ETG Guyana Action Plan Aquaculture 11dec05

FAST TRACK SECTOR DEVELOPMENT
COMMERCIAL AQUACULTURE
ACTION PLAN
Prepared for:
Government of Guyana
Inter-American Development Bank
Draft Report
December 2005
GUYANA – FAST TRACK SECTOR DEVELOPMENT (FIRST DRAFT 12/09/05)
Table of Contents
Table of Contents.................................................................................................................................................ii
Executive Summary ............................................................................................................................................ 3
Sector Analysis ................................................................................................................................................... 6

INTERNATIONAL TRENDS IN AQUACULTURE PRODUCTION. ................................................................ 7
AQUACULTURAL DEVELOPMENT TRENDS IN LATIN AMERICA AND THE CARIBBEAN ....................... 8
Strategic importance of aquaculture in Guyana. ...........................................................................................17
Guyana’s competitiveness. Why aquaculture in Guyana? ...........................................................................22
Opportunities for Guyana ..............................................................................................................................24
Recent trends ................................................................................................................................................25
Action Plan........................................................................................................................................................ 28
Foundations and GUIDING PRINCIPLES of the Proposed Action Plan ........................................................28
GOAL / VISION .............................................................................................................................................28
Impact of the strategy ....................................................................................................................................28
Preliminary Strategy ......................................................................................................................................29
Development of Commercial Aquaculture .....................................................................................................29
Demonstration and Support of “Pioneer” Investors – ....................................................................................31
Development of fast track commercial aquaculture team – ...........................................................................32
INVOLVEMENT OF NEW PRIVATE INVESTORS IN THE FISH FARMING SECTOR OF GUYANA. .........33
developMENT OF family commercial operations. .........................................................................................33
developMENT OF family commercial operations. .........................................................................................34
IMPROVEMENT AND CONVERSION OF THE MON REPOs AQUACULTURE CENTER FROM A
DEMONSTRATION FACILITY TO A PROACTIVE ACTIVITY supporting commercial aquaqulture. ............37
DEVELOPMENT OF SPECIALIZED PHYSICAL INFRASTRUCTURE. designation of priority areas for
AQUACULTURE DEVELOPMENT ..............................................................................................................39
DEVELOPMENT OF SPECIALIZED PHYSICAL INFRASTRUCTURE. construcTion of aquaculture park ..40
DEVELOPMENT OF A SPECIALIZED FINANCING INFRASTRUCTURE. AQUACULTURE DEVELOPMENT
REVOLVING FUND. .....................................................................................................................................41
STRENGTHENING OF THE SECTOR’S KEY INDUSTRIES. ......................................................................42
ESTABLISHMENT OF KEY SUPPLIERS .....................................................................................................43
ORGANIZATION OF PRODUCERS / DEVELOPING SOCIAL CAPITAL .....................................................44
SUPPORT FOR THE ESTABLISHMENT AND CONSOLIDATION OF ASSOCIATIVE STRUCTURES ......45
Development of Small Scale and Social Aquaculture ...................................................................................46
Development of Small Scale and Social Aquaculture ...................................................................................46
POLICY OPTIONS............................................................................................................................................ 47
ii
Executive Summary
Guyana needs to increase its exports. Export of traditional agricultural and mining
products are going down. Guyana has to take advantage of its climate, irrigation
facilities and agricultural infrastructure to create economic opportunities for rural
people and generate foreign exchange.
Targeting Commercial Aquaculture for Fast-Track Sector Development in Guyana
is part of this bold strategy. Up to now, development of Aquaculture in Guyana is
oriented mostly to social aquaculture and research and demonstrative activities.
New Line Aqua Farm in the West Bank of Demerara is a private company with a
state of the art operation tilapia production facility with 100 acres of ponds,
advanced technology, fingerling and balanced food production plant that is trying to
prove the potential of Commercial Aquaculture in Guyana.
We are choosing to target and promote aquaculture for four fundamental reasons:
Commercial Aquaculture has a significant economic impact. The income

potential of an acre of tilapia aquaculture is 25,000 pound per acre and an estimate
of US$75,000 in export markets. The development of 1,000 acres can bring up to
50-60 million dollars in exports. Even with local markets the economic impact on
rural areas is important
Successful experience in other developing countries in the Caribbean and

South America. Countries as Brazil, Ecuador and Colombia are showing
impressive growth in production and have become leading aquaculture producers
in the world.
Guyana agricultural infrastructure provides special advantages to

commercial aquaculture development. The infrastructure developed for rice
production can be adapted for Commercial Aquaculture in different levels of
investment. The cost of developing a 10 acre 5 pond system is estimated in
US$15,000, lower than starting with a “greenfield” operation in other areas.
3
Development of Commercial Aquaculture can be very fast, based on

demonstration projects. The experience in other countries such as Colombia
with successful companies and demonstration projects with economic viability
creates a strong investment interest and the sector grows very fast. ETG has had
experiences such as Tabasco, where growth from one 12 acre shrimp pond to
more than 400 acres of ponds occurred in less than a year.
The Action Plan for catalyzing the growth of Commercial Aquaculture is based on
making use of the process of “successful pioneer project demonstration;” focusing
on supporting success stories among current producers; the involvement of new
producers with existing producers, or the incorporation of new independent
producers; and setting up a specialized support infrastructure such as special
financing and training.
Key elements of the Action Plan – Commercial Aquaculture

Proposed Actions Cost
Estimate
1 Support and Development of Commercial Aquaculture US$100,000
1.1 Demonstration and Support of “Pioneer” Investors
1.2 Development of Fast-Track Commercial Aquaculture Team
1.3 Involvement of New Private Investors in Commercial Fish
Farming
1.4 Fast-Track Action Plan for Tilapia Processing Facility
2 Development of Small Commercial and Family Operations US$100,000-
3 Improvement and Conversion of Mon Repos Aquaculture US$64,000
Station
4 Designation of Priority Areas for Aquaculture US$60,000
Development
5 Aquaculture Development Revolving Fund US$400,000
Total US$624,000
4
Expected Results
With the development of Commercial Aquaculture the idea is to help establish and
operate 50 acres of new commercial aquaculture for the first year and get to a level
of 500 acres at the end of five years, with an economic impact between US$25-$30
million in new exports.
5
Sector Analysis
Aquaculture is one of the fastest growing agricultural activities worldwide. This is
due to a growing demand for fishery products along with a decreasing ocean
fishing supply.
Aquaculture creates special competitive advantage in developing countries that
have an ideal climate combined with an abundance of land and water.
Developing aquaculture in Guyana offers the following
benefits:
Foreign currency income
Increased rural employment
Development of added value through the processing of
products
Improvement and growth of regional food supply and
nutrition for the poor
Utilization of regional farming and fishery infrastructure
already in place
Increased demand for agricultural products
Developing countries such as Chile, China, Brazil, and Colombia, among others
have experienced a dramatic increase in economic opportunities from developing
aquaculture.
The production comes from developing countries.
It is worthy to note the growth of aquaculture production of fish, crustaceans and
mollusks in developing countries has exceeded corresponding growth in developed
countries at an average annual rate of 10.4 percent since 1970. In contrast,
aquaculture production in developed countries has been increasing at an average
rate of 4.0 percent per year. In developing countries other than China, production
has grown at an annual rate of 7.8 percent. In 1970, developing countries
accounted for 58.8 percent of the world production, while in 2002 their share had
risen to 90.7 percent.
Guyana initiated an effort to develop an aquaculture sector through the creation of
the Mon Repos technology transfer center. This effort materialized through the
introduction of a new species into the country, as well as the promotion of social
aquaculture by means of training courses and technical support to new operations.
This development of aquaculture has focused mainly on the social segment and
oriented towards the local and regional markets.
Through advanced technology and important investments, Guyana recently
consolidated aquaculture operations into commercially profiled export-oriented
activities. Developing this segment through the use of the country’s clear
6
competitive advantages, allows for a changeover from a semi commercial and

social activity to a true economic opportunity for the entire country.
INTERNATIONAL TRENDS IN AQUACULTURE PRODUCTION.
In 2002, total world aquaculture production (including aquatic plants) reported to be

