Docstoc

Cap Vert_GB

Document Sample
Cap Vert_GB Powered By Docstoc
					          EUROPEAN UNION – WEST AFRICA
          AGRO-BUSINESS SECTOR MEETING




STRATEGIC EVALUATION OF THE AGRO-INDUSTRIAL SECTOR
                         -
                   CAPE VERDE




 Prepared for:   PRIMS – CDE
                 on behalf of the European Commission and
                 ECOWAS
EU/ECOWAS                                 West African Agricultural Industry Study




        This report, and the research behind it, is the work of
        SOFRECO, France assisted by a team of local
        consultants in West Africa under contract to Metra Sofres
        Ltd. of the United Kingdom.

        The report has been prepared with financial assistance
        from the Commission of the European Communities. The
        views expressed herein are those of the Consultant and
        therefore in no way reflect the official opinion of the
        Commission.




                                                                                2
EU/ECOWAS                                                                          West African Agricultural Industry Study


                                                TABLE OF CONTENTS

1. GENERAL COUNTRY DATA ........................................................................................................ 4
   1.1. KEY ECONOMIC DATA ................................................................................................................... 4
   1.2. ECONOMIC DEVELOPMENT CONTEXT ........................................................................................... 4
   1.3. THE ROLE OF AGRICULTURE, LIVESTOCK FARMING, AND FISHING IN THE ECONOMY .................. 5
2. SELECTED AGRO-INDUSTRIAL SECTORS ............................................................................. 5
   2.1. THE FRUIT AND VEGETABLE INDUSTRY ........................................................................................ 5
     2.1.1 General remarks .................................................................................................................. 5
     2.1.2 Data on crop production ..................................................................................................... 6
     2.1.3 Food processing, marketing and prices .............................................................................. 7
     2.1.4 Development prospects and constraints .............................................................................. 8
     2.1.5 Partnership needs ................................................................................................................ 9
   2.2. THE FISH INDUSTRY ...................................................................................................................... 9
     2.2.1 General remarks .................................................................................................................. 9
     2.2.2 Catches and fishing fleets .................................................................................................. 10
     2.2.3 Export market and local processing .................................................................................. 11
     2.2.4 Development prospects and constraints ............................................................................ 13
     2.2.5 Partnership needs .............................................................................................................. 14




                                                                                                                                                3
EU/ECOWAS                                            West African Agricultural Industry Study



1. General country data

1.1. Key economic data

    Surface area                                          4,033 sq km
    Population (2000)                                     440,000
    Population Growth (1994–2000)                         2.8 % per year
    GDP (2000)                                            590 Million €
    GDP / capita                                          1,341 €
    Exchange Rate                                         1 € ≈ 110 Cape Verde Escudos

    GDP by sector (2000):
        Agriculture                                      11.8 %
        Industry and Mining                              17.6 %
        Service Industries                               70.6 %

                                                  1999             2000        2001
    GDP Growth                                    +8.6%            +6.8%         -
    Rate of Inflation                             +5.0%            +0.3%         -

    External trade account (2000):
         Exports FOB                                      25 million €
         Imports CAF                                     276 million €

    Main primary product exports                          Fish Products
      Source: IBRD

1.2. Economic development context

The Cape Verde economy is characterised by its strong dependence on foreign trade, the
predominance of service industries, and the weakness of the farming sector. There are few
natural resources, and the country’s structure makes it prone to food shortages.

Despite its poor economic assets Cape Verde is the richest Sahelian country. This is due to
expatriate revenue and international aid, which together account for one third of the GDP.
Recent socio-economic progress has resulted in an increase in revenue per inhabitant, and a
decrease in the level of unemployment. Unemployment is still high, but has been gradually
decreasing (24.5% in June 2001 compared to 30.8 % in1997).

Transfers of funds from the expatriate population (of about 500 000), amounted to 120 million
US dollars in 2000. This is important for the budget and the home economy (family support,
consumer goods, and investments). The expatriate contribution is mainly in the form of bank
deposits, encouraged by an attractive rate of interest (the banks lend at 13 or 14% and offer
10% on deposit accounts in Cape Verde Escudos).

