SWIOP/WP/47 - Report on Consultancy in Fish Collection Processing and Marketing Strategies to Overcome Existing Problems in Marketing Second and Third Grade Fish in the Maputo Region of Mozambique













Table of Contents


SWIOP DOCUMENT OISO

December 1989
RAF/87/098/WP/47/89/E

C.J.B. LABLACHE
FISHERIES CONSULTANT

REGIONAL PROJECT FOR THE DEVELOPMENT AND MANAGEMENT OF FISHERIES IN THE SOUTHWEST INDIAN OCEAN

(RAF/87/008)
21st August to 22nd September 1988

REGIONAL PROJECT FOR THE DEVELOPMENT & MANAGEMENT OF FISHERIES IN THE SOUTHWEST INDIAN OCEAN

PROJET REGIONAL POUR LE DEVELOPPEMENT ET L'AMENAGEMENT DES PECHES DANS L'OCEAN INDIEN SUD-OCCIDENTAL

c/o UNITY HOUSE, P.O. BOX 487, VICTORIA, MAHE, SEYCHELLES
TELEPHONE: 23773
TELEX: 2254 SWIOP SZ

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

This electronic document has been scanned using optical character recognition (OCR) software and careful manual recorrection. Even if the quality of digitalisation is high, the FAO declines all responsibility for any discrepancies that may exist between the present document and its original printed version.


Table of Contents


1.0 Terms of Reference of the Consultancy And Introduction

2.0 Overview

2.1 Structures Within the Industry
2.2 Production

2.2.1 Artisanal fishery
2.2.2 Semi-industrial fishery
2.2.3 Industrial fishing

2.3 Marketing and Distribution

2.3.1 Artisanal sector
2.3.2 Semi-industrial sector
2.3.3 Industrial sector

2.4 The Domestic Consumer

3.0 Areas of Concern

3.1. Production

3.1.1 Artisanal fishing fleet
3.1.2 Semi-industrial fleet
3.1.3 Industrial fleet

3.2 Collection
3.3 Primary Processing
3.4 Distribution
3.5 Marketing

4.0 Detailed Examination of Sectors and Proposals for Rectification of Problems Therein

4.1 Production

4.1.1 Artisanal fishing fleet
4.1.2 Semi-industrial fleet
4.1.3 Industrial fleet - Mosopesca

4.2 Shore Infrastructures

4.2.1 Combinado do Pesca de Maputo
4.2.2 Portopesca
4.2.3 Propesca
4.2.4 Mosopesca - Oceano
4.2.5 Pescom National
4.2.6 Pescom Internacional

4.3 Domestic Consumer

4.3.1 Fresh Fish
4.3.2 Frozen Fish

5.0 Conclusions and Recommendations

5.1 Production & Purchasing

5.1.1 Artisanal fishing sector
5.1.2 Semi-industrial fishing sector
5.1.3 Industrial fishing sector - Mosopesca
5.1.4 Combinado do Pesca de Maputo

5.2 Processing

5.2.1 Propesca
5.2.2 Propesca

5.3 Distribution & Marketing

5.3.1 Transport
5.3.2 Fish Shoos - Oceano
5.3.3 Market Retailers
5.3.4 Pescom Nacional
5.3.5 Export

Summary


1.0 Terms of Reference of the Consultancy And Introduction

In strict collaboration with the officers of the Fisheries service of Maputo and other entities involved in fish collection, processing and marketing, the consultant will:

1.1 Assess the possibilities of diversifying processing and marketing strategies to overcome the existing problems in marketing second and third grade fish

1.2 Investigate and identify the main shortcomings in the collection, processing and marketing of fish through the official marketing channels, suggest possible solutions and, if needed, recommend the type of machinery to be installed, taking into consideration the financial capabilities of the organisations involved, and existing aid and co-operation projects.

13 Assess the possibility of exporting part of the catches collected from the Maputo Bay fisheries on the regional and international markets.

1.4 Prepare a detailed report for submission to the Government by F.A.O. Headquarters.

1.5 INTRODUCTION

Although the Terms of Reference refer primarily to the shore based organisations concerned in marketing and distribution, it is, however necessary to include the activities of the fishing sectors in any examination of the industry. In order to produce any viable suggestions for improvements in the marketing of quality fish, it is first necessary to ensure a good supply of high quality product from the vessels as, once lost, quality cannot be restored.

2.0 Overview


2.1 Structures Within the Industry
2.2 Production
2.3 Marketing and Distribution
2.4 The Domestic Consumer


This section will examine the existing state of the industry without attempting to define the problems inherent in each area or offer solutions to those problems.

2.1 Structures Within the Industry

Underneath the overall umbrella of the S.E.P. (Secretaria de Estado dos Pescas), the principal body responsible for fishing in the Maputo region is S.P.C.M. (Servicas de Pesca da Cidada de Maputo).

This body holds overall responsibility for the activities in the Maputo region of 7 parastatal organisations (please refer to annexe I) and the interests of the artisanal fishermen Briefly summarised the activities of the various companies are as follows:

Sulpesca

Semi-industrial fishing operation controlling 8 vessels fishing for shrimp and line caught fish plus 5 gill netters.

Mosopesca (Empresa Mista de Pesca Macamicano-Sovietica)

Industrial fishing operation with 12 vessels trawling for small pelagic fish.

Oceano

Retail outlet operated by Mosopesca

Propesca

Processing company involved in the canning of small pelagic species, production of frozen seafood and the salting of shark.

Cima

Fishing net manufacturers.

Technipesca

Technical support services for the fishing industry. Volvo agents.

Portopesca

Operating a processing plant and providing cold storage and ice.

Combinado do Pesca de Maputo

Extension and support services and fish purchaser for the artisanal fishing sector operating out of Inhaca, Costa do Sol, Machangulo and Macaneta.

S.P.C.M. is also responsible for the various administrative processes concerning the private artisanal fishing sector.

In addition under the jurisdiction of the Ministry of Trade the following organisations form part of the fisheries infrastructure:

Pescom Nacional (Empcsca Nacional de Comerciallzacao dos Produtos Pesqueiros)

Purchases fish primarily from Mosopesca and acts as a wholesaler.

