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Aquaculture Prospectus for Guyana Sector Overview

Prepared by: The National Aquaculture Association of Guyana October 2008

Introduction During late 2005 early

2006, the Government of Guyana called for a Fast Track Sector Development Plan to address commercial aquaculture. Based on research and Guyanas natural competitive advantages, it was decided that aquaculture should take a front-seat position as a key element of the diversification of Guyanas rich natural resources, and a movement away from its potentially debilitating dependence on traditional crops such as rice and sugar. Far earlier than that, though, the 1950s brought the introduction of two species of Tilapia, the Oreochromis mossambicus and the Oreochromis niloticus, and later the introduction of the Red Tilapia. Presently, Tilapia is considered part of the natural order in Guyana, and it is common to see scenes of fishermen casting nets into canals and lakes to reap Tilapia, which is then sold in local markets.

Fast Movement of Development

In the relatively short period between the call from the government for diversification and current

developments, much has been accomplished in the support and setup for aquaculture in Guyana. The formulation in 2006 of the National Aquaculture Association of Guyana (NAAG)1, which is a public-private donor initiative, has created a forum for all stakeholders in aquaculture to meet and steer the direction and development of the industry. It is also a place where joint-venture relationships can converge and grow. Furthermore, a paramount capacity of NAAG is the extension services it offers members, addressing technical issues, logistics, production concerns, and training, which are all invaluable for small and large farms alike.

Red Tilapia Harvested in Guyana

To aid small farms and supplement larger farms, there was a joint initiative between the Ministry of Agriculture2 and NAAG which had began the

construction of a hatchery at the Mon Repos Research Facility as of mid-year of 2008. The Mon Repos Hatchery was commissioned in August 2008 and estimates fingerling production at approximately 200,000 annually. The Mon Repos Research Facility has been established by the government for nearly five years and has concluded much research that supports the feasibility of aquaculture in Guyana. A further Research Facility in Anna Regina is undergoing plans for renovation to ease the servicing of the industry on the Essequibo coast.

In light of the premium price for fresh fish products, and in joint goals with non-traditional agriculture cash crops, a cold storage facility has been constructed at Timehri, and is an expansion of the Cheddi Jagan International Airport. This cold storage facility is able to house fresh fillets and fresh fish for immediate transportation to fresh markets in both the United States and the Caribbean.

In August of 2007, a watershed moment for the industry was reached when the first exports of Tilapia were shipped to market in New York.3 To bolster the capacity of aquaculture

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exports, Bharrat Jagdeo, President of Guyana, has voiced his support and encouraged rice farmers to diversify their lands by developing aquaculture ponds and begin growing fish.

Fresh on Ice Harvest Nile Tilapia (10 oz.)

Maharaja Oil Mills, a local producer of animal feed and coconut oil and a long-standing member of NAAG, has successfully addressed the imperative input of fish feed by developing, in collaboration with NAAG extension staff, three protein-rich products that can be used at the three main growing stages: high protein at fry stage, fatting feed at fingerling stage, and grow-out feed for the production grow-out stage. This complementary feed industry to the aquaculture industry allows business people to easily increase production without worry of threat by an unreliable feed regiment.

Furthering technical development, Guyana is participating with the

University of Arizona in the United States and the Collaborative Research Support Program (CRSP), an international multi-disciplinary partnership to advance science, research, education, and outreach in aquatic resources. Shared information and research among the partners in the program will ensure that Guyana stays on the forefront of aquaculture research and stays competitive.

Following a strategy to dramatically increase efficiency in production, in 2006, a technology labeled supermale or YY males from the University of Wales, Swansea4 was introduced into Guyana. These supermales (O. niloticus) guarantee all male progeny. This allows farmers to benefit from the quick rate of growth of an all-male crop, and requires no sex separation of fish. This technology is also being utilized by the Mons Repos Hatchery to supply an all-male fingerling stock to farmers.

In the wake of disasters and environmental mismanagement within the global industry of marine fisheries and aquaculture, Guyana has taken an active role in exploring and adhering to environmental aquaculture standards. Participation in the World Wildlife Funds Tilapia Aquaculture Dialog5 is only one of the many ways that Guyana is addressing the necessary issue of a sustainable environment.

NAAG is a member of the World Aquaculture Society Latin American and Caribbean Chapter, and is also associated with the American Tilapia Association, supporting improvements in technology, practices, and environment to build a better industry.

The Inter-American Development Bank has loaned the Government of Guyana US$1 million for technical assistance concerning feed, hatcheries, and production management. Ideally this will bring into the country external expertise in the form of experienced aquaculture consultants who will facilitate in furthering efficiency and development in those areas.

Ideal Irrigation and Drainage Land Layout

Competitive Advantages of Guyana

Proximity to markets, inexpensive labor, the fertility and development of land and an abundance of fresh and brackish water are just a few of the advantages that encourage investment in aquaculture in Guyana. In particular, the layout of land in combination with these

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advantages shows that Guyana is perfectly suited for semi-intensive aquaculture.

Guyanas proximity to North America and the Caribbean unlocks markets that are starving for aquaculture imports. Guyanas location on the northern part of South America also allows for premium access to shipping lanes and air travel. Established shipping lanes to Miami and New York have existed for 40 years. In addition, the major seafood processors in Guyana are US FDA HACCP6 certified, which guarantees a winning exporting function that is already in-country.