51.4 million metric tons and US$60.0 billion. This is an annual increase of
6.1 percent in quantity and 2.9 percent in
value over reported figures for 2000. In Top ten producers in aquaculture production: quantity
2002, Asian countries accounted for Producer 2000 2002 APR
91.2 percent production and 82 percent of (thousand metric tons) (per
the value of total world aquaculture Top ten producers in terms of quantity
production. China alone produced China 24 580.7 27 767.3 6.3
71.2 percent quantity and 54.7 percent
India 1 942.2 2 191.7 6.2
value of the world total.
Indonesia 788.5 914.1 7.7
The following table shows: the top ten Japan 762.8 828.4 4.2
Bangladesh 657.1 786.6 9.4
countries producing fish, crustaceans, and Thailand 738.2 644.9 -6.5
mollusks in 2002, and the top ten Norway 491.2 553.9 6.2
countries in annual growth through Chile 391.6 545.7 18
aquaculture production in 2000–02. All Viet Nam 510.6 518.5 0.8
United States 456 497.3 4.4
continents except Europe show increases
in production from 2000 to 2002; in
Europe production remained relatively Top ten subtotal 31 318.8 35 248.4 6.1
unchanged (0.1 percent annual
Rest of the world 4 177.5 4 550.2 4.4
decrease).
Total 35 496.3 39 798.6 5.9
7
Top ten producers in terms of growth

Iran (Islamic Rep. of) 40.6 76.8 37.6
Faeroe Islands 32.6 50.9 25
Lao People’s Dem. 42.1 59.7 19.1
Rep.
Brazil 176.5 246.2 18.1
Chile 391.6 545.7 18
Russian Federation 74.1 101.3 16.9
Mexico 53.9 73.7 16.9
Taiwan Province of 243.9 330.2 16.4
China
Canada 127.6 172.3 16.2
Myanmar 98.9 121.3 10.7
In South America the most important growth is in Chile and Brazil
World aquaculture production: average annual growth rate for different species
Time period Crustaceans Mollusks Freshwater Diadromous Marine Overall
fish fish fish
(percent)
1970–2002 18.1 7.8 9.6 7.4 10.5 8.9
1970–1980 23.9 5.6 6 6.5 14.1 6.3
1980–1990 24.1 7 13.1 9.4 5.3 10.8
1990–2000 9.9 5.3 7.8 7.9 12.3 10.5
2000–2002 11 4.6 5.8 6.7 9.5 5.9
Every kind of species is showing important levels of growth.
8
AQUACULTURAL DEVELOPMENT TRENDS IN LATIN AMERICA AND THE

CARIBBEAN
During the last ten years, as a result of new technology and more efficient and
effective production systems, aquaculture has shown important development in
Latin America and the Caribbean. Both public and private sectors consider
aquaculture a beneficial and favorable activity.
There are no statistics on production results from different types of farming for us
to apply intensity criterion that hold a close relationship between amounts invested
and the social level of the producers. An estimate based on the farmed species
with techniques used and the countries in which the farming occurred gives us a
picture in which 73% of production is derived from industrial aquaculture and the
rest is from small scale aquaculture.
Farm production for primarily export products concentrated on salmon in Chile and
shrimp in Ecuador, Mexico, Honduras, Colombia, Peru, Panama, and Belize. It is
estimated that 90% of the farmed shrimp and salmon, 50% of the Tilapia, and 90%
of the Gracilaria (Chile) are exported. Oysters represent nearly 65% of the region’s
farmed mollusks. Tilapia farming (Colombia, Brazil, Mexico, Cuba, Costa Rica, and
Jamaica) accounts for the highest growth rate. Carp production (Mexico, Cuba,
and Brazil) mainly from two species has also been growing.
During the last 10 years, salmon and shrimp farming for industrial production have
especially been driving the volume and value growth in the region of aquaculture.
The convergence of a series of national and international factors made the sector’s
development possible. At an international level two factors include the trend of
growing demand and prices consistency due to globalization contributions
(transportation, communications, technological advancements, intensified
international investment flow). The above conditions are major factors in
considering the feasibility of future investments in this sector.
Aquaculture is influenced by:
International market trends, risks inherent to the current situation, short saturation
terms due to an increase in offer, import restrictions that might emerge and affect
trade of products in markets where producers feel they are disadvantaged by the
low price of imports and costs associated with long shipping distances to markets.
The increase in regional trade of products in Latin America.
Success in avoiding or controlling rapid transmission diseases that can have a very
negative impact on economic outputs, particularly in shrimp farming diseases.
Diseases are being successfully controlled in salmon farming.
Preserving adequate conditions for development, including the capacity to renew,
modernize, and restructure companies, while developing and implementing new
technologies that continue positioning high quality products in the markets without
hindering the competitiveness of preserving adequate conditions for development.
Growing concern of citizens about the environmental impact of industrial
aquaculture.
9
EVOLUTION OF AQUACULTURE IN LATIN AMERICA AND THE CARIBBEAN:

Aquaculture in Latin America and the Caribbean showed a growing trend during
the past decade. While 306,412 metric tons were produced in 1991, in 2000 that
level more than doubled (about 871,874 metric tons).
VALUE OF AQUACULTURE PRODUCTION IN LATIN AMERICA AND CARIBBEAN (DLLS)
5,000,000,000
4,500,000,000
4,000,000,000
3,500,000,000
3,000,000,000
2,500,000,000
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
-
1995 1996 1997 1998 1999 2000 2001 2002 2003
10
MAIN AQUACULTURE PRODUCERS IN LATIN AMERICA AND THE

CARIBBEAN The major producers in the region are: Chile, Brazil, and Ecuador
including noteworthy contributions from Colombia and Honduras.
Land Area 1995 1996 1997 1998 1999 2000 2001 2002 2003
Chile 583,868,700 829,186,650 959,759,000 1,001,543,750 923,838,800 1,266,241,200 1,754,904,900 1,688,157,300 2,193,562,400
Brazil 171,896,000 298,378,500 319,427,200 381,000,500 523,876,600 684,396,400 750,043,900 879,225,000 979,451,800
Ecuador 633,582,000 647,520,000 678,894,000 729,299,000 598,662,768 321,566,670 267,444,500 277,767,400 297,192,000
Mexico 78,992,493 72,843,053 121,259,685 159,290,100 192,016,250 226,221,300 352,974,130 281,926,508 282,015,740
Colombia 161,043,200 137,861,815 189,792,600 190,863,300 220,864,400 257,612,400 242,180,000 246,580,000 269,200,800
Honduras 46,742,290 69,309,160 63,665,000 43,372,000 44,718,000 49,937,700 67,182,000 78,342,000 104,424,000
Peru 44,140,450 60,775,350 49,886,615 42,215,710 65,813,318 37,249,555 45,358,442 71,410,257 80,957,745
Costa Rica 35,820,500 35,978,800 36,130,800 35,439,237 38,806,940 32,715,000 35,598,000 65,877,500 69,706,000
Belize 7,523,000 6,310,000 9,143,600 9,852,000 15,182,400 17,424,000 33,539,200 30,800,000 64,312,800
Venezuela, Boliv Rep of 21,660,000 23,873,000 29,934,740 29,271,737 35,111,412 52,824,853 50,627,364 55,413,456 51,088,575
Nicaragua 15,223,000 16,214,350 19,358,650 24,801,150 21,589,350 29,601,660 26,934,660 28,679,190 32,993,550
Guatemala 20,933,390 14,513,810 21,220,100 15,257,950 20,110,200 19,341,820 23,731,100 30,021,500 29,131,100
Panama 33,617,250 32,097,940 35,930,400 37,873,470 9,834,280 5,894,560 12,352,900 17,955,500 28,261,310
Cuba 24,517,660 34,996,860 35,018,810 36,842,950 34,423,140 33,481,500 26,568,000 29,584,200 27,875,000
Jamaica 10,816,800 10,666,800 10,516,800 10,396,800 11,796,800 13,578,500 13,578,500 17,044,499 17,355,649
Dominican Republic 6,316,979 2,949,600 1,974,500 2,499,300 1,419,500 8,655,800 8,730,260 13,477,140 12,632,980
French Guiana - - 144,452 360,000 535,960 463,000 394,019 379,734 7,957,991
Argentina 9,220,000 8,737,000 8,497,000 6,660,000 6,770,000 10,395,000 8,162,500 7,676,750 7,152,400
El Salvador 1,142,341 942,480 1,096,361 722,166 854,238 1,084,655 1,250,514 2,094,576 4,799,230
Puerto Rico 497,320 559,200 99,710 2,117,460 1,815,050 1,925,520 2,794,170 3,016,510 2,237,360
Guyana 554,000 630,000 605,000 576,000 1,219,067 1,173,390 1,197,550 1,197,550 1,197,550
Martinique 1,312,377 1,064,655 1,113,543 779,699 614,483 503,694 534,475 770,394 1,089,538
Bolivia 1,783,400 1,091,750 1,164,510 1,219,578 1,287,308 1,229,460 672,021 915,720 841,860
Suriname 2,000 2,000 2,000 863,000 1,300,000 1,924,000 2,809,600 1,136,400 608,880
Guadeloupe 660,000 703,904 411,725 322,000 394,000 238,980 228,626 375,458 587,579
Bahamas 60,000 15,000 15,000 15,000 15,000 28,000 182,000 250,000 420,000
Uruguay 106,000 144,500 134,300 151,800 277,800 798,100 156,000 93,200 158,808
Turks and Caicos Is. 12,000 7,200 9,600 9,600 24,000 36,000 48,000 72,000 60,000
Dominica 36,000 36,000 44,000 44,000 44,000 58,500 58,500 39,000 39,000
Trinidad and Tobago 30,000 30,000 26,000 26,000 26,000 44,000 17,000 17,000 17,000
Saint Lucia 15,300 18,466 17,908 15,059 231,407 3,000 15,481 16,000 16,000
Grenada - - - - 6,000 18,000 - - -
Netherlands Antilles 10,400 10,400 12,500 12,500 12,500 12,500 13,000 - -
Paraguay 300,000 560,000 623,000 224,152 198,217 217,850 234,000 - -
Saint Kitts and Nevis - - - - - - - - -
TOTAL 1,912,434,850 2,308,028,243 2,595,929,109 2,763,936,968 2,773,689,188 3,076,896,567 3,730,515,312 3,830,311,742 4,567,344,645
The main producers LARGEST AQUACULTURE PRODUCERS LATIN AMERICA AND CARIBBEAN
in Central America
2,500,000,000
and the Caribbean
are: Honduras,
2,000,000,000
Costa Rica, Belize,
Nicaragua, and
1,500,000,000
Guatemala.
1,000,000,000
500,000,000
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11
FRESH WATER AQUACULTURE