Pescom Internacional

Shrimp exporter and fish importer on behalf of Pescom Nacional

2.2 Production


2.2.1 Artisanal fishery
2.2.2 Semi-industrial fishery
2.2.3 Industrial fishing


Production is divided into three sectors

2.2.1 Artisanal fishery

This sector consists of 6,462 fishermen, (1987), using over 1,000, mainly small, vessels of canoe type, mostly without engines, catching approximately 4,500 tonnes p.a. by gill netting or beach seining. The average catch is 100 kg. per day. The vessels are privately owned and fish in the Bay of Maputo. Fishing takes place all the year round but the main season for small pelagics is from April to August which coincides with the period of rough weather from May to September.

2.2.2 Semi-industrial fishery

This sector comprises larger, 12 to 16 metre, vessels owned by Sulpesca, a parastatal company, plus several private companies fishing prawns as a priority and in addition handline fishing.

Sulpesca operates one 20m., one 17m. and one 14m. vessel which are devoted to line caught fish. In addition it operates five 10m. to 14m. shrimp trawlers plus five vessels equipped for gill netting. The company proposes to add one more vessel to the hand-line fleet in 1989 and sell the five gill netters to the private sector.

The catch from this sector is approximately 2,000 tonnes p.a. of which 700 tonnes is shrimp. The remainder is pelagic by-catch fish plus a relatively small quantity of line caught fish which is resold at high prices. The main shrimp fishing season is from August to December.

2.2.3 Industrial fishing

The sector consists of a joint venture agreements between the Government of Mozambique and overseas companies and governments. This report will confine itself to examining only the joint venture between the Government of Mozambique and the Government of the Soviet Union called Mosopesca. This company operates 12 vessels trawling for small pelagic species. The catch is frozen on board for domestic consumption. The company supplies approximately 10,000 tonnes of fish per annum to Pescom Nacional.

2.3 Marketing and Distribution


2.3.1 Artisanal sector
2.3.2 Semi-industrial sector
2.3.3 Industrial sector


2.3.1 Artisanal sector

Principal landing sites for artisanal fishermen are Costa do Sol on the outskirts of Maputo and Macaneta. which is some distance from the city (see map annexe II).

Fishermen landing at these points sell directly off the beach to middlemen who resell to stallholders at various markets close to the landing site. The stallholders and middlemen sell their fish mostly between the hours of 16.00 and 19.00. Any unsold fish is taken house to house in an attempt to sell it. Fish remaining unsold after this is placed in chest freezers, frozen and defrosted for sale as fresh the following day.

There are existing collection centres at Macaneta and Costa do Sol operated by Combinado do Pesca which are largely unutilised by the fishermen as payment is on credit terms. Additional landing sites exist in Matola and Catembe where fish is generally sold directly to the end consumer by the fishermen.

Two other principal landing sites exist at Inhaca and Machangulo situated on the opposite side of the bay of Maputo. These sites are used by artisanal fishermen selling their fish to Combinado Pesqueiro de Maputo. The centres use marine transportation to send the majority of the fish purchased to the city of Maputo. The fish is delivered fresh to Maputo where it may be sold fresh to third parties for resale in local markets or slow frozen in cold stores for resale as fresh fish the following day after defrosting.

No system of distribution exists within Maputo due to previous lack of investment as explained above and thus the only sectors of the population who have access to 'real' fresh fish are those in the immediate landing area and those with private means of transport.

2.3.2 Semi-industrial sector

All shrimp and semi-industrial vessels unload at Maputo. Their catch is normally handled by Portopesca.

2.3.3 Industrial sector

Industrial fishing vessels operated by Mosopesca produce second and third grade fish (based on species rather than quality) predominantly of the carangidae family called carapau. The vessels are equipped with on board plate freezers producing 11 kg. blocks. The quality of the product is variable as the freezing equipment lacks sufficient capacity for the daily catch. The product is landed directly into Maputo city where it is commercialised principally by Pescom Nacional. A relatively small quantity (approx. 30 tonnes per month), of the fish landed from these vessels is sold through Oceano, a retail outlet owned by Mosopesca.

2.4 The Domestic Consumer

The domestic consumer has access to fish in several ways:

1. at beach landing sites where fresh fish can be bought directly from the fishermen.

2. at markets where fresh and defrosted frozen fish can be bought from fishmongers and stallholders.

3. at the Oceano fish shop where frozen mainly 2nd. and 3rd. grade frozen fish is available.

4. at Pescom Nacional cold stores where frozen fish is available in bulk.

Fish has traditionally been a source of cheap protein in the Maputo region. This in turn has not lead to the development of quality control procedures and investment in appropriate equipment for the distribution and marketing of the product. As the vessels are equipped with plate freezers, all fish from Mosopesca supplied to Pescom/Oceano and markets is frozen in 11 kg. blocks. As this quantity is too large for the domestic consumer it is normally defrosted at the point of sale, frequently in very unhygienic circumstances.

Pescom Nacional sell approximately 600 tonnes of fish to the public monthly plus around 600 tonnes to institutions. The company maintains a reserve of around 1300 tonnes in store. (Please refer to Pescom classification list in annexe III).

Distribution operations operated by Pescom Nacional outside Maputo have been adversely influenced by the activity of bandits. The problems of security outside the city have lead to the virtual curtailment of the distribution system.

3.0 Areas of Concern


3.1. Production
3.2 Collection
3.3 Primary Processing
3.4 Distribution
3.5 Marketing


In order to arrive at possible solutions for the problems within the industry, it is necessary to define and examine the principal areas of concern. The areas identified are as follows:

3.1. Production


3.1.1 Artisanal fishing fleet
3.1.2 Semi-industrial fleet
3.1.3 Industrial fleet


3.1.1 Artisanal fishing fleet

The principal fishing methods employed by the artisanal fleet are gill netting and beach seining for small pelagics in the shallow waters of Maputo Bay. Some handline fishing is carried out but the amount is not significant in this sector. The annual catch is 3,000 tonnes of net caught fish plus 500 tonnes of line caught fish. No reef fishery exists.

The general condition of the fleet is poor and many boats are old and decrepit. This is due to the fishermen having insufficient income to repair or replace boats. This problem has been exacerbated by overfishing of net caught fish due to concentration of fishing effort within the safe regions of Maputo Bay.

