worldfish experiences and perspectives - impact investing in small-scale aquaculture enterprise
DESCRIPTION
Presented by Malcolm Beveridge and Michael Phillips from WorldFish at the Seafood Summit 2012 in Hong Kong, 7 September, 2012.TRANSCRIPT
Impact investing in small-scale aquaculture enterprise – WorldFish experiences and perspectives
Malcolm Beveridge, Michael Phillips and Wayne Rogers
Overview
• Investment case • Project examples • Lessons learned • Ways forward
.. the case for finance
• Another 50 millions tonnes by 2030?
• Another US$50 billion in capital and annual operational investment?
– from where?
Year
Pro
du
ctio
n (m
illio
n to
nn
es)
20
40
60
1950 1960 1970 1980 1990 2000 2010 2020 2030
80
100
120
FAO (2004)Wijkstrom (2003)
IFPRI (2003)Ye (1999)
Fish
•Baseline scenario
•Technological advances in aquaculture
•Ecological collapse of fisheries
• Global consumption remains at1996 levels (15.6 kg/y)
• Global consumption rises to 22.5 kg/y
Growing fisheries (0.7% per annum)
Stagnant fisheries
the case for small enterprise…
• Large numbers of small-scale household farms in developing countries
• Improvements targeting the majority (not minority)
• SMEs are drivers of growth in developing countries
• Investment choices impact people
Small enterprises
Medium and large enterprises
the case for environment …
• Aquaculture can be environmentally sound source of food
• Considerable improvements possible with current systems
• Small vs large approach
• Inclusive approach for sector sustainability
• Investment pathways and choices make a difference
source: Hall et al. (2011)
Opportunities and challenges • Opportunities for impact
• Challenges
– How to reach large numbers of farmers?
– Weak institutional environment
– Business models
– Investment mechanisms
• Easier to work with large business!
Analyzing “project” investments
Approach
• Diagnosis
• Participatory improvement
– Technology & management
– Organizational
– Local technical assistance
– Partnerships
• Scaling up
• Social, economic and environmental outcomes
Returns to “project” can be significant, but it takes time • Patient capital...
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2007 2008 2009 2010
revenue from all farmers (USD$2.39m) net profit from all farmers (USD$1.44m) project investments (USD$1.90m)
-‐ 300,000 600,000 900,000
1,200,000 1,500,000 1,800,000 2,100,000 2,400,000 2,700,000 3,000,000 3,300,000 3,600,000 3,900,000 4,200,000 4,500,000 4,800,000 5,100,000
Baseline (2001 survey)
2002 2003 2004 2005 2006
Revenue generated -‐ total $8,884,444
Net profit generated -‐ total $3,524,444
India Aceh
Intermediary organizations are important
• Collaborative arrangements such as cooperatives, farmer groups
• Reduce transaction costs and economies of scale
• Capacity building takes time
• Sustained by business not project
• Opportunities to network and build scale
Environmental outcomes
Aceh India Bangladesh Solomon Islands
Productivity ↑ ↑ ↑ ↑ Disease risks ↓ ↓ ↓ Chemicals ↓ ↓ Fish in fish out ↓ Water use ↓ ↓ Habitats (mangroves)
↑ ↑
Combined approaches required
OrganizaNonal “glue”
Infrastructure investment
Working capital
Market links to
consumers and inputs
Technology and
management for
producNvity
Conclusions
• Small-scale sector is signi!cant
• Outcomes – business, environment, social
• Business case • Business model –
intermediaries or cooperative models, collective action
• Think business, not projects • Mix of partners and !nance • Role for “patient capital”
[email protected] [email protected]
www.worldfishcenter.org Acknowledgements – Resource Legacy Fund, GIZ and FAO/Allfish