Investment opportunities in aquaculture in

Pacific Island Nations

Dr. S. Nandlal
Science and Engineering Faculty, QUT, Brisbane.
<s.nandlal@qut.edu.au>

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Outline
Opportunities for aquaculture in PINs
Aquaculture & Food security
Aquaculture in PINs-where we are now
Commodities supporting viable industries
External reviews of aquaculture viability in PINs
Why adopt simple tilapia aquaculture systems in
PINs
Summary

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Opportunities for aquaculture in PINs

Pristine & warm waters high fish
growth rates year round
Govt subsidies/incentives for
investors
Large local fish market
Many suitable sites for a range of
species
Suitable marine, coastal & fresh
water
Technological & scientific advances
Infrastructure
Agricultural by-products
Opportunities for small-scale
livelihoods and food security
Potential vary huge across PINs and
within ind. PINs

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Current situation in PINs

Increasing growth in fish demand
Declining supplies from wild fisheries
RECENT impacts:
- indiscriminate live fisheries trade.
- reefs poisoned with cyanide
- FW streams poisoned with derries roots & ambush
Forecasts base on analysis by SPC
coastal fisheries unlikely to recover to address
increasing demand for fish
growing fish gap likely to be aggravated by climate change.

Demand for fish protein needs to be addressed to reduce further

decline of wild fisheries
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Aquaculture is important for regional

development & food security

...Regional fisheries managers have focussed on establishing regimes to sustain inshore fisheries. This is

supported by a strategy to divert demand and fishing pressure to alternative activities, mostly to offshore
fishing and into aquaculture. ....Aquaculture, as an alternative activity, is still at a preliminary stage of
economic development in most PIC, but is of enormous future significance. For aquaculture to realise its full
potential to the economies of PIC in a sustainable way will require a considerable degree of international
support at the regional institutional level. (Source: 2nd SPC Fisheries Management meeting, 1998)

Specific analysis by SPC

~50% of total animal protein comes from fish...
Coastal fisheries will be unable to meet future local demand for fish for food security and that aquaculture could meet this demand (Bell et al.
2009)

Sustainable small-pond aquaculture of freshwater fish can meet growing demand.

SPC Policy brief

(SPC 2008).

Approach: aquaculture directed at food security & enhancing rural

livelihoods has become a priority sector for most PINS

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Need for food security-a priority for

PINs
Est. Pop.~9.9m in 2010-increase by 50% ~15m by 2035 (SPC 2007)
Urbanization-(40% of population in urban areas (SPC 2004)
>70% of pop. derive livelihoods & food security from natural
resources sector (ADB 2009).
Frequent natural hazards- local prod. & marketing impacted
Agri. prod, in general, not keeping pace with pop. growth (SPREP 2009)
More food imported to meet basic nutritional needs (2/3 PICTsnet importers)
Import of cheap, low quality, and convenience foods competes with
locally produced fresh foods

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Food impacts on health

Changes in food prices & fuel related increases affects type of food
consumed
Strong link between growing dependence on imported food and diet
related diseases: obesity, Type 2 diabetes
High food prices- limits choices people forced to purchase low cost,
imported low quality, low nutrient foods

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Aquaculture development in PINs needs to match

capacity of locals
PIN aquaculture systems need low-cost fish production
systems to:
Produce low cost animal protein that is affordable by
local people
Produce low cost animal protein to be available ...to
address decline in wild fisheries
Limited indigenous FW species that can be developed

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Aquaculture in PINs-where we are now

Began by farming Mozambique tilapia in 1950s
1960-1970-series of projects directed at aquaculture
development across region limited success.
1980- aquaculture development reinvigorated
1990/2000s- considerable investment in R & D in FW
aquaculture in Fiji (ACIAR: FIS /9206; FIS/96/165;
FIS/2008/031 on Tilapia culture).
Support from - FAO, JICA, ICLARM, SPC, USA Pearce Corp and
individual PINs
15 species cultured