The boats are not equipped for carrying ice and ice is not readily available. In addition the fishermen have never been educated in post harvest quality control and produce a product of very variable quality. The on-shore handling of small pelagics is also very poor. Private buyers transport the fish without ice and at the Combinado do Pesca centres, the fish is placed in chillers again without ice.

The artisanal fleet traditionally supplied a cheap source of protein to the population of the Maputo region and good demand exists but the marketing of catch is also problematic. The fishermen sell the balance of the catch which is not sold on the beach to either middlemen or the Combinado do Pesca. The Combinado do Pesca does not pay cash but records a credit to the fishermans account against which nets and equipment can be bought. Except in the remoter landing sites of Inhaca and Machangulo, fishermen do not exhibit a great deal of confidence in this body. Most fishermen prefer to operate with a middlemen who pays by means of a cash advance against the catch. Fishing effort is limited to only catching what the fishermen think they can sell.

Combinado do Pesca provides extension services to the artisanal fleet but there is very little contact between extension services personnel and fishermen and thus no real support.

3.1.2 Semi-industrial fleet

No immediate problem exists as to the potential earnings of this sector as the resource is under utilised. Once again, however, the vessels in the fleet are old and in poor condition due to insufficient capital investment as a result of the national economic situation. The vessels are essentially limited to prawn trawling and there is a requirement for new multipurpose vessels and the replacement of existing vessels.

As the fleet operates out of Maputo port, there is sufficient infrastructural support available but a lack of processing, distribution and marketing knowhow restricts growth within the handline portion of this sector. If a significant development of fishery occurs marketing problems will result if shore operations are not improved.

3.1.3 Industrial fleet

One of the primary problems affecting this sector is the high cost of production due to the high foreign exchange labour cost of expatriate employees required to operate the vessels. This naturally results in the fish being high priced which is contrary to the original aim of operating the vessels to produce a cheap protein source.

The vessels do not produce a uniformly good product. Insufficient freezing capacity results in low quality product as some fish has to wait for freezer space. No on-board grading is carried out to distinguish first caught from last caught fish and there is little concept of quality control.

In addition, the freezing equipment is only capable of producing 11 kg. blocks of mixed species frozen fish which are suitable for institutional consumers but unsuitable for the domestic market.

3.2 Collection

The existing collection centres operated by Combinado do Pesca are not being fully utilised. This is a result of their not paying the fishermen in cash and the fact that there are no price fluctuations relative to demand or season and fish is thus diverted to other markets. Little or no communication exists between the personnel of the centres and fishermen which results in little comprehension of each others problems.

Existing equipment is under utilised or utilised for different or wrong purposes e.g. at Inhaca the transport boat is being used to move passengers, food and general cargo as well as fish. An ice plant that was supplied 3 years ago has still not been installed. There is a lack of the management co-ordination required to correctly organise essential supplies and a lack of the specialist knowledge required to cope with the technical aspects of fish handling. This weakness in management is reflected within the workforce and leads to an absence of quality control.

All other fish is sold on the beach or in nearby markets.

3.3 Primary Processing

Primary processing is essentially almost nonexistent. Portopesca possesses basic buildings and equipment but lacks the requisite equipment for the production of a high quality product plus the management skills required to achieve this goal. The company does possess plate freezing equipment but frequently excess fish is not frozen correctly but merely put into cold stores to freeze slowly. The lack Of blast freezing facilities means that large individual fish cannot be frozen properly.

Much of what is done consists of the defrosting of frozen fish blocks from Mosopesca for re-packing into smaller units.

Apart from Portopesca, no company exists which is capable of, or involved in, primary processing.

3.4 Distribution

Pescom Nacional holds the responsibility for distribution of fish within the Maputo region but no system is in existence. Distribution outside of the Maputo region has, as previously stated, been hampered by bandit activity which has resulted in the loss of vehicles thus severely curtailing operations. An unofficial distribution system using open trucks is operated by the middlemen who buy from the artisanal fishermen at the beach and resell the catch at various markets. No quality control systems are in operation.

3.5 Marketing

Pescom Nacional only has access to the 11 kg. blocks of fish produced by Mosopesca or imported by Pescom Internacional which as has been previously stated are too large for domestic consumer use. This problem is dealt with in various ways, none of which are satisfactory from a quality maintenance point of view:

1. blocks are defrosted, re-packed and re-frozen in cold storage by Oceano.

2. fishmongers buy blocks from Pescom for resale in local markets. The blocks are physically broken up or defrosted and sold by the kilo whether frozen or defrosted.

As a result of price increases and quality deterioration, fishmongers have stopped buying fish for resale. This has been caused by a reduction in demand which in turn has resulted in fishmongers losing money as a result of wastage.

4.0 Detailed Examination of Sectors and Proposals for Rectification of Problems Therein


4.1 Production
4.2 Shore Infrastructures
4.3 Domestic Consumer


4.1 Production


4.1.1 Artisanal fishing fleet
4.1.2 Semi-industrial fleet
4.1.3 Industrial fleet - Mosopesca


4.1.1 Artisanal fishing fleet

The overfishing of net caught species creates an immediate need to move to an alternative fishing method in order that the fishing boats may generate an adequate income and provide improved supplies to the public. The method that recommends itself most easily, given the types of vessels currently within the fleet and given the levels of expertise of the fishermen and their inability to fund large investments in gear, is a handline fishery.

Very little data exists as to the potential reserves of demersal fish within the Maputo Bay, but the large size of the fish being offered for sale on the market would indicate a high degree of stock maturity and thus point to under utilisation of this resource.

The change in fishing methodology would require the establishment of efficient extension services to provide the fishermen with the information that they require to make this change. An essential component of the role of the extension services would be to make fishermen aware of the post harvest handling techniques required to produce a good product such as gutting, gilling and icing immediately after capture. Techniques are well established and are detailed in the codes of practice (annexe IV).

A constraint on post harvest quality control under the present circumstances is the inability of the existing vessels to carry ice for fish cooling. The choice of the next generation of fishing vessels for the Maputo Bay region must allow for the provision of ice carrying capacity if quality is to be improved substantially. Concurrent with this change must of course be the provision of ice, either by means of on site production or an efficient system of distribution, in the fishing districts.

