Marketing of seafood products from responsible fishing
Marketing of seafood products from responsible fishing
Business Model Description
Commercialize marine products obtained directly from artisanal fishing, favoring the reduction of intermediaries between fishermen and the end customer.
Expected Impact
Improving the income of artisanal fishermen through responsible fishing and marketing.
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
- Macroregion Norte
- Macroregion Sur
- Region Lima y Callao
Sector Classification
Food and Beverage
Development need
- In December 2022, the year-on-year variation of the Agricultural Production Index was -0.96% (1).
- In 2022, the weight of the agricultural sector in the GDP is 6.1% (3), and the weight of the fishing sector is 0.74% (1).
- Per capita fish consumption increased from 13.2 kilograms in 2012 to 18.4 kilograms in 2021, a 39% increase (20).
Policy priority
- Institutional Strategic Plan 2019-2024 (Modified) - MIDAGRI (Implement initiatives to improve agricultural services) (5).
- Agrarian Policy Guidelines: A guiding framework for decision-making by public and private sector actors (6).
- In 2012, the National Program 'A Comer Pescado' was created to promote increased consumption of hydrobiological resources (21)"
Gender inequalities and marginalization issues
Income disparities between men and women can affect consumption patterns in the food and beverage sector, such as:
- The average income of women is 69.6% of men's income - INEI (Sep-2022) (10).
- In 2021, men's labor income increased by 10.7%, while it decreased by 1.1% for women (11).
Investment opportunities introduction
- In 2021, it achieved a GDP growth recovery of 13.6% (12).
-The National Agricultural Policy (PNA) guides public investment towards providing services that strengthen the sector (14).
-Multi-Year Investment Program 2023-2025: aiming to improve the value chain of Fishing and Aquaculture activities (22).
Key bottlenecks introduction
- Small-scale fishing faces habitat degradation, illegal fishing, and overfishing that affect the same ecosystem (24).
- Inflation was 6.43% in 2021 and 8.56% in 2022. This reduces the purchasing power of the population (15)(16).
Food and Agriculture
Development need
- Agriculture has grown at an annual rate of 3.3% and has allowed products to become more competitive (18).
- Poverty among small producers is partly attributed to the inappropriate utilization of natural resources (17).
- In 2022, Peru, according to the "State of Food Security and Nutrition in the World" (SOFI), has 16.6 million Peruvians facing food insecurity (18).
Policy priority
- D.S. N° 001-2023-PRODUCE - National Aquaculture Policy to 2030
- D.S. N° 008-2012-PRODUCE - Which establishes measures for the conservation of the hydrobiological resource
- Legislative Decree No. 1084 - Law on maximum catch limits per vessel, whose purpose is to establish the fisheries management mechanism applicable to the extraction of anchovy and white anchovy resources.
Gender inequalities and marginalization issues
- Women in fishing and aquaculture experience working conditions that do not meet the ILO's standards for decent work. This is due to high levels of informal employment, limited access to social security and protection, low levels of associativity, and limited access to resources. These conditions particularly affect women who are heads of households (26).
Investment opportunities introduction
In 2021, the country experienced an economic recovery, and one of the sectors that grew was fishing. It went from a decline of -13.7% in the cumulative period from January to September to -6.8% in December 2022. This growth is connected to programs like FONDEPES, which provided 238 loans totaling USD 1.4 million to support artisanal fishing (3)(12)(25).
Key bottlenecks introduction
- Artisanal fishing is mostly informal, making it difficult to access investment opportunities (23).
- There are multiple intermediaries between artisanal fishermen and consumers, which increases the prices of products (24).
- The management of hydrobiological products requires a rigorous system of conservation and transportation to protect the product.
Meat, Poultry and Dairy
Pipeline Opportunity
Marketing of seafood products from responsible fishing
Commercialize marine products obtained directly from artisanal fishing, favoring the reduction of intermediaries between fishermen and the end customer.
Business Case
Market Size and Environment
USD 50 million - USD 100 million
5% - 10%
28.2% of the fish catch is consumed as fresh fish, which represents USD 27 million (December 2022) (27).
The volume of hydrobiological resources landed increased from 39,000 tons in December 2021 to 40,600 tons in December 2022, representing a 4.0% increase in the volume of extracted resources (1).
Indicative Return
20% - 25%
Business plans for the establishment of a fish or seafood meat marketing center obtain a return on investment between 20% and 40% (28).
Investment Timeframe
Short Term (0–5 years)
The estimated payback period for a proposal in the commercialization of fish or seafood can range from 3 to 5 years, mainly due to the high working capital requirements in the business (28).
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Market - Volatile
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
One of the main problems facing artisanal fishing is informality and the lack of access to labor rights. This limits the ability of fishermen to access loans or financing from commercial banks.
The presence of multiple intermediaries prevents fishermen from obtaining fair prices for their products and increases the cost of products for the final consumers.
It is essential for fishermen to receive training on the preservation of marine biodiversity, to be aware of and respect closed seasons to prevent the depletion of marine resources. This education can help ensure sustainable fishing practices and the long-term health of the marine ecosystem.
Gender & Marginalisation
In 2021, of the women with occupation, only 0.2% are engaged in fishing, while among men with occupation, 2.8% are involved in fishing activities. This analysis focuses on women's participation in the extractive aspect, even though they also contribute to the entire supply chain (9).
Expected Development Outcome
Increase in the consumption of marine products extracted responsibly from the Peruvian coast to have a positive impact on artisanal fishermen and their families through fair payment.
