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16 January 1985 the Private Sector Fishing Industry-Of Morocco: Constraints and Potential for Export F.J. West, Jr. Project D

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16 January 1985 the Private Sector Fishing Industry-Of Morocco: Constraints and Potential for Export F.J. West, Jr. Project D 16 January 1985 The Private Sector Fishing Industry-of Morocco: Constraints and Potential for Export F.J. West, Jr. Project Director Sears World Trade Fisheries Team Sears Word Trade 450 Fifth Str(ft, NW Washington, DC 20001 Submitted to USAID and TDP in accordance with the provisions and terms of reference as stipulated by TDP in contract letter to Sears World Trade, 14 October 1984. ER IEF ING OUTL INE I. PURPOSE OF STUDY 2. STlDY TEAM 3. MAP 4. FORE IGN EXCHANGE EAIRNINGS 5. OPININS AN) FINDINGS ABOUT DONOR ASSISTANCE 6. INDUSTRY OVFRV IEW 7. STRATEGIC PLAN FOR EXPORT FISHERIES 8. TEC-NICAL ASSISTANCE PROGRAMS AND COSTS 9. SLUvWIARY 10. PRIORITY CONCLUSION FOR USAID II. RETURN ON USAID INVESTMENT FOR PILOT PROJECT PURPOSE OF STUDY I. EXAMINE MOROCCAN PRIVATE SECTOR FISHERIES, ESP. AS RELATED TO EXPORTS AND FOREGN EXC-iANGE 2. DETERMINE: A) SIZE OF SECTOR B) PROCESS OF PRODUCT CATJ-I, PACKAGING, EXPORT AND SALES C) IDENTIFY CRITICAL BOTTLENEC<S IN PROCESS D) MAKE SPECIFIC RECONWENDATICNS FOR AID EVALUATION ;:ISHL-,IHI.S TIEAM, SEARS W'RLD TRADE I. F.J. WEST S. PIEIRE O)iUUT PROJECT LEADER MANAGER, AGRIBUSINESS CONSULTANT TO SEARS WORLD T!ADE CHAIRMAN, SEARS WORLD TRADE SPECIALTIES: MEC-iANICAL VICE PRESIDENT, INTERNATIONAL ENGINEERING & AGRIBUSINESS -UDSON INSTITUTE SPECIALTIES: FOEIGN AREA STUDIES & SYSTEMS ANALYSIS 6. CDR. WILLIAM TURCOTTE, USN (RET.) 2. MARTHA BLAXALL CONSULTANT, COWMERCIAL FISHING 2.ECAMTIRTHACN(BLAXALLSI CHASE, BROMN & BLAXALL, INC. SPECIALTIES: ECONOMIC ANALYSIS SPECIALTIES: ECONOMIC BUSINESS MANAGEMENT & SMALL VESSEL ANALYSIS & FISI-ERIES (100 TONS) FISHING. 3. MAURICE CHERAMIE 7. E. BRIAN VEASY PRES IDENT, NEW ORLEANS SEAFOOD PRESiDENT, MARION GROUP SPECIALTIES: CCMOERCIAL MARION, MASS. FISHING, U.S. & W. AFRICA SPECIALTIES: FISHERIES MANAGEMENT & TRADING 4. MICHAEL GARDNER FISHERIES DEVELOPMENT LTD. WARWICK, U.K. SPECIALTIES: TRADER IN FISHERIES, W. EUROPE & W. AFRICA // COAST RABATDEPLETED $200M CASABLANCA $200M, $loom SARDINES AGAD IR COASTAL FLEET 220M VMIITE FISH LAS PALMASP'ALASj TAN TAN "OFFSHORE" FLEET CEPHALOPODS & WHITE FISH FOREIGN EXCHANGE EARNINGS 1982 In Millions 1600 ­ 1400 1200 1000 Boo USSR $20-80M Spain $20-40M 600 Spain/Maroc to Las Palmas $200-300M 4001 -Spain to Spain 200 $200-300M 01 TOTAL MOROCCAN EXPORTS MOROCCAN FISH EXPORTS BY FOREIGNERS Fish a 10% Now Fish - 25% -40% of Moroccan Export Potential before value is adde. OPINIONS AND FINDINGS ABOUT DONOR ASSISTANCE OPINIONS EXPRESSED TO TEM MOROCCAN FINDINGS I. FISHERIES SMALL SECTOR. I. OVER $500,000,000. 