Vessels engaged in the fishing of small pelagics such as Magumba using nets must be able to land their catch as quickly as possible into a collection centre presently operated by Combinado do Pesca where the fish can be rapidly cooled using chilled water.

4.1.2 Semi-industrial fleet

Prawn fishing within Maputo Bay has reached the point of saturation and further development of this resource will lead to overfishing of the stock and diminishing returns for the vessels currently engaged in this activity.

Development within this sector lies again with an increase in handline fishing of two types. All vessels should be limited to working outside the Bay to allow the utilisation of this resource by the artisanal fleet. Two types of vessels are proposed: an 8 metre vessel capable of undertaking voyages of 2 to 3 days and a 12 to 14 metre vessel capable of voyages of one week. All vessels would be equipped for the carriage of iced fish and could be built by the state owned boatyard operated by Navipesca.

The urgency with which the fishery must be developed in order to turn this sector into an earner of foreign exchange would suggest the building of fibreglass boats. The building of wooden vessels is very time consuming and the procurement of timber difficult. In addition, an 8 metre vessel is currently under construction at Navipesca under an overseas aid programme and commercial models will be available very shortly. The 12 metre vessel could be constructed using the 12 metre prototype vessels provided under the Italian aid programme, to produce moulds.

As with the artisanal sector, the influence of extension services in providing information, especially in post harvest quality control is important in producing a good product and vital if any export industry is to be developed. Equally important is the standard of maintenance and thus the state of readiness of the ice plant at Maputo port and Inhaca. Once again standards of shore handling at collection centres must be in line with standard codes of practice.

The development of an export oriented industry would also require the modification of the processing plant at Portopesca to bring it into line with internationally approved standards.

4.1.3 Industrial fleet - Mosopesca

Very few changes are available to be made in this sector. The principal problems of high production costs for low value fish can only be relieved by the passage of time with the return of suitably trained Mozambiquan personnel to replace the existing expatriate crews. The only immediate alternative is for Government to subsidise the running costs of the vessels which, together with a maximum effort from Mosopesca to reduce running costs and increase production, will allow the fish to be sold at affordable prices. The cost of fishing is 443 MT/kg. which, as the fish is sold for less, means that the company does not make profit.

As the equipment on board can only produce 11 kg. blocks, one immediate improvement which could be made is the use of plastic inter-leaving in the production of blocks in the plate freezer moulds. Interleaving would allow the separation of fish within a block without entailing defrosting of the entire block. This in turn would bring about a considerable improvement in the quality of the fish reaching the domestic consumer.

The problem of variable fish quality due to the undercapacity of the on-board freezing equipment is difficult to resolve but separation of first caught/first frozen fish from last caught/last frozen fish might allow for improved earnings for the vessels due to pricing differentials.

4.2 Shore Infrastructures


4.2.1 Combinado do Pesca de Maputo
4.2.2 Portopesca
4.2.3 Propesca
4.2.4 Mosopesca - Oceano
4.2.5 Pescom National
4.2.6 Pescom Internacional


Shore infrastructures relating to the various fishing sectors are provided by six organisations some of whose roles overlap leading to duplication of facilities and severe strain on the human resources available for their direction.

For the purposes of this report, the proposals for changes and improvements within these organisations will be dealt with in the conclusion and that for the purposes of this section, only the resources available together with specific problems will be discussed.

The organisations are as follows:

Combinado do Pesca
Portopesca
Propesca
Mocopesca - Oceano
Pescom Nacional
Pescom International

4.2.1 Combinado do Pesca de Maputo

This organisation operates collection centres at Inhaca, Machangulo, Macaneta, and Costa do Sol. The collection centres at Costa do Sol and Inhaca are equipped with chillers, the centres at Machangulo and Macaneta having no refrigeration facilities. Each centre is equipped with radio equipment for communication with Maputo.

The Inhaca centre is building an ice plant which should be in operation within the coming months. The other centres are not equipped with ice production equipment.

Each has a shop where they sell fishing equipment, nets, hooks lines etc.

Macaneta and Costa do Sol centres are connected to Maputo by road: Inhaca and Machangulo are connected to Maputo by sea using a 12 metre vessel with an insulated hold operating daily out of Inhaca and out of Machangulo weekly. This vessel does not however run to a regular schedule.

The Inhaca centre possesses a floating pontoon for unloading; other centres use beach unloading.

Combinado headquarters are in Maputo city.

The problems that this organisation faces have been mentioned elsewhere in relation to their effect on both fishermen and consumer but to reiterate, the fish arriving at the centres is usually of good quality but suffers deterioration due to handling techniques. No ice is available at any centre and fish crates are rare. Most fish is handled and transported in gunny sacks.

Fishermen are not paid cash but are credited for their sales against which they can obtain food (Inhaca, Machangulo only), fishing equipment etc., from the shops attached to the centres. As the price for the fish does not vary throughout the year, the fishermen tend to use the organisation only in times of plentiful catch when prices on other markets are lower. Many fishermen are also in debt to the organisation for goods taken from the Combinado shops.

The contact between the personnel running the centres and the fishermen is minimal and does not reflect the requirements of the fishermen. Centres are managed by personnel without experience in the fishing industry.

The above results in minimal quality control.

4.2.2 Portopesca

Based in the Port of Maputo, this organisation is involved in the processing of fish from the artisanal and semi-industrial sectors. The organisations also provides storage facilities for the above sectors and in addition for part of the production of Mosopesca. This organisation does not buy product but merely charges a fee for handling, processing and storage.

It controls a 48 tonnes/day capacity ice plant built in 1983 (Grasso ammonia system), producing only 25 tonnes per day due to one condenser being out of order.

The ice plant is only supplying Sulpesca and semi-industrial private vessels.

They have an unloading jetty which is in a very bad state of repair.

Frozen fish emanating from Mosopesca vessels is unloaded by manual filling of cargo nets in the fish holds. It is then handled in two different ways. Fish destined for Portopesca stores is put into baskets while fish destined for Pescom is put onto open lorries. Unloading equipment consists of 2 cranes, one permanently out of order and the other unreliable. One diesel and two electric forklift trucks provide handling for the Portopesca store.

