PROJECT SUMMARY

“Building a Bridge to a World of Opportunities: Developing a Global Ornamental Fish Urban Value Chain in

Jamaica” is an initiative which is being implemented by a consortium comprising The Jamaica Exporters’ Association, The Competitiveness Company and Area Youth Foundation. The purpose of the project is to improve the livelihood, prosperity and quality of life of underserved urban youth in Jamaica’s violence-prone inner-city communities. These areas are characterized by the existence of many unemployed, poorly educated and idle youth (mostly male) who have few options for sustainable income. Ornamental fish presents a choice for profitable, entrepreneurial activity among these young men. Unfortunately, this nascent industry is characterized by very little focus on efficiency, coordination, marketing and collaboration among farmers, customers and suppliers. As a result the potential for profitability is not achieved, nor are there many exporters, although the global demand for the product is strong. The goal of this project is to nurture the development of a globally competitive Jamaican ornamental fish industry founded on the active engagement of young males from Kingston’s inner cities.

Opportunities for Ornamental Fish Value Chain Presented by Jamaica’s Land and People

Jamaica’s climate is ideal for the year-round breeding and growing of a range of tropical ornamental fish, and its proximity to the world’s largest importing market (the US) offers great potential for export. Interestingly, the raising of ‘pet fish’ is historically very Jamaican, particularly among young men, the main targets of our project. Through their natural enthusiasm for fish, sheer determination, and informal systems of learning and sharing knowledge with one another, existing ornamental fish farmers in urban Jamaica have been able to produce beautiful fish in less than ideal environments, make a living, and supply, at least to a limited extent, the local and international markets. Young men go to Riverton City – Kingston’s garbage dump – to salvage old bathtubs and refrigerators. These serve as containers – alternatives to tanks and vats – to raise fish.

Opportunities Presented by Industry Trends

By marrying the country’s natural endowments with its existing and potential farmers’ enthusiasm for ornamental fish farming, Jamaica is perfectly positioned to tap into a thriving and expanding global fresh-water ornamental fish industry. It has the potential to create income-earning activities and to contribute to reducing the hopelessness of Jamaica’s inner city communities. The global ornamental fish industry has been flourishing: according to the Food and Agriculture Organization (FAO), global exports of ornamental fish in 2006 were valued at US$223M and global imports were worth US$271M.1 It is estimated that over 65% of the ornamental fish trade originates from developing countries (FAO State of World Fisheries and Aquaculture 2002).

Who We Are

The Jamaica Exporters’ Association (JEA), the lead organization in the consortium, is a 44-year private trade association that is seen nationally as a business incubator, an ongoing supporter of small businesses, and a go-to resource for exporters. It has several areas of focus and expertise, including advocacy, training, financing and project management. In the past several years, it has, through its projects served over 450 Micro, Small and Medium Enterprises (MSMEs). Throughout its history, it has served hundreds of exporters through its membership services, and currently serves 230 members monthly through the provision of information and facilitation services. The JEA is responsible for the Financial Management and Oversight of the project.

The Competitiveness Company (CC), has, since its inception in 2002, served over 800 MSMEs. It has a track record of successfully managing complex projects and initiatives, providing cluster advisory and management services to small and medium enterprises, conducting superior market research for firms, implementing its high-

1 FAO Fishstat Plus database: Commodities, Production and Trade (2006). Excluding saltwater fish.

level training expertise, and carrying out policy research to inform the private/public sector policy dialogue and competitiveness-related issues in Jamaica and the Caribbean. With this know-how, The CC is responsible for Project Implementation, and is in charge of Project Management and Technical Assistance.

Area Youth Foundation (AYF) is a 13-year old non-governmental organization that has been changing the lives of young people, and building bridges of friendship among the marginalized communities of Kingston. It has engaged 600 young people from 15 inner-city communities in its life-skills training programs, and has had many thousands of people attend its multiple events (such as performances) in at least 20 communities. The AYF’s success and impact lie in its ability to harness expressive arts as tools to stimulate development and behavioural change; advance the imaginative talents of excluded people in the creation of democratic and inclusive societies; and carry out programs for violence prevention and healthy lifestyles. With this experience, the AYF serves as the Community Specialist/Liaison of the project - interfacing with and mobilizing communities. What We Do

As part of its Ornamental Fish Value Chain Project The Competitiveness Company has implemented and continues to implement market-driven and interconnected interventions addressing areas to build profitable firms in a successful industry:

Technology & Production: In order to improve the productive capacity of urban farmers and simultaneously reduce their consumption of resources The CC has developed models for water-re-circulating fish farms after consultations with farmers and research. These systems minimize water and energy consumption and result in healthier, higher quality fish. The CC has worked to spread the adoption and access to this technology by increasing the capacity of farmers, linking them technical knowledge and working to bring down the cost of the water pumps necessary to complete the systems (achieving a 46% reduction in price).

Access To Finance: Financing options are now available to farmers after consortium partners entered into negotiations with financial institutions. Given the “unbankable” profile of several persons in our target group the consortium identified institutions with a history of serving the poorest and most underserved communities and expertise in managing microfinance loans. More creative and alternate means of managing and reducing the risk of lending were discussed. These included using equipment as collateral; giving a moratorium for loan repayment related to the harvest cycle of fish farming; less stringent collateral requirements, etc. The result has been the provision of loan facilities for fish farmers by 2 institutions to date at 10% interest. At least 60 farmers have started the application process.

Input Supplies: Inputs critical to fish farming include farm system inputs and fish food. The critical issue for project start-up was cost and availability. In addition to improving the cost and availability of water pumps the project has worked to identify suppliers of fish food so farmers can have access to wholesale-level prices. Significant savings (as much as 40%) have been seen for fish flakes and Koi Sticks.

Exporting: The project’s objective is to make ornamental fish an export industry. As a result several interventions have targeted the identification and marketing of Jamaican ornamental fish to international markets and the expansion and development of a local exporting value chain based on small farmers and larger consolidators and exporters. To date 15 international importers have been identified, 4 consolidators have entered the market and are making investments in export facilities and 10 farming clusters have already formed in Kingston.

Training: The project sees training as an essential aspect of developing a globally competitive industry and so supports training for new and current farmers. These include working in partnership with the Ministry of Agriculture and Fisheries to organize and deliver training and attaching Farmer Mentors to clusters and communities.

Graphic Illustration of Backyard Fish Farms Operated by Urban Inner-city Before and After Intervention

Before

After (Technological Upgrading to Water Re-circulating Closed Systems, Technical Support)

For follow up, please contact:

Nicardo Neil Project Manager & Market Research Specialist The Competitiveness Company 1 Winchester Road Kingston 10 Tel: 929 1203 or 929 4440 Email cccompete@gmail.com or nicardo.neil@gmail.com