DIR CTORAT N RAL I H Rl

IN OOP RATION WITH

FOOD AND AGRICUL TUR ORGAN I ION OF TH UNIT D NATION

WORKSHOP ON STRENGTH NING MARINE FISHERIES DEVELOPMENT IN INDONESIA

JAKARTA, 23 APRIL 1996 TCP/IN/4553 (A)

WORKSHOP TECHNICAL PAP R NO.4

FISH MARKETING

S. PRAYITNO Currency Equivalents

Currency Unit: Rupiah (Rp)

US$ 1.00 = Rp.2,360.00

Abbreviations

CCAD Cenderawasih Coastal Area Development (Project) FAO Food and Agriculture Organization /.J. Irian Jaya KUD Mina Koperasi Unit Oesa Mina (Fisheries Village Co-operative Unit) LPPMHP Laboratorium Pembinaan dan Pengembangan Mutu Hasil Perikanan ( Laboratory for Fisheries Product Quality Control Development and Fish Inspection) mt metric ton NES Nucleus Estate System PPI Pusat Pendaratan lkan (Fish Landing Place) UNDP United Nations Development Programme LIST OF TABL

Table 1 Marine Fishery Production in Irian Jaya Province and Merauke District by Species in 1994.

Table 2 Export Volume and Value of Fishery Commodities of Irian Jaya Province in 1994.

Table 3 Inter-island Trade Volume, Value and Destination of Fishery Commodities of Irian Jaya Province.

Table 4 Export of Fishery Commodities by 3 Companies since 1988 up to 1995 from Merauke.

Table 5 The List of Trafers and Inter-island Trade of Fishery Commodities from Merauke in 1995.

Table 6 The Prices of Selected Fish in Irian Jaya (Sarong) and in Java (Muara Baru/Jakarta, Pekalongan/Central Java Pelabuhan Ratu/West Java) in 1994 and 1995.

Table 7 The List of Fishing Ports, Fish Landing and Fisheries Offices for Monitoring of Fish Prices.

ii MAP

Map 1 Export Ports and Inter-island Ports of Fishery Products in Irian Jaya Province.

FIGURE

Figure 1 The Proposed Concept for Developing of Small Scale Fisheries Marketing in Merauke District.

iii TERMS OF REFERENC

(a) Prepare a preliminary assessment of the market and market distribution systems for fishery products in the identified areas where marketing infrastructure facilities will be upgraded based on existing data and the reports;

(b) Study marketing chains, price structure and marketing cost and design methods/systems to supply quality fish to urban centres, including introduction of cold chain systems in identified areas;

(c) Design a market information development system both for domestic and export markets. Such mechanisms would enable fishermen, fish dealers and exporters to obtain up-to-date information;

(d) Recommend human resource development programmes for domestic marketing and export promotion.

iv 1.0 INTRODUCTION ...... 1

2.0 PRESENT STATUS ...... 1 2.1 Type of Fishing Operation and Landing Site ...... 1 2.2 Fishery commodities ...... 2 2.3 Post harvest activities ...... 3 2.4 Marketing institutions and distribution channels ...... 4 2.5 Marketing infrastructure and facilities ...... 6 2.6 Market Structure ...... 7 2. 7 Market Information ...... 8 2.8 Human resources ...... 9

3.0 ISSUES AND CONSTRAINTS ...... ~ ...... 9 3.1 Issues ...... 9 3.2 Constraints ...... 10

4.0 Opportunities ...... 11

5.0 RECOMMENDATION ...... 11 5.1 Fisheries Marketing Development ...... 11 5.2 Marketing System for Domestic and Export Markets ...... 12 4.3 Market Information System ...... 13

Currency Equivalents ...... 15

Abbreviations ...... 15

MAP ...... 17

FIGURE ...... 17

TERMS OF REFERENCE ...... 18

v 1

1.0 INTRODUCTION

This study gives an illustration of the fish marketing situation in Irian Jaya Province and more specifically for Merauke District, which was selected for the development of small scale or traditional fisheries in the southern territory of Irian ,Jaya Province. The study will also give recommendations in the development of fish marketing for those type of fish as part of the small scale fisheries development in Merauke District as recommended by the mission after visiting Irian Jaya Province and Merauke District.