Fresh fish and shrimp coming from the semi-industrial-vessels employ the same unloading methods but place fish into gunny sacks and shrimp info crates. The produce is inspected by a Department of Fisheries quality controller and, if passed, is accepted by Portopesca for processing, the price being fixed by Portopesca.

All fish is weighed, registered and a receipt issued. As no chill room facilities are available, most fish landed and accepted is placed in cold storage (-18°C.) for the night. The shrimp and some of the fish catch arc placed in the processing room on ice.

The processing room possesses 4 lines. The room is at ambient temperature, no insect protection is existent. One small non-industrial handsaw is available.

Freezing facilities are 3 plate freezers (one working, two out of order when visited). giving a theoretical capacity of 6 tonnes per day but an actual capacity of 2 tonnes. These freezers are primarily used for shrimp.

Cold storage facilities include 2 rooms of 400 tonnes each and 3 rooms of 200 tonnes each. Cold stores do not possess door curtains or door heaters causing doors to freeze up with consequent damage. The lighting system within the stores and corridors is inadequate and stock rotation is not practised.

All stores are run off a centralised machine room containing 4 Grasso ammonia compressors of 200 Kw. capacity.

In addition there is an in-house ice plant of 6 tonnes per day capacity (also out of order when visited).

Security within the factory is very lax due to the large number of uncontrolled entry and exit doors.

Human resources are weak especially in the areas of middle management, quality control and basic processing and handling knowledge.

4.2.3 Propesca

Two small factories are situated in Maputo, one containing a canning line used mainly in the canning of small pelagics, (sardines, mackerel and magumba), for domestic consumption. This plant is also engaged in some secondary processing i.e. cooking and packaging, of shrimp, molluscs and fish dishes also for domestic consumption. The other plant is engaged in the salting of shark.

A small but useful domestic market of 10,000 expatriates exists for these products in the foreign exchange supermarket.

Both the canning line and the secondary processing plant suffer from out of date equipment coupled with insufficient maintenance but manage to achieve good hygiene standards. The existing packaging methods for shrimp and mussels are out of date and should be replaced by packing frozen product in plastic bags. Standards are not sufficiently high to meet the international levels required for the development of an export market for the products.

The shark plant operates efficiently but suffers from a high raw material price leading to a high finished product price thus limiting local and export demand. Dried shark fin produced by Propesca is exported by Pescom Internacional to the Far East.

The plants are frequently short of raw material due to the purchasing policy of Combinado do Pesca and the selling policy of Sulpesca. In addition the high cost of raw material makes the finished products expensive. This has meant that distributors no longer buy from the company which is thus forced to do its' own distribution.

Plans are in hand to introduce a smoking kiln for the production of smoked bill-fish and tuna.

The general direction of the above plants is of an acceptable level.

4.2.4 Mosopesca - Oceano

One fish shop recently opened in Maputo as a subsidiary of Mosopesca. The shop consists of a public area with two back rooms for the preparation of fish. The shop is equipped with two cold rooms, (one out of order).

The public area used for the sale of fish is equipped with one open 0°C. cabinet which is used for the display and sale of large individual frozen fish plus one open chest freezer display unit containing second and third grade fish which has been defrosted and re-packed in 2 kg. packs before re-freezing.

The working areas in the back of the shop are not equipped with working tables or water supply. The 11 kg. blocks of fish are defrosted on the floor, separated, packed in 2 kg. plastic bags, heat sealed and placed in the display freezer. The hygienic conditions in the preparation rooms are far from acceptable for normal standards of quality control.

The fish packs are mostly removed from the display freezer in a defrosted state as large queues of up to 100 people are normally evident outside the shop.

4.2.5 Pescom National

Pescoms' role is to act as a wholesaler handling frozen fish from Mosopesca and Pescom Internacional.

Based in Maputo, the organisation has 4,600 tonnes of cold storage capacity, (only 1,700 tonnes available when visited due to repairs).

The company operates a fleet of refrigerated trucks for distribution outside of the Maputo region

The management is completely lacking in fish handling knowhow and thus knowledge of correct techniques at the level of the workers is nil.

The cold stores are not operated correctly in the sense that the physical stock organisation does not allow for air circulation, no stock rotation system is followed, and workers have to walk on stock to remove product.

As a result of price increases, (43.2), Pescom Nacional is effectively subsidising fish prices and has attempted to limit its' losses by restricting the supply of fish to 1 kg. per person per month. This policy proved unworkable and the company has since adopted a system whereby when the monthly sales reach 600 tonnes, no more fish is supplied, 600 tonnes being equivalent to 1 kg. per person for the 600,000 population of the Maputo region.

No distribution system exists within the Maputo region. Customers and retailers are obliged to come to the store to make their purchases. A distribution system exists outside the Maputo region but is severely affected by bandit activity (from January 1986 to date 20 lorries have been blown up).

4.2.6 Pescom Internacional

This organisation acts as an import and export broker, arranging the exportation of shrimp and the importation of fish to meet the shortfall in local supply. Imports are primarily made from the U.S.S.R. and consist of approximately 7,000 tonnes p.a. of, mainly, mackerel of 12 to 15 centimetres in size. This size is more popular than the size of the locally caught fish which are slightly smaller. In addition the blocks of fish are interleaved which facilitates their division for retail sale. The price of this imported fish is US$ 450 per tonne.

The devaluation the the Metical has meant that whilst previously the profit made on the importation of fish could be used to subsidise the activities of Pescom within the local market, importation has now become loss making due to the controlled price of fish and the operation is effectively being subsidised by central government.

4.3 Domestic Consumer


4.3.1 Fresh Fish
4.3.2 Frozen Fish


The problems faced by the various sectors of the industry naturally have great bearing on the problems faced by the domestic consumer. The problems vary according to which sector of the fishing industry the fish emanates from.

4.3.1 Fresh Fish

Consumers tend to be prepared to pay a higher price because the fish is fresh rather than frozen. As has been previously explained, due to the lack of any system of distribution, fresh fish is only available in certain areas. Fresh fish is a commodity available only to the public living dose to a fish landing site or to those in possession of private transport In addition, there is very little in terms of facilities to keep the fish fresh at the points of sale which leads to a rapid deterioration in quality.

