Optimizing the Use of Development Finance for Trade: The Case of Lake Victoria

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By Dick Nyeko E executive Secretary Lake Victoria Fisheries Organization

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Optimizing the Use of Development Finance for Trade: The Case of Lake Victoria. By Dick Nyeko E executive Secretary Lake Victoria Fisheries Organization. Management and research themes covered by current Regional Working Groups - PowerPoint PPT Presentation

Transcript of Optimizing the Use of Development Finance for Trade: The Case of Lake Victoria

Page 1: Optimizing the Use of Development Finance for Trade: The Case of Lake Victoria

ByDick Nyeko

E executive SecretaryLake Victoria Fisheries Organization

Page 2: Optimizing the Use of Development Finance for Trade: The Case of Lake Victoria
Page 3: Optimizing the Use of Development Finance for Trade: The Case of Lake Victoria

Regional Working Groups

National Working Groups

Fisheries Management Committee

Scientific Committee

LVFO Statutory Bodies

LVFO Secretariat

National Fishery Departments and Research Institutes

Executive Committee

Policy Steering Committee

Council of Ministers

Executive Secretary

Science and Technical Support

Database System

(Automatic data

transfer)

BMUs Other National Institutions

(Legislature, Police etc.)

Monitoring and

Research surveys

Implementation of Management

Measures

Advice

Advice

Advice Advice

Reports Reports

Reports

Management Decisions

Data linkages

Advice, decision-making, support, interventions etc.

Communiqué

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Management themes Research themes

Fisheries Co-Management Monitoring Control and Surveillance Fisheries Policy Legislation,

Institutions and Processes Human Resources – capacity building Information and databases Information Communication and

Outreach Fish quality assurance, safety and

product development Infrastructure capacity building

Fish relative abundance monitoring (trawl surveys)

Fish biomass monitoring (hydro-acoustic surveys)

Catch Assessment and Frame Surveys

Socio-economic research and monitoring

Fisheries pollution and environmental monitoring

Database development and management

Management and research themes covered by current Regional Working GroupsSource: The institutional structure and programs of the Organisation (LVFO, January 2005)

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Other Stakeholders in Co-ManagementGroups dependent on fishing and related activities,

boat owners, traders, processors, gear producers and boat builders are included in co-management.

Fish consumers are all target beneficiaries who gain from a more secure resource base and improved facilities and services at fish landings.

There are other beneficiaries who provide various services to fisheries stakeholders, these include credit providers, shop-keepers and government services involved in the sector.

Private industry associated with fish processing and export is are major stakeholder in fisheries resources management, fish quality and market efficiencies but also by being integrated into decision-making management structures.

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Landed volumes and values from Lake Victoria, 2004-2007 (tonnes, m$)

volume value volume value volume value volume value2005

Nile perch 94,900 104 50,700 56.60 141,100 144.93 286,700 306Tilapia 29,300 16 17,900 12.56 24,300 10.48 71,500 39Dagaa 106,400 12 81,000 15.08 306,100 39.98 493,500 67Haplochromines * 3,900 0.86 128,900 15.78 132,800 17Others 7,800 5 2,000 1.23 9,800 6Total 238,400 137 153,500 85.10 602,400 212.40 994,300 435

2006Nile perch 91,350 89 31,600 35.30 107,500 110.43 230,450 235Tilapia 27,600 14 10,800 7.55 28,400 12.27 66,800 34Dagaa 107,900 11 74,000 13.76 472,600 61.73 654,500 87Haplochromines * 900 0.23 142,600 17.46 143,500 18Others 2,300 1 1600 0.98 3,900 2.38 7,800 4Total 229,150 116 118,900 57.82 755,000 204.27 1,103,050 378

2007Nile perch 82,100 83 57,900 45.50 119,600 111.08 259,600 240Tilapia 23,000 13 10,300 5.50 18,000 9.12 51,300 28Dagaa 111,900 10 121,800 11.92 329,300 38.81 563,000 61Haplochromines * 2,000 0.52 61,200 2.11 63,200 3Others 2,900 1 1600 3.07 2,800 1.23 7,300 6Total 219,900 108 193,600 67 530,900 162.35 944,400 337