Fresh on Ice Harvest - Nile Tilapia

Given Guyanas long history of rice and sugar cultivation, its lands have been developed with drainage and irrigation canals that are ideal for feeding and removing water from developed aquaculture land. A fresh water conservancy exists that easily irrigates lands between it and the Atlantic Ocean. The abundance of land situated between existing canals on the coastal plains proves model for semi-intensive aquaculture production

ponds, and often this land consists of clay extremely suitable for excavation and containment of water. Equally important is the tropical climate of Guyana which provides optimal temperature year round for tilapia production.

HACCP Certified Fish Processors

Donor Support Several donor agencies

have participated in the development of aquaculture in Guyana. The United Kingdoms Department for International Development (DFID) funded an initial aquaculture feasibility study focusing on Guyana, the results of which eagerly encouraged aquaculture development. The United States Agency for International Development (USAID) created the Guyana Trade and Investment Support (GTIS) project that focuses on four main sectors of trade and investment, and has actively supported NAAG, and is working closely with private and public stakeholders towards furthering development in aquaculture. The British High Commission funded the introduction of the supermale technology into Guyana.

Future Prospects Considering all the

support that has been set up for the sector, aquaculture in Guyana is still in its infancy, but has a very promising future. Currently there are mostly small farmers who have developed small acreage, while larger more commercially minded farms are coming aboard and have pledged to develop 2,100 acres of flooded surface over the next five years.

Protecting and Developing Labor through Education

A collaboration among the government, NAAG, the University of Guyana (UG), and the Guyana School of Agriculture (GSA) aims to further develop and educate the aquaculture labor force. Course opportunities are already being offered in aquaculture at GSA, and are soon to be offered at UG.

Production Projections

A 25-acre production farm operating at a stocking density of one fish for every four feet (1:4 ft) can produce in one full production crop 272,250 fish. If a fillet-sized fish were to be grown out, approximately 1.4 lbs/fish, a single crop would reap 381,150 lbs of fish. If a one-lb whole fish were desired, 272,250 lbs could be harvested.

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Alternatively, if the same production farm could achieve the estimated six-month grow out time required to produce a fish for market size (approximately 1 lb), then two full production crops could be yielded in a single year, resulting in approximately 544,500 lbs of fish.

A production crop is estimated to require six to nine months to grow a 1 lb Tilapia, depending on management practices, proper feed, and water quality.

Table 1 gives an estimated glance at what a small, medium, and large farm setup may yield.

Budget Concerns Tables 2 - 4 are estimations

on the key costs of aquaculture development and operation. This is an illustrative budget and is not inclusive of all costs.

Table 1: Production Projections

Total Flooded Area (acres) Stocking Density Crops/yr Production (lbs) Revenue (US$1.10/lb)

1 1:4 ft 2 21,780 $ 23,958

10 1:4 ft 2 217,800 $ 239,580

50 1:4 ft 2 1,890,000 $ 2,079,000

300 1:4 ft 2 6,534,000 $ 7,187,400

Table 2: Development Costs

Cost Item Cost Comments

Pond Excavation Renting of Excavator Service

G$120/sq yd A one-acre pond would cost G$484,000 (US$2,420)

Irrigation and Drainage Piping (Pressure Piping 6 x 19.5)

G$14,500/pipe Depending on the distance between irrigation/drainage cana and the production pond, pipes could be cut in half. Three pipes will be needed: irrigation, drainage and overflow piping.

Predation Defense (Chain link fence)

Fencing (4x75) G$11,322 Wooden Post G$750

This cost is highly dependent on farm configuration. A fence surrounding a single one-acre pond made of wooden posts and chain link fence may run G$734,130. Note: Encompassing a larger perimeter would be more cost effective.

Table 3: Direct Costs

Cost Item Cost* Comments

Feed G$50/lb Using a feed-to-conversion ratio of 2lbs feed to 1 lb fish (2:1) and the aforementioned model of 272,250 lbs harvested fish per crop comes to G$21,780,000 (US$108,900) worth of feed. Note: feed is the most expensive input into the production cycle.

Fingerlings G$15/ready for grow-out fingerling

To stock a one-acre production pond at 10,000 fish, G$150,000 (US$750).

1 Farm Manager G$80,000+/month It is estimated that a farm manager, with the assistance of labor, would manage five one-acre production ponds.

1 Farm Laborer G$1,500/day Two farm laborers can assist one farm pond manager over five acres of ponds.

* G$200 US$1

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Pond Maintenance and Preparation

G$5,000 Includes fertilizer, chemicals

Table 4: Pricing

Item Price

Frozen Whole US$0.80/lb $1.00/lb

Fresh Whole US$1.10/lb

Frozen Fillet US$1.50/lb $2.00/lb

Fresh Fillet US$2.50/lb $3.00/lb

1 National Aquaculture Association of Guyana, http://aquaculture.org.gy/ 2 Guyanas Ministry of Agriculture, http://www.sdnp.org.gy/minagri/moa_mfcl/index.htm 3 Tilapia exported to NY - aquaculture group to join GuyExpo Thursday, September 27th 2007 Stabroek News, http://www.stabroeknews.com/index.pl/article?id=56529686 4 University of Wales, Swansea, http://www.swansea.ac.uk/ 5 World Wildlife Fund, Tilapia Aquaculture Dialog, http://worldwildlife.org/cci/aquaculture.cfm 6 United States Food and Drug Administration Hazard Analysis and Critical Control Point, http://www.cfsan.fda.gov/~lrd/haccp.html