Value Chain Analysis

of FisheriesBased on Rapid Assessment

Submitted by:

Prabeen Kumar Singh

# +91 9403935423

Access Livelihoods Consulting India Pvt. Ltd.

Flow of presentation

Value chain of fishChapter1

Stakeholder analysisChapter2

Community based

hatchery Chapter3

Community based feed

manufacturingChapter4

2

District profile

District Block GP Village

Malkanagiri

Kallimela 21 106

Khairaput 9 95

Korkunda 11 240

Kudmulgumma 11 221

Malkanagiri 13 162

Mathili 20 168

Podia 10 52

Total 7* 95 1044

3

*CP has presence in all blocks but not in a compact area

Area of intervention

4

Commercial bank

Govt. D

epart

ment

Market

Input

supply

(S

eed)

Too far and difficult to access

Difficult to

acce

ss

Local market &

district market

Hig

h c

ost

of se

ed

Fish farmer

Resource mapping

>20 km

>50 km

20 km

5 km

5

Time line for fish supply chain

0.5 days6 - 8 months 0.5 days

Hatcheries-

Fingerling

P= Rs.300-600/Kg

Farmer

P= Rs.100-120/Kg

Vendor

P=Rs. 110-180/KgConsumer

2 months

6

Total life: 8 – 10 months

Fish seed supply chain

Hatcheries

(Rs.300-600/Kg)Farmer

Govt. Dept.

(Rs.300/Kg)Farmer

Hatcheries

(Rs.500-600/Kg)

Vendor

(Rs. 1500-1800/kg)Farmer

Hatcheries

(Rs.300/Kg)

Govt. Dept.

(Rs. 300/Kg)Farmer

Supplier

(Rs.250/Kg)

Hatcheries

(Rs. 500-600/Kg)

Vendor

(Rs. 1500-1800/Kg)Farmer

7

Most active

Fish Supply ChainB

roo

dS

ee

d &

Inp

ut su

pp

ly

Nurs

ing &

Gro

win

gT

rad

ing

En

d

Ma

rke

t

Brood development at hatcheries

Hatcheries – fingerling

(N= 5-7 large

& 30-40 small, P= 300-600/kg)

Seed vendor (N=100,

P= Rs500-1800/kg)Govt. Dept.

(P=300/kg)

Fertilizer & feed

Supplier

Individual farmer

(N= 751 P=Rs. 100/kg)

Community pond

(N= 20 P= Rs.100/kg)

Hatcheries-

Fish rearing

(Rs.100-110/kg)

Fisherman – 4 wage labor

(Rs.750/hr + 4kg fish)

Panchayats

(Rs200-2000/yr)

Fish vendor

(P= Rs.120-150/kg)

Hotels

(N=5, P=115/kg)

Defense

(P=Rs. 115/kg) Family

External supplier

(2 truck in a week)

8

Supply chain gap

9

# Particulars Gap

1 Brood development -Unavailability of high yielding variety brood

- Unavailability of technical person

2 Seed & Input supply -Quality seed availability

- Mortality during transportation

- High yielding variety

3 Nursing & Growing -Productivity gap

- Lack knowledge for fish rearing & pond

maintenance

- Unavailability of improved feed material

4 Trading -Lack of storage facilities

- Unavailability of ice

- Fresh fish are available for small period of time

5 End consumer -Unavailability of fresh fish around the year

Value chain analysis

10

Rs. 1

(2%)

Rs. 54

(90%)

Rs. 5

(8%)