2 .. 0 PRESENT STATUS

2.1 Type of Fishing Operation and Landing Site There are two types of fishing operations in Irian Jaya; traditional fishermen or small scale fisheries and the modem fishing industries or large scale fisheries. The catches of large scale fishing companies are landed at the fishing port of Sorong or their own custom built port (Djarma Aru at Kimaam/Merauke) or at the commercial harbour (PT.Timika at Merauke), while the catches of the traditional fishermen are generally landed on the beach near their villages or PPI (Fish Landing Place). Almost all the fishing villages are spread out along the coast and mostly are located in isolated areas with poor infrastructure (road and sea transportation) and therefore have no access to expand the market and find it difficult to collect and transport the fish. The government has developed some fish landing places (PPI) at 7 locations in order to develop the traditional or small scale fisheries at Merauke, Manokwari, Kaimana, Wageo Utara, Biak, Jayapura and Sorong. Unfortunately the PPI at Merauke is not functioning due to the reasons mentioned in Technical Paper No 3 which deals with infrastructure. One archipelagic fishing port is under construction at Sarong.

In Merauke District, there are 18 Sub-districts with a population of 276,295 (1993) and a growth rate from 1980-1993 of 60.12 %. Merauke district is also a destination area for the transmigration programme. There are 16,598 fishermen or about 6.00% of the total population, of which 6,318 fishermen (38.06 %) operate as full timers, 2,104 (12.68 %) are major part timers and 8,176 (49.26 %) are minor part timers. Almost all the indigenous fishermen are very traditional, use small canoes, do not carry ice during fishing, operate in the near shore and live in small groups in isolated and scattered villages. Some fishermen sell their catch to local fish collectors or fishmongers who usually come to the villages. Some fishermen use the catch for family consumption only.

At Merauke town there is a fishermen's village where the fishermen originally come from South Sulawesi Province, namely Sam Kay. In this village there are 30 canoes with 60 fishermen. Every canoe is operated by 2 fishermen. Some canoes are equipped with 25 HP outboard motors. They start fishing in the evening and return 2 by noon the next day. Some fishermen bring ice (up to 15 blocks) especially during the fish season. They buy ice at Rp. 1,500 per block of 15 Kg. Most of their catches consist of high value fish such as ikan Senangin (Threadfins/po/ynemus sp),ikan Tenggiri (King mackerels/Scomberomorus commersom)and ikan Paha(Beach salmon/ Leptobrama mullen). The average price of fish at the village level is around Rp.3,000- 4,000 per 4 pieces, and the price at the Merauke retail market is around Rp.3,000- 4,000 per 3 pieces. The distance from the fishermen's village to the retail market is about 2 Km. Usually the fishmongers use bicycles or motorbikes for collecting fish. There are no facilities for handling fish on the beach itself. Another fish landing site at Merauke town is Gudang Arang. This fish landing site for shark fishing is not so far from the commercial harbour. In shark fishing the fishermen only take the fins, the skin and the bones and do not process the meat. These commodities are collected by PT.Subindo, a local company, and shipped to Java (Surabaya).

2.2 Fishery commodities The commercial fishery commodities of Irian Jaya Province consist of various species of pelagic and demersal fishes and non-fish such as crustaceans, molluscs, aquatic animals and aquatic plants. The list of marine fishery production by species in Irian Jaya Province and Merauke District is enclosed as Table 1.

