Seafood Processing
Seafood Processing
Business Model Description
Set up medium- to large-scale seafood processing facilities for product development in sustainably sourced fish such as fish loins, sashimi-grade fish, and ready-to-eat products, particularly from pelagic species, including sustainably sourced tuna. Integrate circular recovery technologies to processing facilities, including plants for fishmeal and fish oil production from solid fish-waste, such as tuna heads, offal, skin, and bones.
Expected Impact
Increase value addition from fisheries, enhance industrial capacity and employment, and position Mauritius as a seafood transshipment hub.
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
- Mauritius: Port Louis
- Mauritius: Rodrigues
Sector Classification
Food and Beverage
Development need
Mauritius' agro-industry mainly relies on sugarcane and tuna production (11, 3). Regarding climate change threats on food security and SDG 2, as well as environmental degradation, diversifying the agricultural production is key (6, 11). Thus, whole agro-industry value-chain should be re-envisioned through the promotion of sustainable, local production and consumption (11, 12).
Policy priority
Through its Strategic Plan 2016-2020, the Ministry of Agro Industry and Food Security aims to redirect the agricultural and agro-industry towards an efficient and profitable sector and rendering it more sustainable (3). The Government Programme 2020-2024 supports a cane industry reform, encouraging the shift to modern harvesting practices (6).
Gender inequalities and marginalization issues
Overall, 50% of agricultural production is estimated to come from the corporate sector (12), when small-scale, family exploitations constitute the majority of farmers. Yet, they only represent 17% of the total agricultural land while 83% of the lands are exploited by big companies, which are often active in the cane industry (11).
Investment opportunities introduction
Several markets offer untapped export potential, such as China, Indonesia, Japan, Brazil or the Philippines, including for agricultural and agro-processed products (9). The tourism industry also presents some local untapped potential, especially for agro-processed food (12).
Key bottlenecks introduction
There is a lack of norms and enforcement in the agricultural sector, inadequate investment in research and lack of preparedness to face climate change impacts (12). Mauritius has a strong dominance of the sugarcane industry in the sector, increasing competition for land to produce other crops and a lack of appropriate storage facilities (e.g. cold storage) (11, 12).
Food and Agriculture
Development need
Developing sustainable agriculture and fishing practices is key to address import-dependency, price fluctuations, pressure on stocks and enhance small scale farmers' resilience (12). Considering the sector's GHG emissions and the high pesticides residues on soils and locally produced agricultural products, sustainability and innovation principles are needed in the sector (11).
Policy priority
The 2019 Voluntary National Review and Strategic Plan 2016-2020 include improving national food security through sustainable agriculture, bio-farming practices, sustainable fisheries and aquaculture (12, 29). The Government Programme 2020-2024 and the Ministry of Blue Economy's mission statement entail the industrialization of fisheries to render Mauritius a seafood hub (4, 5).
Gender inequalities and marginalization issues
In 2018, the gender pay gap in the primary industry, which includes agriculture and fisheries sector, was 43% in Mauritius (7). The female employment rate in the fisheries industry was 4%, while the female employment rate in the aquaculture sector was 18% (3).
Investment opportunities introduction
In 2019, the export of fish and fish products generated USD 342.6 million, contributing 19% of Mauritius exports and the fish sector reached USD 810 million turnover in 2018 (4, 29). 3.4% of GDP was contributed by the agricultural sector in 2013, and the sector is promoted by various incentives and schemes (12, 29).
Key bottlenecks introduction
As an island, agricultural space is limited and agricultural development may interfere with other land use options (38). High cost of labor and agricultural inputs, unfavourable agronomic conditions, aging farming community and unfavourable environment for aquaculture development are decreasing Mauritius' competitiveness compared to neighboring islands (12).
Processed Foods
Pipeline Opportunity
Seafood Processing
Set up medium- to large-scale seafood processing facilities for product development in sustainably sourced fish such as fish loins, sashimi-grade fish, and ready-to-eat products, particularly from pelagic species, including sustainably sourced tuna. Integrate circular recovery technologies to processing facilities, including plants for fishmeal and fish oil production from solid fish-waste, such as tuna heads, offal, skin, and bones.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
Fisheries production in Mauritius is valued at more than USD 580 million per year (1), with exports of fish and fish preparations reaching MUR 12.603 billion (USD 285 million) in 2020 (16).
