The Government of Indonesia assisted by the United Nations Development Programme and the Food and Agriculture Organization of the United Nations, has been engaged in the project Seafarming Development (INS/81/008) whose main objectives are to develop seafarming in the coastal waters of Indonesia.
As part of the project operations, FAO assigned Richard Elsy as Marketing Consultant from 22 August to 14 December 1986. The original terms of reference were as follows:
To analyse present supply and demand, past trends and future potentials for selected fishery products in selected areas (selection to be made in concurrence with the Project Manager).
Elaborate a strategy (objectives, activities, inputs, outputs) to realize the market potential, including an analysis of appropriate handling, processing operations, equipment and infrastructure requirements.
To propose suitable arrangements for implementation of the market development scheme, particularly with regard to the participation of the private and public sectors.
The report follows ten weeks of field research in eight provinces and includes a four-day visit to the INFOFISH centre in Kuala Lumpur.
While much of the field work in Indonesia has centred around the existing landing sites and marketing systems for marine fish and some freshwater farmed products, it seemed more appropriate to look at the Seafarming Development Project in terms of the shrimp industry rather than the marine capture fishery and marketing arrangements. This industry has readily predictable and manageable levels of production and is export-oriented. There will be a need to attract levels of management skills and investment not available in the fish trade, with the exception of the shrimp and tuna sectors.
While the Directorate General of Fisheries and the provincial Dinas Perikanan were able to provide many data on production, prices and export records, it is of limited usefulness as one is effectively considering a new business. Trade sources, particularly in the finfish and seaweed export sectors, proved very valuable as did the brief visit to INFOFISH.
Meetings were arranged with a number of businesses outside of the small-scale fisheries industry and useful information resulted.
