Value chain analysis Senegal fish

With the growing wealth in the world the demand for animal protein is growing and so is the demand for fish. An increase of consumption of average 5-7% over the last years could only be satisfied by farmed seafood production. Still the consumer’s preference is sea-caught fish. Since the catch from the sea has basically not been increased anymore since 1988, the fish in the sea of Senegal’s 500km coastline could be considered as getting increasingly valuable, if it was harvested sustainably. Unfortunately, more fish has been taken out of the waters than easily can regenerate, so, resources are under pressure and factories are not certain what quantities and kind of fish they may get tomorrow.

By just looking superficially at export figures in value the picture still looks good. Senegal has a vast variety of fish, much under high demand in Europe, Asia, and increasingly also Africa. By looking at export volumes it gets obvious that especially the catch of artisanal fisherman goes down, while there are still volume increases of frozen catch in the high see by industrial vessels. Artisanal fisheries represent by volume 80-90% of Senegal’s total catch.

By value Europe represents still the most important export market before Africa and Asia, also paying on average the highest prices/kg, an indication that valuable and further processed fish is often exported to Europe.

The interesting European market is counterbalanced by its high import requirements. These requirements demand a certain administrative structure, certification of vessels and stakeholders, traceability of landings from catch to export, hygiene requirements of infrastructure. Formally 73 companies are EU registered, they are holding an EU number. According state legislation most of these EU requirements are fulfilled. Know-how is available in Senegal, and the right laws are written. But the implementation is lacking; most of the artisanal sea product structures, most factories, and also the industrial vessels do all comply to the regulations formally but not in practice. The deficits are politically motivated on the administrative side. On the private side financing and/or investment to bring the factories or vessels up to standard is lacking. The situation is dangerous and complex, since in case no change occurs the EU might close their markets for Senegalese products.

The complexity derives from the artisanal structures: 70 000 fishermen, plus their families involved in business, and the support structures, middlemen etc., they all form an informal community.

Since the artisanal structures dominate the seafood sector. It can be seen positive since it preserves traditions and old competences, plus it offers a living to many people. On the other hand, it can be seen as the major bottleneck because it is very difficult to be governed. A sound registration of all players is already difficult but is a precondition to manage fisheries, implement relevant sustainability measures. The lack of control of collecting and forwarding renders traceability complicated and so the compliance with EU requirements.

The factories get into a defensive position since fish is increasingly less available, fisher- and middlemen take a stronger stand that keep prices too high for the processors. This reduces their international competitiveness and their margins so accumulation of capital for investment in maintenance etc. get difficult. In spite of the increasingly tighter raw material situation the processors do not seem to get closer to the primary production, to the fishermen to secure their sources.

Associations have been formed as the Groupement des Armateurs et Industriels de la Peche au Senegal (GAIPES) and Union Patronale des Mareyeurs Exportateurs du Senegal (UPAMES) that can moderate the dialogues between industry and state. But they are still young and still need to find their role respectively their members have to understand how to benefit from and also proactively request the association’s services.

Most exports to Asia and Europe flows through Asian or European companies situated in Senegal. This leaves vast marketing potential open, especially since the Senegalese companies do react to requests from buyers but do not proactively reach out into markets. The Agence Sénégalaise de Promotion des Exportations (ASEPEX) supports the companies in various ways. They have in the past benefitted from cooperation with CBI in other sectors, they would also benefit from a cooperation in the fish industry.  

Besides the compliance with EU import requirements not being satisfactorily followed through by the ministry of fisheries, there is another element in the chain that needs urgent attention and cannot be handled by private sector alone: the landing sites. Presently most of the fish is landed at the beach. Landing sites are constructed with support from EU or other donors, often they are not properly utilised because some elements, it may be clean water, ice or electricity are missing. Around Dakar the government has just taken incentives to clean the beaches, but it is rather questionable if the resources available can render the beaches into safe landing points for food items.

The combination of

• an insecure resource development,
• an indecisive state, that has good intentions, knows what needs to be done, has acted on legislation but does not implement action,
• an industry that cannot reach margins allowing for necessary investment,
• an infrastructure that cannot be managed by the private sector alone

are not good preconditions for acquisition of investment that would be needed for change. Also, for impact investors it will be complicated to identify projects that can be managed.

Various donors have been active in the sector with limited durable success. Still, there is one project from the World Bank, PRAO, where the pilot succeeded very well. It achieved to isolate a limited but still important coastal area. The involved community manages the area towards sustainability and created a local label “Beg Ellek”. The landing site and its management corresponds with EU requirements. The project was successful since engaged local participation was assured and their input was respected. Presently an application to multiply this pilot is underway. In the new approach also the listed deficits from the ministries regarding management of resource and product flow are addressed. Certification bodies like MSC showed interest in the project.

In case production from this project meets the marketing competence of CBI a progressive synergy can be started. Such a combination could create units that can become interesting for investors.

The full study lists deficits and possible counterstrategies in further detail.