Jamaica, a leading per capita export country known for its commitment to creativity, innovation and exceptional quality.

April 2009

The National Export Strategy of Jamaica was developed on the basis of the process, methodology and technical assistance of the International Trade Centre (ITC).

www.jamaicatradeandinvest.org/nes

1-888-429-5NES (1-888-429-5637)

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Agro-Processing
Introduction
Rationale
The aquaculture product group, comprising fish, crustaceans, molluscs, may be described as an emerging product group, with the potential of becoming an export champion for Jamaica. The aquaculture industry comprises marine products, farm-raised fish and farm-raised shrimp for the purposes of the National Export Strategy. While the performance analysis covered these product groups, the in-depth analysis and resulting action plan are heavily oriented to the farm-raised products. In the review of the industry strategy in the future the marine product sub- industry should be more integrated. The industry participants are convinced that this industry may provide even more jobs in their respective communities provided the environment for its growth is facilitated. Interestingly, the higher the levels of employment in farm communities the lower the percentage of theft. The communities where farms are located are typically rural, enhancing their contribution to community and parish development, in addition to job creation. Farms are concentrated in plains of Clarendon and St. Catherine, and therefore contribute to regional development within Jamaica. Farmraised aquaculture products are an
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environmentally sustainable practice that facilitates increased consumption of fish and other marine products while protecting the natural environment (i.e. decreasing overfishing from the sea). The standards in production that must be achieved also ensure that the farm practices themselves are environmentally friendly. As a locally consumed product in both the domestic and tourism markets, its linked to the tourism industry, with even greater linkage potential based on the use of its waste for other industries if there is extension of the value chain. The greatest challenges and opportunities for the industry may be addressed with a few priority initiatives identified in the action plan that are focussed on (a) farming practices and the certification of the facilities (b) feed and stock as primary inputs for the operations (c) security and (d) import controls. Financial resources for these may be sourced from GoJ operational funding, and technical assistance programmes already identified. Human resource requirements may be furnished through the existing cluster initiative, and thus the resource requirements are surmountable. Aquaculture is subsumed within a larger category Agriculture, Fishing and Forestry, which contributes US$14.5m to GDP, equivalent to 5.9%.1

Economic and Statistical Survey of Jamaica 2006 (Planning Institute of Jamaica, 2007).

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The export performance (further detailed in section 3.1) and the considerations above provide the rationale for selecting aquaculture as a priority industry for the Jamaicas Export Strategy.

Objectives
To improve production efficiencies, while reducing costs of production, resulting in: o Improved growth rate of fish by 10-20%, o Improved feed conversion (from 2 to 1.5); To increase profitability of firms by 20%; To increase recovery from 70% to 80% (world average) by 2011 by: o Significantly improving brood stock quality (hardiness and fecundity), and o Reducing losses from theft; To increase the export value by 15% annually; To increase the acceptability and accessibility of Tilapia as a main protein source.

Product Groups and Related Programmes

This particular product group is not the focus of any other national strategy initiatives, however there is a new cluster group through the Private Sector Development Programme that has been looking at the industrys development. The strategys development was integrally linked into that groups strategy development and its implementation will likely be driven by this active body. In addition to the consultation with the industry, some of the information for this strategy document was taken from the Clusters Diagnostic Report.

Where Do We Want to Be?

The Vision

To achieve global standards and be a leading agricultural sub-sector in Jamaica

Where Are We Now? An Assessment

Export Performance and Assessment of Overall Competitiveness

Leading meaning fastest growing.

