Sustainable Aquaculture Farms
Sustainable Aquaculture Farms
Business Model Description
Set-up and operate sustainable aquaculture farms, in the inshore or offshore area, to cultivate species including red drum, sea bass, sea bream, and invertebrates, such as oysters or sea cucumbers.
Expected Impact
Address negative impacts of conventional fisheries on the marine ecosystem and advance value generation from marine resources.
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: Countrywide
- 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, 38). 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, 38). 3.4% of GDP was contributed by the agricultural sector in 2013, and the sector is promoted by various incentives and schemes (12, 28).
Key bottlenecks introduction
As an island, agricultural space is limited and agricultural development may interfere with other land use options (39). 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).
Meat, Poultry and Dairy
Pipeline Opportunity
Sustainable Aquaculture Farms
Set-up and operate sustainable aquaculture farms, in the inshore or offshore area, to cultivate species including red drum, sea bass, sea bream, and invertebrates, such as oysters or sea cucumbers.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
In 2020, 95,456 tons of fish, worth MUR 12.6 billion (USD 315 million) were exported, while the ten-year average is 114,061 tons (41).
In 2020, Mauritius' aquaculture production from floating cage fish, such as red drum and seabream, was 3,259 tons (41). Government's long-term aquaculture production target is 39,000 tons on 21 identified sites suitable for farming (1).
The government will allocate four sites to off-lagoon aquaculture and amend legislation accordingly within 2022/23 Budget measures (45).
Indicative Return
> 25%
The inshore farm for finfish or invertebrates with a unit cost of USD 17 million of the Ferme Marine de Mahebourg Ltd (FMM), the main aquaculture actor in Mauritius, reached an ROI of > 25% (1).
Investment Timeframe
Long Term (10+ years)
The Ferme Marine de Mahebourg Ltd (FMM), the main aquaculture actor in Mauritius, expanded its production and expected to realize economy of scale and thus become profitable in 2017 and after 10 years of activity (1).
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Capital - Limited Investor Interest
Capital - Requires Subsidy
Market - Volatile
Impact Case
Sustainable Development Need
Fisheries and aquaculture is one of the most vulnerable sectors to climate change, emphasizing the need for the sector to adapt to changing conditions, notably through the development of sustainable practices (28, 21, 22).
60-70% of Mauritius' coral is degraded (6), and marine resources have been affected by the Wakashio oil spilling of July 2019 (28, 23, 24, 25). The country's coastal and lagoon areas are overexploited, resulting in a 35% decrease in catch between 2011 and 2017 (1, 24).
To achieve the objective of doubling the contribution of the ocean economy to the national GDP and becoming a seafood hub, Mauritius needs to move away from coastal and lagoon fisheries (1).
Gender & Marginalisation
In Mauritius, small-scale, artisanal fishers supply the majority of fresh fish to local population. They often work in the informal sector (15) and are the most economically deprived of the sector, especially since they can only fish in the depleted lagoons and coastal areas (22, 24).
In Mauritius, women are more vulnerable to unemployment than men (7). In the sector of fisheries and aquaculture, women represent 4% and 18% of the workforce, respectively (3). Women in fisher households often contribute to fish processing and marketing without being formally recognized (1).
Expected Development Outcome
Sustainable fisheries and aquaculture farms reduce over-exploitation in lagoon and coastal fisheries, enabling the sector to reach its full economic potential in the long-term and to become more resilient (1). While fish catches decreased, aquaculture rose by 11% between 2009 and 2013 (9).
The development of sustainable aquaculture farms diversify the sector's revenues and create and maintain employments, therefore supporting the fishers' resilience and revenues with the potential of creating 5,000 new jobs (1).
Sustainable aquaculture and the broader value chain increases the value received from Mauritius' national fisheries, especially for tuna fishery and processing (25).
Gender & Marginalisation
"Sustainable fisheries and aquaculture support the resilience and income generation potential of small-scale and artisanal fishers as well as women (24, 1). "
Primary SDGs addressed
1.2.2 Proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
Proportion of population below Relative Poverty Line (RPL), based on household survey data, was 10.4% in 2017. The RPL is set at half of the median monthly household income per adult equivalent and was MUR 7,509 (USD) in 2017 (42).