The food industry consists mainly of breweries, producers of sodas, sweets and dairy
products, and fish canneries. Other sectors of industry are under-developed (paints and
varnish, tobacco, soap and pharmaceutical products). There are two ports where ships may
refuel for transatlantic crossings: at Mindelo, on the island of São Vicente, and at Porto-
Novo, on the island of Santo Antão. The island of Sal has an international airport and
several tourist complexes. These services industries together with the expatriate revenue
form the backbone of the Cape Verde economy.



                                                                                           4
EU/ECOWAS                                               West African Agricultural Industry Study


1.3. The role of agriculture, livestock farming, and fishing in the economy

The potential for agricultural development is limited by the arid and semi-arid climactic
conditions and the area of cultivable land available (about 42,000 hectares, which is less
than 10% of the total area). Despite the uncertainties of the climate, and comparatively poor
soil, agriculture is the island’s main activity, involving more than half the population, and
contributing 15% to the GNP.

The main food crops are cultivated in the most fertile valleys, and consist of maize, sweet
potatoes, beans and cassava. Coffee, sugar cane and bananas are grown on irrigated land
for export. There is however always an agricultural trade deficit, and 80 to 90% of Cape
Verde’s food is either imported or supplied by international aid.

The livestock population has increased considerably during the last ten years. There are
currently 22,000 cattle, 110,000 goats and nearly 200,000 pigs; but the role of livestock
within the economy remains limited. There is an enormous need for technical help,
particularly with animal feeding practices.

Sea fishing accounts for 2% of the GDP and contributes to the quantity of incoming currency
(between a third and half of all export income). However, its effect on the balance of
payments is virtually negligible. The government hopes to increase the role of this industry in
meeting the islands’ food requirements. This role is already considerable, given that fish is
the primary source of protein, and that the average annual consumption is 20 kg per person.

Regarding rural development, the government continues to struggle with desertification,
preservation of water resources, and protection against soil erosion. Increasing rural
revenues is also a priority; this will mainly involve developing horticultural activities and
plantations of fruit trees. New varieties that are well adapted to the climate must be selected,
and water management, in particular more widespread use of drip irrigation systems, must
be improved. Production would be targeted at the domestic market.

2. Selected agro-industrial sectors

Despite problems with water and the marketing difficulties associated with a group of islands,
fruit and vegetables are presented as having potential for development, being a sector that
could not only help to reduce the country’s food deficit but also one that could establish a
position within niche markets. We also examine the fishing industry: there is considerable
potential to increase activity in this sector to well above the current level.


2.1. The fruit and vegetable industry

2.1.1 General remarks

With annual sales of the order of 40 million euros the fruit and vegetable sector accounts for
about 8% of Cape Verde’s GDP, and keeps 7 to 8,000 families in full time employment.
Market gardening and fruit production together account for 60 to 70% of the agricultural
industry’s contribution to the GDP.

Rainfall is a critical factor in unirrigated farming, and its extreme variability means that yields
are uncertain and unpredictable. In terms of calories unirrigated production only covers 20%
of the population’s basic requirements. Of a potential 2,500 to 3,000 hectares, about 1,750 to
2,000 hectares are currently irrigated. The irrigated areas are mainly concentrated on the


                                                                                                 5
EU/ECOWAS                                                West African Agricultural Industry Study


islands of Santiago and Santo Antão. The irrigated crops are sugar cane (about 900
hectares, or 50% of the total area), roots and tubers, fruit (bananas accounts for nearly 160
hectares) and market garden crops. This type of farming employs high level technology and
responds efficiently to market demand.

Horticulture is mostly irrigated, in the higher and more humid zones, and involves short
production cycles: brassicas, tubers (sweet potatoes, potatoes, cassava) and fruit trees
(mango, guava, tamarind, vines…). Irrigation was revolutionised in the nineties with the
introduction of drip systems. These have improved yields and reduced water consumption.