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Fish, crustaceans and molluscs have been one of Jamaicas best performing exports in the non-traditional export category. Although exports have fluctuated between 2003 and 2007, peaking in 2006 at US10.6m, it has comprised on average 7% of nontraditional exports, eclipsing other product categories such as sauces, dairy products, ackees and breads/ biscuits/buns/cakes.2 Crustaceans have been identified as an emerging product and could become a star performer with consistent production levels and improved quality standards. For example, in 2006, while inland fish production grew by over 57%, inland shrimp farming declined because of the effects of disease on two main shrimp farms.3

UK (8th largest importer). The USA is Jamaicas leading import partner, importing 32% of Jamaicas crustacean exports. However, Jamaicas exports to the US are merely a fraction of their total imports of fish, which US$0.7b in 2006.4 While France is the second largest importer, at 32%, the value of crustaceans exported to France grew by 219%. Overall crustacean imports increased in value by 19% in 2006.5 With respect to the sectors competitiveness, at the early stages in the value chain up to introduction into production ponds, the sector may be considered to be competitive (by comparing costs and standards with other producing nations). However, the main value adding portion, fish ponds, Jamaica becomes less cost competitive

Table 1: Exports of Fish, Crustaceans and Molluscs, 2003-2006

2003 Value of exports (US$m) Percentage of Change 8.1 50 2004 7.4 -8 2005 9.9 33 2006 10.6 7 2007 8.3 -22

Source: Exports, 2003-2007 (Statistical Institute of Jamaica, 2008)

Jamaica exports to three of the top ten importers of crustaceans: namely the USA (ranked 2nd largest importer), France (4th largest importer), and the

based on the high costs of electricity and security, loss due to theft, and fecundity of the fish. These are therefore the priority aspects for the industry.

2 3 4 5

Exports, 2003-2007 (Statistical Institute of Jamaica, 2008). Economic and Statistical Survey of Jamaica 2007 (Planning Institute of Jamaica, 2008). International Trade Statistics (WTO, 2007). International Trade Statistics, 2006 (CountryMap/Jamaica) (International Trade Centre, 2008).

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Value Chain - Farm Raised Fish

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Value Chain - Farm Raised Shrimp

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Value Chain Analysis

The value chains for (i) marine products (ii) farm-raised fish and (iii) farm-raised shrimp are attached as appendices 1-3. For the farm-raised products, within the Pond component are the key activities of growing out the fish/shrimp and harvesting. Packaging activities fall within the processor component of the value chains.

The future value chain remains the same, structurally, as the current value chain, with primary differences being the improvements in certain operational aspects. The analysis for large fish farms is illustrated below to show the main factors contributing to product cost, and which therefore impact on profitability. This is critical to note as firms are price takers (due to prices of imported products).

Table 2: Value Chain Analysis for Large Fish Farms

Cost Factor Fingerlings Feed
6

Amount per lb (JMD) 16 32 23 23 3 25 16 8 146 90 - 120

% of total 11 21.9 15.8 15.8 19.2

Competitiveness (H/M/L) H M L M L

Electricity Labour Security - preventative - loss Fertiliser and other inputs Transportation / fuel Total Costs Farm-gate price (as determined by market rate driven by importers price)

M M -

Source: Exports, 2003-2007 (Statistical Institute of Jamaica, 2008)

Feed costs have risen signicantly recently and are expected to continue to rise. So have electricity and security expenses.

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From this analysis, the importance of cross-cutting factors of energy and security (due to crime) are highlighted, as the main factors impacting on industry competitiveness globally. Industry Profile For Marine products, there are eight major trawlers, and hundreds of fishers who supply to the domestic distributors. Jamaica now has 200 fish farms of which 120 were contracted by Aquaculture Jamaica Limited (AJL), a subsidiary of the Jamaica Broilers Group of Companies (JBG). There are eight large farms among these. Four are processors for fish, there are 4 firms that provide brood stock and there are 2 specialised storage facilities. The structure of the industry is such that there is significant potential for increasing exports. Of note is that a main producer, AJL, will no longer export fish and may now divert their production to the local market, including domestic exports (hospitality industry). Provided they will offer a more competitive price, the other suppliers to this sector are likely to lose business in this market segment. Also, AJL is looking to sell their processing facility, however the famers whose products are now processed by the facility do not perceive this as a threat.