Production of Fresh Water aquaculture in Latin America and the Caribbean shows
the following trends.
Land Area 1996 1997 1998 1999 2000 2001 2002 2003
Brazil 261,243,000 278,794,700 318,836,200 397,910,400 469,777,900 524,608,000 612,965,700 585,965,600
Colombia 66,862,527 88,019,100 94,532,500 102,215,000 117,806,000 108,380,000 107,580,000 114,237,600
Costa Rica 12,320,250 12,320,250 14,691,196 16,731,379 20,250,000 21,250,000 33,225,000 37,475,000
Mexico 5,336,900 9,477,224 10,071,700 14,487,450 19,045,700 29,791,259 31,837,901 31,768,750
Cuba 30,391,960 28,168,110 27,525,470 28,842,240 23,394,400 20,298,300 21,349,200 21,555,050
Ecuador - 1,799,000 1,799,000 4,049,700 7,183,670 4,742,000 7,001,900 9,727,000
Jamaica 10,361,800 10,211,800 10,091,800 11,491,800 13,502,500 13,502,500 14,875,199 8,642,859
Guatemala 5,891,800 6,301,100 4,677,900 9,292,200 7,777,360 8,113,000 8,113,000 8,113,000
French Guiana - - - 48,960 42,000 59,197 166,884 7,873,151
Honduras 281,500 485,000 1,012,000 1,584,000 1,019,700 1,866,000 3,000,000 5,262,000
Dominican Republic 695,600 1,086,700 1,516,200 1,235,500 3,116,800 2,293,100 2,862,980 2,862,980
El Salvador 105,911 163,366 372,587 263,485 159,908 61,808 873,319 2,855,195
Venezuela, Boliv Rep of 6,205,000 8,659,893 8,277,258 8,296,463 7,489,595 12,783,499 10,060,959 2,137,015
Peru 183,600 143,046 324,855 292,330 136,594 353,300 568,495 1,369,889
Argentina 65,000 65,000 - 1,365,000 3,880,000 1,350,000 1,222,750 862,500
Guyana 288,000 255,000 216,000 764,353 718,170 711,550 711,550 711,550
Puerto Rico 114,720 27,120 27,120 13,560 69,150 888,070 921,290 450,460
Panama 236,940 250,400 126,750 985,000 1,264,000 1,655,400 702,000 178,310
Bolivia 191,750 156,750 148,058 158,332 145,594 142,275 181,000 156,860
Martinique 101,675 64,332 63,562 53,589 47,310 46,786 49,570 59,275
Guadeloupe - - - - - - 12,109 28,959
Trinidad and Tobago 30,000 26,000 26,000 26,000 44,000 17,000 17,000 17,000
Saint Lucia 3,256 5,698 2,849 3,259 3,000 3,259 8,000 8,000
Uruguay 9,500 9,500 6,000 6,000 6,000 6,000 4,200 6,954
Bahamas - - - - - - - -
Belize 574,000 285,600 - - - - - -
Dominica 8,000 8,000 8,000 8,000 10,500 10,500 - -
Grenada - - - - 1,500 - - -
Nicaragua 31,150 20,250 6,750 16,000 57,600 153,600 - -
Paraguay 560,000 623,000 224,152 198,217 217,850 234,000 - -
Suriname 2,000 2,000 2,000 100,000 247,000 86,400 86,400 -
TOTAL 402,095,839 447,427,939 494,585,907 600,438,217 697,413,801 753,406,803 858,396,406 842,324,957
Brazil and Colombia are the most important producers in this area.
12
TILAPIA PRODUCTION (METRIC TONS) Tilapia, one of the leading species in

fresh water aquaculture shows the following trends.
AQUACULTURE PRODUCTION OF TILAPIA (TONS)

Land Area 1995 1996 1997 1998 1999 2000 2001 2002 2003
Brazil 12,014 15,700 16,845 24,062 27,104 32,459 35,830 42,003 62,558
Colombia 16,057 14,026 16,112 17,665 19,842 22,870 22,500 23,000 23,403
Costa Rica 3,800 4,100 4,100 5,398 6,588 8,100 8,500 13,190 14,890
Ecuador - - 1,730 1,730 4,400 9,201 5,159 6,903 9,727
Mexico 1,482 4,800 8,318 5,398 7,023 6,726 8,845 7,271 7,271
Honduras 172 210 212 506 792 927 1,244 2,000 3,508
Jamaica 3,500 3,450 3,400 3,360 4,100 4,500 4,500 6,000 2,513
Guatemala 774 1,751 2,074 1,647 3,352 2,361 2,501 2,501 2,501
Dominican Republic 985 177 344 446 445 994 1,666 2,084 2,084
El Salvador 196 93 138 278 141 56 29 405 654
Cuba 2,096 2,418 1,888 540 1,060 730 480 500 650
Guyana 160 160 170 180 369 369 370 370 370
Peru - 46 49 85 60 47 225 121 112
Venezuela, Boliv Rep of 1,650 1,700 1,936 2,010 2,320 970 1,250 560 108
Panama 186 115 102 55 634 900 1,181 500 95
Puerto Rico 48 24 6 6 3 15 199 203 71
Bolivia 70 55 40 30 30 30 30 35 39
Martinique 30 13 10 10 10 8 8 8 8
Trinidad and Tobago 15 15 13 13 12 21 6 6 6
Argentina - 10 10 - - 10 - 3 5
Guadeloupe - - - - - - - 2 4
Saint Lucia - 1 2 1 1 1 1 2 2
Bahamas - - - - - - - - -
Belize 14 287 136 - - - - - -
Dominica 2 2 2 2 2 3 3 - -
Grenada - - - - - 1 - - -
Nicaragua 5 52 45 15 16 24 64 - -
Paraguay 80 150 210 38 38 40 40 - -
Suriname 1 1 1 1 50 130 54 54 -
TOTAL 43,337 49,356 57,893 63,476 78,392 91,493 94,685 107,721 130,579
SOURCE: FAO
TILAPIA PRODUCTION IN TONS
Brazil went from

12,000 tons in 1995 to
more than 62,000 tons
in 2003. Colombia and
Costa Rica are also 70,000
leading producers. 60,000
50,000
40,000
2003
2002
30,000
2001
2000
20,000 1999
1998
10,000 1997
1996
1995
-
Brazil Colombia Costa Rica Ecuador Mexico
13
VALUE OF AQUACULTURE PRODUCTION OF TILAPIA, Value Production of

Tilapia in Latin America and the Caribbean is more than 361 million dollars.
TILAPIA AQUACULTURE PRODUCTION (VALUE) DOLLARS