Hatchery

Farmer

Vendor

End consumer

Rs 60 for ½ kg

-Per fingerling cost of Rs 1

- 2-3 month old

- Supplied to the farmer by the middle man

- Farmed rear fish for 5 – 6 months

- 1 fingerling gain weight of 500 gm

- No intensive stocking & feeding

-Minimum 30% mortality

- Compel to sell within a day

- Available variety- rohu, catla & carp

- Most sell from the market

Available fish vendor in local market

At Malkangiri town40-50 Vendor

At Govindpalli15-20 Vendor

At Guma10-15 Vendor

At Ballimela10-15 Vendor

At Sillero10-15 Vendor

At Chitrakonda3-5 Vendor 11

Fish feed

Rice Husk @ 5% wt. of

fingerling

Groundnut cake @ 5%

wt. of fingerling

Azzola & aquatic weed

Water hyacinth

12

Consumer preference

Size (>1kg) Disease free

Fresh

(A day old)

Preferred variety

(Rohu, Catla & Carp)

13

Roles and responsibility of value chain players

# Actors Roles and responsibility

1 Pond owner - Fish rearing

2 Fisherman -Work as wage labour for fishing

-Own fishing net

-Also work as fish vendor

3 Seed Vendor -Supply fingerling at door step

4 Fish vendor -Purchase fish from pond owner

-Do fishing as wage labour

-Own fishing net

-Chain intermediaries between producer and

consumer

5 Hatcheries - Availability of fish seed

14

Risk factor for value chain player

# Actors Risk (qualitative & quantitative)

1 Pond owner -Very rarely (once in a decade) disease & poisoning

effect production

-Mortality

-Low/high rainfall effect fish growth

2 Fisherman - Sometime accident occur during fishing

3 Abundant vendor -No storage facilities

-Customer prefer to buy fish bigger than 2 kg

4 Seed supplier -Unavailability of transportation facilities

-Mortality

5 Hatcheries -Technical labour availability

-Large infrastructure

-Low/high rainfall

-Disease

-Medical facility

15

# Institution Role and responsibility

1 NGO Extension services, linkages with government

department and handholding support to fish

farmer in seed and feed purchase

2 Govt. Line department

(district/block)

Schemes for fisherman, fish farmer and

marketing

Extension services

Fish seed supply

3 Private player- seed supplier Supply of fingerling and yearling

4 PRI Auction of community pond

5 Banks Finance for each value chain player on

mortgage and margin money

Roles and responsibility of Institutions

16

Situation of financial sector in fisheries

Types of

finance

provision

Value chain

actors

targeted

Product details Competitive strength Competitive weakness

Commercial

banks

Farmer General agriculture

loan on mortgage

of land & down

payment

Strong organization,

enough liquidity,

transparent & uniform

interest rate

High documentation &

low accessibility

MFI Farmer,

Fisherman &

Fish vendor

Smaller loan,

repayment of less

than 1 year

Minimum document

required, easy

accessibility, door service

High interest rate, low

transparency and

strong monitoring

SHG Farmer Smaller loan,

repayment of less

than 1 year

No document & easy

accessibility

High interest rate, small

loan & less liquidity

Shopkeepers Fisherman Small loan for

purchasing assets

No document & easy

accessibility

High interest rate, small

loan & less liquidity17

Constraint for fish farmer

Low productivity (gain weight.

for 500 to 750gm per fish)

FisheriesPoor extension facilities

Available water for fishing -

for 6-8 months

No access of financial institution Poor quality available fish seed

Unavailability of technical staff

No scheduled fish feedingPoor pond maintenance

Small pond size (0.5 to 2 Acres)

18

SWOT

Strength Weakness

Opportunity Threat

• Large market

• Large number of ponds in

surrounding (about 5000)

• Tool for poverty elevation &

livelihood

• Potential source of nutrition and

food security

• Well established local market for

fish

• Highly perishable product

• Unavailability of storage facility

• Water is available for only 5-6

months

• Quality seed

• Yield gap of pond

• Supply gap

• Growing demand of local as well

as national level

• External fish supply

• Lack of service delivery &

technical person

• Climate change affects fish

production

• Theft of fish from pond

19

Status of fisheries

Socioeconomic

Pro

du

ctivity

20

A

B

C

D

Low High

High

Status

21

Matrix Socio-

economic

Productivity Remarks

A Low Low Most of the farmers are in matrix A

because fisheries are treated as

complementary source of livelihood,

less focus is given and productivity is

low.