Fishery production (Irian Jaya) 1993 & 1994

Description 1993 (MT) 1994 (MT)

Marine fisheries -Offshore fisheries 70,252.0 76,024.0 -Inshore fisheries 34,042.0 36,665.0 Coastal aquaculture -Mari-culture -Brackishwater aquaculture 120.6 188.2 Inland fisheries -Open waters 1,684.0 2,004.0 -Freshwater ponds 663.6 735.0 -Cage culture 142.5 208.0

Total 106,904.7 115,824.2

SOURCE ANNUAL REPORT, PROVINCIAL FISHERIES SERVICE, I.J 1994

In Merauke District, the dominant species of fish are ikan Kakap (Barramundi), ikan Kuro (Threadfins), ikan Kembung (Indian mackerels), ikan Manyung (Sea catfish), Bawal hitam (Black pomfret) and ikan Cucut (Shark). PT.Timika Jaya, one of the large-scale fishing companies in Merauke District is exporting mostly all demersal and pelagic species straight to Thailand in the form of frozen products by using 3 special 3 carriers from PT.Pelindo (a shipping company). The capacity of these carriers is around 500- 800 GT. PT Timika has 25 wooden fishing vessels, made in Thailand, of around 60 to 400 GT with almost all-Thai crews on board. At present, this· company is not interested in the inter-island fish trade to Java. In 1994, the marine fisheries production in Merauke District was 44,175.7 MT. It was 39.20 % of the marine fisheries production of Irian Jaya.

2.3 Post harvest activities Proper handling, processing and storage of fish (post harvest activities) have a significant role in fish marketing in order to avoid losses and obtain added value for fishery commodities.

Most of the fish catch of the traditional fishermen is landed and marketed fresh, un-iced or poorly iced. The price of ice in Jayapura is Rp.4,000 per 15 Kg block. This price is relatively expensive. Some catches are processed by fishermen's family or by the traditional processors into dried or salted fish and some are processed by modern processors into canned products (at Sorong and Biak for example) or into frozen or smoked products. Tunas and Skipjacks form the major species used in the canning process.

The breakdown of the catch according to the type of processing in 1994 is as follows:

Description Volume (MT) (%)

Fresh consumed 36,353.2 32.26 Dried/Salted 3,815.6 3.39 Boiled in brine (pindang) Smoked 565.2 0.50 Frozen 68,420.1 60.71 Canned 3,099.6 2.75 Fish meal Others 435.3 0.39

Total 112,689.0 100.00

SOURCE· ANNUAL FISHERIES STATISTICS· FISHERIES SERVICE I.J. 1994

In order to develop the quality of the fisheries export commodities, the Government has established three Laboratories for Fishery Product Quality Control Development and Fish Inspection (LPPMHP) at Sorong, Biak and Merauke. In Merauke District, all the fish caught by the large-scale fishing industries are mostly demersal species and processed as frozen products for the overseas market, while the fish caught by the traditional fishermen is marketed locally as fresh fish or dried or salted fish. Most of the dried or salted fish is shipped to Ujung Pandang and Surabaya. 4

The breakdown of the fish catch in 1994 in Merauke district is as follows:

Description Volume (MT) (%)

Fresh consumed 3,968.5 8.98 Dried/Salted 190.1 0.43 Boiled in brine (pindang) Smoked Frozen 39,970.3 90.48 Canned Fish meal Others 46.8 0.11

Total 44,175.7 100.00

SOURCE. ANNUAL FISHERIES STATISTICS· FISHERIES SERVICE I.J. 1994

2.4 Marketing institutions and distribution channels The large scale fishing industries usually operate under a vertical integration pattern. This means that all activities, from fishing, processing up to the export of the fish are carried out by the industries themselves.

Some fishing companies also operate under Nucleus Estate Scheme (NES). In these cases, the companies join up with the fishermen in the fishing operations and buy up the catch of the small fishermen.

The scheme of marketing the fish and the distribution channels of the large scale fishing industries can be presented as follows:

Vertical integration Nucleus Estate Pattern pattern (NES) I I Fishing Fishing Fishermen company company I I Processing Processing company company I I Export Export company company

The large scale fishing companies are only interested in the overseas market.The fishing companies that operate in Irian Jaya (1995) are as follows: 5

Location Name of Company Kind of Export Commodity Destination

Sorong PT.WIFI Frozen shrimp Japan PT.AKFE Frozen shrimp Japan PT.DBU Frozen shrimp Japan PT.USAHA MINA Frozen shrimp Japan Frozen sk'jack Thailand PT.ARTA SAMODRA Pearl Japan

