Financing fisheries by leveraging the value chain – some structures
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Financing fisheries by leveraging the value chain – some structures Lamon Rutten CTA Revolutionising finance for agri- value chains Nairobi, 14-18 July 2014
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Experiences in financing fishing and fish farming Fin4Ag: Revolutionising finance for agri-value chains 14-18 July 2014 | Nairobi, Kenya Day 3 : Thursday, 17 July 2014 14:00 - 15:30 Kifaru Presentation by Lamon Rutten, Manager, Policies, Markets and ICTs at CTA
Transcript of Financing fisheries by leveraging the value chain – some structures
Financing fisheries by leveraging the value chain – some structures
Lamon Rutten
CTA Revolutionising finance for agri-value chains
Nairobi, 14-18 July 2014
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
Working capital finance supported by a collateral management company
Fish exporter
WarehouseFish
importerWarehouse
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
Mexico: use of a state-owned marketing company, to raise working capital finance for small fishermen and aquaculture producers on the capital market