Land Area 1995 1996 1997 1998 1999 2000 2001 2002 2003
Brazil 42,049,000 54,950,000 57,273,000 79,404,600 89,443,200 107,114,700 114,656,000 134,409,600 200,185,600
Colombia 52,988,100 48,726,319 53,169,600 56,528,000 61,510,200 70,897,000 67,500,000 69,000,000 70,209,000
Costa Rica 11,400,000 12,300,000 12,300,000 14,691,196 16,731,379 20,250,000 21,250,000 32,975,000 37,225,000
Mexico 846,933 2,724,479 5,345,146 5,398,000 8,778,750 11,770,500 17,941,097 15,807,013 15,778,070
Ecuador - - 1,730,000 1,730,000 3,960,000 7,084,770 4,643,100 6,903,000 9,727,000
Jamaica 10,500,000 10,350,000 10,200,000 10,080,000 11,480,000 13,500,000 13,500,000 14,875,199 8,642,859
Guatemala 2,263,000 5,250,850 5,911,000 4,649,200 9,237,500 7,683,650 8,014,200 8,014,200 8,014,200
Honduras 223,600 220,500 424,000 1,012,000 1,584,000 1,019,700 1,866,000 3,000,000 5,262,000
El Salvador 159,983 103,254 160,466 364,737 254,485 159,908 61,808 863,261 2,851,547
Dominican Republic 2,142,549 348,400 661,700 989,900 805,000 2,186,800 1,662,700 2,074,180 2,074,180
Cuba 1,572,000 1,789,320 1,661,440 469,800 922,200 657,000 432,000 450,000 585,000
Guyana 288,000 288,000 255,000 216,000 342,478 343,170 369,550 369,550 369,550
Puerto Rico 234,720 114,720 27,120 27,120 13,560 69,150 875,600 899,290 312,400
Venezuela, Boliv Rep of 3,960,000 4,165,000 5,553,609 4,771,338 4,988,463 2,140,305 3,109,500 1,324,960 234,360
Peru - 92,000 98,000 170,000 120,000 48,483 225,000 223,728 169,044
Panama 186,000 126,500 122,400 68,750 951,000 1,260,000 1,653,400 700,000 122,310
Martinique 192,495 101,675 64,332 63,562 53,589 47,310 46,786 49,570 59,275
Bolivia 161,000 129,250 83,600 73,305 72,282 67,944 63,570 70,000 50,926
Guadeloupe - - - - - - - 12,109 28,959
Trinidad and Tobago 30,000 30,000 26,000 26,000 24,000 42,000 15,000 15,000 15,000
Argentina - 65,000 65,000 - - 30,000 - 6,000 8,500
Saint Lucia - 3,256 5,698 2,849 3,259 3,000 3,259 8,000 8,000
Bahamas - - - - - - - - -
Belize 35,000 574,000 285,600 - - - - - -
Dominica 8,000 8,000 8,000 8,000 8,000 10,500 10,500 - -
Grenada - - - - - 1,500 - - -
Nicaragua 10,000 31,150 20,250 6,750 16,000 57,600 153,600 - -
Paraguay 120,000 225,000 357,000 89,661 79,287 84,000 84,000 - -
Suriname 2,000 2,000 2,000 2,000 100,000 247,000 86,400 86,400 -
TOTAL 129,372,380 142,718,673 155,809,961 180,842,768 211,478,632 246,775,990 258,223,070 292,136,060 361,932,780
The growth of the Tilapia Industry in Brazil, Colombia and Costa Rica are success
stories from a combined level of 100 million dollars in 1995 to more than 300
million dollars in 2003.
14
THE CASE OF A DEVELOPING COUNTRY: NICARAGUA

Nicaragua has concentrated its shrimp farming efforts in the Chinandega area.
This high social impact activity has maintained a growing trend seen in following
indicators:
AQUACULTURE EXPORTS: Exports of aquaculture products have grown
significantly in the country. In 2002 they accounted for 30.5% of fishing exports.
The contribution of aquaculture to fishing exports showed significant growth in
1995 with constant growth each year since.
THE CASE OF A DEVELOPING COUNTRY: COLOMBIA

Colombia started in 1984 with the introduction of Tilapia. In 1986 the Aquaculture
Association was created based mostly on shrimp. In 1986 in the Valle del Cauca
Red Tilapia was introduced and the first fingerlings were produced locally. In 1987
the first commercial aquaculture enterprise was created, COMPAÑÍA
VALLECAUCANA DE ACUICULTURA, CVA LTDA, with 16 ponds to produce semi
intensive red tilapia. This was the first commercial operation in the country using
commercial feed, aeration and advanced technology. In 1988 Israeli investors and
local Colombian entrepreneurs started the most important “pioneer” company in
Colombia, COLAPIA SA. This operation had 120 acres of productive area and was
considered one of the most advanced operations in the world. It introduced
fingerling production (2 million per month), aerators, hatchery, processing plant and
fish food production in one integral operation. .
From the influence of Colapia a local market was developed and technology was
transferred to Ecuador and Venezuela. The impact of a single company helped
develop the tilapia industry in Colombia is reflected in the following production
chart.
15
TILAPIA PRODUCTION IN COLOMBIA (TONS)
25000
20000
15000
10000
5000
0
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
16
THE CASE OF SINALOA, MEXICO

The State of Sinaloa, in MEXICO, is a model for the growth of aquaculture activity,
especially in shrimp production.
Shrimp farming has shown important growth. Almost non-existent in 1984 (6 tons),
in 2002 22,000 tons of farmed shrimp was produced.
CULTIVO DE CAMARON
AÑO TONELADAS
1984 6
1985 71
22,000
1986 88
20,000
1987 585
18,000
1988 901
16,000
1989 2736
14,000
1990 2884
12,000
1991 3985
10,000
1992 6499
8,000
1993 8727
6,000
1994 8854
4,000
2,000
1995 10471
0
1996 7763
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 1997 10175
1998 12257
1999 13411
2000 16022
2001 19550
2002 22000
The shrimp farming industry in Sinaloa comprises: 161 operating farms, 174,000
farmed acres, 36.1 million dollars in production and 4,100 permanent jobs.
AQUACULTURE IN GUYANA
When compared with the Asian countries, Guyana has not had a tradition of
aquaculture practices. Even today, aquaculture remains a new concept that is in
the process of being introduced. Since 1997, the Government has embarked on an
17
aquaculture expansion drive. The acreage under aquaculture has expanded, as

well as the number of species being cultured.
On July 13th 2001, Phase 1 of the Mon Repos Freshwater Aquaculture
Demonstration Farm and Training Centre was commissioned by the President of
the Republic of Guyana. This facility was constructed as a result of a partnership
with the Food and Agriculture Organisation of the United Nations (FAO-TCP 8922),
the Government of Guyana and the Canadian International Development Agency
(CIDA).
The four acre (ha) facility has 15 ponds, with a total flooded surface of 0.4 acres,
one house and one laboratory office/facility with a staff of three persons (two
technical and one support staff). Two technical staff are also based at the Fisheries
Department in Georgetown. The main purpose of the Centre is to stimulate and
promote the development of aquaculture through the training of farmers, providing
start up seed and technical assistance to farmers and to conduct adaptive and
applied research.
Work is presently being carried out on the following species:
Jamaican Red Tilapia

Nile Tilapia (Oreochromis nilotica)
Hassar (Hoplosternum littorale)
Giant Malaysian Freshwater Prawn (Macrobrachium rosenbergii)
It is estimated that about 100 persons are currently involved in aquaculture as a

part time activity. The majority of these persons are involved in brackish water
culture. Aquaculture production for 2001 (1,607.25 mt). I
Cultured Species
Mozambique Tilapia (Oreochromis mossambica)
This species was introduced to Guyana in 1958 from Malaysia. It is of minimal
importance in aquaculture today. Due to crossbreeding with Oreochromis nilotica,
18
no pure-bred strains exist today. No further importations have been made since the
initial introduction.
Nile Tilapia (Oreochromis nilotica)

This species was first introduced to Guyana in the 1970’s from Cuba. The
anticipated benefits of the initial introductions were hampered by the unplanned
crossbreeding which occurred with Oreochromis mossambica. A more recent
introduction was made in 1999, from stock purchased in Florida, USA. This species
remains useful, and is presently being evaluated in trials at the Mon Repos
Freshwater Aquaculture Demonstration Farm and Training Centre, and by a few
farmers.
Jamaican Red Tilapia

The first documented introduction to Guyana of this species was in 1999. However,
Fisheries Department staff reported observing this species on the farms of several
persons in 1998. The Fisheries Department was informed that several importations
were made from neighboring Suriname in 1997. However, this information could
not be substantiated. A second introduction was made in 2001. Stock was
purchased from Florida, USA, but originated in Jamaica.
Giant Malaysian Freshwater Prawn (Macrobrachium rosenbergii)

This species was first introduced to Guyana in the 1970’s. A second wave of
introductions was made in 2000-2003. Until a successful hatchery is set up, seed
stock will have to be continuously imported for grow-out rearing locally.
Hassar (Hoplosternum littorale)