B Low High Small number of fisher farmers have

high productivity but they doesn't treat

this as source of livelihood

C High Low There are some farmers who treat this

as source of livelihood but productivity

is low

D High High Very limited number of farmer treat

fishery as major source of livelihood

with appropriate productivity

Recommendation

• Since per acre productivity of fish is very

low. It is required to work for increasing

productivity.

• As per the rapid assessment it is observed

that farmer gain 90% price of fish.

• Availability of quality fingerling is a crucial

problem. So, it is recommended to

establish community based hatcheries.

• The production cost of one fingerling is Rs

0.76 and selling price is Rs 1.22

Recommendation

23

• For intensive fish rearing near about 75% of

total input is incurred in feeding.

• As per calculation it is observed that if feed

is supplied to 200 acres than the producer

organization can make Rs. 6 lakhs in a 10

months of operation.

• So, community based feed production is

most appropriate enterprises.

Recommendation

• For taking community based enterprises

we are also required to work on compact

population for scalability

24

Suggested community organization

25

Producer company

Harvesting net

hiringHatchery Feed processing/

Packing

Common Interest Group (10-15 farmers)

Financial

Institution-

Banks/

Govt. Dept.

Debt-

Working

Capital/Fixed

Asset

Farmers

Saving

/Credit

Farmers

Share

Capital

Share

Capital

Tech.

Services

Tech.

Services

Market

Fish

Input

Fish

Input Money

Money

Better fish production

Integrated fish farming system

• Fish farming with agriculture

• Horticulture-fish system

• Mushroom-fish system

• Seri-fish system

• Livestock-fish system

• Pig-fish system

• Poultry-fish culture

• Duck-fish culture

27

For best production

28

Feed

management

Reduce

chemical

usage

Soil water

management

(pH)

Detection of pond water quality

• Clear water indicates very low or absence of

biological production- not fertile enough and

the fish will not grow well in it.

• Muddy water (clay particle), fish can have

their gills blocked by the soil particles and

this can result in death.

• Deep green water indicates over-production

of planktons that serve as food for fish but

occur as a result of application of more than

enough fertilizer, manure or nutrient rich feed

to a pond29

Cont.…

• When a fish pond gives an offensive odor,

it indicates pollution of pond water due to

excess food stuff in the pond, inflow of

polluted water and application of

chemicals.