There are no local shrimp hatcheries, which presents an opportunity for the value chain expansion, building on another industry strength that Jamaica remains disease free. One major enterprise in the sector has pioneered the poly-culture practice of raising both shrimp and fish in the same ponds. This is an area of opportunity for other players in the sector. An ideal export development scenario for some industries is increased domestic sales and domestic exports that facilitate business growth and the ability to transition to export sales. In the case of Jamaicas aquaculture industry however, the reverse is happening in the industry and the issues must be addressed to reverse the cycle of activities. Gaining access to export markets to offset loss of local market share is challenged by market entry support for the sector and export competency of firms based on limited export experience. Competition Profile In considering the competition for the sector, both the international market and domestic exports are considered. The import trade is a main competing sector for this industry. Sales prices in the market are actually determined by

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these firms, as in order to make sales, the domestic firms must price at the import industry (which is often close to production costs). These competing firms are National Meats, Rainforest Seafood, Caribbean Producers and Whitehouse Seafood. These firms import product from, or via, the USA. Value Chain Assessment Opportunities for improving efficiencies: Import cost of supplies and some inputs (like aerators) are high because of the presence of several intermediaries. Firms or group(s) of firms could import directly in order to reduce this cost. Farm-raised shrimp: For efficiency (better yield) it is better to use specific pathogen-free (SPF) stock, which is more expensive and therefore may not be used by all farms. The returns based on improved practices makes this a very viable option despite the higher input cost.

by processors. For local exports (the hospitality industry) the products may be seasoned as well, or filleted.

Market entry Requirements For the EU, the requirements include: HACCP Sanitation requirements Product quality standards Packaging & Labelling standards

The USA markets as well as the Caribbean have same entry requirements as Europe. There are therefore not significant technical entry requirement differences that the exporting firm would have to meet. For this reason, there is an emphasis on quality and certification in the action plan for the sector.

Performance against Critical Success Factors

The critical success factors for the industry are: 1. The ability to meet and maintain market standards. 2. Maintaining cost competitiveness

Value Addition opportunities: The further processing which may be done includes individual quick frozen (IQF), bulk frozen and glazed products, all of which could be done

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by managing production costs. 3. The ability to resource implementation of findings from studies. I.e., the ability to raise capital in order to do so. Several facilities in the past have been able to meet international market standards; however some country weaknesses remain in the support entities, and will have to be strengthened for the countrys export performance to improve. In assessing the costs of production, Jamaican enterprises are competitive in certain inputs, such as fingerlings, and feed. There are some costs outside of the enterprises control however that significantly drive up the production costs and limit their competitiveness: specifically energy and security/theft. There is no recent evidence of the industrys ability to raise needed capital, although there has been investment into the sector in recent years, there has been limited re-investment and no new entrants more recently. The constraints now faced by the sector may be seen as a deterrent to investment, and are therefore a priority for being addressed.

There is no targeted policy for the sector in particular, which is one of the reasons that the emerging cluster has become so active. There is need to advocate for desired policy that would foster the industrys growth. The industry may however be addressed under more general policies for agriculture, and export.

The Sectors Trade Support Network: Capacity, Competency and Coordination

The main policy body for the sector is the Ministry of Agriculture, and in particular the Fisheries Division. The other entities include those that regulate the industry: the National Environmental Planning Agency (NEPA), Bureau of Standards Jamaica (BSJ) and the Veterinary Services Division (VSD) within the Ministry of Agriculture. These regulatory and technical service entities have been identified as in need of improvements to better serve the industry. Jamaica Trade & Invest (JTI/JAMPRO) has facilitated investment projects for the sector, however with greater emphasis/ priority on industries that yield more jobs and capital expenditure, and the many challenges in agriculture in general its investment development and promotion activities have been limited. Aftercare

Government Policy and Strategy in Support of the Sector

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service to the investors has also been cited as being weak (specifically as it relates to tackling operational and policy issues faced domestically). Export development and promotion initiatives at the sector level have been few, although some specific firms have received direct client support. With the PSDP Cluster Initiative, the Jamaica Aquaculture Cluster promises to become a strong private sector association able to facilitate service provision to the sector through the relevant entities, such as JTI and the JEA. Its membership is not entirely representative of the industry however, consisting primarily of inland farms, with no representation for trawlers.

production standards established to improve farm practices as well as (iii) export promotion support such as trade shows, missions, and menu promotions. Additional resources will be required for the first two areas, while re-allocation or improved allocation of resources would be required for the export promotion support. Raising additional resources from GoJ sources may be challenging, and external resources will be sought.

The Resource Situation in the Public and Private Sectors (Current and Projected)
The resource situation in the public sector is particularly important for this sector, based on the need for support from some of the technical and regulatory entities, like the BSJ and VSD. Resources for marketing support will also be important for entry in new markets as well as penetration in existing markets. Specific support will be required for (i) enforcement of import regulations (ii) testing and tracking for compliance to

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SWOT Analysis of the Sector Strengths

Infrastructural capacity in place to produce between 2 and 10 times as much of the current tilapia output. Technically competent farm owners, managers and operators. Most enterprises have well trained persons in fisheries management, and related sciences including postgraduate training. Enterprises typically aware of technologies and how they may be applied to their farms and therefore able to make the right strategic decisions for improvements. General industry and related business awareness for success exists among the firms. History of collaboration within the sector and an openness to future collaboration. A strong and dedicated cluster has been formed.

Weaknesses
Weak to no advocacy from the industry, which may not yet realise its economic and social significance, and potential strength. Lack of funding for working capital financing, re-financing and upgrading. Poor perception of fresh-water fish in terms of taste and quality (compared to marine product) that is based on inferior imports and some farms products. Poor production practices at some farms.

Opportunities
There is growing demand for Tilapia in the USA (which exceeds their production and would be filled by imports) High local Tilapia. demand for marine A sustainable and viable option to the marine products sub-sector, which needs proper environmental management.

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The new and planned high-end restaurants and non-all-inclusive hotels provide a market opportunity based on the importance of quality to their operations. There is an availability of lands near the along the Jamaican coast for additional farms (and particularly salt-water farms)

Opportunity to practice poly-culture to improve competitiveness. Individual members in the sector may leverage their strengths for collaborative initiatives, such as group purchasing. Growing domestic hotel industry presents a growing domestic export market.

Threats
Increasing theft in the industry. Weak import enforcement regulation Imports (typically cheap poor quality) are competing with current buyers and preventing access to new buyers. Lack on an agriculture policy that could address some of the issues that threaten the sector. Inability to store large quantities of product for later distribution. Inability to access funds to undertake proposed initiatives. Impact of global crisis on demand in the hotel sector.

o Poor policy and implementation of existing ones that facilitate increased import of cheaper product threatens the domestic industrys viability (lack of standards enforcement and in some instances the lack of import standards despite the presence of export standards). o Ease of circumventing import duties that makes imports cheaper (through under-invoicing).

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The Way Forward (over 3-5 years)

Based on the analysis of the sector, the vision and objectives developed, this section identifies the priority recommendations for the sector strategy.

The Development Perspective: Developmental Considerations and Priorities

As outlined in the rationale, the aquaculture sector is a contributor to development, and as outlined throughout the document, possesses the potential to contribute even more to development. The following are development priorities for the industry. To contribute to increased employment in the farm communities and by extension reduce levels of theft and other crimes. To contribute to a more favourable balance of payments by reducing the levels of imports which would be substituted by local products, which are also being exported at a target increase of 15% annually. Regional development could benefit from the location of farms in rural communities across the country. Although there are advantages

to locating close to communities, based on access to utilities and labour, it seems that the operations closer to residential communities (and particularly those with high unemployment) experience higher rates of theft. With what appears to be currently a disincentive to locating too closely to communities by implementing necessary initiatives rural community development could result.

The Competitiveness Perspective

Border-In (Supply-side) Priorities The priorities for the supply-side issues are focussed on increased output from efficiencies, and not necessarily physical expansion as capacity is currently underutilised. There is adequate domestic expertise to experiment with new stock, and already some concept and experimentation, but both priorities require capital / financing for enterprises. The priorities are: Increased production resulting from the introduction of new blood lines for the brood stock whose new genetics will boost recovery percentages and other quality factors. The impact will be: Higher number of juveniles produced (fecundity)

