Innovation Platforms in the Aquaculture Value Chain in Egypt

National Aquaculture Innovation Platform Workshop, Cairo, 19-20 February 2014

Malcolm Dickson

• Collaboration between CGIAR centers (CIAT, ICARDA, WorldFish, ILRI)• Within selected value chains across Africa, South and Southeast Asia

and Latin America • To foster growth and inclusivity of livestock and fish value chains

around the world • To achieve more meat, milk and fish, by and for the poor at scale

Impact Pathways are linked to the Post 2015 Development Agenda and Sustainable Development Goals including global food supply, food and nutrition security, job creation, and linking small-scale actors to large-scale enterprise.

Expected outcomes are linked specifically to the Sustainable Development Goals (SDGs) 1, 2, 5, 8 and 9

See: http://livestockfish.cgiar.org/ and see http://www.ilri.org/home

CGIAR Research Program on Livestock and Fish

CGIAR Research Program on Livestock and Fish

Why Livestock and Fish?

• Animal-source foods provide critical inputs to the health of women and children• Nearly 1 billion (70%) of the world’s 1.4 billion extremely poor people

depend on livestock; two-thirds of the world’s livestock keepers are rural women • 400 million people in Africa and South Asia depend on fish for most of their

animal protein • 156 million landless people keep livestock

What are the program’s expected outcomes?

• Dairy and pigs: double productivity and incomes in target value chains • Aquaculture: increase fish consumption by 20% in target value chains • Goats and sheep: increase productivity to double incomes in target value

chains

Improving Employment and Income through Development of Egypt’s Aquaculture Sector (IEIDEAS)

Project duration: Dec 2011 – Dec 2014Funded by Swiss Agency for Development and Cooperation SDC and implemented in collaboration with CARE

Geographical coverage: 5 governorates (Behera, El-Minya, Fayoum, Kafr El-Sheikh and Sharkia)

Main activities:• Capacity Development of Best Management Practice guidelines & delivery of

BMP trainings• Dissemination of ‘Abbassa strain’ genetically improved tilapia• Support for women retailers (managed by CARE)• Expansion of aquaculture in Upper Egypt (managed by CARE)• Improving the policy environment for aquaculture

The aquaculture value chain in Egypt

• Provides significant benefits for Egypt:– Economic activity ($ 1.5 billion)– Employment (100,000+ FTE)– Food security (one fish per person per week)– Opportunities for sustainable and equitable growth,

including for women– Continued expansion possible if profitability is maintained

• Farmed fish has a relatively ‘short’ value chain: hatcheries fish farms wholesalers retailers & restaurants

• Presently limited processing or exports of farmed fish

• Many input suppliers: feed mills, equipment sellers, ice suppliers

Why multi-stakeholder interactions ?

• Multi-stakeholder interaction, including public-private partnerships are

crucial means to address complex problems

• They bring together different types of stakeholders with shared problems but

often diverging interests

• Innovation platforms are an example of such dynamic stakeholder-driven

mechanisms

Process of innovation platform establishment

• National-level launch meeting, 12 Jan 2014, Cairo

• Preparatory meetings at the governorate level, Jan-Feb 2014

1 meeting in El-Sharkia, El-Behera and El-Fayoum each

2 meetings in Kafr El-Sheikh to se:

– identify and prioritize challenges and opportunities in the aquaculture value chain for each governorate by broad range of stakeholders

– identify representatives for national level meeting

• National level innovation platform meeting, 19-20 Feb 2014, Cairo to

kick start the process with over 50 public and private partners

This workshopParticipants:• 16 Farmers• 6 Hatchers• 2 Retailers / wholesalers• 6 Input suppliers• 7 Authorities• 20 Researchers, consultants, experts, academics • 7 Others including NGOs, donors, facilitators

Process:• Sharing and discussion about issues from the governorate-level meetings• Prioritization of issues (through voting)• Analyses of the top 10 priority issues in mixed stakeholder groups• Stakeholder groups identify their potential actions• Establishing working groups based on interest• Action planning in mixed groups and establishing a process for the way

forward

Issues VotesInsufficient water & limited rights for fish farmers to use water 23Diseases / poor fish health 17High production costs (feed, fuel, land) 15Lack of options to own land for aquaculture 13Poor water quality 12Farmers are not well represented in decision making 11Lack of well-equipped fish markets / formal selling space 6Government perceive/treat fish farmers as a problem-makers 6Difficulties to obtain farm licenses 5Poor feed quality 4