Manokwari PT.TELUK BINTUNI Shrimp Singapore PT.A.PRAKASA Frozen Tunas/ s't<-\p)ac't<- p n\\\pp\nes

Biak PT.MTI Canned tunas Netherlands Jayapura PT.BINTANG MAS Frozen shrimp Hong kong Merauke PT TIMIKA JAYA Frozell fish Thailand PT.ISTANA SAM. Frozen fish Thailand

SOURCE: ANNUAL FISHERIES STATISTICS- FISHERIES SERVICE I.J. 1994

The volume and value of the export commodities from Irian Jaya in 1995 can be seen in the table 2. The inter-island trade or distribution of fishery products from Irian Jaya, consists of dried or salted fish and shark products. The volume and value of the inter-island trade is enclosed as table 3. On the other hand, the marketing of the catches of the traditional fishermen or small scale fisheries are unorganised, and depend very much on the fishmongers. The bargaining position of the artisanal fishermen in fish marketing is very weak.

Reportedly, there is an example of a good fisheries co-operative in Irian Jaya, namely KUD Mina Sanggami Sarey in Biak, which developed under the Cenderawasih Coastal Area Development Project (CCAD), an integrated regional programme of the government, UNDP and FAO. This project was developed, among others, with the aim as a model in developing the traditional small fishermen in Irian Jaya Province. When Garuda Airlines called at Biak, the KUD was able to export fresh fish to Hawaii. However, this is no longer the case because Garuda does not stop off at Biak anymore.

In order to increase the fishermen's income, the project also has a programme for enhancing the role of fisher women by guiding them in fish processing and sea-weed culture.

Although there are still some weaknesses, this KUD can be used as a model for developing the traditional or small scale fisheries in Irian Jaya Province. 6

Unlike Java, in Irian Jaya there are no fish auction regulations at fishing ports or fish landing places (PPI).

In Merauke District, all large-scale fishing companies operate under a vertical integration pattern and only work for the overseas market. There are 3 companies who export fish commodities through Merauke, namely PT.Timika Jaya Nusantara, PT.Istana Samudra Nusantara and PT. Pelagis Samudra Lestari.

The exports of fish commodities by these companies is listed in table 4.

The marketing institutions which have a significant role in the marketing of the traditional fishermen's catch in Merauke District are the local fish collectbrs or fish mongers, small traditional fish processors, inter-island fish traders (wholesalers) and fish retailers. The fishermen have a close relationship with the local fish collectors or fishmongers who usually go to their villages to collect fish for the retail market. In this case the distribution channel can be represented as follows: ______Fishermen, ____ _ I I Local Fish Collectors Traditional Fish (Fishmongers) Processors I I Retail Market Wholesaler I I Consumers Inter-island Market (Ujung Pandang, Surabaya)

The list of inter-island traders of the fish commodities is enclosed as table 5. To support fish marketing in Merauke District, there are 2 small ice making plants. One of the plants has a capacity to produce 100 ice blocks each of 15 Kg per day. The price of one ice block is Rp.1 ,500. It is used mainly for icing meat (70 %) and the rest for fish (29 %) and others (1 %). According to the owner of that plant, demand for ice is limited or small.

2.5 Marketing infrastructure and facilities The lack of infrastructure, especially transportation and communications, is the main obstacle in developing this region. Apart from this, the population is also very thin and spread out into small communities, mainly unskilled and very traditional. There are no special sea carriers for transporting perishable goods such as fresh or frozen fish for inter-island trade and, therefore, the fishery commodities for inter-island trade only consist of dried or salted fish, shark fin, shark skin and dried sea-weed. Actually, inter-island distribution of fresh fish could use air transportation, but the cost at present is prohibitive. There are also no special air flights from this 7 region to other parts of Indonesia. The sea-ports that are usually used for the export of fishery products from Irian Jaya Province are Sarong, Manokwari, Biak, Jayapura, Merauke and Fak-Fak.

Merauke is the second most important sea-port for export and the inter-island trade activities of fishery products in Irian Jaya Province after Sarong. The location of these sea-ports is illustrated on the map attached (Map 1).

