Fish-farming as profitable local business development

Harvesting tilapia. The entire local cooperative and the families pitch in.

Harvesting tilapia. The entire local cooperative and the families pitch in.

Although fish and other seafood is a vital natural resource on Madagascar, several attempts to achieve profitable freshwater fish farming have failed in the past. Since 2011, Norges Vel has developed the value chain of fish farming from egg to table as a climate resilient, sustainable industry. The objective is to reduce poverty, create more jobs and improve nutrition.

Among other things, the project has helped ensure that:

  • The fish-farmers tripled their monthly incomes

  • The number of climate resilient fish-farmers increased from 60 to 450

  • The production and sale of fresh tilapia on ice has increased from 40 tonnes in 2014 to 800 tonnes in 2022

  • Several thousand players in the value chain, ranging from pond builders via transporters to the sellers of fresh fish on ice, are earning stable incomes above the minimum wage

The gratifying results from this project led to Norges Vel being asked to test a similar model in Mozambique as from 2017.

The project is now trying to consolidate the fish-farmers' general business unit and the activities of the fish-farmers in order to ensure full sustainability before the project is scheduled to manage on its own after 2023.

A demanding value chain project

Challenges arise when fish-farmers engage in new forms of cooperation to achieve results. The participants' motivation for and confidence in the project are of the essence, and it is important to deal with the problems associated with pricing.

Sustainability is alpha and omega in all areas

Establishing a good system for fingerlings is essential and demanding, while nature and climatic conditions that include cyclones create challenges for fish-farming infrastructure. Zero tolerance for corruption is also key.

Sustainability is alpha and omega in all areas in environmental and climatic, organisational, social and financial terms. This is necessary if the organisation and jobs that have been created and developed are to continue to exist once the project is concluded. Organising all of this calls for cutting edge expertise in all parts of the value chain.

Project goals

  • Create profitable, climate resilient and sustainable local business development by reducing poverty, unemployment and malnutrition, and ensure that the project results have a high transfer value

  • Strengthen the economic base for 450 households, that is, more than 1800 individuals

  • Support the fish-farmers by organising and developing a fish-farmers' cooperative union made up of eight local cooperatives

  • Increase the coverage of costs for the cooperatives' union from 5 to 100 per cent

  • By 2023, produce 1440 tonnes of fresh tilapia sold on ice in the port of Tamatave and the capital city of Antananarivo

  • Contribute to the further development of the value chain (feed enterprises, sales channels)

Results

Economy, production and sales

  • Profitability ranging from less than USD 30 to more than USD 150 per month for 450 small-scale fish-farmers

  • Increase in the weight of the tilapia from 100 to 250 grams on average, and improve productivity adapted to market demand

  • Sell fresh fish on ice from an increasing number of sales outlets in the largest port town of Toamasina and in the capital Antananarivo

  • Ponds were stocked with fingerlings and harvesting/sales commenced in August 2012

  • A currently climate resilient hatchery was established and approved by the Malagasy authorities, and a local breeding programme was initiated in 2018 with regular expansion including a back-up hatchery from mid 2023

  • A cold store, feed storage and technical/administrative office are established in Tamatave as well as a system for fish reception, grading and transport

 Social conditions, expertise and the environment 

  • Climate-resilient, environmentally sustainable fish-farming techniques have been established for tilapia

  • Integrated human resources development measures aimed at fish-farming, business and organisation have been implemented and will be continued

  • 30 per cent of the participants are women, and the efforts to promote equality continue

Organisation and cooperation

  • Collaboration with Asian, Norwegian, Malagasy and other relevant expertise

  • Seven cooperatives established with Norad support (and one with German GIZ support). These cooperatives help facilitate pond construction, distribute feed, harvest the fish, control the harvest, etc. for the small-scale fish-farmers/members

  • The fish-farmers' organisation Tilapia de l’Est (TDE) was established by the producers' cooperatives with support from Norges Vel. TDE owns the high-quality hatchery engaged in breeding, and contributes input/access to feed, technical assistance, business training, marketing/sales and dialogue with the authorities

Norges Vel's contribution and role

  • Project management and quality assurance from A to Z

  • Ensure equal opportunities for women and men

  • Ensure technical instruction and provide quality assurance for the fish-farming industry

  • Help ensure market access and product development for the fish-farmers

  • Ensure climate-resilient, sustainable development of fish-farming

  • Ensure human rights, decent working conditions and risk management

  • Provide instruction and advisory services related to strategy, financial management, organisation and business development

  • Lobby for sustainable framework conditions for the development of fish-farming and economic development on Madagascar in particular and in Africa in general

The sustainability goals in the project

In the autumn of 2015, UN member states adopted 17 goals for sustainable development by 2030. All of Norges Vels' projects support the sustainability goals.

This project contributes to: