Presented by Malcolm Beveridge and Michael Phillips from WorldFish at the Seafood Summit 2012 in Hong Kong, 7 September, 2012.

1. Impact investing in small-scale aquaculture
enterprise
– WorldFish experiences and perspectives
Malcolm Beveridge, Michael Phillips and Wayne Rogers

2. Overview
• Investment case
• Project examples
• Lessons learned
• Ways forward

3. .. the case for finance
120 • Another 50 millions tonnes by
2030?
Growing fisheries (0.7% per annum)
Stagnant fisheries
100
• Another US$50 billion in
Production (million tonnes)
• Global
consumption
rises
to
22.5
kg/y capital and annual operational
80
• Global
consumption
remains
at investment?
1996
levels
(15.6
kg/y)
60
– from where?
Fish
40
•Technological
advances
in
aquaculture
20 •Baseline
scenario
•Ecological
collapse
of
fisheries
1950 1960 1970 1980 1990 2000 2010 2020 2030
Year
Ye (1999)
IFPRI (2003)
FAO (2004)
Wijkstrom (2003)

4. the case for small enterprise…
• Large numbers of small-scale
household farms in developing
countries
• Improvements targeting the
majority (not minority)
• SMEs are drivers of growth in
developing countries
• Investment choices impact
people
Small enterprises
Medium and large enterprises

5. the case for environment …
• Aquaculture can be
environmentally sound
source of food
• Considerable improvements
possible with current
systems
• Small vs large approach
• Inclusive approach for sector
sustainability
• Investment pathways and
choices make a difference
source: Hall et al. (2011)

6. Opportunities and
challenges
• Opportunities for impact
• Challenges
– How to reach large
numbers of farmers?
– Weak institutional
environment
– Business models
– Investment mechanisms
• Easier to work with large
business!

7. Analyzing “project” investments

8. Approach
• Diagnosis
• Participatory improvement
– Technology & management
– Organizational
– Local technical assistance
– Partnerships
• Scaling up
• Social, economic and
environmental outcomes

9. Returns to “project” can be significant, but it
takes time
• Patient capital...
Aceh India
revenue
from
all
5,100,000
farmers
(USD$2.39m)
4,800,000
Revenue
net
profit
from
all
4,500,000
generated
-­‐
total
farmers
(USD$1.44m)
4,200,000
$8,884,444
project
investments
3,900,000
(USD$1.90m)
Net
profit
2,000,000
3,600,000
generated
-­‐
total
1,800,000
3,300,000
$3,524,444
3,000,000
1,600,000
2,700,000
1,400,000
2,400,000
1,200,000
2,100,000
1,800,000
1,000,000
1,500,000
800,000
1,200,000
600,000
900,000
600,000
400,000
300,000
200,000
-­‐
0
Baseline
2002
2003
2004
2005
2006
2007
2008
2009
2010
(2001
survey)

10. Intermediary organizations are important
• Collaborative arrangements
such as cooperatives, farmer
groups
• Reduce transaction costs and
economies of scale
• Capacity building takes time
• Sustained by business not
project
• Opportunities to network and
build scale

11. Environmental outcomes
Aceh India Bangladesh Solomon
Islands
Productivity ↑
↑
↑
↑
Disease risks ↓
↓
↓
Chemicals ↓
↓
Fish in fish out ↓
Water use ↓
↓
Habitats ↑
↑
(mangroves)

12. Combined approaches required
OrganizaNon
al
“glue”
Technology
Market
and
links
to
management
consumers
for
producNvity
and
inputs
Working
Infrastructure
capital
investment

13. Conclusions
• Small-scale sector is
significant
• Outcomes – business,
environment, social
• Business case
• Business model –
intermediaries or cooperative
models, collective action
• Think business, not projects
• Mix of partners and finance
• Role for “patient capital”

14. M.Beveridge@cgiar.org
M.Phillips@cgiar.org
www.worldfishcenter.org
Acknowledgements – Resource Legacy Fund, GIZ and FAO/Allfish