Diagnosis and Activities for the Development of the Fishery Sector in Teluk Dalam /South Nias

What is the objective of PACA?What is the objective of PACA?

Identify, with a rapid appraisal, the main strengths and weaknesses of a local economy, sector or value chain (duration: 1 - 2 weeks)

Identify options for practical activities to strengthen the competitiveness of firms -- Criteria:

– feasible with local resources

– quickly implementable (starting next week)

– quick, visible results (with 3 months)

What is the sequence of activitiesWhat is the sequence of activitiesin the PACA Exercise in South Nias?in the PACA Exercise in South Nias?

PACA-Project

PACA-Exercise (11-23/06)

Fieldwork (11-20/6) 23/0621./22.0615.06. 23.06onwards

Results-Workshop:Diagnosis

+ Proposals

Mini-workshops

Imple-mentation

Hyp

oth

esis

Wo

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op

Kic

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ff

Wo

rksh

op

Pre

sen

tati

on

E

ven

t

Way

-fo

rwar

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Wo

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Interviews

Pre

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atio

n:

*Org

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atio

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dva

nce

Info

What have we been doing?What have we been doing?

Kick-off workshop (15 June 2006) Interviews with businesspeople and stakeholders

in Nias and Medan (11 – 20 June ) Mini-workshops with

– Fishermen (16 June)– Fish Farmers (16 June)– Local Fish Traders (19 June)– Boat Owners (20 June)– Supporting Institutions (20 June)

Internal Results Workshop (21-22 June 2006) Presentation Event (23 June) Way-forward workshops (from 23 June onwards)

Kick-off Workshop

Interview

Interview

Mini-Workshop

Mini-Workshop

• Fish Net / Bagan Fishing Products• Rope / Rawe Fishing Products• Lobster Product• …and their supporting structures

What are the fishery value chains What are the fishery value chains mainly considered?mainly considered?

Analysis of the Fishery Sector in Teluk Dalam

Net / Bagan Fishing

Fish NFish Net / Bagan Fishing et / Bagan Fishing Products Value ChainProducts Value Chain

Input CollectionTrans-formationProduction Selling

Con-sumption

Boat Owners

Ice Factory

Fuel Depot

Electricity Equipment

Fishing Equipment

Ransom

Net Fishers

Bagan Fishers

Collectors

Processor: Fish Salter

Local Market Traders

Salted Fish Traders

Local Households

Restaurants / Rice Stalls

Fish Farmers

Fishermen (non-net)

Howu Howu Foundation

Local Ports

District OfficeDep. FisheryHead of Port Dep. Industry

Marine Security

Strengths (1)

•Ransom shop with good customer base

•Self-help initiatives to produce home-made ice

•Private capital

•Availability of specific bagan equipment and net supply shops

•Increasing catches

•Relatively short working hours

•Fishing location is close by

•Good cooperation among boat crews

•Collectors take any amount of fishermen’s catches

•Little competition in the processing sector

Net

/ B

ag

an

Fis

hin

g

Strengths (2)

•Small scale salting business in Teluk Dalam

•Fish catches not fully bought by local traders can be sold to local processors (salting)

•Fishes can be sold both in markets or around villages

•Continuously high demand from consumers, restaurants, fish farmers etc.

Net

/ B

ag

an

Fis

hin

g

Weaknesses (1)N

et

/ B

ag

an

Fis

hin

g

•Limited fuel supply

•Large capital needed to buy equipment

•No one takes the business opportunity of establishing an ice factory

•Lack of rowboats and canoes after the tsunami

•No fishing equipment shops that specifically serve all the needs of bagan ships

•Traditional fishing equipment

•In need of computers / satellite equipment

•The fish price is cheap due to over-supply

•Decreasing number of catches due to environmental damages

Weaknesses (2)N

et

/ B

ag

an

Fis

hin

g

•Collectors are lacking equipment (boat, ice boxes)

•Collectors are lacking cold fish storage

•Decreasing quality of fishes

•Low human resource skills in business management

•Very limited processing activities (merely drying and salting)

•No fish auction places available

•The products can only be sold for local market consumption

Rope / Rawe Fishing

Rope / Rawe Fishing Rope / Rawe Fishing ProductsProducts

Value ChainValue Chain

Input Processing SellingProduction Distribut-ion

Con-sumption

Boat Owners

Ice Factory

Fuel Depot

Spare Parts

Fishing Equipment

Ransom

Fishermen

Collectors

Restaurants

Shipping Business

Sibolga Exporters

Medan Local Market

Teluk Dalam Local Market

Howu Howu Foundation

Boat Aid

Dep. Tourism

Department of Fishery

Dep. Industry

Marine Security

Port

Head of Port

Tax Department

Fish Farmers

Fish Drying Salted. Fish Trader

Local Collectors

•High reliance on ice supply to preserve the fishes

•Fishers are able to traditionally mark the fish locations

•Unsold catches can be processed into salted fish

•Export quality fishes

•High selling prices achieved, especially for export

•High demand of the Indonesian society for fish consumption

Strengths R

op

e /

Raw

e

Fis

hin

g

Pro

du

ksi P

up

uk

Rop

e /

Raw

e

Fis

hin

gWeaknesses (1)

