SMALLHOLDER COOPERATION IN THE SEAFOOD SUPPLY CHAIN

This presentation will first discuss general developments in the aquaculture industry. An industry analysis will be made based on recent growth of this sector and which species and regions are most relevant will be explained. It will be shown that as demand for seafood continues to grow, but the fisheries industry cannot grow any further as there is a limit to how much can be fished from the ocean, supply growth will have to come from farmed fish. Currently, most fish farming takes place in Asia. The species that is farmed the most is carp, which is done mainly in China and also consumed there. Another very important species in Asian aquaculture is tilapia. This species is also farmed in the largest numbers in China, but this industry is much more focused on export. Indonesia is also a key producer of tilapia and is home to the world's largest tilapia farming company: Regal Springs. Tilapia is a popular fish in western countries and is consumed in large quantities in the US. A second important seafood export product is shrimp. This is also farmed in large quantities in China, but also in other Asian countries. Like tilapia, farming of this product is done mainly by smallholders: farmers that only have a few ponds for production. The fragmented nature of this industry presents some challenges with regards to sustainability and further growth of the sector. In this presentation, this topic will be further addressed. Some examples of smallholder cooperation will be shown, as well as the role that a financial institution can play here.