Ten (10) key issues prioritized and discussed

Disclaimer: Views and priorities of retailers /Communities/Policymakers may be underrepresented

Issues

Lack of adequate technical expertise and knowledge among farmersLimited access to export marketLack of coordination between institutes (research / policy / taxes)Research, extension and training do not address sector problemsNo insurance schemes for staff (poor labour conditions)No continuous supplyMonopoly of few traders/importers for fish marketingBad reputation of farmed fish among consumers affecting marketingLand policies restrict expansion of aquacultureLimited access to financial services (credit / insurance)Poor infrastructure in some areas (roads, electricity and water)Retailers pay high fees to sell in markets

Other issues highlighted

1. Insufficient water & limited rights for fish farmers to use waterImplications:• Low performance of fish (growth, survival, productivity)

Causes:• Expansion of agricultural area • Increasing population (higher demand for water for

different uses)• Poor infrastructure for irrigation and drainage

Stakeholders that need to be part of the solution• Ministry of Water Resources and Irrigation, MoALR,

GAFRD, Ministry of Environment affairs, Aquatic union (to represent the sector)

1. Insufficient water & limited rights for fish farmers to use water

Solutions:• Promote improved legislation for equitable distribution of

water quotas for fish farmers by showing the importance of fish for food

• Use of alternative water resources; underground water, brackish water and water recycled systems in fish farms

• Integrations between agriculture and aquaculture to maximize water use

• Mapping the available land with water resources to be used for aquaculture

• Modify agricultural drainage canals to supply water to fish farms

• More intensive fish farming• Establish a “board” or “council” to create more attention the

problem.

2. Poor water quality

Implications: • Declining fish production• Increased production costs• Disease outbreaks• Negative impact on the environment• Negative impact on farm laborers health• Reduction of chances to export fish

Causes:• Industrial and municipal water is not treated before

discharge• Environmental laws are not enforced• Farmers do not apply BMPs• Farmers use low quality fish feed

2. Poor water quality

Stakeholders that need to be part of the solution:• Min. Environment, fish farmers, research organization, local

governorates

Solutions:• Water treatment of industrial and household water before

using it for aquaculture:– Use biotechnology for water treatment– Using wetland for water treatment– Using water treatment at farm level

• Using aeration equipment at farms to reduce need for water exchange

• Improve farm management practices

3. Fish diseases / poor fish healthImplications:• Not possible to expand/ continue aquaculture business• Could lead to appearance of highly virulent diseases and spread

of disease throughout the country• Could affect quality of fish in the market• Low fish supply in the market, leads to high consumer price

Causes:• Low water quality• Use of drainage water from agriculture with pesticides• Inappropriate farm management practices due to lack of

expertise among farmers• Lack of fish disease specialists in the farming areas• No linkage between the farmers and research institutes /

universities

3. Fish diseases / poor fish health

Stakeholders that need to be part of the solution:• MoALR, GAFRD, farmers, research institutes and universities, NGOs

Solutions:• Establishing a committee to survey fish health in the country

(private sector and research institutes)• Organize a conference to present results of this survey and develop

a plan to address issues identifiedPotential ideas:• Develop new policies on water use• Governmental monitoring and control of fish disease• Establishment of a specialized lab on fish diseases near farms areas• Training of farmers on best management practices

4. High production costs (feed, fuel, land)Implications: • Low return on investment• Farmers have low income and standard of living• Feed mills have low production cessation of business• High rate of unemployment• Consumers pay high prices for animal-source proteins• Low production may lead to more demand for imports

Causes: • High feed prices• High prices for power and fuel• High rental price of land• High costs for labour due to Lack of trained work force (lack of

labour efficiency)• Security risk

4. High production costs (feed, fuel, land)Stakeholders that need to be part of the solution• Farmers, hatchers, feed millers, research agencies,

MoALR

Solutions:• Establish an umbrella association for fish farmers,

hatchers and feed millers• Form a union of feed ingredient importers• Lobby with main Ministries involved for better energy

quotas for fish farmers • Develop governmental feed mills• Conduct research on alternative feeds• Grow raw materials (crops) locally in Egypt• Produce crops during cessation of aquaculture activity

5. Limited possibility to own land for aquacultureImplications: • Limited incentive for investment leads to reduced fish

production• Increasing fish prices • Farmers may stop paying land fees to GAFRD• High rate of unemployment

Causes:• Erosion of the role of the GAFRD as supporters of fish

farmers• Different standards towards different beneficiaries• Lack of consistency in rental periods (from 3 – 25 years)

