SUPPORT TO CAPACITY BUILDING FOR PROMOTING FORMAL MARKETING |AMD TRADE OF FISH AND FISH PRODUCTS FROM THE HORN OF AFRICA

Abstract

This report is a compilation of national studies carried out in seven IGAD member countries - Djibouti, Ethiopia, Kenya, Somalia, Sudan, South Sudan and Uganda. With total production of more than 787,000 metric tons (MT) in 2010, the fisheries sector in IGAD member countries has been recognized as one of the important sectors contributing to food security, livelihoods and foreign exchange earnings. The fisheries sector, is dominated by inland fisheries, where the Nile Rivers and Great lakes are located, contributes more than 94% (capture and aquaculture) of the total fisheries production of IGAD countries and contribution from marine fisheries is only 5.7%, produced by Somalia, Djibouti, Kenya and Sudan. Despite of its insignificant contribution, aquaculture grew rapidly for the past ten years with production increased from 4,384 MT in 2001 to about 110, 000 MT in 2010, an increas of up to 2395% during the period, representing an increase of 240% annually. Freshwater fish like tilapia, Nile perch, carps (Cyprinid) and catfish are the main species harvested, contributing more than 72% of total harvest. Tilapias contributed 26.7% followed by Nile perch (20.5%), carps or cyprinids (15.6%) and catfish (9.8%). The three species are popular in the domestic and regional markets while Nile perch is mainly for export to developed markets. Rising demand for fish and fishery products has placed excessive pressure on inland capture fisheries which has led to over fishing, IUU fishing and illegal trade practices (e.g. selling undersize fish, illegal cross border trade). The other major issue faced by the fisheries sector is lack of infrastructure and post harvest facilities, resulting to inefficiency in fish distribution, high cost on transportation and preservation of the fish, high post harvest losses and poor quality of fish sold. Domestic markets in IGAD countries are dominated by freshwater species with strong preference towards tilapia, catfish, Nile perch and also small pelagic freshwater fish called mukene or omena. However, the exception is in Somalia and Djibouti which have access and strong preference for marine species. The total fish supply (live weight) in IGAD countries was about 697,000 MT in 2010 which was mainly supplied by local harvests. Uganda, consuming around 63% of total food fish supply, is the largest market for fishery products in the region. In the global fishery trade only Uganda and Kenya, among the IGAD member countries, are actively engaged in fishery product exports. Total exports of fishery products from Uganda and Kenya alone accounted for 97.5%, valued at u s $ 176.2 million in 2009. Fish exports from the region, dominated by Nile perch in general have been on a declining trend over the past few years, mainly due to the diminishing fish resources, quality related problems, and strong competition from cheaper products, particularly from other freshwater fish like Pangasius and Tilapia in the international markets. Uganda is the largest fish exporter among IGAD countries, followed by Kenya and Somalia. The main products exported from Uganda and Kenya is Nile Perch (Lates niloticus) caught in Lake Victoria. Fishery exports from other IGAD member countries are minor and mainly engaged in cross border trade for their traditional fishery products. Regional trade is mainly conducted informally by small scale and traditional traders across the borders and bulk of this trade is unrecorded, thus many consider it is as illegal trade; the products traded mainly are dried, salted and smoked products A/ith limited amount of fresh fish and second grade frozen fish. Uganda is the main fish supp’ ar to the regional markets. Official data indicate that regional fish trade generate an average of US $ 35 million per year for Uganda. Illegal trade is carried out to avoid government regulations such as taxes and tariffs, selling undersized fish, trans-shipment on the sea or Lake etc. The governments in IGAD countries acknowledge the importance of cross border trade and efforts have been made to tegalise and assist the stakeholders of this trade. As a pool, IGAD countries imported 34,783 MT of fishery products worth around US$39 million in 2009, thus IGAD as a whole has a foreign trade surplus (in fsh) of about US$ 137.2 million. In general fish products imported into the region Eire intended for local consumption that can be classified into the following three segments: (1) local consumers, mainly consumes low value frozen small pelagic fishes such as mackerel and sardines, canned fish and dried/salted/smoked fish; (2) catering sector, mainly uses high value frozen fish, shrimp, lobster and other shellfish; and (3) expatriates/foreigners, mainly consumes high value frozen fish, shrimp and canned fish.