The Mozambican Aquaculture Sector Characterising and Identifying Opportunities in the Mozambican Aquaculture Sector
Foreword I am proud to offer to you this market survey on the Mozambican aquaculture sector. It aims to serve as a guide for Dutch technology exporters and service providers interested in the growing market of aquaculture of Mozambique. At the same time Dutch involvement in aquaculture may contribute to further developing the potential of one of Africa' s most promising economies and to food security in the region. Aquaculture products are an important and affordable protein source for all population groups. It may supply the expanding middle class and the fast growing catering services for the oil and gas sector. Aquaculture products from Mozambique may also find their way to export markets in Africa and beyond. Dutch technology in the field of water treatment, fish feed and chemicals, installations for production and further processing, freezing and cooling can contribute to the development of the sector. Also technical advice and services, appropriate business models, quality control and marketing skills from The Netherlands can help to make aquaculture a competitive and sustainable business in Mozambique. This report was compiled by Mr Etienne Hinrichsen of AquaEco for the Agricultural Counsellor for Mozambique at the Embassy of the Kingdom of the Netherlands in Pretoria in close cooperation with the Netherlands Embassy in Maputo. March 2014 Niek Schelling Agricultural Counsellor Embassy of the Kingdom of the Netherlands Pretoria, South Africa P.S. Other market reports on agribusiness in our region can be consulted and ordered at the website of the Netherlands Embassy in Pretoria: http://southafrica.nlembassy.org/ 1
Abstract This report describes the current status of the Mozambican aquaculture sector and highlights potential opportunities for Dutch involvement in investment and in the provision of expertise, equipment and services. The aquaculture sector in Mozambique is small and consists mainly of rural pond farming and coastal seaweed culture. A wide variety of indigenous species and extensive natural resources; including water, land and a conducive climate provide much untapped potential. With greater formalisation and growing interests in marine and inland aquaculture, the sector is likely to grow. The primary marine and freshwater sectors are described in the document with pertinent information related to Mozambique as a country. On the back of this information the potential that exists for aquaculture investment and cooperation is illustrated. Although sector growth is hindered by infrastructure challenges, the rapidly growing local and international demand for seafood is likely to stimulate expansion. Participants in the aquaculture sector in the Netherlands can assist the fledgling Mozambican aquaculture sector through innovation, investment, cooperation and more. 2
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Executive Summary The content of this document covers the characterisation of the Mozambican aquaculture sector against the nature of Mozambique as a country. In this manner, this document offers the following information: Introduction The introduction presents the background, objective and approach or methodology that was used in the compilation of the document. The objectives of the document are grounded in the characterisation of the Mozambican aquaculture sector, through which opportunities are identified for the involvement of Dutch stakeholders in partnerships, through investment, markets, trade, knowledge sharing, linkage and more. General Information The general information section deals primarily with Mozambique as a country. The section highlights the country's development history, politics and demography. The estimated population of 23.5 million (2012) is subject to a current growth rate of 2.4%. The social and economic landscape is sketched against the background of the state's strategies and governance frameworks. The manner in which land tenure operates in Mozambique is discussed, while the macro economy of the country is presented within a framework of trade, import, export, GDP, agriculture and more. The trade relationship with the Netherlands is specifically highlighted. The Mozambican infrastructure and technology characteristics are discussed, specifically in terms of electricity, transport and information technology. The biophysical landscape is presented in terms of the country's ecology, climate and landscape forms. Introduction to Aquaculture Information is presented to place Mozambican aquaculture in context to global and African aquaculture, with consideration to the historic development thereof. The species that are currently used in Mozambique are presented with information pertaining to the nature of production and future potential. Production trends in local aquaculture and the production systems that are generally employed are presented. Aquaculture development possibilities in focal areas such as the Beira Agricultural Development Corridor, the Zambezi Development Corridor and the Maputo development corridor are investigated in terms of infrastructure, markets and other factors. Sector Services An analysis is provided with regards to key sector services, covering the provision of aquaculture feeds, biosecurity and veterinary services, technology services, academic and research capacity and the human capital available to the local sector. Markets and Value Chain Information is presented on the predominant markets for aquaculture products in Mozambique, while the typical aquaculture value chains are discussed. The strong rural or informal markets are discussed against the increasing formalisation of production methods and demands for fish across Africa. Sector Governance The sector governance is discussed in terms of the governing legislative frameworks, as well as the role of the National Institute for Aquaculture Development (INAQUA), as the sector's lead agency. The key national policies and strategies are noted with particular reference to the Aquaculture Development Strategy in Mozambique (2008-201). SWOT Analysis and Opportunities This analysis method was used to identify strengths, weaknesses, opportunities and threats to the sector, with specific focus on opportunities for Dutch involvement. The potential for collaboration around the farming of catfish, marine finfish farming, the provision of aquaculture feeds and the optimisation of the value chain are highlighted. The document is concluded with contact details of the key stakeholders involved in aquaculture in Mozambique. 4
Figures Figure 1 Fingerlings (young fish) being packed in oxygenated bags for distribution to local fish farmers. Figure 2 The ten provinces that make up the country of Mozambique. Figure 3 Graph depicting the exchange of 1 Euro and 1 US$ to the Mozambican Metical, as well as the annual GDP (ppp) in US$. Figure 4 Most problematic factors to doing business in Mozambique and the Netherlands (Global Competitiveness Report 2013-2014). Figure 5 Seaweed ( Eucheuma and Kappaphycus species) cultured in shallow marine waters before being harvested, dried and sold-on for export. Figure 6 Mozambican aquaculture production by tonnage and value per annum. Figure The use of hapa's or small net cages is popular in Mozambique for the farming of Tilapia. Figure 8 A subsistence farmer selling Tilapia and Giant Freshwater Prawns (Macrobrachium rosenbergii) that occur naturally. Figure 9 Number of ponds for fish farming in each Mozambican province (Small Scale Aquaculture Development Plan for Mozambique, 2009) Figure 10 Illustration of the position of the Zambezi Valley Development Corridor, the Beira Agricultural Growth Corridor and the Maputo Development Corridor. Figure 11 Top: Kapenta boats used by Mozambezi as transport for fish and feed. Centre: The Mozambezi cages in the Cahora Bassa Dam. Bottom: Tilapia farmed by Mozambezi. Figure 12 Top: Dusky Cob (Argyrosomus japonicus) from sea cages in Pemba. Centre: Tilapia farming will remain popular in Mozambique. Bottom: Giant Freshwater Prawns being sold to tourists. Figure 13 Top: Poor construction of ponds in sandy soils. Centre: Improved ponds with plastic lining and hapa's. Bottom: Rudimentary cage systems in natural water bodies. Figure 14 Some small farmers have resorted to making their own feeds, but these require improved formulation and extrusion. Figure 15 Freshly caught marine fish being sold alongside farmed tilapia in a local market. Figure 16 The selling of dried fish in a local market. Drying, salting and smoking is used as a means of extending shelf life. 5
The Office of the Agricultural Counsellor Embassy of the Kingdom of the Netherlands 210 Florence Ribeiro / Queen Wilhelmina Avenue New Muckleneuk 0181 Pretoria South Africa Tel: +2 12 425 450 Fax: +2 12 425 451 Email: pre-lnv@minbuza.nl www.dutchembassy.co.za