Gender & Marginalisation
Only 30.2% of women participate in the Agricultural sector, compared to 60.3% of men (19).
Primary SDGs addressed
12.2.2 Domestic material consumption
As of December 2022, the volume of hydrobiological products landed, which is intended for direct human consumption and is consumed fresh, was 40.6 thousand metric tons.
One of Peru's objectives for 2030 is to "Improve the value chain of Fishing and Aquaculture activities".
2.3.2 Average income of small-scale food producers, by sex and indigenous status
By 2030, doubling agricultural and fisheries productivity and the incomes of artisanal fishermen, especially women.
Information not available as August 2023
Secondary SDGs addressed
Directly impacted stakeholders
People
Corporates
Public sector
Indirectly impacted stakeholders
Corporates
Public sector
Outcome Risks
Natural phenomena that affect the availability of hydrobiological resources.
Environmental disasters that restrict access to hydrobiological resources (such as oil spills).
Impact Risks
Prices above the market average and an inability to expand their consumer base.
Impact Classification
What
Increasing the income of artisanal fishermen and improving their quality of life.
Risk
Constant change in production seasonality due to climate change.
Contribution
Contributes to sustainable artisanal fishing.
Impact Thesis
Improving the income of artisanal fishermen through responsible fishing and marketing.
Enabling Environment
Policy Environment
National Strategic Development Plan 2050: Promotes programs to strengthen skills, digital competencies, and technical assistance for productive self-employment (7).
Productive Innovation and Technology Transfer Centers (CITE) contribute to improving the productivity and competitiveness of micro, small, and medium-sized enterprises (Mipyme) and various productive sectors.
National Aquaculture Policy by 2030 - D.S. No. 001-2023-PRODUCE
Financial Environment
Financial incentives: - FONDEPES has granted 238 credits to support artisanal fishing for a total amount of US$1.4 million.
Fiscal incentives: - D. L. N° 1515 provides tax benefits, such as a reduction of income tax to 15% until the year 2030, for those with annual incomes less than 1700 UIT.
Regulatory Environment
Legislative Decree No. 1084 - Law on maximum catch limits per vessel, which aims to establish the fisheries management mechanism applicable to the extraction of anchovy and white anchovy resources
Supreme Decree No. 008-2012-PRODUCE - Establishing measures for the conservation of hydrobiological resources.
Marketplace Participants
Private Sector
- PesCo - Pescadores artesanales
Government
- Ministerio de producción - PNIPA
Target Locations
Macroregion Norte
Macroregion Sur
Region Lima y Callao
References
- (1) INEI (2023). Informe técnico de producción nacional diciembre 2022.
- (2) MIDAGRI (2022). Informe del Valor Bruto de la Producción Agropecuaria.
- (3) BCRP (2023). Notas de estudios diciembre 2022
- (4) Congreso de la República (2021), Ley N° 31315 - Ley de seguridad alimentaria y nutricional
- (5) MIDAGRI (2022), Plan Estratégico Institucional 2019-2024 (Modificado)
- (6) MIDAGRI (2015), Lineamiento de política agraria
- (7) PCM (2022), Plan Estratégido de Desarrollo Nacional al 2050
- (8) Congreso de la República (2022), Ley N° 31556, que promueve medidas de reactivación económica de micro y pequeñas empresas de los rubros de restaurantes, hoteles y alojamiento turísticos.
- (9) INEI (2022). Perú Brechas de Género 2022
- (10) INEI (2022). Estadísticas con Enfoque de Género
- (11) GOB.PE (2022). Brecha de ocupación laboral - Nota de Prensa
- (12) EY (2022). Guía de Negocios e Inversión en Agricultura y Agribusiness en el Perú 2022/2023
- (13) GOB.PE (2020). Gobierno crea el FAE-AGRO para inyectar S/ 2,000 millones en créditos a pequeños productores - Nota de prensa
- (14) MIDAGRI (2021), D. S. N° 017-2021-MIDAGRI, Política Nacional Agraria 2021-2030
- (15) BCRP (2022). Reporte de Inflación . Diciembre 2022
- (16) INEI (2023). Variación de los Indicadores de precios de la Economía. Diciembre 2022
- (17) MIDAGRI (2022). Problemas tipo de la agricultura peruana
- (18) MTPE (2022). Encuesta de Demanda Ocupacional (EDO)
- (19) PESCO
- (20) GOB.PE (2022). Produce: Consumo per cápita de productos hidrobiológicos creció en 39% en el país
- (21) GOB.PE (2022). Creación del Prgrama Nacional "A Comer Pescado"
- (22) PRODUCE (2022). Plan Multianual de Iversiones 2023-2025
- (23) GOB.PE (2021) PRODUCE. Produce espera reducir en 30% la informalidad pesquera
- (24) PRODUCE (2022). Desafíos de la pesca y la acuicultura artesanales en pequeña escala
- (25) GOB.PE (2022). Fondepes destina cinco millones de soles - Nota de prensa
- (26) FAO (2015). El rol de la mujer en la pesca y la acuicultura
- (27) PRODUCE (2023). Diciembre 2022. Boletín del Sector Pesquero. Desenvolvimiento Productivo de la Actividad Pesquera
- (28) USIL (2019). Plan de negocios para una cevichería en barra
- (29) EL COMERCIO (2020). Entrevista PESCO: La pescadería responsable