               Fruit and vegetable production according to type of crop, 1999
                          Market Gardening        Tubers                   Fruit
                          area      production1  production        area       production2
                      (hectares)     (tonnes)     (tonnes)      (hectares)       (tonnes)
                      750 to 800
Irrigated Crops                                    10 700      150 to 160
                       (2 cycles)                                                  13,000
Drip irrigation       120 to 125      18,500          -          75 to 80          (7,000
Unirrigated                                                                        bananas)
                            *                       8 400            *
Crops
* data unavailable
                                      Source: Cape Verde Arboriculture Programme, August 2001.


2.1.2 Data on crop production

The main market garden crops are brassicas (various varieties, including cabbage),
tomatoes, peppers, onions and squashes. Production levels of most of these crops have
increased in recent years; this is without doubt due to drip irrigation systems. These systems
are especially effective with tomatoes; unirrigated plants produce from 8 to 15 tonnes per
hectare, whereas drip irrigated produce 30 tonnes per hectare. Yields for cabbage increase
from 18 to 21 tonnes per hectare with drip irrigation.


                         Assessment* of the main market gardening
                                 productions (in tonnes)


              6000
              5000                                                           courge
                                                                             oignon
              4000
                                                                             chou
              3000                                                           poivron
              2000                                                           tomate
              1000
                     0
                         1996     1997        1998   1999      2000
                          Source: Cape Verde Arboriculture Programme, August 2001.


1
    Mainly irrigated.
2
    Mainly unirrigated, except for bananas.


                                                                                               6
EU/ECOWAS                                              West African Agricultural Industry Study



Market garden production was traditionally concentrated in the cold season but for several
years has been much more spread out, generating a regular supply of fresh produce for the
markets. This progress has been due to several factors, such as the introduction of better
adapted varieties (especially tomatoes and brassicas), the development of micro-irrigation,
and better crop management techniques.

Production of root and tuber crops has also increased, particularly for potatoes grown under
irrigation (+ 40% between 1997 and 2000).

                    Production of main tuber crops in 2000 (tonnes)
                         sweet potato          cassava             potato
        irrigated          3,700               3,500              3,500
        unirrigated        6,800               1,200                400
                       Source: Cape Verde Arboriculture Programme, August 2001.

Estimations of fruit production are based on the registry of fruit tree plantations that was
compiled following the 1988 census, and are thus very approximate. There is an agricultural
census in progress (2001-2002), and this will enable much more precise estimations. Total
current fruit production is estimated to be around 13,000 tonnes a year, of which 6,500 to
7,000 tonnes are bananas. Tropical fruits account about 5,300 tonnes, of which 3,000 tonnes
are mangoes, 1,000 tonnes are citrus fruits and 500 tonnes are papayas. A total of around
400 tonnes of temperate climate fruit is also cultivated, of which 250 tonnes are grapes.

The combination of tropical fruit produced at low altitudes and temperate fruit at higher
altitudes enables the domestic market to be supplied with a range of produce that varies
seasonally. In addition irrigation makes the production of seasonal fruit, such as melons and
watermelons, possible all year round. Irregularities in production have been reduced with the
introduction of new varieties (mango, avocado, and citrus fruit).

2.1.3 Food processing, marketing and prices

Supply chains for fruit and vegetables are generally short in the Cape Verde islands, with two
or three stages at most between producer and consumer (buyer/picker,
transporter/wholesaler, retailer). Transport between the islands is mainly by boat, but the
compilation of any statistics is difficult, because the type and origin of produce is not clearly
listed for transport between ports. However, the quantity of horticultural produce sent from
Santiago to the other islands appears to have practically doubled in the last ten years. The
main destinations are the islands of Sao Vicente and Fogo.

For a long time Cape Verde exported small quantities of bananas to Portugal, placing it
amongst the traditional ACP export countries. These sales completely stopped in 1993,
partly due to the poor quality of the produce. In 1996 the EU and the government of Cape
Verde decided to put into place a major programme, the “Program for the Relaunch of the
Banana Export Industry”. The aim of the programme was to export organic bananas to
Europe. The programme proved to be very instructive at an agronomic level (involving the
introduction of in vitro propagation, the more widespread use of drip irrigation, and new crop
management techniques) but attempts to export unfortunately ended in failure, due to
transport problems, competition, and the unreliable quality of the Cape Verde bananas.
Since then the government has favoured the needs of the domestic market, which are not
met by local production.