Indicative Return
5% - 10%
Princes Tuna, the primary tuna cannery in Mauritius, recorded a gross profit margin of 7.4%, while Mer des Mascareignes recorded a gross profit margin of 6.6% (17).
According to the Planet Tracker Traceable Returns report on seafood processing companies, Mauritian seafood processers reach an EBIT margin of below 5%(18).
Investment Timeframe
Medium Term (5–10 years)
Dale Capital Group, which took over St Felix Seafoods in 2017, is expecting to generate positive cashflow by the end of 2021 (19).
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Business - Supply Chain Constraints
Market - High Level of Competition
Impact Case
Sustainable Development Need
Mauritius is positioned as a strategic transshipment center for tuna and demersal fish, with access to the largest exclusive economic zones in the region (20, 21) Yet the processing potential remains untapped, existing players facing challenges of international competition and quality standards (22)
Export of fish and fish products constitutes an important source of foreign exchange earnings for Mauritius, accounting for 15-20% of the country's exports, and it generates significant employment and indirect income for Mauritians (23).
8.3% of Mauritius' population is affected by food insecurity (24). The fishery sector and processing activities play an important role for food security and nutrition while contributing to poverty reduction, employment and trade (25).
Gender & Marginalisation
Women constitute almost half the employment in the fisheries sector globally, making it a key sector for women's livelihoods (26).
Women in Mauritius are mostly involved in small-scale fish processing and trade (26), and women can account for up to 90% of the workforce in secondary areas, including processing (27).
The export processing zones for fishery products employ a large number of migrant workers, including women (26).
Expected Development Outcome
Enhanced activity in seafood processing improves Mauritius' comparative advantage as a regional seafood hub (1), including re-exports of processed fish.
Expanded processing and fish production for domestic consumption improve food security and produces nutritional benefits (1). Advancement in processing capacities enhances the availability of product mixes (27).
Investments in seafood processing contributes to poverty reduction while producing multiplier effects for household income and government revenues (25).
Gender & Marginalisation
Fish processing activities, including small-scale processing plants, enhance livelihood opportunities for women and Mauritius' migrants population
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.
14.6.1 Degree of implementation of international instruments aiming to combat illegal, unreported and unregulated fishing
14.4.1 Proportion of fish stocks within biologically sustainable levels
N/A
On a scale from 1 to 5, Mauritius is ranked 5 in its level of implementation of international legal instruments (2020) (28).
47.94% of total fish catch is catch from overexploited or collapsed stocks (2014) (28).
N/A
N/A
N/A
9.2.1 Manufacturing value added as a proportion of GDP and per capita
Manufacturing value added as a proportion of GDP is 10.4% and per capita is USD 927 in 2020 according to modelled data (28).
Voluntary National Review (VNR) Report of Mauritius 2019 indicates the target of an annual growth rate of at least 3% in the manufacturing sector over the following three years. Ministry of Industrial Development, SMEs and Cooperatives and United Nations Conference on Trade and Development (UNCTAD) published a document targeting industrial policy and key sectors between 2020-2025 (29).
2.1.1 Prevalence of undernourishment
6.2% in 2019 (28).
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Corporates
Outcome Risks
If not managed sustainably, increased industrial seafood processing activity may lead to overfishing and harm marine biodiversity and the fish population.
Waste generated by seafood processing activities, including discards of fish and wastewater, may cause environmental externalities if left untreated.
Impact Risks
If the seafood processing activities exclude small-scale fisheries and processing operations, the direct impact for communities may be limited.
Impact Classification
What
Seafood processing increases value addition from fisheries, enhances industrial capacity and employment, and positions Mauritius as a seafood transshipment hub.
Who
Industrial fisheries, small-scale fish processors and overall population benefit from food security and availability of diverse products thanks to seafood processing.
Risk
Exclusion of local stakeholders and small-scale producers may limit the scale of direct impact of seafood processing to communities.
