResult 4 related to implementing strategicimprovementstoproductionandsupplyoffish,whereinterventionstoimproveaspectsof thecapture/productionprocessing, transportationoffish is recognizedasamajorconcernthataffectstheabilitytodevelopnationalandregionaltrade.Theworkwillfocusonakeyfisheryintheregionthatisknowntocontributesignificantvolumesoffishtotradeandfoodsecurity:theDagaafisheryofeastAfrica.DespitethebenefitsfromNileperch itsfishery isdecliningprogressivelywhileDagaa is increasing.ThischangefromNileperchtoDagaahasalsoledtoashiftasmoreandmoretradersareresortingtoDagaafishery.ThisexplainstheincreaseinDagaacontributiontothetotalfishlandingsintheLakeVictoriaregion.ThepurposeofthisactivityistogenerateabetterunderstandingonthemarketingofDagaaanditsproductsfromcapturetoconsumptionwithaviewtogeneratingastrategyforimprovingitsmarketing.

Issuestobeaddressed The specific task is to: Prepare a value-chain assessment for theDagaa fisheries ofTanzaniatoidentifykeymarketingissuesthatcanbeaddressedinaworkshopfortrainingonkeyissues.

A2seniorfisheriesmarket/economistsarerequired(1international/1regional)


ActivitiesoftheConsultant Theexpertsshallperformthefollowingtasks:

The assessment / study / workshop will undertake the following specific tasks inTanzania:

• ConveneDagaastakeholdersmeetingsinselectedareastoidentifythecurrentproblems with marketing within this fishery and fully understand the mainconstraints/opportunities for fishers in handling, processing and marketing ofDagaanationallyandregionally.

• Investigate/definethestructureofthedistributionchainforDagaafromcatchtoregionalmarkets,using2or3examplesinthecountry.

• Investigateprices forDagaaproducts throughout thedistributionchannelsandreviewcostsandmarginsassociatedwiththeprocesstoreachregionalmarkets

• Collectinformationondomestic/exportmarkets,andcompileinformationonindividuals/groupsinvolvedinDagaatrade,productsprocessed,andsuccesses,failures…

• Collect information on processed Dagaa products and assess possibilities forimprovedDagaaprocessingtechniquesinsecuring/sustainingcurrentandfuturemarketsnationally/regionally.

• Outline a simple businessmodel(s) (capital costs / revenue/ operating costs /margins)thatrepresent(s)thekeyprocessingactivitiesinthefisheryrequiredtosustainandimprovetrade.

• Reviewrequiredpersonalinvestmentinthefisheryformarketentry,aswellastosecurecurrent/futuremarketsnational/regionallyandassesstherequirementsforinvestmentinthisfisheryincludingaccesstofundsandfinancingopportunities(e.g.micro-credit)forsuchpersonalinvestment.

• Taketheviewthatexistinginfrastructureshouldbeusedasmuchaspossibletodefineshorttermrecommendationsformtheassessment.

• However (notwithstanding No. 8, above) identify other infrastructurerequirementstosupporttheindustryandprovideanestimateofcapitalcosts–suchaslandingsitesandotherlogisticalinfrastructure(ice,dryingfacilities,storage,transportation,wholesalemarkets,etc).

• DeterminethecostsandbenefitsonDagaafisherytoestimatethebreak-evenpoint in the fishery to improve understanding of the fishery. This will includeestimatingthecostsandbenefitsateachstageofproductionandmarketingchain(i.e.valuechain)andhowitimpactsonthefishers’.

• Towards the end of the study period, prepare and present the key findingsof the study to stakeholders at a feedbackworkshop (3 – 4 days envisaged).Viewsofstakeholdersshouldbeincludedinthefinalreport.Organizeworkshopparticipants,materials,etc.–toincluderegionalinterestedpartiesfromregionalcountries.

• Produceafinalreportfromthestudyactivities.

• Produceafinalreportformtheworkshopuponreceivingstakeholders’comments.

Report Writing

Preparationoffinaltechnicalreportfortheproject,asdetailedbelow.

