Banks can finance fisheries by understanding the value chain. Working capital can be provided to fish farmers and supported by a collateral manager who ensures payment is made before fish leaves warehouses. Collateral management involves a collateral manager taking control of goods and releasing them once payment is authorized, mitigating risk for the bank. Mexico uses state-owned marketing companies to raise working capital for small fishermen by accessing capital markets.

1. Financing fisheries by leveraging
the value chain – some structures
Lamon Rutten
CTA Revolutionising finance for
agri-value chains
Nairobi, 14-18 July 2014

2. www.fin4ag.org
Fish farming
operation
Input suppliers
(feed, diesel etc.)
Bank
Overseas buyer (or
local supermarket)
Working capital finance
If the bank
understands the
value chain, it can
put into place a risk
mitigating financing
structure

3. Working capital finance supported by a
collateral management company

4. Fish
exporter
Warehouse
Fish
importer
Warehouse
Collateral
manager
Bank
Collateral management
agreement
Payment when fish enters into
warehouse controlled by the
collateral manager
Acceptable payment will
allow fish to be released from
import warehouse
Collateral manager takes full control from moment on that
goods enter export warehouse, until release (as authorized by
the bank) from the import warehouse. The bank will have
recourse to him for most losses during this period.
Collateral management can also support
South-South trade

5. Mexico: use of a state-owned marketing company, to
raise working capital finance for small fishermen and
aquaculture producers on the capital market

6. Mexico: use of a state-owned marketing company, to
raise working capital finance for small fishermen and
aquaculture producers on the capital market