Contribution
Seafood processing ensures continued industrial growth and upgrade in global value chains that can be otherwise achieved with other sizeable industries, including textiles and medical devices (22).
How Much
Accounting for around 1% of Mauritius’ GDP, seafood processing enables landing of raw materials in seafood hub that generates 6,500 jobs, and scale up value added in exports (1, 22).
Impact Thesis
Increase value addition from fisheries, enhance industrial capacity and employment, and position Mauritius as a seafood transshipment hub.
Enabling Environment
Policy Environment
National Export Strategy, 2017-2021: Highlights seafood processing as an important part of the sector with investment opportunities, including fishing, aquaculture, and fish and fish waste processing under the fisheries and aquaculture sector (27).
Maurice Ile Durable Policy (MID), 2013: Entails the development of an Ocean Economy, which presents opportunities for expanding scientific knowledge and business opportunities in a comprehensive and sustainable manner (6).
Government Programme, 2020-2024, 2020: Expresses that the government will support the development of a sustainable aquaculture and fishing industry through skills enhancement and setting up fish unloading and processing facilities (5).
Ocean Economy in Mauritius, 2017: World Bank document that summarizes individual government policies to increase Blue Economy's share in GDP and initiatives such as Seafood Hub that includes investments in longline vessels, cold storage, and fish processing (1).
Financial Environment
Financial incentives: The government extended a small and medium enterprise (SME) financing scheme for three years, including small-scale fishing industry value chains, deducting all trade fees for businesses that generate not more than MUR 5,0000 (USD 136) (30).
Fiscal incentives: Seafood processing companies are exempt from import duties on equipment or raw materials to Mauritius (34).
Other incentives: Mauritius holds preferential access to the EU, USA and regional markets (34) and a 2.3 million km2 exclusive economic zone in the Indian Ocean (30).
Regulatory Environment
Fisheries and Marine Resources Act, 2007: Provides rules for the management and conservation of fisheries resources and fish farming, makes provision for the protection of marine areas and habitats and establishes of a Marine Protected Area Fund (31).
Maritime Zones (Amendment) Act, 2012: Amended the Maritime Zones Act of 1977 in order to introduce an authorization and license for private actors to occupy exclusively a portion of the sea or lagoon, which is a public domain under the Civil Code (32).
Government Notice No. 27 Fisheries and Marine Resources Act, 2012: Puts forth that all fish and other substances incorporated to the fish shall be traceable through all the stages of production, processing and distribution (33).
Fisheries and Marine Resources (Import of Fish and Fish Products) (Amendment), 2019: Amends the 2012 regulations dealing with health, hygiene and quality standards for imported fish products, concerning the procedure of an application for registration as fish business operator (35).
Marketplace Participants
Private Sector
Princes Tuna Mauritius Ltd., Marine Biotechnology Products, Mer Des Mascareignes, JLR Fisheries.
Government
Ministry of Ocean Economy, Marine Resources, Fisheries and Shipping, Fisheries Training and Extension Centre (FiTEC), Albion Fisheries Research Centre, Competent Authority Seafood.
Multilaterals
European Union (EU), United Nations Development Programme (UNDP), Food and Agricultural Organisation (FAO), WWF.
Non-Profit
Sustainable Tuna Association, Reef Conservation, Ecosud, Mauritius Marine Conservation Society.
Target Locations
Mauritius: Port Louis
Mauritius: Rodrigues
References
- (1) World Bank Group. 2017. The Ocean Economy in Mauritius : Making it happen, making it last. https://documents1.worldbank.org/curated/en/193931508851670744/pdf/120633-WP-PUBLIC-329p-Mauritius-text-10-20-17-web.pdf.
- (2) Coalition pour des Accords de Pêche Équitables. 2021. Questions clés pour les négociations de l’APPD UE-Maurice : Durabilité des stocks de thon, rétablissement du secteur local après Covid-19 et transparence. https://www.capecffa.org/blog-publications/questions-cls-pour-les-ngociations-de-lappd-ue-maurice-durabilit-des-stocks-de-thon-rtablissement-du-secteur-local-aprs-covid-19-et-transparence
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