For overseas markets, especially the high value fresh products or deep frozen products such as tuna for sashimi, the fish products are transported by air, mostly from Sarong and some from Sentani (Jayapura). The export destination is mostly Japan and the salient products are frozen shrimps, frozen tuna and skipjack. Apart from these, the inter-island trade of fish products is mainly to Java ($urabaya, Jakarta), South Sulawesi (Ujung Pandang).

In Merauke District, the most important fishery commodities for export are mostly demersal fish and some small pelagic fish and shrimp, whilst for the inter-island trade the commodities are shark fin, shark skin, fish belly (bladder) and dried or salted fish.

The main problem for the inter-island trade in fishery commodities to Java is the transportation cost, which is very high. Just as an example, to ship 70 Kg of copra to Surabaya costs Rp.7,000 or Rp.100 per Kg. and takes 3 weeks to get to the buyer in Surabaya. The cost of sea transportation per 1 cubic meter from Merauke to Surabaya is Rp.150,000.

According to one of the inter-island traders in Merauke, sea transportation from Merauke to Surabaya takes 8 days, to Jakarta 10 days and to Darwin (Australia) approxjmate)y 60 hours.

One inter -island trader of fishery commodities stopped trading because the trade in fresh or frozen fish to Java was not profitable anymore whilst that for shrimp had just reached the break even point. The popular fish in Merauke is Barramundi and this fish is in abundance when in season, June to September.

2.6 Market Structure The market situation at village level is perfect competition. The prices of fish are varied and depend on the fishing seasons, quality of catch (freshness), infrastructure condition and the number of buyers. The prices at producer/fishermen level depend on the distance of the fish landing sites, marketing channels, handling and transportation cost.

In order to get an idea concerning the fish distribution from Irian Jaya to Java, a comparative analysis of the prices of fish in Irian Jaya and Java is needed. It may be relevant to present here the fish prices (selected species) as recorded by Directorate 8

General of Fisheries, in Irian Jaya (Sorong) and in several places in Java ( Muara Baru/Jakarta, Pekalongan/Central Java and Pelabuhan Ratu!West Java).

The prices of selected fish as noted by the DGF in several places in Irian Jaya and ..Java can be seen in table 6.

Due to the fact that prices for fish in Irian Jaya are almost similar to those in Java, the cost of transportation is relatively high and the price of fresh fish in Jakarta fluctuates, traders are not very enthusiastic to enter the inter-island trade for fresh or frozen fish products to Java.

In Merauke District, the local market is limited and the small-scale fishermen have no skill and knowledge in fish marketing. There is no marketing organization or association, such as a fisheries co-operative (KUD) for helping the fishermen in getting a better price of their catch and develop a wider market.

The growth in fish marketing does not always improve the benefits to the small fishermen, especially if the bargaining position of the fishermen remains weak. In many places in Merauke District, the lack of transportation and marketing facilities are the main obstacles for expanding the fish marketing and making the process more efficient.

Due to this situation the marketing margin is also varied, ranging from 30 to 60% at Merauke District. The marketing margin depends on many factors, such as the distance of the production points to the market centres, transportation cost, handling and processing cost and fees or taxes that need to be paid. The retail fish market at Merauke (Ampera market) is small and the sanitation is poor.

There is also a new fish market which is equipped with a cold storage of 5 mt capacity developed by the local government at Ave Say (Merauke), but it is not functioning due to its distant location, far from consumer centres.

The presence of the large scale fishing industries, who operate for the overseas market, does not accommodate the landings of the small- scale fisheries and therefore, the market of the their catch is still limited. The price of fish at Merauke drops almost 40-50 % during the peak of the fishing season.

2. 7 Market Information The market information has been done by the Fisheries Service as a monthly report to the Directorate General of Fisheries. This market information contains information regarding:

a) The kind of fisheries commodities; b) The type of products; 9

c) The average price at producer level; d) The average price at consumer level.

This market information is at the District or municipality level. The information, however, is too general and does not take into consideration the interest of the fisheries producers, KUD, or fishermen. It may be a good input for the government to take some of the decisions in the marketing policies. There is no market analysis for fish-price fluctuations in relation to the fishing seasons or special holidays such as ldulfitry, Christmas or other events when consumption increases.