4.3.2 Frozen Fish

The principal supply of frozen product is the 2nd. and 3rd. grade fish being produced by Mosopesca. Government policy has been to provide this as a basic protein source to the population. Unfortunately, the devaluation of the Metical has brought large price increases due to the high foreign exchange content of the cost of production of this fish forcing Mosopesca to increase their price to Pescom. The price of fish offered for sale to the public by Pescom has thus risen sharply. This in turn lead to a downturn in demand and a consequent build up of stocks.

The presentation of the fish in 11 kg. blocks is unsuitable for the domestic consumer and leads to very poor hygiene standards when attempts are made to divide the blocks for retail sale.

There is a general shortage of 1st. grade fish. No shortage of 2nd. & 3rd. grade fish exists as any shortfall in production by Mosopesca is made up by importation by Pescom International. The grading system has been subject to criticism as the parameters for grading are not clear. This criticism has been sharpened by the increases in prices which have made the consumer much more quality conscious, and centres around the feeling that 3rd. grade fish has been sold at 2nd. grade prices.

The following table illustrates the movement in the controlled retail price of fish from Pescom.


1986

1987

1st. Grade

100 -158 MT/Kg.

945 MT/Kg.

2nd. Grade

47- 75 MT/Kg.

335 MT/Kg.

3rd. Grade

23- 37 MT/Kg.

165 MT/Kg.

In early 1987 a decision was taken to relieve the overstocking by price reduction. Consequently, Mosopesca and Pescom were obliged to alter their prices for frozen fish in the following manner:


2nd. Grade

3rd. Grade

Producer price

342.00

165.00

Wholesale price

276.00

124.00

Retail price

335.00

165.00

The parallel market for fresh fish reflected considerably different price levels thus:

1st. Grade

2nd. Grade

3rd. Grade

1,100.00

400.00

200.00

(all prices in Meticals per kilo).

The revision in the controlled prices is in effect a subsidisation of the price of fish by central Government using Pescom National as its' agent. This has caused financial problems for both Pescom Nacional and Mosopesca as Pescom is frequently unable to pay Mosopesca.

In addition, Pescom National has been obliged to buy fish from Pescom International at MT 385.00 per kilo. for resale at the controlled price of MT 273.00 in order to maintain supplies of fish to the populace.

(The official rate of exchange for the Metical in September 1988 was US$ 1.00 MT 580)

5.0 Conclusions and Recommendations


5.1 Production & Purchasing
5.2 Processing
5.3 Distribution & Marketing


The resolution of the shortcomings identified lies in an integrated approach involving activities and responsibilities which are currently devolved to several different organisations. Fish collection, distribution and marketing development must be aimed at increasing fish consumption, fishermens' income and foreign exchange earnings.

Given the suggested modifications to the various fishing operations as described in sections 4.1.1, 4.1.2 and 4.13, the supply and quality of fish landed should be considerably improved.

The most radical changes required are within the shore based companies where it is recommended that a new body be created which would be responsible for fishing fleet support and shore based activities both in the Bay of Maputo and outside the Bay of Maputo. For the purposes of this report this organisation will be referred to as the Fish Marketing Board of Maputo, - F.M.B.M. (A suggested management structure together with responsibilities and requirements of the posts may be found in annexes V and VI).

The proposed F.M.B.M. would be vertically integrated and have responsibilities within every area of the industry without actually being involved in fishing activities. The Boards' activities would encompass, either wholly or in part, the activities of a number of existing organisations within the industry notably.

1. Combinado do Pesca
2. Pescom National
3. Mosopesca - Oceano
4. Propesca
5. Portopesca

To meet the objectives of the proposed F.M.B.M. certain polities must be adopted in each area and many of the current working practices changed. To elaborate on this, certain component parts must be examined in detail.

The areas and responsibilities proposed are as follows:

5.1 Production & Purchasing


5.1.1 Artisanal fishing sector
5.1.2 Semi-industrial fishing sector
5.1.3 Industrial fishing sector - Mosopesca
5.1.4 Combinado do Pesca de Maputo


The Boards' responsibility would be the provision of the basic necessities for the fleets plus their means of landing a good product. The F.M.B.M. would thus supply certain services to the fishing industry in the artisanal and semi-industrial sectors:

1. Unloading services for the catch eg. landing quays, cargo nets, cranes etc.
2. Ice, fuel and fresh water for the vessels.

F.M.B.M. would purchase fish from the following sources:

1. Artisanal fishermen
2. State owned semi-industrial fishing companies
3. Privately owned semi-industrial fishing companies who wish to sell to the board.
4. Combinado do Pesca collection centres.
5. Industrial vessels operated by Mosopesca.
6. Industrial shrimp trawler by-catches

5.1.1 Artisanal fishing sector

Artisanal fishermen should be free to sell their catch to the F.M.B.M. or straight to the market in the fresh form. The imposition of F.M.B.M. as a monopoly buyer with fixed prices would cause resentment amongst fishermen, lower catches and inevitably lead to the creation of a parallel market.

Instead the Board should regulate its supply by means of price. Prices must change only slowly and must relate to open market supply and demand. On an open market prices will naturally rise and fall according the relative position of these two factors.

During good fishing seasons when supply exceeds demand leading to a downturn in price, fishermen will prefer to sell almost all their catch to a single purchaser, F.M.B.M., who is equipped to purchase in quantity even if the price obtained is slightly lower than the prevailing price on the open market. This guarantee of purchase irrespective of quantity, (naturally provided the quality is acceptable), provides security to the fishermen, allowing them to stay out fishing longer when conditions are appropriate. In addition, this system would provide F.M.B.M. with a supply of reasonably priced fish for freezing and storage for periods of under-supply or for exportation.

The establishment of efficient collection systems may help prevent the drift of fishing villages towards the city which encroaches upon beaches which may be used for the future development of a tourism industry.

5.1.2 Semi-industrial fishing sector

The potential of an offshore handline fishery operating on the edge of the continental shelf has been estimated at 350 to 400 tonnes. This fish can provide the basis of an export industry.

5.1.3 Industrial fishing sector - Mosopesca

The problems that Mosopesca faces are largely intractable. In order to keep the price of fish landed from these vessels at a reasonable level whereby it can be bought by Pescom Nacional and resold to the public at a reasonable price with a small profit for Pescom it will be necessary for central Government to subsidise their operations. The obvious areas for subsidy are in expatriate salaries, fuel and spare parts.