This species is endemic to Guyana. It is an economically important species, which
fetches a high price locally Limited work has been done locally with this species in
the 1970’s, and it is presently the object of renewed interest.
Swamp Shrimp (Mesopenaeus tropicales)

This species is endemic to Guyana. It is the main target of the Brackish Water
operations, and fetches a very high market price locally (Table 2).
Important Issues Driving Development

The recent emphasis being placed on aquaculture has been driven mainly by the
following factors:
19
Decline in the Marine Fishery: Preliminary stock assessments, indicated that the
Penaeid shrimp resources have probably reached their maximum sustainable yield
and that a number of commercial fin fish species thought to be under-exploited are
probably being over-exploited.
Therefore, aquaculture is seen as a way to produce fish for local consumption, and
reduce pressure on the declining marine resources.
Need for Diversification: The rice industry is an important contributor to

employment and a source of income for the rural poor. However, rice production
and exports have been decreasing since 1997. Aquaculture has been proposed as
an economically feasible way to diversify from rice and produce another crop that
is marketable and with an adequate rate of return on their investment.
Interaction of Aquaculture
Aquaculture can interact with other sectors, with mutual benefits arising.
Rice Sector: The land structure and arrangement to facilitate rice cultivation can
be easily adapted to aquaculture. This would reduce the initial investment cost for
aquaculture, since the modifications required would not be extensive.
Marine Fishery Sector: The marine fishery sector produces an unspecified

amount of by-catch, especially from the White Belly Shrimp (Nematopalemon
schmitti) fishery. This by-catch, which is relatively cheap (US$0.24 per kg) can be
utilized in the compounding of feed for aquaculture.
Other Agricultural Sectors. Many sub-products from agriculture in Guyana can

be used in the compounding of feed for aquaculture.
20
STRATEGIC IMPORTANCE OF AQUACULTURE IN GUYANA.
Currently, aquaculture in Guyana is an insignificant activity, and is far from

reaching its potential size. The activity has a lot of potential social and economic
impact.
Social impact. Aquaculture’s main social contribution is to growing the food
supply, increasing nutrition, and creating more economic balance in low income
rural areas.
Economic impact. Aquaculture’s main impact is in the creation of rural jobs,
generation of exports, capacity for rapid development, facilitation of technological
processes, and use of agricultural products as fish feed.
21
GUYANA’S COMPETITIVENESS. WHY AQUACULTURE IN GUYANA?
The main competitive advantages Guyana has for developing fish farming are:
AVAILABILITY OF INEXPENSIVE LAND
AVAILABILITY OF IRRIGATION AND WATER INFRASTRUCTURE. Rice and
sugar cane production lands already have an infrastructure readily usable for
aquaculture development at a low cost.
AVAILABILITY OF UNSKILLED AND FAMILY LABOR

GROWING ENTREPRENEURSHIP AMONG THE GUYANESE PEOPLE
FAVORABLE CLIMATE CONDITIONS for certain species that can produce up to
three planned crops per year.
22
Some technical estimates for Guyana production are the following:

AQUACULTURE IN GUYANA. COMMERCIAL TILAPIA.
TECHNICAL ASPECTS
25,000 POUNDS PER POND PER CYCLE
2 ACRE PER POND
12,500 POUNDS PER ACRE
2 CYCLES PER YEAR
25,000 POUNDS PER ACRE PER YEAR
ECONOMIC ASPECTS
PRICE INTERNATIONAL 3 DOLLAR PER POUND
PRICE LOCAL 1 DOLLAR PER POUND
INCOME PER ACRE INTERNATIONAL 75,000 DOLLARS

INCOME PER ACRE NATIONAL 25,000 DOLLARS
SOURCE: NEW LINE AQUA FARM. 2005
MAIN HINDRANCES FOR DEVELOPMENT OF THE SECTOR ARE:

Lack of experience in the country
Financial requirements for commercial operations
Technical support
23
OPPORTUNITIES FOR GUYANA
Guyana has the great potential to become one of Latin America and the Caribbean
leading countries in aquaculture production. Guyana’s key competitive areas
include: adequate climate conditions, hydraulic infrastructure, and abundant low
cost land, which should be complemented with the incorporation of investors and
fast track technology transfer processes.
24
RECENT TRENDS
NEW LINE AQUA FARM

During 2004 and 2005, the New Line Aqua Farma a company established in the
West Bank Demerara zone showed some development which improved the
productive capacity of the sector. The company invested approximately 2 million
dollars in the development of a Tilapia fingerlings production operation for local and
external consumption, an operation of 100 acres of production and fattening ponds,
as well as a balanced food production plant and Tilapia fillet processing plant (in
construction).
The entrepreneurs are of Guyanese origin and have carried out an intensive
technology transfer effort. They have been able to implement the set up and
operation of highly automated production equipment.
The company’s goal is to have a share of the export markets in 2006 with its
Tilapia product, as well as to expand its aquaculture activity acting as supplier of
input materials and services for other companies and, simultaneously as a
consumer of the products.
25
MARKET TRENDS
The Tilapia market is a growing market. Imports into the United States for three
Tilapia products are as follows:
In the fresh fillet market the production of Ecuador, Costa Rica, and Honduras
stands out.
TILAPIA FILLET FRESH U.S. DOLLARS
ESTIMATED 2005 VALUE

BELIZE 366,462.00
BRAZIL 4,755,712.00
CHILE 187,948.00
COLOMBIA 440,428.00
COSTA RICA 25,986,646.00
ECUADOR 68,759,922.00
EL SALVADOR 1,496,164.00
HONDURAS 37,058,780.00
HONG KONG -
INDONESIA 159,774.00
JAMAICA 149,760.00
MEXICO 5,104.00
NICARAGUA 539,788.00
PANAMA 436,852.00
PERU 494,910.00
TAIWAN -
VIET NAM -
SUBTOTAL 140,838,250.00
In the frozen fillet market the production of China, Indonesia, and Taiwan stands
out.
26
TILAPIA FILLET FROZEN U.S. DOLLARS

BRAZIL 21,190.00
CHINA 103,152,270.00
COSTA RICA 895,720.00
ECUADOR 530,306.00
GHANA 140,466.00
HONG KONG 105,280.00
INDONESIA 29,083,466.00
JAMAICA -
MALAYSIA 10,632.00
NICARAGUA 19,884.00
PANAMA 730,730.00
SOUTH KOREA 119,514.00
TAIWAN 11,296,334.00
THAILAND 375,598.00
VIET NAM 14,343.00
SUBTOTAL 146,495,733.00
THE TILAPIA MARKET IN THE U.S. (FROZEN TILAPIA)

TILAPIA FROZEN U.S. DOLLARS
CHINA 27,570,732.00
COSTA RICA 28,512.00
ECUADOR 174,634.00
HONG KONG 123,500.00
INDONESIA -
MACAO -
MALAYSIA 14,398.00
MAURITIUS -
PANAMA 230,358.00
PHILIPPINES -
SOUTH KOREA 4,870.00
TAIWAN 30,300,800.00
THAILAND 233,502.00
VIET NAM 252,826.00
SUB TOTAL 58,934,132.00
In the frozen Tilapia market, the production of Taiwan and China stands out.
27
Action Plan
FOUNDATIONS AND GUIDING PRINCIPLES OF THE PROPOSED ACTION

PLAN
The analysis of the actions to be carried out by the plan begins with our conclusion
that Guyana has competitive advantages in fish farming.
These advantages derive mainly from the availability of adequate land at low cost,
the availability of water control infrastructure, optimal climate conditions for the
development of certain species, and the availability of an industrial and commercial
transformation structure within the current fishing cluster.
GOAL / VISION
Consolidate export commercial aquaculture as an important sector in export and

employment generation for Guyana. Take advantage of the current competitive
advantages and promote an impact of the strategy.
IMPACT OF THE STRATEGY
An estimate of the development of a successful strategy is shown at three levels;

the first is the successful operation of existing farms.
EXPORT POTENTIAL ACRES EXPORT POTENTIAL TONS

GLOBAL ANALYSIS
FIRST LEVEL 100 7,500,000 1,136

SECOND LEVEL 200 15,000,000 2,273
THIRD LEVEL 300 22,500,000 3,409
28
PRELIMINARY STRATEGY
Develop commercial aquaculture as a sector with competitive capacity to penetrate

international markets, especially with fresh water species (Tilapia, Paku, others)
and shrimp farming.
Positioning the commercial aquaculture sector as one of the country’s leading
exporters.
The strategy will focus on supporting success stories among current producers, the
involvement of new producers with existing producers, or the incorporation of new
independent producers, as well as setting up a specialized support infrastructure
with all types of producers.
DEVELOPMENT OF COMMERCIAL AQUACULTURE
Commercial Aquaculture has considerable potential in Guyana.