The Directorate General of Fisheries has collected auction prices of selected species from the fishing ports on a daily basis.

This information is usually sent by radio (SSB) every morning by the Head of the fishing ports. Every evening, the fish prices are broadcast by the Radio of the Republic of Indonesia of the Department of information.

The 15 selected species as follows:

1. Tuna (Tunas) 2. Cakalang (skipjack) 3. Tongkol (Eastern Little Tunas) 4. Tenggiri (Narrow Barred King Mackerel) 5. Kembung (Indian Mackerel) 6. Kuwe (Jack Trevallies) 7. Layang (Scad) 8. Bawal Putih (White Pomfret) 9. Kakap Merah (Red Snapper) 1O.Kerapu (Groupers) 11.Manyung (Sea Cat Fish) 12.Cumi-cumi (Squid) 13.Udang Barong (Spiny Lobster) 14. Udang Putih (White Shrimp) 15.Udang Dogol (Metapenaeus sp)

There are 38 fishing ports, listed by Directorate General of Fisheries, table 7. There is no market information reported by the private companies.

2.8 Human resources The lack of fisheries staff with knowledge on fisheries marketing and research, market analysis, promotion and information systems has led to a mishandling of the fisheries development. Extension work also lacks marketing aspects. The small-scale fishermen also lack fish marketing techniques to develop fisheries cooperatives and other means of marketing their fish. 10

3.0 I UES AND CONSTRAINTS

3.1 Issues

The small-scale fisheries communities remain left behind and are still unable to achieve the opportunity to further develop the fisheries. The development of the small-scale fisheries communities has not yet progressed compared to that for large­ scale fishing industries and their bargaining position in the fisheries remains weak. The issue that will need to be addressed is to move forward and enhance the capability of the small-scale fisheries communities in the fishing operations and marketing of their landings.

The development should be done through a "marketing and integrated approach'!. This means that the small-scale fishery should be market oriented and followed by the development of infrastructure facilities and services needed, which should match the conditions of those small scale fisheries communities under sound coordination among Government agencies concerned.

3.2 Constraints From the observation following interviews with a large scale fishing company, it seems that there are no significant constraints in exporting the products to overseas markets.

The constraints that are described below are primarily in the development of the marketing of the local small-scale fisheries products and inter-island fisheries trade. The constraints are:

a. Infrastructure: Lack of transportation either by land, sea or air. The cost of transportation is relatively high and no special carriers or airfreight for perishable goods exists. Transportation and communication are the main constraints;

b. Institutions: Lack of marketing institutions that operate in the fishermen's villages to collect the fish. Lack of marketing statistical data and market information. Lack of fisheries extension activities especially on developing a fishermen's marketing organization such as a fisheries co-operative and it's relationship with private companies or industry. Limited information concerning the sources of overseas market information such as fish-marketing magazines or bulletins.

c. Human Resources: The local fishermen have very low basic education, lack of knowledge and skills on fishing operations, handling, processing and in marketing. Apart from that, the fisheries extension workers only have limited knowledge on fisheries marketing including the fisheries staff who are in 11

charge of marketing development at National, Provincial and District.

d. Marketing Facilities: Lack of marketing facilities such as fish handling halls at landing sites, ice boxes, insulated fish boxes (both at the landing sites and retail areas). Lack of fish carriers to collect the fish from the fishermen's villages.

e. External Factors: External factors have a big role in the progress of the fisheries sector. The fisheries sector is part of national economy or one sector of the total economy. The growth of the fisheries sector is very much influenced by the growth of the regional or national economy, population and increase in the disposable income of the population. Lack of infrastructure such as land, sea and air transportation and the growth of investment in the regional economy are good examples.

f. Budget : Lack of a budget for enhancing fish marketing studies, improving market information systems and carry out the marketing training for the staff.

4.0 Opportunities

There are still opportunities to develop the market and marketing of small-scale fisheries either for the local, inter-island or export markets. Increasing the population by transmigration programme and other migration will increase the demand for fish in the local market. Inter-island and export markets can be developed if there are private sector companies willing to handle the catch from the small-scale fisheries on a contract basis with a mutual benefit agreement.