The principal contribution which Mosopesca can easily make towards alleviating the problems of marketing 2nd. and 3rd. grade fish is the interleaving of the fish in the blocks. Although the fish will still have to be placed in the freezing moulds in a random way to ensure speed of handling, interleaving will greatly facilitate the separation of fish and its' commercialisation in retail packs.

5.1.4 Combinado do Pesca de Maputo

With the creation of the F.M.B.M., the role of this organisation would be partially changed. The centres would continue to act as a fish purchasing point with the F.M.B.M. having responsibility for purchasing and the supply of ice and facilities related to the fish, refrigerated transport, chillers etc. The Combinado would continue to provide the extension services which it currently supplies.

As the F.M.B.M. is a separate organisation purchasing fish with cash, the arrangement of credit purchases of fish and credit sales of fishing gear will have to cease. The Combinado shops should sell on a cash basis only and should leave the role of provider of credit to the banks.

Basic facilities are already available and the installation of the ice plant at Inhaca will be a great help in the district. With plentiful supplies of ice available, the chillers should only be used in emergency or for the sale of fish to the local inhabitants.

At Inhaca, the transport vessel should be alongside the pontoon from 08.00 to 16.00 every day in order to take on board the catch. The fish would be purchased by a F.M.B.M. buyer operating from the vessel and immediately stored on ice in plastic fish crates. This work method automatically reduces the handling and thus damage of the fish. Ice supplies can be taken either from Inhaca or Maputo. The buyer will accompany the fish to Maputo on board the boat every afternoon.

The same basic system would be used at Machagulo with the ice supplies being brought from Maputo. Due to the lower catches at Machangulo, a more occasional service, adhering a to a schedule, would be operated.

At the other Combinado do Pesca centres at Costa do Sol and Macaneta. which are accessible by road, the Board would take over all the activities of the centres with the exception of the extension services currently provided. As the fish landed at these sites is predominantly sardine or magumba, provision will have to be made for chilled water tanks containing a water and ice mixture at a temperature of 0°C. Small fish arriving at these centres can be immediately placed in these tanks which will preserve their quality until collection.

5.2 Processing


5.2.1 Propesca
5.2.2 Propesca


5.2.1 Propesca

Once landed in good condition, the F.M.B.M. would be responsible for both primary processing of the fish, (gutting, cleaning, filleting, steaking, packaging etc.) and also secondary processing such as canning, drying and production of prepared dishes.

Under a system operated by F.M.B.M., all primary processing would be undertaken at the existing Portopesca plant in Maputo which would require some modification. The supplies of product to this plant come from three sources:

ex-Combinado do Pesca collection centres - fresh fish
semi-industrial fishing vessels fresh fish and shrimp
Motopesca - frozen fish

Fish arriving from the collection centres will be cleaned at the processing plant while hand-line caught fish from the semi-industrial fleet should be gilled and gutted at sea in order to preserve their quality.

All transportation of fish from collection centres to the processing plant must be effected with refrigerated vehicles.

An important part of the work in this plant will be the production of 1 and 2 kg. packs of frozen fish for retail sale. This will involve splitting the 11 kg. blocks under hygienic conditions and re-packing in plastic bags.

The plant itself will require modification in the following manner: (detailed plans of the existing plant and suggested modifications can be found in annexe VII and annexe VIII. A list of equipment required by the plant may be found in annexe IX).

The aim of the modifications is to improve standards of efficiency, security and quality control within the plant. The recommended modifications are as follows; (numbers refer to the proposed plan in annexe VIII).

1. The installation of doors and plastic curtains on the entrances from the unloading quays to allow temperature control inside the factory.

2. The installation of two weighbridges and one 50 kg. scale in the receiving area to provide control "over raw material entering the factory.

3. The installation of a door to separate the processing area from the administrative area.

4. The closing off and installation of a door between the corridor and the receiving area to allow for temperature control inside the plant.

5. The conversion of the small processing room into a 0°C. chiller. This will be used to hold the fish on ice entering the building in good condition pending processing.

6. The closing off of the outside door to the large processing room. This will prevent the ingress of hot air, dust, insects, animals and unauthorised personnel and will thus allow for much higher hygiene standards and temperature control.

7. The removal of one of the vertical plate freezers from the freezing room to make space for a blast freezer.

8. The conversion of the store room into a blast freezer with approximately 10 tonnes per day capacity. The blast freezer will provide more options for the production of high quality frozen fish, especially linecaught fish of varying sizes.

9. The installation of one weighbridge and one small 50 kg. scale on the loading bay for the despatch of fish for distribution.

10. The building of a wall to seal off the loading bay area from the rest of the plant. This measure will provide for better control of access of personnel and allow for temperature control within the factory.

11. The installation of industrial plastic curtaining on the loading bay access thus leading to better temperature control by creating a form of air lock within the loading bay area.

12. Installation of an entry door in the new wall to provide access to the offices.

The provision of a blast freezer will be very important when the F.A.O. tuna pole and line fishing project starts in January 1989 as the existing plate freezers are completely unsuitable for the fish coming from this vessel

5.2.2 Propesca

This company would also come under the umbrella of the F.M.B.M. as the board would be its' principal supplier and will have a distribution system.

In order for this plant to function efficiently it must be completely re-equipped. However, due to the high capital cost involved and the relatively low production levels of the existing plant, (figures for 1987 show production of 33 tonnes of canned fish, 73 tonnes of dried shark and 31 tonnes of dried fish during the year), conversion work on the Portopesca plant should take priority.

For the present, the plant should continue to operate in the same manner. The production of dried fish can be increased with minimal cost.

5.3 Distribution & Marketing


5.3.1 Transport
5.3.2 Fish Shoos - Oceano
5.3.3 Market Retailers
5.3.4 Pescom Nacional
5.3.5 Export


The Board would distribute its' products, (fresh, frozen, prepared, canned and dried fish plus shrimp), to the following organisation:

1. Fish shops
2. Fish mongers selling at specific approved markets
3. Supermarkets
4. Hotels
5. Restaurants

5.3.1 Transport

The putative F.M.B.M. must be equipped with refrigerated vehicles not only to collect its' fish but also to distribute it from the processing plant. It would be pointless to take strict quality control precautions when buying and processing and then transport the product in open lorries.

