The Government of Greece, assisted by the United Nations Development Programme and the Food and Agriculture Organization of the United Nations, is engaged in the project Development of Marine and Inland Aquaculture in Greece (FI:DP/GRE/85/002) whose main objective is the preparation of a National Plan for Aquaculture Development, to increase the availability of farmed fish and reduce reliance on imported fish, fish products and fish feed.
As part of the project operations, FAO assigned Mr D. Bailly as consultant from 22 October to 5 December 1987 with the following terms of reference:
In collaboration with counterparts, study the role of aquaculture in the Greek economy and its relationship with other industry sectors. The study should assess the contribution of which aquaculture is capable and the economic infrastructure needed for progress.
In particular, the consultant will:
Carry out a pre-arranged programme of visits and meetings in conjunction with counterpart specialists;
Prepare a synopsis of the present situation as regards the present position of aquaculture in the national economy as a whole and its relationship with other industry sectors;
Prepare a synopsis of the present situation related to the existing financial support for the industry on credit, loans and grants for fish farmers;
Describe and analyse the various types of farming operations to determine economies of scale, constraints, deficiencies in the sector, components, services, supplies, etc.;
Describe and analyse the socio-economic aspects of aquaculture development such as the existing constraints for the fish farmers and the make-up of their community;
Propose strategies for enhancing aquaculture production at different levels of investments, with particular emphasis on its industrial development. They should take account of government fiscal policy and of international factors;
Provide a two-day seminar on aquaculture economics with relevance to Greece;
Prepare a report on the main findings and recommendations suitable for inclusion as an Appendix to the draft National Aquaculture Development Plan by the end of the assignment in Greece.
1.2.1 General terms of reference for the project and conclusions reached by other consultants point out that Greece offers good opportunities to develop aquaculture to the level of a socially and economically significant industry. Aquaculture development is stated to contribute to Government aims such as food security, preservation of foreign exchange, social and economic development of remote rural areas and contribution to the gross national product by rational use of water resources.
1.2.2 The assessment of the contribution of a new industry to the national economy, as is the case for the aquaculture industry, is difficult to make in quantitative terms. There is a lack of historical records and figures on costs and benefits covering the first years of operation of aquaculture production units. Therefore only limited analysis is possible. Figures available from feasibility studies and projections have been shown to be misleading in the field of aquaculture in other countries. The over-optimistic projections based on such figures, as much as the lack of technical experience, are to be blamed for the delay of aquaculture development in many countries. The failure to achieve projected aquaculture production figures has often depressed the first enthusiasm of investors and banks.
1.2.3 For these reasons, and to avoid the problem of obtaining realistic figures, the consultant preferred to conduct a qualitative analysis, using figures only for an illustrative purpose. The analysis was based on a description of the present aquaculture situation in Greece. The main aim of this analysis was to point out the basic requirements necessary for a coordinated and rapid development of aquaculture in its different components.
1.2.4 The conditions of financing of aquaculture in Greece will be analysed, followed by a short economic review of the main components of Greek aquaculture. At each step conclusions should lead to recommendations to overcome the constraints of aquaculture development, thereby strengthening its potential as a profitable industry.