A handful of Guyana investors considered investing in
aquaculture in Guyana and were discouraged by the
lack of infrastructure, poor access to technology, and
other factors. However, we have had intensive
interviews with a few pioneer investors who are
graduating from small pilot operations (selling fish to
local markets) to larger, fully integrated operations
selling output to international markets. The conditions
for commercial production of tilapia in Guyana are
especially favorable. One local producer, New Line
Aqua Farms, began operations two years ago with 50
hectares of pilot pond production of tilapia. They have
aggressively developed new technology, explored
markets, completed environmental impact
assessments, and developed an extensive business
plan. With commercial bank loans, New Line Aqua Farms has now constructed a
large, state-of-the-art fingerling production facility and laboratory, 80 hectares of
new ponds with robotic feeding equipment, a feed production plant, and is in
process of constructing a fish processing plant. New Line Aqua Farms, with
additional financing, is expected to complete the fish processing plant and move
into full scale production during 2006, and begin exporting tilapia to Miami.
29
The successful demonstration of the feasibility of tilapia (and other species)

production and export in Guyana by one or two early innovators will quickly lead to
a large-scale expansion of aquaculture in Guyana, similar to the high growth rates
seen in neighboring Brazil and Colombia and elsewhere in Central America.
ETG/IGT recommends a Fast-Track Sector Development program for Aquaculture
in Guyana.
The basic elements of the plan are as follows:
Development of Commercial Aquaculture
Demonstration of the Success of “Pioneer Investors”
Development of a Fast-Track Commercial Aquaculture Team
Involvement of new private investors in the fish farming sector of Guyana
Development of Family Commercial Operations
Support for Mon Repos Aquaculture Station (to upgrade to support commercial
aquaculture)
Establishment of Priority Aquaculture Development Zone –
Development of Aquaculture Park (Medium term)
Aquaculture Development Revolving Fund
Development of Small Scale and Social Aquaculture

Support for expansion of Mon Repos (to support training and technology
development for small scale operations)
Small Pond Construction Support (Min of Agriculture)
Access to loans for poorer farmers in building rustic ponds, use of cages (see Dr.
Leslie Chin’s program with IPED)
30
DEMONSTRATION AND SUPPORT OF “PIONEER” INVESTORS –
Guyana government will support early investor

in commercial aquaculture because the high
development potential for aquaculture in
Guyana can be realized once the initial
investors can show commercial viability.
The government of Guyana through the Ministry
of Agriculture and Go-Invest will provide “fast-
track” assistance to support the first 2-3
commercial aquaculture investors. This support
can take the form of expediting licensing,
support in land acquisition, loan guarantees, support with environmental impact
assessments, priority road and other infrastructure development, other business
development services.
The experience in other countries (Colombia) shows a pattern of a few “pioneer”
investors that through successful activities are able to attract new local and foreign
investors to the sector.
The short term objective to this strategy is to:
“Make the first successful shipment of Tilapia from Guyana for export
markets”.
31
DEVELOPMENT OF FAST TRACK COMMERCIAL AQUACULTURE TEAM –

DE
The main objective of the formation of a “Fast Track

Commercial Aquaculture Team” will be developing
aquaculture through an intensive plan which incorporates
new investors into the sector through a series of activities
including:
• Supporting Pioneer Investors
• Developing the idea of the “Aquaculture Potential” with

specific information
• Sustaining meetings with interested investors
• Developing benchmarking trips
• Creating promotional material
• Other activities
This Team will be formed with GoInvest, Ministry of Agriculture, Mon Repos
Aquaculture Station, “Pioneer” Investors, Interested investors and others.
32
INVOLVEMENT OF NEW PRIVATE INVESTORS IN THE FISH FARMING

SECTOR OF GUYANA.
Guyana’s aquaculture development can be expedited to a high degree through the

incorporation of foreign, Canadian/Guyanese and Guyanese private investors to
the commercial fish farming segment. The investor involvement process requires
identifying potential investors, presenting the business opportunity, training and
organizing groups of key individuals to this activity, implementing benchmarking
trips, and creating a process follow-up.
This activity will be carried out by the Fast Track Commercial Aquaculture Team.
There are several interesting experiences in this arena; one case is the State of
Tabasco, Mexico, which in one year went from one operating shrimp farm to more
than 60 farms under construction and operation.
33
DEVELOPMENT OF SMALL COMMERCIAL AND FAMILY OPERATIONS.
Guyana’s aquaculture development can be expedited to a high degree by

incorporating rice farming families into the commercial activity.
The idea is to diversify rice farming activity by building from 1 to 5 ponds. A typical
unit will have 5 ponds, every pond with 2 acres to a total of 10 acres. The new
producer will have access to fingerlings and fish food from established producers
and access to selling to the local fresh market, local processors, and/or exporters.
Estimated production standards are the following:
FAMILY COMMERCIAL OPERATION

5 PONDS
10 ACRES
30,000 FISH PER POND
150,000 FISH TOTAL
150,000 PRODUCCION IN POUNDS PER CYCLE
300,000 POUNDS PER YEAR
30,000 POUNDS PER ACRE PER YEAR
34
Estimated costs are:

FAMILY COMMERCIAL OPERATION
PRELIMINARY ESTIMATED COSTS
5 PONDS
CONSTRUCTION COST 15,000 US DOLLARS
FEEDING COST 100,000 US DOLLARS
FINGERLING COST 25,000 US DOLLARS
OTHER COSTS 5,000 US DOLLARS
TOTAL COST ONE CYCLE 130,000 US DOLLARS
PRODUCTION 150,000 POUND PER CYCLE

PRICE LOCAL MARKET 1 US DOLLAR PER POUND
TOTAL INCOME 150,000 US DOLLARS
ESTIMATED PROFIT ONE CYCLE 20,000 US DOLLARS
ESTIMATE PROFIT TWO CYCLES 40,000 US DOLLARS PER YEAR
SOURCE: NEW LINE AQUA FARM INC. 2005
Farmers will build up to 5 ponds, harvesting one pond every 9 weeks, so that the
family will have continual income/cash flow balanced over the year.
Development of this strategy will be based on previous negotiation with fingerling
and fish food suppliers and marketers. The first phase this strategy can be
developed from the operation of New Line Aqua Farm.
The idea is based on taking advantage of existing infrastructure in rice fields and
will help these producers to diversify.
A preliminary design of ponds based on existing rice field infrastructure follows:
35
Following is the estimated economic impact of a successful strategy:
ESTIMATED ECONOMIC IMPACT

ACRES EXPORT POTENTIAL U.S. DOLLARS
5 FARMS 50 1,500,000
15 FARMS 150 4,500,000
25 FARMS 250 7,500,000
36
TECHNOLOGICAL INFRASTRUCTURE DEVELOPMENT

Aquaculture is an activity that requires a strong and in-depth technological
foundation since it faces continuous technical and scientific challenges.
Aquaculture must adapt production technologies to meet the special conditions of
the country, its different regions, and of each specific farm.
The availability of a local technological foundation that allows for the transference
of technology to other regions, as well as for the adaptation of productive models to
the local conditions, is one of the key elements of the strategy for the developing
aquaculture in Guyana.
IMPROVEMENT AND CONVERSION OF THE MON REPOS AQUACULTURE

CENTER FROM A DEMONSTRATION FACILITY TO A PROACTIVE ACTIVITY
SUPPORTING COMMERCIAL AQUAQULTURE.
The Mon Repos Aquaculture station facility has accomplished its goals of
promoting aquaculture, and carrying out technology transfer processes and
experiments for the introduction of new species into the country.
In order to accelerate aquaculture development towards a competitive
commercial profile, it is necessary to strengthen the physical and human
infrastructure of the Mon Repo station.
The following goals for strengthening are proposed:

Increase its capacity to give technical support to new aquaculture operations
generated in the country.
Increase its fingerlings production capacity to serve both commercial and social
fish farming endeavors.
Increase its capacity to form specialized human resources.
37
Proposed improvement areas at Mon Repos station:

Improve its training equipment.
Improve the fish production and transportation equipment.
Improve human resources. Incorporate new back-up technical personnel.
Technological improvement. Benchmark trips to nearby areas.
Estimated cost of this first stage of improvement: US$64,000.
Item Quantity Unit Cost Total Cost

US$ US$
Digital Projector 1 $1,500 $1,500
Lap-Top Computer 1 $1,500 $1,500
Digital Camera 1 $500 $500
Replacement 20 pairs $50 $1,000
Broodstock
MSC. In 1 $40,000 $40,000
Aquaculture
Scholarship
Short-Term Study 3 (Jamaica, Brazil $5,000 $15,000
Tours and Venezuela)
Fish Transportation 2 sets of oxygen $500 $1,000
Equipment equipment and
holding tanks
Aerators 4 $500 $2,000
PH and Dissolved 1 each $600 $1,200
Oxygen Meters
Folding Tables 5 $100 $500
Chairs 10 $25 $250
Total $64,450
With more technical personnel and better

equipment, it is possible to achieve more in-
depth improvement of the institution on the
medium term. The estimated strengthening
cost for this second level is US$200,000.
Estimated cost of the second stage of improvement: US$200,000.
38
DEVELOPMENT OF SPECIALIZED PHYSICAL INFRASTRUCTURE.