The vehicles must be run in an orderly cost effective manner, adhering as closely as possible to organised schedules. If necessary, refrigerated vehicles could be used as a point of sale in areas where no market facilities exist and as such act as a tool to increase sales. (see equipment list in annexe X).

5.3.2 Fish Shoos - Oceano

To complete the vertically integrated structure of the F.M.B.M., the board should open 4 small fish shops in the main population and retailing areas in Maputo city. The existing Oceano shop should be closed as soon as possible as its' poor standards are giving a bad impression to the fish eating public and its' continued use would reflect badly on any new operation embarked upon by the F.M.B.M.

The proposed shops should offer fresh fish, at first fish coming from Inhaca and Machangulo, and frozen fish in fillet and steak form.

In addition the shops would the principal outlet for the 2nd. and 3rd. grade fish coming from Mosopesca after its hygienic re-packing into 1 and 2 kg. packs in the ex-Portopesca processing plant. The presentation of this fish in a hygienic and convenient way will alter the public conception of the product and will help greatly in stimulating sales.

The shops should be equipped with chilled and frozen storage for the stockage of fresh and frozen fish. This equipment should be located in the rear of the shop.

The part of the shop with public access should be equipped with either a hygienic tiled display stall or preferably a chilled display unit for the sale of fresh fish on ice. Two display freezer cabinets should be installed for the self service of pre-packed frozen fish.

The shops must be equipped with a clean water supply, fans and insect killing devices, (a full list of equipment required may be found in annexe XI).

5.3.3 Market Retailers

Independent retailers would not fall under the specific control of the F.M.B.M. but should be licenced by competent Governmental authorities with powers of inspection and closure should standards not be met.

The existing open markets at which the fishermen sell their catch should be identified and upgraded. Separate areas selling only fish should be established and retailers should equip themselves with stalls of standard design and simple, inexpensive construction but which will allow the maintenance of minimum quality standards. Concrete stalls with the provision of running water would be a minimum requirement for fresh fish. Some form of chest freezer would be the minimum requirement for the sale of frozen fish, especially that of 2nd. and 3rd. grade.

The authorities must use their powers to stop the sale of fish which has been frozen, because it remained unsold, and is then defrosted and sold as fresh.

5.3.4 Pescom Nacional

Under the proposed system, the role of Pescom Nacional would change somewhat. As the retailing functions of Pescom within Maputo will have been absorbed within the framework of the F.M.B.M., the role that Pescom would play under the system is the supply of fish to institutional customers, hospitals, schools, military etc., and the distribution of fish outside Maputo. Their source of supply would continue to be Mosopesca which should not present a problem as the institutional customers are able to utilise 11 kg. blocks. The F.M.B.M. can supply retail packs of fish for distribution outside Maputo.

5.3.5 Export

The improvements in quality control would allow for the development of an export market for high quality fresh and frozen fish and also for shrimp caught within Maputo Bay. These activities are of course foreign exchange generating and fresh shrimp exportation could be especially lucrative.

Shrimp exportation does not pose any problems as it is a high value product in great demand. Fish exports depend primarily on quality and secondly on reliability of supply.

The proposed improvements in fishing effort should result in the availability of the correct type of fish for development of this market. The most important species with regard to any potential export market are:

Local name

Scientific name

Dourada

Rhabdosargus sarba *

Garoupa

Cephalopholis sonnerati *

Garoupa

Epinephelus chlorostigma

Garoupa

E. grammatophorus *

Pargo Encamado

Argyrops filamentosus *

Pargo ladrao

Lethrinus harak

Pargo

Lutjanus sebae

Pargo

Lutjanus bohar

Pargo

Lutjanus coccinius

Robalo

Dentex (Cheimerius) nufar

Salmonete

Parupeneus indicus

Sargo

Acanthopagrus berda

Serra

Scomberomorus commerson

(* please refer to the drawings in annexe XII)

The export of shrimp, which is a globally traded product, could act as a catalyst for fish exportation.

The main markets envisaged for these products are Zimbabwe, South Africa, certain Indian Ocean states and Europe. With proper quality the European markets could be especially interesting, given that the national carrier L.A.M. and Air Portugal operate direct flights to European destinations and both are able to offer cargo space. Direct flights also operate to Zimbabwe, South Africa and Swaziland. It is recommended that initially exports of fresh fish by air be made to neighbouring countries so that expertise can be established before branching out into the European market. Exports of frozen fish by road are difficult due to the security problems en route. Exports of frozen fish by sea are possible to South Africa and to Indian Ocean states.

There is a polystyrene factory in existence in Maputo capable of making boxes suitable for the exportation of fresh fish. Unfortunately the cost of boxes is high, approximately US $ 6.00 per unit, which is said to be due to high raw material cost. The sourcing of raw materials would bear re-examination.

The development of export business will, of course, depend on the successful implementation of the Italian project for the construction of fibreglass vessels capable of fishing outside of Maputo Bay.

Summary

The alleviation of the problems surrounding the efficient provision of fish at a reasonable price to the population at large and in particular the commercialisation of 2nd. and 3rd. grade species depend on changing the public conception of this fish and on improving the accessibility of the product.

The division of responsibility for supply has stretched management resources too thinly and has lead to poor quality standards and inefficiency within the supply chain.

An integrated body with control over the whole of the distribution chain from producer to consumer has the possibility of upgrading the quality standards to the point where consumer perception of the product matches expectation and the price charged for the product represents value for money.

The organisation would need initial injections of capital for equipment purchase and building modifications plus working capital for the purchase of fish. After this initial investment, however, the body should be self financing as it will be largely buying and selling for cash.

The implementation of codes of practice on quality control will result in a steady improvement in image with a resultant increase in demand from the consumer which should further strengthen the financial viability of the organisation.

The formation of such an organisation will require the training of personnel and will offer the possibility of extending the training programme and providing spin off benefits to other organisations within the industry.

In view of the low level of technical knowledge within the existing companies, it is recommended that a Portuguese speaking expert in fish handling and quality control be engaged for a period of 3 months to provide on the job training for staff in order that the recommended policies can be implemented.


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