In fact Cape Verde imports 2,000 to 2,500 tonnes of fruit every year, mainly apples and citrus
fruit, and just over 11,000 tonnes of vegetables, of which 6,500 to 7,000 tonnes are potatoes,



                                                                                               7
EU/ECOWAS                                             West African Agricultural Industry Study


and 1,500 tonnes are onions. In 2001, the total imports of fruit and vegetables had a value of
766 million Cape Verde escudos (about 7 million euros). Consumption of vegetables, tubers
and fruit is estimated at 42 kg, 54 kg and 24 kg respectively, per person, per year. Demand,
particularly for tubers and vegetables, should practically double over the next 15 to 20 years.

Comparison of prices shows that since 1997 the overall supply of fruit and vegetables has
tended to meet and even surpass demand. In 2000, the variation between average prices on
different islands relative to average prices on Praia shows that Santa Antão is, price-wise,
the most attractive island (with prices 22 points lower than those in Ribeira Grande and 10
points lower than at Porto Novo), while Sal (+34 points), and to a lesser degree Sao Vicente
(+14 points), are among the less attractive. The variation from year to year of fruit and
vegetable prices has dropped over the last ten years, and stabilised around 15%. This trend
is almost certainly linked to the way that production has been more evenly spread over the
course of the year, and better distribution between markets.

Processing of fruit and vegetables consists mainly of small-scale operations. Individual
families carry out the bulk of production. There are several groups organised into
cooperatives or associations attempting a more structured and formalised production. This is
the case with the more traditional activities such as the production of alcohol (eau de vie and
liqueurs, mainly on Santa Antão), and jam and fruit purées (a group of women on San Filipe),
and even more so with the more innovative activities, such as wine making on Fogo (the Chã
das Caldeira label, and a project at Achada Grande), and soon possibly dried fruit and
bananas on Santa Antão. Well paid work is available at the local markets, and also in
restaurants, and tourist hotels (particularly on Sal).


2.1.4 Development prospects and constraints

Besides the lack of water, there are other factors, such as the division of the land,
production techniques, the marketing system, and the difficulty of gaining access to credit,
that also limit the production of fruit and vegetables.

The unsuccessful attempts to export organic bananas demonstrated that the constraints of
transport by sea have yet to be overcome, and also that international quality standards
are hard to maintain when dealing in small volumes. These problems have naturally
discouraged the national operators, who were not enthusiastic from the outset, and who
prefer the easier and equally profitable national market.
Also significant is the fact that the increase in individual consumption, the growth of the
population, and the likely development of the tourist sector, are all factors that will increase
potential for development in fruit and vegetable production. Natural resources (soil and
water) are nevertheless limited, and agricultural traditions (a preponderance of sugar cane
for alcohol production) remain firmly entrenched. Even so, storage capacity, transport
between islands and general distribution all merit improvement.

The situation is further complicated by quarantine controls on the island of Santa Antão, a
large producer of fruit and vegetables, because of phytosanitary problems (infestation of
millipedes). Fruit processing (especially the drying of bananas) would be one way to bring
the island out of its comparative isolation, and of more fully exploiting its potential. The
production of dried fruit is already planned on other islands (raisins on Fogo). There are
plenty of other possibilities to be considered for both vegetables (tomato juice, sauces etc.)
and for fruit (fruit juices, sorbets, purées, jams).

The wine-making operation at Fogo merits special attention. Impressive progress has been
made in production at Chã das Caldeira.



                                                                                              8
EU/ECOWAS                                              West African Agricultural Industry Study


                          Production of wine at Chã das Caldeira

                                         1998                 1999                  2000
Number of growers                         7                    19                    28
Volume processed (kg of
                                         4,100               24,500                35,700
grapes)
Quantity produced (litres of
                                         2,000               12,000                21,000
wine)
                                                 Source: Support Programme for Wine Sector.

Furthermore, experts have said that the market still has potential, and that there is room for a
second co-operative of a similar size to the one at Chã das Caldeira that could improve and
consolidate the efforts of the Achada Grande producers (includes Corvo and Relva).