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Aquaculture Institutional Facilities in PINs

NAC - Micronesia

PMDC - Palau

Kiribati

NARS - Fiji
HAQDEC - PNG

Nuse Tupe
Solomon Is

Mariculture
Vanuatu
Sopu - Tonga
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Vairoa Tahiti

Science
Engineering
Faculty
TMRC and
- Cook
Is

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Commodities that support most viable

industries
Pearl, shrimp, tilapia, giant freshwater prawn
Significant shrimp prod. in New Caledonia & pearls in French Polynesia
(95% of total value)
Peak value: US$211 million in 2007 (20% of total fisheries trade
(export & domestic)
Increased 5-fold since 1990s
9,000 farmers
Total volume 5,342 mt in 2007

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Actions by SPC in
promoting aquaculture
in PINs
Aquaculture action Plan 2002
Aquaculture Action Plan 2007
Most impact & technically
feasible across the region
Tilapia, Pearl, seaweed

Review of aquaculture
legislation & Policy
Absence of specific
aquaculture policies.

Software packages /
feasibility studies demonstrate
economic viability
Training workshops,
consultations and reviews

SPC aquaculture priorities. Source SPC aquaculture

Action Plan 2007

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Recent external review of aquaculture

viability in PINs
Opportunities for the development of the Pacific Islands Mariculture sector
(seaweed, pearl, giant clams, coral, sponge, milkfish, shrimp, barramundi
etc.)
Conclusions:
...one simple truth: we need to get away from the idea that mariculture is good and should be
promoted.
mariculture is highly competitive with very efficient production already established in other
parts of the world. In a global economy this competition has to be taken into account.
The lessons from these failures have not been learned. Mariculture is not easy and its not
cheap. Pacific island nations should think of it as one possible option, rather than something
to be promoted at all costs.
Source: http://www.spc.int.

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Reviews of seaweed & milkfish culture

in PINs!
1. Socioeconomic dimensions of seaweed farming in Solomon Islands
Seaweed farmers need to reach a considerable production (>3mt/month) before individual purchase and
maintenance of motorised boat transport may become an option P.41. www.spc.int.

2. Milkfish aquaculture in the Pacific: potential for the tuna longline

fishery bait market.
Each Pacific Island should carefully evaluate its own individual potentials and costs of production, since some of
these will be unique to each island. P.37. www.spc.int.

Can PIN producers compete with producers in S. E. Asia & China?

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Some factors affecting aquaculture

development in PINs
1.
2.
3.
4.
5.

Species selection
Production technology selection factors
Customary land usage rights, land tenure/leasing.
Extension resources & services
General lack of business ethics

Goals of a fish farmer were not met fully: higher yields,

higher profits, low cost for inputs...free....less risks

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Why adopt tilapia (only option address

fish gap & livelihoods of PIN
populations?

Tilapia can feed & grow to plate size feeding low in food chain (natural feed important)
Tilapia cheapest to produce in PINs: AUST$ 1.20/kg; sell AUST$2.50-3.50/kg

Small-scale tilapia farming system matches to local life styles

Tilapia cheapest source of protein for poor people,

Creates own enterprise employment- jobs for women & children

Simple hatchery systems/Cost-effective fry & feeds: Pond of 200m2 can produce
~200kg/5months= approx. US$500 (family income)
Integrated agriculture aquaculture systems can increase farm efficiency & sustainability
Utilises agricultural by-products
Ponds as on-farm reservoirs for irrigation of crops, water for livestock
Fish, livestock, vegetables, tubers can be produced for consumption & sales (e.g., Montfort
fish farm)

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Why Tilapia....
Local knowledge & capacity
available...to move forward

Business-orientated
approach to commercial
farming is evolving in
communities
Does not require large land
holdings
Smallholder farms matched
to land tenure systems of
indigenous population.

