Sonmiani: Fish Marketing Chain and Economic Analysis of Indebtedness of Fisherfolk By Waqas Khan Burki For WWF Pakistan July 2006 1 Acknowledgements I am thankful to the WWF team for their support and valuable input to conduct the research and analysis in this report. Special thanks to: Dr. Ejaz Ahmed, Deputy Director General, WWF-Pakistan, Karachi Babar Naseem Khan and his team, Head Program Development, WWF-Pakistan, Lahore Ghulam Qadir Shah, Manager Conservation-Sindh, WWF-Pakistan, Karachi 2 Table of Contents 1. INTRODUCTION................................................................................................................................... 5 2. STUDY OBJECTIVES............................................................................................................................. 5 3. METHODOLOGY................................................................................................................................... 6 3.1 HOUSEHOLD SURVEYS .......................................................................................................................... 6 3.2 FOCUS GROUP DISCUSSION ................................................................................................................... 8 3.3 STAKEHOLDER INTERVIEWS.................................................................................................................. 8 4. LITERATURE REVIEW ........................................................................................................................ 9 5. SONMIANI............................................................................................................................................. 10 5.1 FISHING INFRASTRUCTURE.................................................................................................................. 10 5.2 FISHING FLEET ................................................................................................................................... 12 5.3 FISHING GEARS................................................................................................................................... 12 6. FISH MARKETING IN SONMIANI .................................................................................................. 13 FIGURE 6.1 FISH MARKETING/ SUPPLY CHAIN SYSTEM AT SONMIANI ...................................................... 15 7. SONMIANI FISHERMEN................................................................................................................... 16 7.1 CATCH VOLUMES ................................................................................................................................16 7.2 DURATION AND COST OF FISHING TRIPS ............................................................................................ 17 7.3 REPAIR & MAINTENANCE COSTS......................................................................................................... 17 7.4 CLASSIFICATION OF FISHERMEN.......................................................................................................... 18 7.4.1 Labourers ...................................................................................................................................... 18 7.4.2 Single boat owners............................................................................................................................ 19 7.4.3 Multiple boat owners ........................................................................................................................ 20 7.5 FISHERMEN INCOME ........................................................................................................................... 20 7.6 FISHERMEN INDEBTEDNESS ................................................................................................................ 21 7.6.1 Capital loan ................................................................................................................................... 22 7.6.2 Operational loan.............................................................................................................................. 22 7.6.3 Subsistence loan............................................................................................................................... 22 7.6.4 Emergency or other loans ................................................................................................................... 22 7.7 ROLE OF OUTSIDERS ........................................................................................................................... 23 7.8 KEY ISSUES OF FISHERMEN IN MIANI-HOR ......................................................................................... 23 8. SONMIANI MIDDLEMEN ................................................................................................................. 25 8.1 CLASSIFICATION OF MIDDLEMEN........................................................................................................ 25 8.1.1 Company Agents ............................................................................................................................. 25 8.1.2 Agents of Mole-Holders .................................................................................................................... 25 8.1.3 Beoparis/Traders ............................................................................................................................ 25 8.2 MIDDLEMEN INCOME & PROFITS........................................................................................................ 26 8.3 PROS & CONS OF MIDDLEMEN IN FISH MARKETING........................................................................... 29 9. PROCESSORS/EXPORTERS.............................................................................................................. 31 10. CASE STUDY: SHRIMP (JAIRA TYPE) ........................................................................................... 32 11. INTERNATIONAL BEST PRACTICES........................................................................................... 33 11.1 MARINE STEWARDSHIP COUNCIL (MSC) ........................................................................................... 33 11.2 MICRO-FINANCE IN BANGLADESH – BEST PRACTICE......................................................................... 34 12. INTERVENTION APPROACH ........................................................................................................ 36 3 13. BUSINESS PLAN: SONMIANI FISHERFOLK DEVELOPMENT COOPERATIVE (SFDC) .37 13.1 MISSION STATEMENT ........................................................................................................................ 38 13.2 STARTUP COSTS ................................................................................................................................. 38 13.3 MANAGEMENT STRUCTURE ............................................................................................................... 39 13.4 FINANCIAL PLAN............................................................................................................................... 39 13.5 BENEFITS TO FISHERFOLK ................................................................................................................. 41 ANNEXURE - I ......................................................................................................................................... 42 A. FISHING: GLOBAL TRENDS................................................................................................................... 42 B. PAKISTAN: MARINE FISHERIES OVERVIEW ........................................................................................... 45 C. PAKISTAN POLICIES.............................................................................................................................. 47 D. PAKISTAN FISHING INFRASTRUCTURE.................................................................................................. 48 E. FISHING FLEET & FISHING GEAR ......................................................................................................... 50 F. FISH MARKETING SYSTEM (IN CASE OF KARACHI HARBOUR) ............................................................... 52 G. FISH SUPPLY CHAIN ............................................................................................................................. 53 H. USES OF FISH CATCH (DISPOSITION).................................................................................................... 54 I. FISH EXPORT......................................................................................................................................... 55 J. KEY ISSUES............................................................................................................................................ 56 ANNEXURE - II........................................................................................................................................ 58 STUDY TERMS OF REFERENCE (TORS) ..................................................................................................... 58 ANNEXURE - III ....................................................................................................................................... 59 A. FISHERMAN SURVEY QUESTIONNAIRE: ................................................................................................ 59 B. MIDDLEMAN SURVEY QUESTIONNAIRE:..............................................................................................