2. OVERFISHED. 2. BIOMA;S CAN BE HELD CONSTANT. 3. LNACCEPTABLE EXPORT 3. LIBERALIZED IN 1984 AND POLICIES BY GC. WILLING TO DO MORE. 4. FISHERIES MINISTRY ONLY 4. MINISTRY WANTS TO ACHIEVE A FEWS YEARS OLD. AND IS NOT BLREAUCRATIZED. 5. FISHING WILL SCATTER 5. FISHERIES ARE PRIVATE FOCUS OF AID PROQRAM. SECTOR EXPORTS. 6. AID DOES NOT HAVE THE 6. SELECT PROJECTS IN-HOUSE SKILLS. CAREFULLY. 7. DONOR ASSISTANCE UNNECESSARY; 7. FISHING SECTOR IN ITS PRIVATE SECTOR INVESTMENT INFANCY. LACKS SHOULD SUPPORT THE INTERNAT IONAL MAFKET. W/O PRIVATE SECTOR. IDENTIFIED MAR4FETS, NO ROI FOR PRIVATE INVESTMENT. INDUSTRY OVERVIEW 1. "OFFSHWE" - $.sooM FUTURE: EXCELLENT BOATS 1201 SPAIN 200-250 BOATS FISH FROZEN WOROCCO 180 CAPITAL INTENSIVE GOOD CATCH/YR/BOAT NICE PROFIT POSSIBLE WEEDS LAlRGE CAPITAL & CRGANIZATICN + TGTD INT'L MARKETS AND TRANSPORT TAN TAN - LAS PALMAS - SPAIN ISSUE $500 M YR & LRG VALUE AaX)ED & GDP MJLTIPLIER 2. SI-RINP $4-10M FUTL.E: EXCELLENT/.9ALL 1983 tvtR $4M; SPAIN $20 M EEDS DEMCNSTRAT ION 3. COASTAL $50-100M FLrTI.E: PROBLEM MWAET: EXCELLENT PRICES BICMASS: CROPPING PROBLEM: LIMITED RANGE IN BOATS 1500 BOATS & 10-20,000 PEOPLE WEEDS TAFEETED PvKTS & TARGETED FISHING 4. SARDINES $50-00M FUTI;JE NEDILPA 68 CANERIES & 500 BOATS OBSOLETE B IWMASS COPFF i<C EEDS CWMIET IT IC\' REAL ECION NEEDS AR AGGSSIVE INT'L MAE!TING & CCWMETITIVE PRICING STRATEGIC PLAN FOR EXPORT FISHERIES STRATEGIC PLANNING BOTTLENEG<S TO EXPORT? STEPS I. BIOMASS I. NO, GIVEN REASONABLE CONSERVAT ION. 2. ACQUISITION 2. FOREIGN FLEETS MJST BE DISPLACED. 3. FISHING METH-COS. 3. YES FOR COASTAL FLEET. NO FOR OFFSHORE FLEET. NO (FOR NON) FOR SARDINES. 4. PRESERVATION ON BOARE) 4. NO FOR OFFSHORE. (REFRIGERATION). YES FOR COASTAL WHITE FISH. MIXED FOR SAFOINES. 5. PRICES EX VESSEL. 5. NO FOR OFFSHORE AND WHITE FISH YES FOR SARDINES. 6. REFRIGERATICN ASHORE. 6. NO FOR OFFSHORE. YES FOR WHITE FISH. MIXED FOR SARDINES. 7. VALUE ADDED PROCESSING 7. NO OFFSHORE. YES ASHORE. COASTAL. MIXED FOR SARDINES. 8. TRANSPORT/DISTRIBUTION. 8. YES OFFSHORE AN) COASTAL. NO SARDINES. 9. POLICY INCENTIVES. 9. YES FOR OFFSHORE. NO FOR COASTAL AN) SARDINES. 10. STABLE, IDENTIFIED MARKETS. 