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Why Tilapia

Tilapia gaining prominence

Investments in recent yrs by PINs
Farming: rural subsistence to semi-commercial level
Culture systems: earthen ponds, tanks, raceways, cages
Mgt strategy: ext., semi-int., int, monoculture, polyculture,
monosex culture, mixed sex culture (growth rate; 0.5-3g/day)

New investment in large-scale commercial tilapia farm in Fiji

Mgt strategy depends on farmers resources, site characteristics,
environmental conditions, socio-economic factors, technological
know-how, market demand in the locality
Tilapia-least problems to produce
Prod. costs & yields varies depending on level of investment
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ACIARs engagement in tilapia research

FIS/9206: Genetic improvement and stock identification of tilapia in
Malaysia and Fiji. (1993-1995)
FIS/96/165: Genetic improvement of cultured tilapia and redclaw in Fiji
and Australia. (1998-2001)
FIS/2008/031: An assessment of the extent of genetic introgression in
exotic culture stocks of tilapia in the Pacific. (2009-2010)
MS0604: Experimental stocking and community management of tilapia in
lake Satoalepai, Samoa. 2006
MS 0603: Eradication of Mozambique tilapia (Oreochromis mossambicus),
restocking of Nile tilapia (O. niloticus) and improved aquaculture pond
management in Nauru. 2006.
FIS/2005/108:Freshwater prawn aquaculture in the Pacific: Improving
culture stock quality and nutrition in Fiji. (2008-2011)
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ACIAR Tilapia research-outputs, outcomes & impacts

Outputs: better performing fish available (GIFT), training delivered,
post-graduate studies completed, manuals & publications available.
Outcomes: increased production of tilapia, increase in farmer profits,
increase in No. of farmers (20,500), live tilapia at Nausori market every
Saturday.
Impacts: Sustainable tilapia industry in Fiji & PNG, ability to manage
tilapia farms led to expansion of FW prawn farms in Fiji, improved
livelihoods, development of tilapia farms in Vanuatu, Samoa, Nauru,
including in small islands in Fiji.

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Trends in tilapia production in Fiji:

1983-2009
450000
400000
350000

weight (kg)

300000
250000
200000
150000
100000
50000
0

years

Source: Fiji Fisheries Annual reports:1983-2009

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Current impediments to further growth of

tilapia culture industry in PINs
Shortage of quality fingerling
Deterioration of stock quality
Sustained production & mgt
Effective dissemination to farmers
Feed costs
Marketing & business skills of farmers

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How to address impediments

Constraints
1. Shortage of fingerlings
2. Deterioration of stock quality
Sustained production
Effective dissemination
3. Feed costs
4. Marketing & business

Actions addressing constraints

more hatcheries/hapa breeding
Improved breeds
Training
Training
develop better low-cost feed
PARDI-current ACIAR project

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Example of potential production of

tilapia in Fiji
Potential area for tilapia ponds ~1,500ha (1,200ha non-productive
agricultural land & 300ha rice farming areas- that are now defunct)
Assumptions:

SD- 5f/sq.m,
Average weight at stocking 3g
Culture - 120-150 days using std practices
Expected survival 90%
Average weight at harvest >200g
Production 9mt/ha/cycle (18mt/ha/year)
1,200 ha x 18mt/ha/yr = 21,600 mt/yr

Match scale of production to individual PIN

demand
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Example of impact of tilapia culture on

local people.
Mr. Abdul Sadiq-local fish farmer in Fiji

Through tilapia farming , I have made a house

I will be handing over my tilapia business to my sons
Tilapia house

Tilapia farm

Success in aquaculture: expertise does not lie solely with

experts or professionals
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Summary
Limited success of aquaculture (but not failures)
Significant awareness that demand for seafood, for
economic growth: employment, rural development etc.
Can be met by aquaculture
Simple tilapia aquaculture systems gaining prominence
and may offer the best investment opportunity across
PINs and within ind. PINsto produce fish by locals
for locals......
Tilapia does not require pristine conditions!
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Acknowledgements
ACIAR
Naduruloulou Research Station, MFF, Fiji.
Traditional landowners of Naduruloulou

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