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Improved hardiness

survival

due

to

Faster growth rates Improved ability of the industrys enterprises to attract private investors, based on promotion of the sectors viability and potential which will be enhanced by policy that supports its profitability. Technical and professional skills competency and education may be required to achieve farm practice improvements. Border (Transaction and Cost of Doing Business) Issues and Priorities Theft is a major problem in the industry that increases the cost of doing business as it is a main production cost. The percentage of annual production lost to theft ranges from 10% on some farms to as high as 30%. This contributes to the poor recovery rate in the industry. In addition to stealing product (fish and shrimp), capital equipment and operations supplies (power and telephone cables, and fuel) are also stolen and factored as expenses to the firms. A foreign firm is currently selling operations directly

because of theft. The firm that invested in 4000 acres with a view to adding 200A in production each year, began with 400A five years ago and now has only ~120A in production. Theft is therefore a priority domestic issue. Despite the presence of strict export standards, there are in some instances no import standards or zero-execution of these, which facilitates competing imports at lower prices, threatening the industrys growth and survival in the domestic market. Imports are also typically under-invoiced further contributing to the threat. As a priority, the industry would therefore like to see an import regulatory mechanism that (i) restricts poor quality product that damages the perception and purchase of products and (ii) does not put the industry at risk with under-pricing. It takes a long time to clear inputs for production, and due to delays, the customs brokers are increasing costs. The industry has also experienced theft at the wharf.

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There are high transaction costs in general (including the corruption costs). Water quality in specific areas is poor, and a direct result of the other industrial activities, from which there is no treatment before entering water sources, or no prevention of the entry of waste. In Hill Run, production is impacted by the waste from processing at Industrial Chemicals Company Limited (ICC). Waste from the Sugar factory in Clarendon (Money Musk) flows down the river to the sea from which water is pumped for a shrimp hatchery. The hatchery has since closed because of the problem, and the result is the import of post larvae for shrimp farms. Poor water quality will be a priority to be addressed in specific areas, as the general quality is not an issue. Roads in key production areas Bushy Park and Hill Run - are very poor There are also issues with drainage canals Border-Out Priorities (Market-sde) Issues and

once specified requirements are met. There is greater in-market support needed for the direct marketing and promotion of Jamaican aquaculture products. Managers and staff are often unaware of market opportunities, or market entry requirements, which would also need to be improved.

The Client Perspective

Client Prioritisation: Support Requirements and Response The key distinction for exporter clients in this sector is related to the required approvals for market entry of products. Current exporters must already have approval from VSD, while potential exporters must be able to obtain this approval or able to obtain it based on current practices and facilities. Implications of Sector Support Services The challenge to potential and aspiring exporters entering the export market is primarily related to the ability to become cost competitive based on high operational costs that are outside their control electricity, security (including loss to theft). Management practices to control costs need to be tighter based on the need to be stringent in management.

There are no market access issues as the entry of Jamaican products is allowed

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Demand is now higher than supply so firms can get sales, but will have to improve in preparation for supplies to increase. Also, as a relatively new productive and export industry, there are few industryspecific programmes, and these firms may have not yet been considered by the main service providers for client targeting and servicing. A possible reason is the lack of awareness on both ends of needs and services available in order to connect. As a result, there are several support services needed. Business Development & Export Competency The technical expertise for production of quality products is at the desired level in the industry. However there may be weaknesses in areas such as marketing management as well as business proposal development for attracting investment. An export marketing initiative for the sector may be required, as well as innovative financial management geared towards capitalisation, cost management and obtaining funds. The business model is such that firms need to enter distribution and retail to remain viable, and hence the recommendation for marketing management competency

development. Financing The key issue related to finance is the ability to raise private investment. The core issue however is their ability to demonstrate profitability based on the cost of doing business factors unique to the Jamaican industry. I.e. other investment destinations are more attractive in the absence of these issues. Quality Management Quality management services will be necessary if the industry is to achieve the objectives set. The monitoring of enterprises to ensure the compliance is maintained is important and will have to be resourced. In addition to the quality of local production, quality control at the borders is also critical. In general, most of the processing facilities within the industry are not at the level where it can be certified through the introduction of a HACCP programme. Much of the processing and distribution infrastructure needs to be upgraded and very few have rigorously documented systems and procedures in a format that can meet the quality systems requirements for export or even supply to some of the international hotels.