10. YES FOR OFFSHORE AND COASTAL. LESS SO FOR SARDINES PROJECT COSTS COSTS (THOUSANDS) PHASE I TA (TEC-NICAL ASSISTANCE) FY85 WHITE FISH 300 P ILOT PROJECT/EXPORT MARKET DEVELOPMENT PHASE II HARVESTING TA FY86 -ELECTRONIC SEARCH 130 -LCNGL INING METHODS 160 -SHRIvW TRAWLING 75 -REFRI GERAT ICN 100 PROCESSING TA - PUBLIC COLD STORAGE 60 -CAN N METHODS 45 -VALUE ADDED METHODS 45 SAFINE MARKET DEVELOPMENT TA -PI LCHARS FOR u< 30 -PRIVATE LABEL MARKETS 40 LOAN CREDITS FY87-89 -COLD STORAGE 4,000-8,500 -EQUIPMENT I ,000 FOREIGN DISPLACEMENT STUDY 200 (FY 86) TRANSPORT/DISTRIBUTICN STUDY 150 (FY86) SLVMARY OF COSTS FY 1985 COSTS $ 300,000 FY 1986 COSTS $1,035,000 FY 1987-89 COSTS $5-9.5 MILLION PRIORITY CONCLUS ION FOR USAID I. W/O INTEINATICNAL MAFR<ETS, FISHERIES EXPORTS WILL NOT INCREASE. 2. THESE MA=<EST HAVE NOT BEEN IDENTIFIED, PRICES NEGOTIATED AND DISTRIBUTION ESTABLISHED. 3. US PRIVATE SECTOR WILL NOT GET INVOLVED AT THIS STAGE: A GOOD DREAM, BUT NO SPECIFICS OF PROFITS. 4. SO, FIRST PRIORITY: US TEC-NICAL ASSISTANCE - FISH SELLERS - TO GO TO MAR<ETS AN) ACTUALLY EXPORT THE FISH. WITH THE tv"DOCCANS, SET IT UP, NOT STUDY IT. 5. THIS PROJECT IS TIIE PILOT TEST/RISK ANALYSIS OF USAID'S LARGESCALE CONCEPT OF A PRIVATE SECTOR EXPORT PROGRAM. POTENTIAL EXPORT MARKETS FOR MOROCCAN W&HITEFISH Am'lD CEPNALOPODS POTENTIAL VALUE WfH/YR SPAIN PESCANOVA, PESCOFINA, COMPESCA DELFIN, ALIMAR, PARAPESCA 10 GREECE PIPILEPILIUS 7 SUPERMARKETS 2 FRANCE ALLOM & MARSAILLES IMPORTERS 4 ITALY SLRQELA & KEY SUPERMARKETS, S.M.E. 8 USA SEARS W)RLD TRADE, SEAMARK. INTERNIAT 1NAL NIJLTIFOODS, SINGLETON SHRIMP, RED LOBSTER INNS 5 SAUDI ARABIA ALGOSIAI & SAUDI FISHERIES 4 GIULF STATES VAR IOUS STOCK HOLDER TRADERS 3 JAPAN NIQ<ERIE. C.ITON, NIPPON SOISSAN, TOYOTA, MITSLISHI, MITSUI 10 HONG KONG DAIRYFARM, JARDINE, S.U. 2 SINGAPORE FITZPATRIC< & LOCAL IMPORTERS 2 POTENTIAL EXPORT SALES 50 FIRST YEAR MILLION DH POTENTIAL FOR RAPID ECONOMIC GROWTH $B. 000. 000 WHO BENEF118? Fishermh Truckers ProcessOrt General Labor Forte $7.'O0.000 7 $500. 000 AE AID Project Funds "NNNxportEarnings 60P Expmnuion N °N \N PRIVATE SECTOR SEAFOOD EXPORTS I. POTENTIAL IS REAL. EVIDENCE: FOREIGN(I FLEET EXPORTS OVER $500,000,000. 2. TODAY, MOROCCO EXPORTS FRQM vOROCCO (EXCLLDING LAS PALMAS) LESS THAN $100,000,000. 3. GOAL: MOROCCAN GDP AND PRIVATE SECTOR GROCWTH. PERMIT MARKET FACTORS TO DETERM I NE THE MONtEY CI RCULAT ION. 4. PRIORITIES IN A STRATEGIC PLAN FOR FISHERIES. A. DISPLACE FOREIGN FLEET. TASKS: SLRVEILLANCE, NEGOTIATE, ENFORCE. B. 1- ) MORE WHITE FISH IN MOROCCO. (BRING OFFSHORE FLEET HOMAE.) TASKS: LI BERAL IZE CURNCY REGULAT I IS AND OTHER STEPS TO FACILITATE EXPORTS. C. EXPORT WHITEFISH TO OVERSEAS 'MARKETS. TASKS: IDENTIFY THESE MARKETS AND SHIP THE FISH. Table of Contents Surrmary I. Introduction A. Objective of Report B. Study Method