DESIGNATION OF PRIORITY AREAS FOR AQUACULTURE DEVELOPMENT
Certain regions of the world promote

aquaculture development through a model
that concentrates on farms in a specific
geographical area. This permits scaled
economies that favor the sector’s
competitiveness.
We propose that Priority Aquaculture Development Areas are established in

accordance with the following plan headed by Go Invest.
Identification of geographical areas with technical and infrastructure characteristics
appropriate for aquaculture activities.
Development of a preliminary master plan on the growth of the aquaculture
development area.
Analysis of the electrical and hydraulic infrastructure, as well as the environmental
impact caused by aquaculture development.
Identification of appropriate lots.
Promotion of the area among private investors.
Assignment of lots to investors after an in-depth analysis of their financial and
technical capacities.
Centralizing aquaculture activities within an area improves the sector’s visibility and
facilitates its promotion to the private sector. It also facilitates access to specialized
services, concentrates demand for feed and fingerlings within a geographical area,
and favors technological transfer processes.
For the first PRIORITY DEVELOPMENT AQUACULTURE AREA, we propose the
Channel 2, West Bank Demerara Guyana zone, where the New Line Aqua Farm
operates. This will favor the orderly development of the activity.
The users and clients of the priority aquaculture development area will be new
investors in commercial fish farming, either Guyanese or foreigners.
Estimated cost: $60,000 in planning activities, studies and promotion of the first
zone. Executor: Go-Invest.
39
DEVELOPMENT OF SPECIALIZED PHYSICAL INFRASTRUCTURE.

CONSTRUCTION OF AQUACULTURE PARK
Certain regions in the world have developed aquaculture parks to develop the
sector.
Concentrating aquaculture farms within an area is known as aquaculture parks.
These parks operate similarly to industrial parks, sharing a common infrastructure,
and can be developed by the public or the private sector.
In the case of aquaculture parks development will require the following actions:
Plan area development
Develop master plan
Build roads, channel infrastructure
Provide access to centralized technology
Private seedling production, feed, and processing facilities
Other specialized services
The idea of an aquaculture park in Guyana

might entail significant costs for a sector that
is just starting to develop, but is a strategy
that can be developed over two or three
years based on more profound analysis.
40
DEVELOPMENT OF A SPECIALIZED FINANCING INFRASTRUCTURE.

AQUACULTURE DEVELOPMENT REVOLVING FUND.
One of the limiting factors for fast track development of

aquaculture activity is the lack of a specialized financing
structure that makes it possible to build and efficiently
operate new operations that supply existing farms or new
independent operations.
In Guyana, the availability of working capital in appropriate
amounts required for this activity is one of the key cost
elements, along with the availability of land with adequate
characteristics.
We propose constituting a revolving fund of working capital dedicated to
aquaculture which supplies new investors with resources for the construction of
ponds, and the purchase of fingerlings and feed to cover complete production
cycles.
This new financing mechanism can be funded by international donors (IDB, CIDA,
USAID), and managed by commercial banking institutions, negotiating
maintenance and increase of the revolving fund for the medium and long term.
The availability of financing would ultimately impact the formation and expansion of
new farms creating jobs and income for generations to come.
The financing model would establish a payment guarantee through negotiations
with final product processing and commercializing companies, as well as special
negotiations with qualified suppliers of fingerlings and special feed.
ESTIMATED FINANCING NEEDS (WORKING CAPITAL 6 MONTHS) U.S. DOLLARS

ACRES FINANCING FOR ONE CYCLE EXPORT POTENTIAL ONE YEAR
5 FARMS 50 625,000 1,500,000
15 FARMS 150 1,875,000 4,500,000
25 FARMS 250 3,125,000 7,500,000
Estimated cost: US$625,000 to finance 50 acres in one cycle. Several growth

scenarios can be handled. The fund can be started with an estimate of
US$400,000.
41
STRENGTHENING OF THE SECTOR’S KEY INDUSTRIES.
STRUCTURE OF THE SECTOR DEVELOPMENT

LEADING COMPANIES / EXPORTING COMPANIES. TILAPIA PROCESSING
FACILITY
The consolidation of leading companies exporting their product out of the region is
one of the key elements to the dynamic establishment of the sector. The
establishment of one or several processing Tilapia plants should be considered.
The company Aqua Farm has a process project to construct and equip a Tilapia
processing plant for the export market. This plant has not been finished yet
because the company ran into financing problems.
We propose that the completion of this project be considered as strategic. The

characteristics of this project, as well as its financing requirements, should be
analyzed in depth. In addition to credits, other financing options should be
evaluated for the completion of the project, including the incorporation of risk
capital and/or capital from local or foreign businessmen, under the modality of an
independent Tilapia farming company.
The establishment of a processing company with the appropriate characteristics
will facilitate access to general markets.
The incorporation of existing sea product processing companies to the aquaculture
production chain must also be evaluated in this initiative.
Estimated cost: US$30,000. Investment project analysis
42
ESTABLISHMENT OF KEY SUPPLIERS
The establishment of competitive and efficient supply networks is a key element in

the consolidation of efficient productive chains. For the development of fish farming
for the medium and long term, it will be necessary to consolidate two other key
elements:
FINGERLING PRODUCTION: Currently New Line Aqua Farm has made a strong
investment in technology toward the establishment of a fingerlings operation. This
operation will satisfy the company’s own needs, and the needs of new farms in the
country and of the Mon Repos aquaculture station.
FISH FEED PRODUCTION: There are several producers of this item, among them
New Line Aqua Farm, which produces balanced feed in Guyana. However, as New
Line Aqua Farm does supply the needs of the industry, the general production
capacity must be improved both in competitive quality and quantity. The
development of floating fish feed production operations is a sector’s must.
43
ORGANIZATION OF PRODUCERS / DEVELOPING SOCIAL CAPITAL
SOCIAL CAPITAL DEVELOPMENT AS AN ESSENTIAL ELEMENT TO DRIVE

ECONOMIC DEVELOPMENT
The development of the social capital has been
identified by ETG/ITG as a key element of the
sector’s economic infrastructure, and one which
is indispensable to advance in the consolidation
of economic sectors, especially within
implementing development strategies and
action initiatives. Due to its importance, the
development a social capital calls for an
analysis, especially in this chapter.
On this basis, ETG/ITG emphasizes its
recommendation to work on a well-structured process focused on the promotion
and development of a social capital within the working environment of the
aquaculture sector.
Social capital is the capacity of individuals to associate or to work together, in
groups or organizations, in order to reach common goals. Social capital depends
on how much every member of a community trusts the others, and on the values
and rules they share. Developing social capital requires the promotion of values
such as personal confidence, the ability to associate, civic conscience, ethics, and
other values that predominate in a society. This is the way to drive projects and
initiatives that have a common impact and benefit. Social capital can be increased
in the short term, and it is the only kind of capital that increases when it is used and
decreases when not used.
In order to consolidate the growth of social capital specifically within the fish
farming cluster, we propose the following strategies:
Organize benchmarking trips to fish farming operations.
Invite experts to present advances in aquaculture technology.
Invite experts to engage in collaborative learning workshops.
Collaborative learning processes among people involved at various levels – fish
farm workers, fish processing workers, field experts, and investors.
44
SUPPORT FOR THE ESTABLISHMENT AND CONSOLIDATION OF