There is still an untapped potential for fisheries along the coast of Merauke, such as Red Snapper, Barramundi and mangrove crab.

Reportedly, a national airline will open the line from Merauke to Darwin this year. With this connection the high-value species could be exported to the Australia market.

5.0 RECOMMENDATION

5.1 Fisheries Marketing Development Dr.E.Ruckes, FAO Senior Fishery Industry Officer (Marketing) has indicated that it would be difficult, and in many cases inappropriate, to define definite guidelines as regards fish marketing development. Marketing systems have to be developed and adapted to the specific needs of a country and the economic level of development achieved. 12

In the framework of small-scale fisheries marketing development, the socio-economic condition and the socio-culture of the fishermen must first be considered and studied. Many small scale fisheries projects fail because the projects do not consider these aspects.

The project should be developed through a "bottom-up and integrated" approach, planned and implemented through an "action programme" concept.

The concept of a Small Farmers Development Programme of FAO could be applied in this case. An important aspect of development of the small-scale fishermen is to change the fishermen's attitude and the perception toward their occupation. This is needs time and patience. The marketing concept is always consumer oriented and needs an integrated programm~ and effort.

5.2 Marketing System for Domestic and Export Markets Improvement of the fisheries marketing system is not always easy work due to a lot of constraints that come from both internal and external factors. The Directorate General of Fisheries has some experience with the fisheries marketing projects.

The most important needs that must be highlighted in developing such a project are the determination of the precise approach and understanding the socio-economic and socio-cultural condition of the fishermen as fish producers and the characteristics of the market. Some ideas for enhancing the domestic market are : a. Local Market at Merauke. Institutions: Fisheries co-operative and fishermen's groups need to be established. Fisheries extension, especially on fisheries marketing, needs to be enhanced. Fisheries extension workers should live in or around fishermen's villages in order to establish a close cooperation with the fishermen. Fisheries statistics and market information needs to be improved. The guidelines for fisheries marketing analysis and extension purposes need to be drawn up. The network of fisheries marketing between the fisheries co-operative and the local fish traders or companies needs to be set up. The scheme of the proposed network is attached (Figure 1).

Infrastructure: Selected prominent fish landing sites need to be improved with simple buildings for handling and · keeping ice boxes or insulated fish boxes. Roads to the landing sites need to be improved. 14

pattern marketing cooperation network between the large fishing industries and the small scale fisheries needs to be developed. - The performance of the Laboratories for Fishery Products Quality Control and Fish Inspections (LPPMHP) needs to be enhanced. Open the airline network to Darwin, as soon as possible.

4.3 Market Information System In the broadest terms, the fisheries marketing information can be addressed to: a) government officials who are dealing with the fisheries marketing policies and programmes. b) fisheries producers such as fishermen, local traders, fisheries co-operative (KUD), inter-island traders and exporters.

Therefore, the content of the fisheries marketing information systems can be different, depending on the target groups.

The fisheries marketing information system can be constructed in a different content and scope as follows: a. Content of Market Information For Government Officials. - The prices of selected fishery commodities at 3 levels; a) fishermen, b) local market and c) wholesalers/local traders. Fishery production in selected landing places. The essential needs for fishermen such as rice, ice, kerosene, lubricants and fuel. This information is important for fishing operations (cost analysis and terms of trade analysis of the fishermen catches). A new fishery-commodity entries market. Export, import and inter-island trade of fisheries commodities. Prices of fishery commodities at selected overseas markets. b. For Fishermen, KUD and Local Wholesalers/Traders. Price of selected fishery commodities at producers, consumers and wholesalers level. Price of production input, fishing equipment and engine spare parts. List of the addresses of fish processing industries, Inter-island traders and exporters so the contact among those marketing institutions can be made. New market and fishery commodities that enter the market. Demand and supply situation of fishery commodities in interrelated markets.

Actually, all professional fish traders and fisheries industries have made intensive communication with their partners both in country and overseas in getting market information due to the better telecommunications which has been developed by the government.