Workshopsreportafterfinalworkshop



Expectedoutputs TheExpertshallproduceareportdemonstratingtheworkdone,namely:

• Technicalreportfortheproject• Workshopoutputs/reports

ThereporttobeproducedusingMSWord(andotherMSOfficesoftwareifnecessary)andbeavailableinhardcopyandelectronicform,bothinWord(andotherMSOfficeProgrammesasappropriate)andalltheelementstogetherinsinglefilepdfformat.

Formatofeachreport VARIOUSREPORTFORMATSTOBEAGREEDWITHSUPERVISORINADVANCE

FinalReporttoinclude:

• MSWordStylesforIRFSProgrammeReportsandTechnicalPapers

• Structure

• TitlepagesinmodelformatasperotherProgrammeReports–tobesupplied

• Tableofcontents,tothreelevels,formalformat–tobeagreed

• Listofannexesifappropriate

• Tablesoftables,figuresandpicturesallformalformat

• Abbreviationsandacronyms

• Layman’ssummary(oneparagraphencapsulatingkeyelementsthatcanbeusedinmagazine/webi.e.notovertechnical)

• ExecutiveSummary(1to2pages),inEnglish,andFrench

• Introduction

• Main body of report divided into different sections as appropriate, normallyContext,Methodology,PerformanceinrelationtoTOR,andDiscussion(upto20pages)

• Conclusionsandrecommendations (eachrecommendationmustbeprecededbyaconclusion,thatreferstoadiscussioninthemainbodyofthereport)

• Annexesasrequiredincluding,Termsofreference,Scheduleandpeoplemet

• AideMemoire(max.onepageonexecutionofmission,findings,conclusions,andrecommendationsinbulletpoints),otherannexesasappropriate

• FormatasperPMUindications

Reporttobereviewedby ChrisShort,KeyExpertforTradeResult


Duration 2 senior fisheries market economist (1 international / 1 regional)

Working days #1

Working days #2

Theoverallrequirementisasfollows:

Preparatorywork,research–pre-fieldmission 2 2

FieldWorkinTanzania,visitinglandingsites,markets,stakeholdermeetings, etc. for the purpose of datacollectionanddraftingreportinformation

18 18

Workshop preparation, invitees, materials, venue,etc….activitysupportedbyIOCinMauritius

4 4

Workshopdelivery(3-4daysisenvisaged) 4 4

FinalReportWriting 2 2

Total 30 30

Totalinputdays:62workingdays

Startdate Approx. Start: Mid July 11 Completion:End August 11

CompletiondatesforReportsandfeepaymentschedule

Draftreport

CommentsfromPCM Within1weeksafterreception

Finalreport 2working days after receipt of com-mentsbyIRFS/PCM

Finalreportbasisforrelevantpayments

Experienceandqualification

SeniorFisheriesMarketEconomists

Qualifications and skills:

FluencyinoneofFrenchorEnglishandworkingknowledgeofother

Experience:

• ProvenexperiencewithDagaafisheriesinthegreatlakesregion

• Understanding of fisheries economics, fish marketing, fish quality and processing forDagaafisheriesattheartisanallevel

• Experience/comfortablerunningandpresentinginworkshopenvironment

• ExperienceworkingwithEUprojectsanadvantage

• AbilitytotravelandworkinACPcountries

Locationsandtravel HomeBase,travelandworkinregionasrequired

International expert: Travel from: Home base – Tanzania – Home base. NeighbouringcountriestoTanzaniaifrequired

Regional expert:Travelfrom:Homebase–Tanzania–Homebase.NeighbouringcountriestoTanzaniaifrequired

Requested:

ProjectTeamLeader

Date:



Validated:

ProgrammeManager,forIOC-RAO

Date:

lIsT of PUblICaTIons – lIsTe Des PUblICaTIonsSmartFishProgramme

1. Report of the Inception / Focal Point Meeting of the SmartFish Programme – Flic en Flac, Mauritius, 15th-16th June 2011.REPORT/RAPPORT:SF/2011/01.August/Août2011.SmartFishProgramme.IndianOceanCommission(55pages).