II. Overview of Export-related Fishing A. Resources I. Preface 3. Stocks 2. Topography 4. Landings B. Value of Exports from Moroccan Ports C. Value of Exports from Moroccan Waters D. Surveillance and the Foreign Fleets Ill. The Moroccan Fishing Fleet Industries A. Coastal Fleet Industries I. Pelagics 2. White Fish B. High Seas or Offshore Fleet Industry IV. A Strategic Plan to Expand Seafood Exports V. Action Program for USAID VI. Appendices Tables Table I. GDP of Morocco Table 2. Fishing Zones Table 3. Estimates of Sustainable Fields Table 4. 1980 Foreign Fishing Catch in Moroccan Waters Figure I. 1962-82 Landings in Moroccan Ports Table 5. Value of 1982 Moroccan Fish Exports, As Officially Reported Table 6. Valu of 1984 Moroccan Fish Exports, As Unofficially Estimated Table 7. Composition of Moroccan Fishing Fleet Table 8. Sardine Canning Composition of Costs of Production Table 9. 1983 White Fizh Landings and Value at Agadir Table 10. Planning Strategy to Develop Export Fisheries Table I. Opinions and Findngs About Donor Assistance Table 12. Pilchard Potential in U< Market Table 13. Potential Export Markets For Moroccan White Fish Table 14. Surmary of Plan For Exports Table 1S. Canned Pilchard Sales in the U< Table 6. Project Costs and Timetable Table 17. Maximum Sustainable Yields by Species (App. D) Table 18. 1978 Average Trawler Landings at Las Palmas (App. E) Table 19. 1981 Bilateral Fisheries Aid to Africa (App. F) List of Appendices A. USAID/TDP Terms of Reference B. Members of Sears World Trade Study Team C. Interviews Conducted D. The Economic Setting E. Estimates of Fish Stocks F. Reported Landings at Las Palmas G. Morocco and West Africa H. Illustrative Budgets for Projects Recorrrnended to USAID I. Documents Reviewed. J. The Sardine Canning Industry EXECUTIVE SUMMARY In October, 1984, USAID and TDP asked Sears World Trade to examine the Moroccan fisheries sector and determine how Moroccan fisheries firms could best take advantage of export market opportunities, particularly in the U.S. and Western Europe. A team of experts with extensive backgrounds in fish harvesting, processing, and marketing, and with experience in economic development and international trade policy was sent to Morocco in late October. After site visits to the major fish ports and processing facilities in Morocco, the SWT team concluded that there were opportunities available for Morocen to double its exports of fishery products over the next five years, and that USAID assistance could result in major increases in foreign exchange earnings from the fishery sector.
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