2.1.5 Partnership needs

The need for partnership is very evident at the technical level (selection of varieties, in vitro
propagation, extending drip irrigation systems…), also for developing food processing
techniques (vinification at Fogo, drying of fruit) and for improving appearance, flavour and
food safety procedures (especially for the restaurant and hotel market). However, marketing
and financial partnerships are just as important. The existence of tangible opportunities
would without doubt accelerate the introduction of dried fruit enterprises on Santa Antão.


2.2. The fish industry

2.2.1 General remarks
The creation of the Ministry of Fisheries in January 1995 is an indication that the
development of the fishing sector has become a government priority. The ministry works with
two bodies at central level: the DGP (Direction Générale des Pêches, Fisheries Head Office)
and the CEP (Cabinet d’Etudes et de Planification, Consultancy and Planning Office), and
two autonomous institutions: the FDP (Fonds de Développement des Pêches, Fishing
Development Fund) and the INDP (Institut National de Recherche Halieutique, National
Institute of Halieutic Research). The main ideas presented in the Fourth National
Development Plan (1997-2000) are still current: balanced management of fishing resources,
support for the private sector, and institutional consolidation.

According to the estimations of the FAO, the fishing sector directly employed 13,500 people
in 1995, and generated about 15,000 further jobs in secondary sectors. Fishing is a source of
income in the poorer communities. Fish is also a major source of animal protein and is
cheaper than meat.

Most of Cape Verde’s vast Exclusive Economic Zone (734,265 km²) is very deep water, due
to the narrowness of the continental shelf. This configuration, linked with the volcanic origin
of the islands, the absence of rivers flowing into the sea, and the scarcity of rains, does not
encourage the development of biomass. The fishing grounds around the islands experience
north-westerly winds and cold currents from the Canaries, all in all offering rather limited
primary production. Potential catches are estimated at about 40,000 tonnes a year.




                                                                                               9
EU/ECOWAS                                             West African Agricultural Industry Study


                           Potential Catches in the Cape Verde EEZ

                                Potential             Maximum
                                (tonnes)              (tonnes)                  Year
Large Pelagic                    25,000                 3,901                  1991
Pelagic                      7,500 to 9,500             4,899                  1998
Demersal                      4,200 to 6,200            1,450                  1997
Lobster                         90 to 115                106                   1992
                                                     Source: FAO report on fish stocks, 2001.


2.2.2 Catches and fishing fleets

a. Volume of catches

The various tuna varieties provide an important resource. These are fished by two fleets.

 The industrial fleet is becoming obsolete and not very productive; it is mainly based on
  Mindelo, catching predominantly skipjack and yellow fin tuna using live bait. Tuna
  catches for 2000 were 1,742 tonnes.
 Local fishermen, staying close to the coastline, fish with lines for yellow fin tuna and other
  types of tuna (wahoo, smaller varieties...).

             Volume of Catches by Species and Type of Fishing (in tonnes)

         Tuna     Pelagic     Demersal     Lobster     Other    TOTAL       Local      Indust.
                                  .
1995     3,656     3,403        1,008          60       368     8,495      4,547        3,948
1996     3,682     3,757        1,253          29       434     9,155      4,912        4,243
1997     3,200     4,414        1,450          25       538     9,627      4,920        4,707
1998     2,869     4,899        1,150          27       515     9,460      5,242        4,218
1999     4,154     4,463        1,079          35       640    10,371      5,968        4,403
2000     3,936     4,823        1,314          29       719    10,821      6,977        3,844
                                                          Source: INDP, statistics bulletin n°9.

Catches of small coastal pelagic fish (e.g. horse mackerel) are equally important. These fish
are traditionally for local consumption, and also provide live bait for rod-caught tuna. Until
recently part of the catch was exported for the foreign long line boats based at Las Palmas,
but this is no longer the case for two reasons: there were quality problems with the Cape
Verde fish, and supplies from Latin American countries have become more competitive.

Demersal fish (grouper, moray eel, sar…) are fished by local fishermen all over the islands
with hand held lines in rocky areas. There is also the N/O Islandia, which, apart from carrying
out research, also practises commercial trawling, mainly over the soft seabed around Banc
de Boa Vista.