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The handling systems used by the distribution and transport elements of the value chain and the retail end (the vendors) also needs upgrading in both their physical status and quality systems and practices as well. Trade Information The industry could certainly benefit from information on market opportunities, and especially on market entry requirements and strategies. This would assist in not only new markets, but to better serve existing ones. Technical information is available. Other Support Services The industry will need support for the development and implementation of industry level issues, and in particular support for the cluster related to enabling that the initiative is sustained. Specific support will be in the areas of project development and management, as well as with identifying and obtaining funding to implement these initiatives.

Perceived lack of appreciation or grasp of the significance of the industry and export in particular that would facilitate a more favourable service culture. The desired response is an import policy that covers sanitation requirements of inputs, processing and the time to market (for example days from production). Strengthening the Sectors Strategy Support Network There will need to be greater coordination between the representative industry organisation (currently the cluster) and policy leader, the Ministry of Agriculture. Advocacy and research support will be important from the relevant entities (such as the Ministry of Agriculture, JTI and the MIIC) Strategy Coordination Management Structure The proposed model for the management and leadership for the strategy is the current cluster entity that should become formalised and supported to become sustainable entity. The and

The Institutional Perspective

In general, there is poor coordination among relevant agencies, as well as possible corruption that plagues these entities.

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association should be linked to the NES Management Framework and the Ministry of Agriculture. Process (Strategy Monitoring) As with other industries, the strategy monitoring will be coordinated by the NES secretariat with support from the industry/ cluster association. The Sectors Services Delivery Network The key issues outlined were: VSD: limited manpower is cited to be the reason for the inability to provide prompt servicing to the producers and exporters. However, there is doubt among the industry as there seem to be resources available for import activities raising the question of whether resources are allocated to areas of priority. BSJ: In some instances the absence of policy and standards in some areas, and weak enforcement where present and contribute to the threat facing the industry from imports. Customs department.): (valuation Lack of

manpower for proper valuation of imports to determine appropriate invoice values. Customs: The industry is uncertain of the reason, but posits possible lack of trained personnel, or limited manpower resulting in imports of products from black-listed countries.

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Annex 1: Overview of the Sector: Local and Global Market (Taken from Cluster Diagnostic Report)
The participants in the cluster produce Fresh Water Snapper (red Tilapia), marine Tilapia (salt water) and shrimp. There has been substantial and increasing production of these products in Jamaica for many years (Figure 2).1 There is a market for all of these products, with the marine Tilapia being in very high demand and there being an undersupply of the product in the marketplace generally. The production of fish and shrimp in 2006 was 7,543.3 tonnes and 476.1 tonnes respectively. A recent baseline study being completed by the Jamaica Fish Cluster has indicated that the production of shrimp

has increased significantly to 1,000 tonnes7, increasing overall production of both types of product to 8,543.3 tonnes (Table 1). While there is good demand for the fresh water Tilapia, the number of players in the marketplace and the entry of AJL create challenges for the farmers, from time to time. The Tilapia also suffers from initial issues it had with off-flavour when the product was first introduced which led to resistance from the marketplace that still has a residual effect on both the demand for the product and the price it can command. Most local farmers have solved this problem and produce off-flavour free fish. However, the problem of acceptability has been further exacerbated in recent years by large scale importation from China and Latin America of Tilapia (sometimes with

Table 1: Economic Value of the Aquaculture Industry8

Descriptor Tilapia (actual 2006)
Shrimp (actual 2006)

Output (Tonne) 7,543.3 476.1 8,019.4 1,000 8,540.0 -

Value (J$000) 1,508,600 238,050 1,746,650 500,000 2,008,000 6,658,710

Total (2006) Shrimp (estimated 2007) Total (estimated 2007) Total Seafood Trade (exports and imports, 2007)

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an off flavour) by Caribbean Producers Limited, Rainforest Wholesale Seafoods, AJL and possibly also National Meats Limited, the largest distributors in the marketplace. Figure 2: Historical Production of Aquaculture Products in Jamaica 1979-2001

