Two out of the twelve value chains focus on small-scale fish farming: catfish in Nigeria and tilapia in Ivory Coast. A third value chain has a mixed profile of wild harvesting and farming of oysters in Senegal. One of the expected results of the project is to raise the profile and the potential of micro, small and medium enterprises in these value chains with development partners and investors and to facilitate access to additional sources of finance and investment by the enterprises.

Micro-finance programmes targeted at small-scale operators exist in many countries. Whether these programmes cover fisheries and fish farming varies from country to country.  The establishment of a seed fund facility aimed at facilitating access to finance for micro, small and medium enterprises from selected value chains is one of the possible activities envisaged under the FISH4ACP project.

The value chain analysis process will look at the insurance issue in the various value chains. If insurance is assessed as an issue and a priority, activities could be developed in this respect.

To find out more about insurance in fisheries and aquaculture value chains please see  FAO insurance and safety at sea page  as well as the insurance for small scale fisheries guidance note.   

Broadly speaking, the major risks confronting fishers and fish farmers can be divided into the following categories: asset risks, production and management risks, market risks and personal and health risks. Asset risks include loss of or damage to fishing vessels, equipment, and gear and aquaculture installations, as a result of natural or man-made disasters. Production and management risks involve the loss of catch, production failure and fish disease. Market risks relate to changes in the prices of outputs and inputs, as well as increases in interest rates. Personal and health risks include accidents at sea, death and job-related illnesses.

While more fisheries and aquaculture insurance schemes are being developed and established, there is significant scope to promote them further, particularly in developing countries.

In view of the high level of risk and the many types of risk associated with fisheries and aquaculture, private insurance companies are reluctant to get involved in this sector, particularly in traditional small-scale fisheries and fish-farming activities – especially in developing countries.

Analysing the institutions, i.e. the “rules of the game” that govern the actions of the value chain, is a core element of the functional analysis carried out under FISH4ACP. Policies typically affect the value chain as a whole. As a consequence, they can be important leverage points that value chain upgrading strategies can focus on.

The findings of the value chain analyses will determine the significance of illegal, unreported and unregulated (IUU) fishing activities along the value chains covered by FISH4ACP. Technologies, such as Vessel Monitoring Systems (VMS) and Automatic Identification Systems (AIS), can certainly improve traceability and help combat IUU fishing, particularly when it comes to industrial fisheries. Established traceability is one factor that could lead to increased access to markets, particularly for value chains that seek to export their products abroad or enter new niche markets.