Lobster is caught by a well-known fishery, and also by local fishermen. Facts and figures
about the local activity are hard to establish. The fishery goes out to deep water, and uses
baskets at depths of more than 150 metres. The catch, mainly pink lobster, goes to the
tourist market on the islands, and to export. Local fishermen (of which there are about 400
according to FAO) seem to operate with aqualungs and nargileh, diving for the coastal
varieties, and catering primarily for the hotels and restaurants. Catches are of the order of 35


                                                                                             10
EU/ECOWAS                                                West African Agricultural Industry Study


tonnes a year. This resource seems to have been over exploited, and even to have
disappeared in certain areas (Sal Island).

b. Structure and characteristics of the fleets

In 2000 the local fleet consisted of 1257 vessels, which is slightly down on previous years.
Most are from 4 to 5 metres long, with an average of 3 to 4 fishermen per vessel, and an
average annual catch of 5,500 kg per vessel, or 1,629 kg per fisherman. A third of all catches
are landed on the island of Santiago, where 40% of the small-scale fishing workforce is
concentrated. The Mindelo fishermen are more productive, being responsible for 25% of the
local catch with only 10% of the fleet (117 vessels). In 2000 73% of local vessels were
equipped with a motor.

The number of vessels in the industrial fleet has not changed much in recent years (75 –
rather dilapidated – from 7 to 22 metres long in 2000); the local fleet is also in comparatively
poor repair. The industrial fleet consists of rod tuna boats, lobster boats, seiners using rods
and live bait to catch various varieties of tuna, purse seiners for pelagic fish and pots for
lobsters in deep water. The fleet is housed mainly in the “barlavente” region (main island:
São Vicente). The superior productivity of the Mindelo fishermen is again to be noted, both in
terms of daily catches and volume per vessel. Catches for the entire industrial fleet for 2000
are as follows:

 797 kg of fish and crustaceans for each day at sea.
 51.3 tonnes of fish and crustaceans per boat per year.
In addition to the national fleet, foreign vessels are also licensed to operate in the Cape
Verde EEZ. Cape Verde renewed its fishing agreements with the European Union in June
2001. Compensation for these last renewals, of 2.04 million euros, will be spread over three
years (from July 2001 to June 2004). Fishing agreements have also been signed with
neighbouring countries (Senegal, Guinea, Guinea-Bissau, Mauritania and Angola).


2.2.3 Export market and local processing

a. Exports

The industrial fleet’s catch was, until recently, almost entirely exported.


                      Exportations de produits halieutiques
                                   (en tonnes)

             3,500
             3,000
             2,500
             2,000
             1,500
             1,000
              500
                0
                     1996    1997     1998       1999    2000     2001

                                                        Sources: INDP / Customs.



                                                                                              11
EU/ECOWAS                                             West African Agricultural Industry Study



The decline of exports during the nineties became worse in 2000 when, due to the absence
of sanitary controls, access to the European market was denied. The embargo on Cape
Verde fishing products is still in place. The government is currently trying to relaunch exports
by introducing incentive measures, tightening sanitary controls, strengthening institutional
protection of the EEZ , and improving legislation to meet international requirements. Attempts
to redeploy sales to West Africa and the USA, which were announced by industry
commentators, do not seem to have been successful.

The European market (in particular Spain and Portugal) was the traditional destination for
Cape Verde fish exports. Quantities exported to this market in 2000 and 2001 were,
however, only a fraction of what they have been in the past.


                                   Fish Exports in 2001,
                      by volume and by value, according to destination
                            Volume                       Value
                                                                                    CVE/kg
                       kg               %          CVE               %
Portugal              22,696                      1,355,497              9%             59.7
                                     34%
Senegal                9,360           14%        9,954,399             66%           1,063.5
Spain                 34,190           51%        2,945,548             20%              86.2
USA                      799            1%          744,876              5%             932.3
TOTAL                 67,045          100%       15,000,320            100%            223.7
                                                                              Source: Customs.