•Difficulties in obtaining fuel

•Difficulties in obtaining ice

•The (pancing) boat owners are lacking capital

•Decreasing catches due to coral reef damages

•Knowledge is limited to traditional methods

•Competitors have more sophisticated equipments and skills

•Fish catching in T. Dalam is depending on the captain’s (tekong) skills

•Inexperienced fish farmers

•Untapped tuna resources due to the small boat sizes

Pro

du

ksi P

up

uk

Rop

e /

Raw

e

Fis

hin

gWeaknesses (2)

•Lack of involvement in alternative sea product businesses (seaweed)

•High production (catching) cost

•Nias is not yet proven to be suitable for grouper farming

•No training offered in improved fish processing methods (beside fish salting)

•Collectors are lacking supply of ice and cool boxes,limiting the volume of fishes caught

•No information on export prices

•The market is dominated by collectors/traders with bigger capital

Lobster Catching

Lobster Value ChainLobster Value Chain

SpecificInput

CollectionProduction SellingCon-sumption

Speed Boat Owners

Compressor Provider

Cage Carpenter

Diving Equipment

Sea-slug Divers

Regular Fishers

Collectors / Traders

Jakarta

Malaysia

Singapore

Dep. Fishery

Head of Port

Department Industry

Marine Security

Distribut-ion

Spear Fisher

Lobster Raiser

Lobster Catcher

Tello Market

Padang Market

Speed Boat w/ water cage

G. Situli Market

Tax Depart.

•Availability of local marine cage builders

•No dependence on ice supply (traded alive)

•Private capital available and invested

•Nias sea conditions are suitable for lobster farming

•Some fishers catch lobster without using boats and diving tools, such as the tire compressor

•Lobster catching skills are available

•(Small scale) lobster farmers succeed in raising lobsters traditionally

•Community is still interested and engaged in the lobster collecting business

Strengths (1) Lob

ste

r C

atc

hin

g

•Distributors directly collect from the fishers/farmers

•High and stable demand

Strengths (2) Lob

ste

r C

atc

hin

g

•Lobster catching equipments are expensive

•Usage of inappropriate diving equipments

•Decreasing number of lobsters after the earthquake due to the change in underwater contour

•Small number of lobster farmers due to lack of knowledge and skills

•Need for special packaging

•Sent with special transportation

•Expensive lobster prices can only be afforded by high-economy communities

WeaknessesLob

ste

r C

atc

hin

g

Supporting institutions

•Fishery sector is one of the Real Regional Income (PAD) contributors

•Availability of economic empowerment fund for the fisher community from the central/provincial government

•The central government give special attention to the fishery sector

•Department offices which handle various aspects related to fishery sector

•Availability of fishery vocational school in Tello Island

Su

pp

ort

ing

in

sti

tuti

oin

s Strengths

•Difficult access to loan

•In need of more honest and professional cooperatives

•Weak human resources and skills within government

•Inexperienced and poorly managed government due to the newly founded district South Nias

•Complicated bureaucracy

•Lack of supporting facilities from government

Weaknesses (1)S

up

port

ing

in

sti

tuti

oin

s

•Aid programs from the government do not meet the fishers’ needs

•The Marine Security does not perform well in guarding Teluk Dalam waters from fishing boats from other regions and countries

•DPRD (Regional People’s Representative Council)/legislative’s lack of attention towards the fishery sector

•The Department of Tax & Income needs to socialize tax information more frequently

•Trainings are not based on real needs

•There is no offer to provide specific training program in fishery sub-sector programs

Weaknesses (2)S

up

port

ing

in

sti

tuti

oin

s

•INGOs often show poor aid control

•The aid given by NGOs do not specifically address the fishers’ needs

•Teluk Dalam can not access Internet

•Lack of coordination among institutions

•Lack of human resource (e.g. expert staffs)

•Need to improve port facilities

Weaknesses (3)S

up

port

ing

in

sti

tuti

oin

s

LED Proposals to Upgrade the Fishery Sector in Teluk Dalam/ South Nias

Short-term ProposalsShort-term Proposals

• Technical assistance to fishery cooperatives on how to improve the financial and administrative management

• Entrepreneurship training for fishery actors

• Mangrove tree planting along the coast

Medium- and Long Term Medium- and Long Term ProposalsProposals

• Training on boat engine repair and maintenance

• Training on seaweed farming• Field visits for fish farmers, e.g. to Tello

Island• Establishing a fish auction place• Expanding the development of Teluk Dalam

market (traditional, physical market)• Linking the fishery with the tourism sector,

e.g. fishing trip for tourists• Ice factory (and private port) investment

promotion

Medium- and Long Term Medium- and Long Term ProposalsProposals

• Technically enabling internet access in Teluk Dalam

• Forum for regular meetings of institutions related to the fishery sector

• Establishing a micro finance scheme• Establishing an efficient and professional

fishery cooperative

Business OpportunitiesBusiness Opportunities

• Establishing an Ice Factory

• Fuel Depot in Teluk Dalam

• Open an Internet Café in Teluk Dalam

• Fish Storing Place

Who is the PACA Team?Who is the PACA Team?

Christian Schoen (mesopartner)

Julien Magnat (ILO)

Muh. Rizal (ILO)

Hilbin Bina Teulambanua (Dinas Perikanan Nias Selatan)

Jamaluddin (KDP Teluk Dalam)

Juang Solala laiya (IKIP Teluk Dalam)

John Sorryanto Sarumaha (ARDIN)

Joni Harefa (HSNI Nias)

Siado Zai (BAPPEDA Nias Selatan)

Saifullah (BAPPEDA Sabang)

Terimah Kasih