• In a stocked fish pond, if a farmer notices

the fish always struggling at the pond

water surface to get oxygen, then there is

low dissolved oxygen content in the water

30

Suggested water quality for pond

# Parameter Acceptable

range

Desirable

range

Stress

1 Temperature (oC) 15-35 20-30 <12,>35

2 Turbidity (cm) 30-80 <12,>80

3 Water colour Pale to light

green

Light green to

light brown

Clear water,

Dark green &

Brown

4 Dissolved oxygen (mg/L) 3-5 5 <5, >8

5 CO2 (mg/L) 0-10 <5, 5-8 >12

6 pH 7-9.5 6.5-9 <4, >11

7 Alkalinity (mg/L) 50-200 25-100 <20,>300

8 Hardness (mg/L) >20 75-150 <20, >300

9 Plankton (No./L) 2000-6000 3000-4500 <3000, >7000

31

Stocking ratio

# Species 3-species 4-species 6-species

1 Catla 4.5 3.0 1.5

2 Rohu 3.0 3.0 2.0

3 Mrigal 3.0 2.0 1.5

4 Silver carp - - 1.5

5 Grass carp - - 1.5

6 Common carp - 2.0 2.0

32

Species feeding habit & zone

Species Feeding habit Feeding zone

Indian major

carp

CatlaZoo plankton

feederSurface feeder

Rohu Omnivorous Column feeder

Mrigal Detritivorous Bottom feeder

Exotic carps

Silver carpPhytoplankton

feederSurface feeder

Grass carp Herbivorous

Surface, coloumn

and marginal

areas

Common carpDetritivorous/Omniv

orousBottom feeder

33

Manual feeding

34Broadcasting Feeding frame

Mechanical feeding

35

Demand feeder Automatic feeder

Golden rule for fish feeding

• Rule: 1 Always feed fish at same time and

place

• Rule: 2 Never overfeed the fish

• Rule: 3 Do not feed on harvest day

• Rule: 4 Regulate feed quantities at cold

season36

Producing of feed pellets

• Particle size of ground ingredients should

be uniform.

• Measured ingredient should be mixed

thoroughly in desired proportions.

• Particle size of pellets for most fish range

from 2mm-9mm in diameter

• The pallet may be for floating type for

surface feeder or sinking types for bottom

feeder

37

Community Based

Hatcheries

Hatching process

6 hrs.

>1 yr old 2-3 days

2-3 months

2-3 hrs

1 yr

39

Timeline for fish raising

Actions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Promoting fingerling supply

Planning Developing

nursery network

Hatchery Condition

bloodstocks

Spawning

Nursing Seed to farmer with

nursing ponds

Fingerling transport Fingerling to farmer

for raising

Raising fish

Fish raising Raising fish Raising fish

40

Government subsidy and schemes

• A 40 % subsidy on the construction cost of

hatcheries – without the loan

• 50% subsidy when it is constructed on loan

• 100% for pond digging from MGNREGA

• 1 lakh subsidy for vehicle purchase

41

42

Size in mm

Age (in

days)

% of

biomass

Size of fish

(in gm)

Feed (in

gm/day)

40-45 1-10 days 4% 1 0.04

45-50 11-20 days 4% 2.5 0.1

50-55 21-30 days 3% 5 0.15

55-60 31-40 days 2.50% 8 0.2

60-70 41-50 days 2.50% 10 0.25

70-80 51-60 days 2% 15 0.3

80-100 61-70 days 2.50% 20 0.5

Fingerling feeding schedule

Source: Orrisa Watershed Development Mission

Assumption

• Total fingerling production will be 10 lakhs

• The mortality rate at the hatchery will be

20%

• Human resource will be consist of one

technical person and 6 non technical

people

• Fingerling business is from 4 to 5 months

only

43

44

# Fixed asset Unit Quantity Rate (in Rs.) Total (in Rs.)

1Brood unit No. 1 15,000 15,000

2Larva collection unit No. 1 5,000 5,000

3Larva rearing unit No. 2 15,000 30,000

4Bore well with motors No. 1 1,00,000 1,00,000

5Pipeline fitting No. 1 5,000 5,000

6Pond No. 2 50,000 1,00,000

7Office No. 1 20,000 20,000

8Harvesting net No. 1 20,000 20,000

9Happa (small net) No. 5 5,000 25,000

10Weighing machine No. 1 1,000 1,000

11Land Acre 2 40,000 80,000

Sub total 4,01,000

Fixed investment

45

# Recurring cost Unit Quantity

Rate (in

Rs.)

Total (in

Rs.)

1 Brood fish No. 15 200 3,000

2 Medicine No. 1 2000 2,000

3 Feed Kg. 16150 15 2,42,250

4 Pond maintenance

Fertilizer Kg. 50 10 500

Lime Kg. 100 5 500

Micronutrient fertilizer Kg. 2 250 500

Bleaching powder Kg. 5 30 150

5 Packing bag (plastic) Kg. 10 100 1,000

6 Oxygen litre. 100 50 5,000

7 Depreciation (@5%) 32,100

Sub total 2,87,000

Recurring Cost

46

Expenses

# Expenses Amount (in Rs.)1Recurring 2,87,000 2Human resource 3,24,000

Total expense 6,11,000

1Total fingerling production (in no.) 10,00,000

2Fingerling ready to sell (mortality @ 20%) 8,00,000 *3Cost per fingerling (in Rs.) 0.76

*This will serve for at least 200 acres of ponds

47

Income

# Income Amount (in Rs.)

1Number of fingerling sold 8,00,000

2Selling price per fingerling 1

Total cash in flow 8,00,000

Net gain 1,89,000

Community Based Feed

Manufacturing

49

1. No feed or fertilizer input: depend on natural productivity

2. Fertilization: Organic fertilizers, green manures (fresh plant

cuttings), fresh or composted agricultural by-products. This feeding

strategy is typical of extensive and semi-intensive farming systems.