2. Report of the First Steering Committee Meeting of the SmartFish Programme – Flic en Flac, Mauritius,17th June 2011.REPORT/RAPPORT:SF/2011/02.August/Août2011.SmartFishProgrammeIndianOceanCommission(51pages).

3. Rapport de la réunion de présentation du programme SmartFish aux points focaux – Flic en Flac, Ile Maurice, 15-16 juin 2011.REPORT/RAPPORT:SF/2011/03.August/Août2011.SmartFishProgramme.IndianOceanCommission(55pages).

4. Eco-Certification for the Tuna Industry, Technical Assistance for Implementation of a Regional Fisheries Strategy for ESA-IO (IRFS).REPORT/RAPPORT:SF/2011/04.May2011.SmartFishProgramme.IndianOceanCommission(40pages).

5. Regional Market Assessment (Supply and Demand).REPORT/RAPPORT:SF/2012/05.March/Mars2012.SmartFishProgramme.IndianOceanCommission(264pages).

6. Trade Assessment Study.REPORT/RAPPORT:SF/2012/06.March/Mars2012.SmartFishProgramme.IndianOceanCommission(120pages).

7. Gouvernance des Pêches Maritimes dans l’Ouest de l’Océan Indien.REPORT/RAPPORT:SF/2012/07.June/Juin2012.SmartFishProgramme.IndianOceanCommission(101pages).

8. Value Chain Assessment of the Artisanal Fisheries – Mauritius.REPORT/RAPPORT:SF/2012/08.June/Juin2012.SmartFishProgramme.IndianOceanCommission(85pages).

9. Kenya Fisheries Governance.REPORT/RAPPORT:SF/2012/09.June/Juin2012.SmartFishProgramme.IndianOceanCommission(36pages).

10. Training Needs Analysis – Quality and Hygiene:REPORT/RAPPORT:SF/2012/10.June/Juin2012.SmartFishProgramme.IndianOceanCommission(95pages).

11. A Review of Somalia’s & (Semi-Autonomous Regions) Fisheries Legislation and Management.REPORTRAPPORT:SF/2012/11.June/Juin2012SmartFishProgramme.IndianOceanCommission(49).

12. Assessment of IUU Activities On Lake Victoria.REPORT/RAPPORT:SF/2012/12.June/Juin2012SmartFishProgramme.IndianOceanCommission(130pages).

13. Review Of The Legal Framework for the ESA-IO Region.REPORT/RAPPORT:SF/2012/13.June/Juin2012SmartFishProgramme.IndianOceanCommission(149pages).

14. Comprehensive capacity review to implement effective MCS in the ESA-IO Region.REPORT/RAPPORT:SF/2012/14.June/Juin2012SmartFishProgramme.IndianOceanCommission(101pages).

15. Assessment of IUU Fishing in Lake Tanganyika.REPORT/RAPPORT:SF/2012/15.June/Juin2012SmartFishProgramme.IndianOceanCommission(58pages).

16. Spirulina – A Livelihood and a Business Venture.REPORT/RAPPORT:SF/2012/16.SmartFishProgramme.June/Juin2012IndianOceanCommission(39pages).

17. Diversification Study (Eco-Tourism and Recreational Fisheries).REPORT/RAPPORT:SF/2012/17.June/Juin2012SmartFishProgramme.IndianOceanCommission(76pages).

18. Value Chain Analysis of Fisheries Sector for Rodrigues.REPORT/RAPPORT:SF/2012/18.June/Juin2012SmartFishProgramme.IndianOceanCommission(78pages).

19. Dagaa Value Chain Analysis and Proposal for Trade Development.REPORT/RAPPORT:SF/2012/19.June/Juin2012SmartFishProgramme.IndianOceanCommission(45pages).

Indian Ocean Commission – SmartFish ProgramBlue Tower, 5th �oor, Institute Road - Ebène, MauritiusTél: (+230) 402 6100 Fax: (+230) 465 7933

dagaa value chain analysis and proposal for trade … · 2017-11-28 · implementation of a...

Documents