AQUACULTURE ASSOCIATIONS AND ORGANIZATION
This segment is one of the most important areas for the development of
aquaculture in Guyana because the integration of associations or cooperatives,
permits members to save in costs, increases their credit capacity, improve their
contracts with suppliers, have access to larger markets, generate scaled
economies, improve production techniques and, in short, gain from synergy.
We suggest the following strategy: set up a work group of leading producers,
businessmen with an interest to invest in the sector, research and training centers,
civil servants, and key representatives from the strategic economic infrastructure,
to work on the development of aquaculture in Guyana. This work group may evolve
into the formation of a trade union with the following benefits:
Unity and coordination among producers.
Gathering of information about the sector and its opportunities.
Lobbying for government and private support in favor of the cluster.
Development of a specialized infrastructure.
Team work.
Technology transfer.
Representatives of the sector in aquaculture health forums.
Consolidating and strengthening these associative models will contribute in great
measure to the consolidation of social
capital in Guyana, which is one of the
fundamental elements to regional
economic development.
Cluster development activities: Studies,
lobbying, investment promotion, and
follow-up for six months: US$ 50,000.
45
DEVELOPMENT OF SMALL SCALE AND SOCIAL AQUACULTURE
The development of small scale aquaculture is oriented to help the diversification

of farmers and contributes to the social benefit of small producers.
Some key actions in this regard are the following:
Support for expansion of Mon Repos (to support training and technology
development for small scale operations)
Small Pond Construction Support (Ministry of Agriculture)
Access to loans for poorer farmers in building rustic ponds, use of cages (see Dr.
Leslie Chin’s program with IPED)
46
POLICY OPTIONS
There are several policy options that can favor the development of aquaculture in
Guyana, on which we recommend a general analysis:
ENCOURAGE SOCIAL AQUACULTURE OR COMMERCIAL

AQUACULTURE.
A discussion on this topic involving an economic policy is the dilemma of backing
up one or the two other types of fish farming, which can be defined in general
terms as follows:
Social aquaculture: Oriented towards low income population. Low scaled
operations are carried out, generally focused on private consumption and/or sales
to local and regional markets.
Commercial Aquaculture: Medium and large investors participate in this activity.
Operations are on the medium and large scale using advanced technology. These
operations are managed as business operations and ordinarily they export a large
portion or the whole of their production.
In order to reach goals for significant job and foreign currency generation, we
recommend focusing efforts on triggering the commercial fish farming sector.
Due to the importance social aquaculture has for the growth of food supply and
increase in nourishment of low income people; one must not forget support
systems for this activity. However, the development of commercial aquaculture
incorporates elements that will directly drive social aquaculture.
USE THE EXISTING AGRICULTURAL INFRASTRUCTURE OR

CONSTRUCT A NEW ONE.
The historical development of agriculture in Guyana has left a legacy of productive

hydraulic infrastructure that is currently focused on the production of rice and sugar
cane. This infrastructure can be adapted, at very low costs, to benefit fish farming.
Rice production fields can be adapted at minimum costs for the construction of
ponds for Tilapia fish farming and other species.
47
This infrastructure generates competitive advantages in relation to other regions

where investment costs for ponds and all necessary infrastructures are much
higher.
We recommend the use of the existing infrastructure as a competitive advantage
for the country.
Promote the concentration of farms within a priority fish farming development area
or letting them spread out throughout the country.
Although aquaculture investments and the investor’s decision play an important
role in the placement of the farms, the government and investment promoters can
induce the concentration of farms in one priority zone because in this way scaled
competitive advantages are reached, costs are reduced, and technology transfer
processes are improved.
Our recommendation is to induce the concentration of farms in key areas, even in
the medium term, for the creation of fish farming parks considering medium range
terms for the establishment of aquaculture parks.
PRIVATE HATCHERY AGAINST GOVERNMENT HATCHERY.

Another policy dilemma related to the production of fingerlings (a key material in
supply for the development of this sector) is either to leave it to the government or
to specialized private companies.
The implementation of this activity depends highly on the level of development the
sector, especially when demand is limited on account of insufficient development.
In such a case, the government becomes the main supplier of fingerlings and
technical assistance. When the industry evolves towards a commercial activity,
demand increases along with quality requirements. Due to the latter, the production
by private companies becomes a key element for this activity.
Guyana already has a private laboratory with high levels of investment. This
laboratory must be backed up to promote commercial aquaculture.
FOCUSING ON A SINGLE SPECIES FOR EXPORT OR ON A

COMBINATION OF SPECIES AND PRODUCTS.
Aquaculture comprises a wide variety of species of both fresh and salt water with
different levels of quality and demand. Concentrating on a few species while the
country positions itself in export markets might be an advisable policy. This
positioning promotes the consolidation of production volumes in the interest of
international buyers, clarifying the function of the country in the international
markets. Building technological capacities is easier when only a few species are
selected.
While the country evolves to higher levels of fish farming development, it will
become easier to incorporate new species and production models.
Key species initially identified as good for Guyana are: Tilapia, Paku, and Shrimp.
48

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FAST TRACK SECTOR DEVELOPMENT

Executive Summary ............................................................................................................................................ 3

Sector Analysis ................................................................................................................................................... 6

Commercial Aquaculture has a significant economic impact. The income

Successful experience in other developing countries in the Caribbean and

Guyana agricultural infrastructure provides special advantages to

Development of Commercial Aquaculture can be very fast, based on

Key elements of the Action Plan – Commercial Aquaculture

competitive advantages, allows for a changeover from a semi commercial and

INTERNATIONAL TRENDS IN AQUACULTURE PRODUCTION.

In 2002, total world aquaculture production (including aquatic plants) reported to be

Top ten producers in terms of growth

In South America the most important growth is in Chile and Brazil

1970–1980 23.9 5.6 6 6.5 14.1 6.3

1980–1990 24.1 7 13.1 9.4 5.3 10.8

1990–2000 9.9 5.3 7.8 7.9 12.3 10.5

2000–2002 11 4.6 5.8 6.7 9.5 5.9

Every kind of species is showing important levels of growth.

AQUACULTURAL DEVELOPMENT TRENDS IN LATIN AMERICA AND THE

EVOLUTION OF AQUACULTURE IN LATIN AMERICA AND THE CARIBBEAN:

VALUE OF AQUACULTURE PRODUCTION IN LATIN AMERICA AND CARIBBEAN (DLLS)

MAIN AQUACULTURE PRODUCERS IN LATIN AMERICA AND THE

FRESH WATER AQUACULTURE

TOTAL 402,095,839 447,427,939 494,585,907 600,438,217 697,413,801 753,406,803 858,396,406 842,324,957

TILAPIA PRODUCTION (METRIC TONS) Tilapia, one of the leading species in

AQUACULTURE PRODUCTION OF TILAPIA (TONS)

Brazil went from

leading producers. 60,000

VALUE OF AQUACULTURE PRODUCTION OF TILAPIA, Value Production of

TILAPIA AQUACULTURE PRODUCTION (VALUE) DOLLARS

THE CASE OF A DEVELOPING COUNTRY: NICARAGUA

THE CASE OF A DEVELOPING COUNTRY: COLOMBIA

TILAPIA PRODUCTION IN COLOMBIA (TONS)

THE CASE OF SINALOA, MEXICO

aquaculture expansion drive. The acreage under aquaculture has expanded, as

Jamaican Red Tilapia

It is estimated that about 100 persons are currently involved in aquaculture as a

Nile Tilapia (Oreochromis nilotica)

Jamaican Red Tilapia

Giant Malaysian Freshwater Prawn (Macrobrachium rosenbergii)

Hassar (Hoplosternum littorale)

Swamp Shrimp (Mesopenaeus tropicales)

Important Issues Driving Development

Need for Diversification: The rice industry is an important contributor to

Marine Fishery Sector: The marine fishery sector produces an unspecified

Other Agricultural Sectors. Many sub-products from agriculture in Guyana can

STRATEGIC IMPORTANCE OF AQUACULTURE IN GUYANA.

Currently, aquaculture in Guyana is an insignificant activity, and is far from

GUYANA’S COMPETITIVENESS. WHY AQUACULTURE IN GUYANA?

AVAILABILITY OF UNSKILLED AND FAMILY LABOR

Some technical estimates for Guyana production are the following:

INCOME PER ACRE INTERNATIONAL 75,000 DOLLARS

SOURCE: NEW LINE AQUA FARM. 2005

MAIN HINDRANCES FOR DEVELOPMENT OF THE SECTOR ARE:

OPPORTUNITIES FOR GUYANA

NEW LINE AQUA FARM

ESTIMATED 2005 VALUE

TILAPIA FILLET FROZEN U.S. DOLLARS

THE TILAPIA MARKET IN THE U.S. (FROZEN TILAPIA)

FOUNDATIONS AND GUIDING PRINCIPLES OF THE PROPOSED ACTION

Consolidate export commercial aquaculture as an important sector in export and

IMPACT OF THE STRATEGY

An estimate of the development of a successful strategy is shown at three levels;