Blue Economy: Key Factors for IORA Countries in Harnessing - - PowerPoint PPT Presentation

Blue Economy: Key Factors for IORA Countries in Harnessing Benefits from Fisheries and Aquaculture

Chatura Rodrigo

Structure

• Concept of blue economy and Why blue economy
• Fish and aquaculture in Indian ocean
• Production, Supply and Demand
• Sustainability: major concerns
• Way forward

Blued economy and why

Concept of Blue Economy

Blue economy is concentrated on :

• Alleviation of

hunger

• Poverty eradication
• Creation of

sustainable livelihoods

• Mitigation of

climate change Would help countries to:

• Establish food security
• Maintain sustainable

livelihoods

• Promote Coastal

tourism

• Explore renewable

energy

• Extract Hydrocarbons

and ocean minerals

• Enhance global trade

through shipping and ports

Indian ocean is rich with fish and aquaculture

• resources. Countries are harvesting these resources

extensively and support livelihoods and economies However, many factors such as over exploitation, technological constrains, sustainable harvesting, world market prices and climate change threaten these activities Hence the emphasis from “Green Economy “to “Blue Economy”

Fisheries and aquaculture in Indian

• cean

Fisheries and Aquaculture in the Indian Ocean

Fisheries: Spanish mackerel, Jack, Trevallies, Skipjack tuna, yellowfin tuna, Mackerel shark, Sword fish, Big eye tuna, Bullet tuna, Frigate tuna. Aquaculture: grass carp , silver carp , bighead carp , catla, mrigal, milkfish, giant tiger prawn

Source: State of world fisheries and aquaculture, FAO 2014

Source: Regional market assessment, Vincent and Hjort, 2013

Supply of fish and aquaculture in the Indian Ocean

Opportunities and Potential

• Marine water is rich with

capture fish species and demand for Tuna is increasing

• Aquaculture: Increasing

competition of Latin American

• countries. Potential to develop

national markets

• Regional trade: high value

farmed fin fish are in competition, but oportunity is there with increased consumption rates Constrains/weakness

• Marine water is with warm

currents and narrow continental plates, higher fuel costs, exploitation of small dermasal and artisanal fisheries

• Aquaculture: Low valued

farmed fish, high production cost,

• Recreational fish: Though the

demand for game fishing is there the quality of fish is very low

• Regional trade: transportation

cost impacts regional trade

Demand for fish and aquaculture in the Indian Ocean

Characteristics of the demand

• Diversity of countries in terms of national income:

consumption is affected by

• Income and middle income class growth
• Population growth
• Consumer awareness
• Location (urban, rural, island factor)
• Culture (religion, habits)
• Some countries the consumption/demand is linked to

the tourism sector therefore tourism sector development matters

Sustainability: Major issues

Sustainability of fish and aquaculture: major issues

Over exploitation: (Immature catch, use of illegal equipment)

• Property rights argument: Open access resource
• Economy of scale argument: Large boats have the

comparative advantage over small boats. Small boats spend more days for little catch

• Transaction cost argument: Small boats have higher

transaction costs in arranging a fishing effort

• Opportunity cost argument: new markets appear which

pushes fisherman to over exploit , in the short run, farmers are better off in supplying to the new market

Major issues….

Concern over fishing area

• International demarcations are often violated
• Small countries have little capacity to protect their fishing

areas

• International relations are at stake
• Fisherman who commit illegal activities are worse off with

fines, loss of family income and fishing gear when caught

• Are all the crossing of boundaries intentional?

Major issues….

Technology transfer issues

• Larger and countries with strong economies can adapt

new technologies easily. Small countries are stuck with yesterdays news

• How to finance new technology: small and poor countries

are at a disadvantage. Lack of support form financial entities

• Lack of government support : Some times private

companies, specially exporters are on their own

• Technology transfer through FDI’s: lack of policy

conducive environment

• Maintenance of standards becomes problematic: export,

processing and catching

Major issues….

Research and development

• Independent research and development vs lack of

collaborations: latter is less

• Research on demand, supply, price analysis, socio‐

economic impacts are equally important as scientific research

• Funds for research and development: small countries are

at a disadvantage

• Data sharing and information dissemination: more is

needed

Major issues….

Climate change

• Climate change will alter fish and aquaculture population

growth, migration patterns, sex ratios, spread of diseases

• More research is needed: to understand its impacts at

country levels

• Climate change has to be at the center of fisheries and

aquaculture sector development plans for countries and regions

• Fisherman are already adapting, there are lessons that

policy makers can learn: there is a mismatch

Way forward

Way forward

• Regulations and monitoring: boat licensing, fishing area

management, record maintenance, fines

• Economic instruments: Quotas on fish catch, subsidies on

industry ( fuel, boats, technical equipments, community based aquaculture )

• Technology transfer ( fish catch, processing, navigation,

communications, record keeping, post harvest )

• Information dissemination (quality standards, export

markets, world prices, data)

• Research (fish populations, fish migration patterns, high

yielding aquaculture species, disease and cure for aquaculture diseases, demand changes, supply gaps, climate change)

Thank You