Uganda Kenya Tanzania Total

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Exports of Nile perch from Lake Victoria, 2004-2007 (‘000 tonnes and $‘000,000)

Volume Value Volume Value Volume Value Volume Value

2004 30.0 102.9 15.7 52.0 34.7 87.5 80.4 242.42005 36.6 128.1 13.8 61.1 40.8 130.2 91.2 319.42006 32.0 137.0 11.9 54.5 40.8 127.5 84.7 319.02007 26.1 116.0 13.0 44.6 42.8 147.0 81.9 307.6

Uganda Kenya Tanzania Total

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USD/kg

Item Costs Value Addition Margin/kg Value Share % Gross Margin

Retail Price 7.39 VAT 0.32 Reduced & waste 0.24 Wage cost / kg 0.32

Supermarket

Distribution 0.24

2.79 53% 38%

DDP 3.48 Road delivery 0.04 Airfreight and clearance 0.75 Sales and marketing 0.04

Importer / Exporter

Wage cost / kg 0.04

0.24 15% 7%

Export FoB 2.41 By-products 1.03 Average rejections 3% 0.06 Wage cost / kg 0.12 Transportation 0.10 Raw Material Cost (conv.)

2.14

Processing Factory

Production cost / kg 0.41

0.73 4% 21%

Factory Buying Price 2.14 Rejects at 3% 0.06 Factory Agent Taxes 0.10

0.29 6% 14%

First Sale 1.69 Rejects at 3% 0.05 Operating expenses 0.42

Fishermen

Crew Share 0.59

0.62 23% 37%

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Maws

Fats

Trimmings

Frames Retail

Skins

Other

Wholesale

DDP

FoB or CnF

Factory Buying Price

First Sale

International Consumer

Supermarket Fishmonger Catering

Distribution Agents

Artisanal Processor

Factory Agents / Middlemen / Traders

Fishermen (Boat Owners and Crew)

Processing Factory

International Importer / Exporter

International

Market

Sales PricesRegional and Domestic Market

By-p

rodu

cts

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Average Selling Price (Whole and Fillet)

Whole Round Price Equivalent

Value Distribution

Value Addition

Value Added as % of selling price

% of Total Value Added

Supermarket $17.18 $7.39 52.85% $3.91 53% 100.00%

Importer / Exporter

$8.10 $3.48 14.56% $1.08 31% 47.15%

Processing Facility

$5.60 $2.41 3.63% $0.27 11% 32.58%

Factory Agent $2.14 $2.14 6.13% $0.45 21% 28.95%

Fishermen $1.69 $1.69 22.82% $1.69 100% 22.82%

Africa 32.58%Europe 67.42%

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Population increase in East Africa

Core Drivers:Market Demand for undersized

fish

Weak Governance

Inadequate Management

Capacity

Under-investment in

Fisheries Sector

Result in:Illegal fishing and

trade

Reduced catches

Reduced Income

Reduced Revenue

Poor post harvest facilities and practices

Leading to:

Solutions:

Enhance Enabling and harmonised policies, plans, legislation and guidelines

Strengthen governance, management capacity, institutions and financing at all levels

Improve living conditions and livelihoods of fishing communities

Monitor fish stocks, environment, socio-economic conditions and trade

Increase compliance and manage capacity

Improve fish productivity and value

Result 1

Result 2

Result 3

Result 4

Result 5

Result 6

Result 7

Result 8

Result 9

Result 10

Development Plan in FMP2:

Environmental degradation

Overfishing

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Other ChallengesCross-boarder Conflicts - Lake Victoria Fisheries

is multi-State, multi-jurisdiction with harmonized but differing legal requirements of who may fish, where, when and for how long. Conflicts abound but have been dampened in scope and frequency. Fishers are required to obey laws and access regulations of the waters the fish. In this regard, LVFO provided summarized legal requirements of each partner states to concerned cross boarder fishers and organized meeting of boarder co-management concerns to de-escalate tension exacerbated by increased Piracy and theft.

Climate change and Environmental Externalities