5. Limited possibility to own land for aquacultureStakeholders that need to be part of the solution:• GAFRD, MoALR, farmers

Solutions:• Present the case for improved land ownership policies

in the Aquatic Union• Develop an advocacy campaign to show the importance

of aquaculture at the national level

6. Farmers are not well represented in decision making processes

Implications:

• Farmers not represented in setting policies, therefore policies do not reflect farmers’ perception of the situation and do not provide benefits to farmers

• As a result there are issues with policies related to land and water which lead to fish mortality

• Farmers are not compensated in case of fish mortality and disease

Causes:

• Limited good examples of successful collective action

• Limited financial and managerial resources for producer organizations

6. Farmers are not well represented in decision making processes

Stakeholders that need to be part of the solution:• MoALR, Aquatic Union, GAFRD, Fish farmers and other

VC actors

Solutions:• Strengthen existing fish farming organizations• Strengthen Aquatic Union to also represent fish farmers• Encourage fish farmers to participate in these

organizations by showing them the benefits

7. Lack of well-equipped fish markets / formal selling space for small retailers

Implications:

• Low profit margins for fish retailers, detrimental to livelihoods

• Bad working conditions for retailers

• High consumer price of fish due to high costs for retailers

• Low fish quality in the market

Causes:

• High fines imposed by government for selling where it is not allowed

• Monopoly in the market of large players

• High price of shops / market space

•Absence of a legal entity representing fish retailers

•Lack of interest by government for fish retailers

7. Lack of well-equipped fish markets / formal selling space for small retailers

Stakeholders that need to be part of the solution:•Government (governorate-level), NGOs, Fish retailers, private sector

Solutions:• Replicate the success story of Shakshouk (where a

shaded marketplace was established)• Establish a union of fish retailers that can help to push

for establishment of small markets in villages

8. Government perceive/treat fish farmers as problem-makers

Implications:• Exposure to the risks of trial and imprisonment or fines• Pursuits of a lawsuit because of the practice of fish farming• Negative vision of society/governorates to fish farmers• Negative psychological impact on producers and their

families

Causes: • Negative media coverage• Research institutions do not address the real problems of

the sector

8. Government perceive/treat fish farmers as problem-makers

Stakeholders that need to be part of the solution:• Media, Ministry of water resources and irrigation, MoALR,

GAFRD, Ministry of Environment affairs, Research institutes, universities

Solutions:• Organize a large conference bringing together national and

local-level authorities and fish farmers to update current policies

9. Poor feed quality

Feed is not homogenous, unbalanced and has low digestability

Implications:• Deteriorated water quality and properties• Low growth rate and lower production volumes of fish• High costs of production• Consumers pay high prices for lower quality fish• Increased occurrence of fish disease

Causes:• Raw materials of feeds are not homogeneous • Feed composition is imbalanced (feed formula not ideal)• High price of raw materials• Poor storage conditions of raw material • Poor processing

9. Poor feed quality

Stakeholders that need to be part of the solution• Central laboratories• Quality control assurance system• Regulatory agencies• Feeds industry

Solutions:• Upgrade public sector mills• Use of modern production systems for feed production• Researchers and feed mills to work together to imrpove

feed quality (e.g. feed analysis)• Enforce laws on feed quality consistently across the country

10. Difficulties to obtain farm licenses (not further discussed)

Implications:• No expansion of number of fish farms• Reduction in fish production volumes

Causes:• Fish farms face difficulties in license renewal due to suspension of

licenses by the Ministry of Irrigation• Difficulty to obtain licenses for ‘new’ aquaculture areas due to

the many different authorities involved• Classification of land for agriculture unsuitable for it

Stakeholders that need to be part of the solution:• Ministry of irrigation, MoALR

Way forward

• Working groups have been established based on prioritized issues

• Issues that are not addressed (yet) or new issues that emerge can be taken up in a similar way in the future based on stakeholders’ interests

• The working groups comprise of representatives from different stakeholders groups, those that feel commitment and are available to jointly start addressing the issue

• Initial steps in the next few months will include:

– further development of an action plan

– engagement with those that were not at the workshop but need to be part of the solution

• The groups will be facilitated by the IEIDEAS project in terms of logistics, facilitation, and capacity development, as well as coordination between the working groups

CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems in sustainable ways, making meat, milk and fish more available and affordable across the developing world.

CGIAR Research Program on Livestock and Fish

livestockfish.cgiar.org