Madagascar ranks as one of the lowest countries for fish consumption per capita in the African region, less than 5kg kg per inhabitant and per year, less than half of the average consumption for the sub-Sahara African region (11 kg/ person/year) .
Low consumption of fish in Madagascar has several root causes, of which the limited aquaculture value chain development is one. Although demand for aquaculture products is high, aquaculture supply only a limited volume to the domestic market.
With limited access to quality inputs and other key constraints (low transportation network, high import taxes), the sector was, until recently, stagnating with high production, market, and financial risks for investors.
Several models of aquaculture value chain integration mostly in South and Southeast Asia and for oriented toward export markets have proven to reduce those risks.
On the east coast of Madagascar, a cooperative union named Tilapia de l’Est works in the organization ofoperates along thethe T t ilapia value chain through a contract ual farming with the local farmers and sell the fish to the local markets.
We use Tilapia de l‘Est Cooperative as a case to illustrate that contract farming could be a pathway to reduce production, market and financial risk in a non-conductive environment for aquaculture business development.
We argue that such model can be successful and achieve development outcomes in a context where aquaculture value chain is nascent and faces strong structural constraints. Hence, contract farming in aquaculture can play a positive role in increasing local fish supplies, create jobs and alleviate poverty through employment and increased incomes for smallholder farmers .
We hypothesise that this buyer -driven model could be replicated and contribute to the growing increase in small sized aquaculture enterprises in Madagascar.
Presentation
Madagascar sector(volume)
Constraints (infrastructure/inputs feed and fingerlings) / Market potential (price)
TDE – structure and organization(groups, Contrats and rules,hatcheries and selling points)
Risk analysis : Who bears the risk and how to mitigate
Growth since the start
Exclusion rateand other safeguards
Foreseenriskthat could jeopardized the model.
Future: avoid negative impact: exclusion of smallholder ifvertical integration