Drafted in 2016, Mauritius Marshall Plan Against Poverty aims eradicating poverty in the country in accord with the country’s Vision 2030 (43).
14.4.1 Proportion of fish stocks within biologically sustainable levels
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.
47.94% of total fish catch is from overexploited or collapsed stocks (2014) (31).
N/A
N/A
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
Introduction of anti-microbials and chemicals for disease control in aquaculture farms may damage the environment and contaminates water bodies (37).
If monitoring mechanisms in aquaculture farms are inadequate, there is a potential of overexploitation of aquaculture resources and increased environmental stress (1).
Land conversion for aquaculture farms may degrade wetlands and mangrove forests, resulting in the extinction of species that rely on them (37).
Aquaculture may limit local communities' historic access to natural resources, risking their means to afford and consume marine products (37). Rapid commercial aquaculture development may undermine women’s traditional role in processing in fisher households (1, 37).
Limited application of sustainable standards and oversight may negatively impact consumers' health due to inadequate hatchery management that does not ensure biosecurity (44).
Impact Risks
Scale of impact may be disrupted by external factors such as development of offshore renewable energy projects on important fishing grounds and risk of cyclones (1, 37).
Impact Classification
What
Sustainable aquaculture farms diminish environmental harm and benefit fishers in the long-term with addressing negative impacts of conventional fisheries.
Risk
External factors such as other blue economy developments, including offshore renewable energy and tourism, may limit the scale and stakeholder participation.
Contribution
Sustainable aquaculture farms contribute to the blue economy alongside fish handling and the processing industry as well as the government's seafood hub strategy by supplying resources.
Impact Thesis
Address negative impacts of conventional fisheries on the marine ecosystem and advance value generation from marine resources.
Enabling Environment
Policy Environment
Mauritius Sustainable Island Strategy (MID), 2013: Identifies fisheries as one of the most affected sector by climate change, highlights the need for a better protection of resources and supports a sectoral green growth (6).
National Climate Change Adaptation Policy Framework, 2012: Highlights fisheries as one of the most vulnerable sector to climate change and recommends the development of sustainable fishing and aquaculture practices (28).
Nationally Determined Contribution, 2021: Advocates for the development of an adaptation policy of the fisheries and marine ecosystems as well as the adoption of a climate smart fisheries and blue economy based on a coastal zone management (26).
The National Environment Policy 2007: Promotes a sustainable use and development of coastal zones and management of marine resources in the Exclusive Economic Zone (27).
The National Export Strategy 2017-2021: Aims at increasing the competitiveness and sustainability of the Mauritian seafood sector, including for aquaculture activities (9).
Financial Environment
Financial incentives: The Government grants 50% of a fishing vessel’s (canotte) cost up to MUR 200,000 (USD 4,500) to encourage off lagoon fishing. The Development Bank of Mauritius provides a loan of up to MUR 200,000 (USD 4,500) at an interest rate of 3% per annum under the Canotte Scheme (40).
Fiscal incentives: For investments in aquaculture, the Ministry of Blue Economy announced a 8-year tax holiday (32).
Other incentives: The Development Bank of Mauritius offers a MUR 100,000 (USD 2,250) interest-free loan to eligible fisher for assisting their cashflow concerns and an amnesty programme to repay their overdue loans (10).
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 (29).
Fisheries and Marine Resources (Fish Farming) Regulations, 2014: Regulates the fees and conditions for the issue of authorizations by the Permanent Secretary to start a fish farming activity (30).
Maritime Zones (Amendment) Act, 2012 amended the Maritime Zones Act, 1977: Introduces 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 (33).
Marketplace Participants
Private Sector
Princes Tuna Mauritius Ltd., Indico canning, Froid des Mascareignes, Marine biotechnology products, Cervonic, Seafood Hub Ltd., Transfroid, English Bay Co. Ltd, Bella Amigo Co. Ltd, Belle Rive, Affinis, and Seskel Enterprises Limited Mauritius.
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).
Non-Profit
Sustainable Tuna Association.
Public-Private Partnership
A public-private-NGO-local community partnership for mangrove propagation enabled the plantation of 181 ha of mangrove, following the governmental Mangrove Propagation Program, in order to restore coastal ecosystems and favor fish return (19).
Target Locations
Mauritius: Countrywide
Mauritius: Rodrigues
References
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