FISH ANCHOR FISH ANCHOR FIRM MODELFIRM MODEL

MOVING FROM RESEARCH TO COMMERCIALISATION OF SMALL-SCALE FISH FARMING

BACKGROUNDBACKGROUND• Anchor Firm: a company

aggregating products from small scale farmers/firms to access higher value markets.

• Addresses the challenges faced by small-scale farmers such as lack of markets and extension services, and emphasizes on commercialization of activities.

CARP-ANCHOR FIRM CARP-ANCHOR FIRM RELATIONSHIPRELATIONSHIPCARP-a three year program from

2010-2013 applying value chain through the fish farming sector.

Anchor Firm to build on lessons learnt from CARP project

Anchor firm to be a success story for/ and facilitated by CARP for sustainable fish farming systems by small scale farmers

LESSONS LEARNT FROM LESSONS LEARNT FROM CARPCARP

1. Farmers Unable to Access Markets (High Value Markets)

Fish farmers relied on CARP to sell the fish on their behalf.

Farmers constrained from accessing high value markets due to conditions set by markets (quality, quantity and consistency

LESSONS LEARNT FROM LESSONS LEARNT FROM CARPCARP2. Extension services influence quality of output by farmers. Significant differences were observed between Mchinji (No extension worker) and Dowa(extension worker) output.Farmers require constant supervision, to ensure adherence to proper pond management practices

LESSONS LEARNT FROM LESSONS LEARNT FROM CARPCARP3. Need for Microfinance Institutions

Farmers require start-up capital to engage in fish farming i.e. purchase inputs such as high quality fingerlings, feed and manure.

MFIs to empower farmers to engage in VLSs and village banks

ANCHOR FIRM ANCHOR FIRM ASSUMPTIONSASSUMPTIONS

“The company will act as generator of spill over, as a role model, as network orchestrator, cluster enabler, a magnet for supply, service and technical backstopping, and as an entrepreneurial incubator”.

ANCHOR FIRM ANCHOR FIRM ASSUMPTIONSASSUMPTIONS1. Farmers To Be In ClustersFarmers to be placed in clusters

to facilitate farmer support. 2. Value-additionMarket for value added products

not fully explored by farmers.

ANCHOR FIRM MODELANCHOR FIRM MODEL

FARMERS BENEFITSFARMERS BENEFITS1) Increased Returns2) Sustainable fish farming-Anchor firm will allow for sustainability as their will be focus on profits and commercialization3) Value-added products -Anchor firm will diversify fish products range (Smoked, filleted etc.).

Operational Structure of Operational Structure of FirmFirm

Shareholder structure of Shareholder structure of Firm: Board of DirectorsFirm: Board of Directors

NAME EXPERTISE

  Fishing

  Accounting and Finance

  Legal

  Policy

  Community Development

Anchor Firm OperationsAnchor Firm OperationsPhased approach to be taken due to unfavorable macroeconomic conditions.

Anchor Firm to start being operational in 2013, and the phased approach to take place in three years i.e. 2013, 2014 and 2015.

REQUIRED START-UP REQUIRED START-UP CAPITALCAPITALThere will be a requirement of

MK35 million kwacha (US$87,500) for the firm to start its operations in 2013.

The Firm will start working with CARP farmers as a business incubation phase, and will extend area of influence to other areas in the subsequent years.

Anchor Firm: Impacts Anchor Firm: Impacts

The Anchor Firm will contribute to the overall aquaculture production to the national production by over 1000 tons by the end of three years through:Sustained farming activities by farmers due to increased incomes.Production of fish by anchor firm in the subsequent years..

Anchor Firm: ImpactsAnchor Firm: ImpactsThe Anchor firm also seeks to

have a large role in the commercialization of aquatic activities in Malawi, and the general improvement of the livelihoods of the small scale farmers

CHALLENGES CHALLENGES Lack of start-up of capital: too

high interest rates prevailing in Malawi.

Investors: Most prospective investors need proof of viability of business before investing.

PROGRESSPROGRESSNaming of companyFish Marketing For Rural

Transformation – FISHMARTProduction of company prospectus,

Non- Confidentiality agreements and projections.

Process of company registration initiated.

Identification of farmers to supply fish to company initiated.

THANK YOU.