3. Supplementary diet feeding: The natural productivity alone

cannot sustain adequate fish. Supplementary feeds usually consist of low-

cost agricultural/animal by-products, as single food item or the use of a

combination of different feed items in the form of a feed mash or pellet.

This feeding strategy is typical of a semi-intensive farming system.

Existing feeding practices

Feeding process

50

A. Broadcasting: Most preferred method of

feeding

B. Bag feeding: Nowadays this has been

promoted and the farmer is showing good

response

C.Tray feeding: This method is unknown to the

farmer.

D.The frame is feeding: Unknown to the farmer

E. Automatic feeder: Unknown to farmer

Feeding rate, frequency & timing

51

• Feeding rates and frequencies are in part a function of fish size.

• Small larval fish and fry need to be fed a high protein diet frequently and

usually in excess.

• As fish grow, feeding rates and frequencies should be lowered, and

protein content reduced.

• Generally, growth and feed conversion increase with feeding frequency.

• Factors affecting feeding rates of fish - time of day, season, water

temperature, dissolved oxygen levels, and other water quality variables.

• During the winter and at low water temperatures, feeding rates of warm

water fishes in ponds decline and feeding rates should decrease

proportionally.

• Feed acceptability, palatability and digestibility vary with the ingredients

and feed quality.

• Farmers can calculate optimum feeding rates based on the average size

in length or weight and the number of fish in the pond

• Farmed fish typically are fed 1-4% of their body weight per day.

Feed requirement

52

Age (in days)Rice husk (in

Kg./acre)

Oil cake (in

Kg./acre)

7 8.4 8.4

14 16.8 16.8

21 25.2 25.2

28 33.6 33.6

56 168 168

84 168 168

147 126 126

182 105 105

245 252 252

Total 903 903

Assumption

• Rice husk will be purchased from local

villages and oil cake will purchased from

out of state

• The ratio of husk & oil cake will be 50:50

• All mixing and packing work will be manual

• Per feed requirement will be 903 Kg of rice

husk and 903 Kg of oil cake

53

Fixed investment

54

# Fixed cost Unit QuantityRate (in

Rs.)Total (in

Rs.)

1 Packing machine No. 5 500 2,500

2 Mixing tub No. 5 500 2,500

3 Weighing machine No. 5 1,000 5,000

4 Table No. 1 500 500

5 Chair No. 4 200 800

6 Fan No. 2 1,000 2,000

Sub total 13,300

Raw material

55

# Material cost Unit QuantityRate (in

Rs.)Total (in

Rs.)

1 Rice husk Kg. 1,80,600 3 5,41,800

2 Oil cake Kg. 1,80,600 10 18,06,000 3 Packing bag (1kg plastic bag) Kg. 100 150 15,000 4 Gunny bag No. 1,000 10 10,000

Sub total 23,72,800

56

Expenses

# Expenses

Amount (in

Rs.)

1 Office maintenance/Administrative cost 1,09,000

2 Material cost 23,72,800

3 Human resource 5,25,000

Total 30,06,800

1 Total production (in Kgs.) 3,61,200

2 Production cost (in Rs./Kg) 8.32

57

Income

# Income

Amount (in

Rs.)

1 Selling price (in Rs./Kg.) 10

2 Total quantity sold (in Kg.) 3,61,200

Total income 36,12,000

Net gain 6,05,200

Thanks!