The demand for shrimp is also strong with local demand completing absorbing all of the supplies of Caribbean Mariculture, one of the major producers and as well as up to 10% of Transglobals production that it is able to make available for local sale. Export Based on the assessment of global trends and the potential for competitiveness, the sector is one that should be very attractive to investors. Fisheries products remain among the fastest growing in global trade5 and for Jamaica, crustacean exports grew from just over US$4.05 million in 2004 to US$8.3 million in 2007, after

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reaching as high as US$10.6 million in 2006 (Table 2).6 The sector currently is one of the more attractive sectors for business development worldwide, given the global food crisis and the pre-existing and growing demand for seafood and fisheries products.5 This is borne out by the designation of the categories including shrimp and other aquaculture products as Product Champions on the ITCs Product Map index.7 There has been some decline since then due to problems with disease that has reduced yields. This is being addressed. World demand has and will continue to exceed supply and prices are good, making this a potentially very attractive area of the industry for investment. The export of fisheries products have become an important contributor to Jamaicas non-traditional exports, comprising 7% in 2006. For the products of this cluster specifically, shrimp production and exports from Jamaica have grown steadily and exceeded

US$2.0 million in 2006. Jamaica currently exports shrimp to three (3) of the top ten (10) importers of crustaceans. These are the US (ranked 2nd), France (4th) and the United Kingdom (8th). The US is Jamaicas leading import partner with 32% of Jamaicas crustacean exports. However, Jamaicas exports to the US are a fraction of the US total imports of fish, which were US$700 million in 20064. While France is the second largest importer of crustaceans globally (32% of global exports), the value of Jamaicas shrimp exports to France grew by 219% in 2006.8 Global Industry Perspective This sector of global trade remains robust and is projected to continue to grow in the foreseeable future. Jamaica has an advantage by being a very small exporter in a growing segment of the world food market. In 2006, global fisheries exports were US$6,200 million, a growth of 2% on 2005 with the three leading exporters of fisheries products being

Table 2: Exports of Fish, Crustaceans & Molluscs, 2003-2006

Index Value of exports (US$M) % Change vs. Previous Year 2003 8.1 50.0 2004 7.4 (8.0) 2005 9.9 33.0 2006 10.6 7.0 2007 8.3 (22.0)

Source: Exports, 2003-2007 (Statistical Institute of Jamaica, 2008)

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Norway, China and the United States of America (US). All importers increased intake, except for Japan, where imports declined. China and Sweden saw double digit increases in both imports and their share of global trade by 7% and 10% and 18% and 20%, respectively.5 National Industry Perspective The industry in Jamaica is undergoing further stresses at this time, as farmers are faced with aggressive competition from a former customer, AJL. This has, in part, prompted the activities of the cluster to be focused on improving the ability of local small farmers to compete locally, while at the same time seeking export markets for their products. In 2006, Tilapia production grew (>57%). However, shrimp production declined because of a disease which affected both TG and CML.9

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S T R AT E G Y AT A G L A N C E

Vision

The Jamaican Aquaculture Industry is a high export revenue earner that is globally recognised for high-quality primary and valued-added products.
Development Perspective
The Jamaican Aquaculture industry is a growing source of employment for rural and farm communities, and contributes to improving the balance of trade by reducing the levels of imports of fish and marine products.

Competitiveness Perspective
SUpplY Side (Border-In)

Technical and professional skills in farm practices improved. Fish growth rates and hardiness increased. Investment and reinvestment in the industry increased.

Transaction cost of BUsiness (Border)

Demand Side (Border-OUt)

Praedial larceny eliminated.

Stricter standards for imports implemented. Turnaround time for clearance of imported farm production inputs improved. Farm road conditions, drainage canals and water quality improved.

Trade and marketing support in foreign markets for Jamaican aquaculture products improved.

Client Perspective
Trade Information

Customised market opportunities, market entry requirements and strategies provided.

Standards and QUalitY Management

Compliance with global standards: HACCP certified farms . Quality monitoring of farm and production practices. Optimal producthandling practised across the value chain.

BUsiness development and EXport Readiness

Finance

Marketing and business proposal development competencies available.

