Aqua Processing Plant
Aqua Processing Plant
Business Model Description
Investment from an Ocean Certified sustainable company to explore deep sea fishing for sales and distribution. This would strengthen the value chain of Belize’s marine products and increase seafood exports. The private investor would leverage the country’s export partners, trade agreements (eg CARICOM) and vast marine diversity the country has.
Expected Impact
Deep sea fishing has not been explored but can contribute to increasing exports, foriegn exchange and GDP.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Belize: Inner Barrier Reef Lagoon
Sector Classification
Food and Beverage
Belize imports approximately US$325 per person per year worth of agricultural products, food, and beverages (mainly alcoholic). Covid-19 led Belize to experience the most significant annual output decline (14.1%) since its post-independence era. Specifically, Covid-19 caused the primary output to fall by 2.4% in agriculture, and hunting. Of Belize's total population, 42% live below the poverty line
Food and Agriculture
It has long been recognized that Belize’s main challenge is applying changes to marine sectors to address the high international trade standards. This is mainly attributed to the lack of resources (mostly financial), which constrains the industry from overcoming non-tariff barriers, coupled with the impacts of climate change and the risk of natural disasters such as hurricanes
Pipeline Opportunity
Aqua Processing Plant
Investment from an Ocean Certified sustainable company to explore deep sea fishing for sales and distribution. This would strengthen the value chain of Belize’s marine products and increase seafood exports. The private investor would leverage the country’s export partners, trade agreements (eg CARICOM) and vast marine diversity the country has.
Business Case
Market Size and Environment
> USD 1 billion
Global aqua product demand is USD23.8 BN. One Belize's main aqua product export partners is Spain who imports 29.3% from Belize. Global aqua product demand is USD23.8 BN. One of Belize's main aqua product export partners is the US who imports 33.6% from Belize.
Indicative Return
15% - 20%
Global aqua product demand is USD23.8 BN. Belize's main aqua product export partners are Spain and the US which import 29.3% and 33.6%, respectively, from Belize.
Investment Timeframe
Long Term (10+ years)
Since deep sea has not been explored in Belize, investment would require studies to determine niche exports. However, traditional exports have been feasible and Belize has had its success in the industry as 16.45% of the country’s exports is from its marine sector.
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Market - Volatile
Impact Case
Sustainable Development Need
Belize exports 52MN USD of marine products which has traditionally been done in shallow water. However, exploration of deep slopes or high seas has been limited to promote economic growth through increased exports and foriegn exchange. The aquaculture industry of Belize has rapidly developed over the years but still underdeveloped.
Gender & Marginalisation
Gender inequalities and marginalization issues: Of Belize's total population, 42% lives below the poverty line indicating limited food access and poor nutrition of nearly half the population.
Expected Development Outcome
Belize would be able to export more diverse marine products thus increasing exports and foriegn exchange. This would ultimately stimulate GDP growth.
Through developing the marine space, country’s, income generation through employment has the potential to improve as well.
Gender & Marginalisation
Food secuirty and nutrition among the most vulnerable and marginalized persons of Belize can be attained.
Primary SDGs addressed
14.7.1 Sustainable fisheries as a proportion of GDP in small island developing states, least developed countries, and all countries. In particular, the proposed aquaculture is terrestrial and therefore conserves the marine biodiversity of the Gulf.
Belize currently exports 52.5 MN USD. This is 0.27% of the local GDP.
Secondary SDGs addressed
Directly impacted stakeholders
People
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Outcome Risks
External Risk: Aqua processing may expose environmental impacts to the overall marine environment.
Impact Risks
Aqua processing may expose environmental impacts to the overall marine environment.
Impact Classification
What
By exploring and investing in deep sea fishing, there will be an increase in exports and local distribution of marine products which will directly contribute to economic growth as GDP is expected to increase and also improve food availability
Risk
Since deep sea fishing has not been explored in the country, research is limited to know exactly what marine species exist in Belize's waters
Contribution
Aquaprocessing plant would help maximize the country's resources and cover larger market demand.
Impact Thesis
Deep sea fishing has not been explored but can contribute to increasing exports, foriegn exchange and GDP.
Enabling Environment
Policy Environment
Oceans Economy and Trade Strategy: This report is to assess the economic potential and regulatory needs for the marine fisheries (finfish) and seafood processing sectors (queen conch and spiny lobster), and to present an action plan that enables sustainable trade in those sectors.
Financial Environment
Currently no fiscal or other incentives that would facilitate investment in marine products
Regulatory Environment
The Belize Fisheries Act 210 establishes fisheries regulations and orders of marine reserves. Of the 103 protected areas within the National Protected Areas System, 52 lie under the administration of the Forest Department while 9 Marine Reserves and 12 spawning aggregation sites (many of which overlap existing Marine Reserves) are administered by the Fisheries Department.
Marketplace Participants
Private Sector
The private investor will invest in the plant and all operations
Government
The Ministry of Blue Economy - responsible to ensure ESG and regulatory compliance is upheld Ministry of Agriculture, Food Security and Enterprise
Multilaterals
Belize is a uniquely positioned country thus leveraging membership within two regional movements: the Caribbean Community (CARICOM) including Single Market and Economy Agreements and the Central American Integration System (SICA).
Target Locations
Belize: Inner Barrier Reef Lagoon
References
- ("1) United Nations Conference on Trade and Development. (2020) Oceans Economy and Trade Strategy: Belize Marine Fisheries and Seafood Processing. Retrieved from https://unctad.org/system/files/ official-document/ditctedinf2020d5_en.pdf "
- (" 2.) Beltraide. Fisheries and Aquaculture. Retrieved from https://www.beltraide.bz/fisheries--aquaculture. Html. Retrieved on September 2021. " "3.) Lerøy Seafood Group. (2020) Consolidated Financial Statements. Retrieved from https://www. leroyseafood.com/en/investor/reports-and-webcast/annual-report-2020/financial-information/c onsolidated-financial-statements-2020/ " "4.) Observatory of Economic Complexity. Yearly Exports: Belize. Retrieved from https://oec.world/ en/profile/country/blz?depthSelector1=HS2Depth. Retrieved on September 2021. " "5.) United Nations Conference on Trade and Development. (2020) Oceans Economy and Trade Strategy: Belize Marine Fisheries and Seafood Processing. Retrieved from https://unctad.org/system/files/ official-document/ditctedinf2020d5_en.pdf