Lobsters are the most highly valued catch: in 1998 they accounted for only 1% of the volume
exported, but for 39% of its value. Similarly, the 9.4 tonnes of fish exported to Senegal in
2001 were mainly lobsters, and accounted for 66% of total exports, whereas the 56.4 tonnes
exported to Spain and Portugal were mostly bait for boats at Las Palmas and, in terms of
value, accounted for less than 30% of total exports.

b. Local processing

Local processing consists principally of canneries, some of which have closed since the
embargo on exports to the EU.

                                    Cannery Production
        Year             1996         1997        1998                1999
        Tonnes           332          372         284                 237
                                                                      Source: INDP.

There are currently four businesses with land-based fish processing operations:

   SUCLA (Soc. Ultramarina de Conservas, Lda) at Tarrafal (São Nicolau Island) ;
   FRESCOMAR (Luso-Cabo Verdiana de Conservas SA) at Mindelo ;
   SALSESIMBRA, Lda at Palmeira (Sal Island) ;
   J.A. Nascimente at Santa Maria (Sal Island).

The operations at São Nicolau and at Santa Maria process fresh fish, filleting and canning
principally or exclusively for the national market. The other two focus more on the export
market, selling mostly live lobsters and fresh fish to Europe. These businesses have
obviously been suffering since 2000 from the effects of the embargo.


                                                                                             12
EU/ECOWAS                                            West African Agricultural Industry Study



In 2000, the combined turnover of the three largest businesses was of the order of 200
million CVE (2 million euros). All of these companies are applying for grants for
refurbishment in order to obtain agreement for export to the EU. The operation at Santa
Maria is a special case. It is currently located on prime land in a tourist zone that has long
since been deserted by fishermen. Furthermore, the equipment is very run down. The owner
plans to relocate the entire operation to the neighbouring area of La Palmeira.

There was until recently a factory at Mindelo for canning anchovies, which was partially
financed by the BEI. Unfortunately it failed due to a lack of professional management.


2.2.4 Development prospects and constraints

a. Sea fishing

Potential production is 3 or 4 times that of current levels. A major factor is the dilapidated
state and poor performance of the national fleet. The deep freezing and processing
industries are experiencing production and sanitary control problems, they are however keen
to improve standards, and keen to re-establish export agreements with the European Union.
The relocation of J.A. Nascimente (Santa Maria) could well be an opportunity to create a
totally modern and highly productive operation.
Trade and distribution between the islands leaves much to be desired, as do the transport
facilities for export. Infrastructures at the ports have either been renovated or are going to
be renovated, for example: the construction of a fishing quay at Mindelo; the construction of
small fishing quays on the islands of Santiago, Santo Antão and São Nicolau; the extension
of the ports at Boavista and Maio.

Tax measures and incentives have been planned for businesses in the fishing, processing
and marketing sectors. Legislation concerning fishing licences is being revised, and
mechanisms to strengthen taxation are planned. However, there are limitations linked to a
lack of training within the profession, to poor distribution and marketing practices, and to
inefficient checking and surveillance systems.

b. Aquaculture

In recent years the Cape Verde   government, through the INDP and with the co-operation of
China, started an aquaculture    project. The project involved the raising of bivalves and
premium value fish, and also      the creation of a “Live Bait Centre”. Unfortunately the
programme was not completed,     due to technical and organisational problems, and a lack of
funds.

The maintenance and storage of pelagics (e.g. horse mackerel) at the juvenile stage were
causing technical problems and, most importantly, the economic viability of such an
operation was never confirmed. Two species of bivalve showed signs of potential
(Creassostrea gigas and M. smargdinus). The larvae and juvenile stages were reached
successfully in captivity, but trials in the sea failed.

As in December 1999, there would still seem to be many unknowns concerning several
aspects of the project, such as actual breeding possibilities, perfection of techniques,
ecological risks and socio-economic effects.




                                                                                           13
EU/ECOWAS                                             West African Agricultural Industry Study



2.2.5 Partnership needs

Investment, modernisation and training are all essential for the improvement of the local fleet.
This would not only increase the number of fishing vessels but also productivity. The same
input is equally vital for the land-based operations, particularly in their current situation.
These operations need partnership to help with technical issues (the running of the
factories), and also with commercial and financial issues.




                                                                                             14

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:3
posted:7/21/2011
language:English
pages:14