Affordable and accessible finance made available.

PacKaging

Utilisation of cutting-edge packaging maintained.

Institutional Perspective
The Jamaica Fish Cluster is the focal point for coordinating the activities of firms in the industry, benefiting from the sustained support of the trade support network; especially an adequately resourced Veterinary Services Division. Allied to this, is the work of the Bureau of Standards to develop and implement relevant standards that encompass sanitation requirements of inputs, processing and time to market.

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ACTION PLAN
OBJECTIVES MEASURES TARGETS INITIATIVES
OWNER/SUPPORT ENTITIES TIMELINE

THE DEVELOPMENT PERSPECTIVE To increase export Percentage increase in value of export Y1 5% Y2-3 15% Implement a farm certification programme. Develop a quality standard and brand/label for the industry. Obtain processing facility certification. Structure an agreement to facilitate contract farming with existing processors. To increase the acceptability and accessibility of Jamaican aquaculture products as a main protein source THE COMPETITIVENESS PERSPECTIVE BORDER IN To improve production efficiencies, while reducing costs of production Improved growth rate of fish by 10-20% 10% Introduce new gene pool (fish). Cluster Ministry of Agriculture Agricultural Training Institutions Improved feed conversion (from 2 to 1.5) To increase Production recovery from recovery 30% (Baseline: 50%) 1.5 Obtain better quality feed. Develop business plan for Jamaica AquaFoods Limited. 80% Improve grading and stocking of fingerlings. Introduce a progress tracking system to benchmark enterprises and assist in their attaining the desired standards/targets. 70% Promote the use of a nursery phase to prevent early introduction of fries into fish ponds. Ministry of Agriculture Cluster Provide support to the cluster to engage in collaborative initiatives, such as group purchase of feed. Promote poly-culture practice among farms. Prepare business plan for the concept of having main processors collaborate with farmers previously contracted by AQJ. Foster implementation of the contract processor concept, based on feasibility outcome. Y1-2 Y1 Cluster Ministry of Agriculture Cluster Y1 Y1 Y1 Assess and present sanitary measures, country of origin, and labelling, testing and certification requirements. Support Min.Ag and Customs upgrade and awareness to monitor imports. Lead: Ministry of Agriculture Partners: Cluster BSJ BSJ Ministry of Agriculture Customs Y1 Y3 Y1

Y2-3 Y1

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ACTION PLAN
OBJECTIVES MEASURES TARGETS INITIATIVES
OWNER/SUPPORT ENTITIES TIMELINE

Provide technical (and extension) support to potential farmers for production of marine Tilapia. BORDER-OUT: ALL CroSS-cuttinG InduStrY initiatiVeS are reLeVant To reduce the losses from theft and costs of implementing security measures Trade Facilitation To stem the import of inferior products The Client PersepctivE Quality Management Trade Promotion Percentage increase in sales to the tourism sector TBD 10% (Same as certification initiatives designed to increase exports). Design and execute a linkage programme aimed at increasing purchase of local product by the tourism sector. Increase training for improved monitoring of imports for verifying Import permit validity, customs valuation, and country of origin. Customs Percentage theft (of production) from farms 10% Review and enforce Praedial larceny Act. Monitor application of Praedial Larceny Act, rather than Petty Thief Act. Cluster

Y1

Y1

Ministry of Security On& going Justice

Ongoing

Y1

The institUtional PersepctivE To stem the import of inferior products Update list of approved import countries o Prohibit products treated with carbon monoxide. o Zero trace of antibiotics. o Disease presence in the country any fish/ shrimp viral disease. o Parasites testing. Improve testing for bacteria, heavy metals and antibiotics, carcinogenic chemicals (melamine, malachite green). Improve country of origin vs. third country approval for importation based on VSD equivalent certification. To improve the delivery of quality services to the industry and thus facilitate product improvement (and competitiveness) Number of firms receiving support TBD Improve (i) Date of processing / use best before standard (ii) Labelling standards. Begin enforcement of grading and net weight. Enhance institutional capacity of the VSD. BSJ Y1 Y2

Y2 Y1

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