Value chain study of fish, fish seed and fish feed at Malkangiri district of Odisha.

1. Value Chain Analysis
of Fisheries
Based on Rapid Assessment
Submitted by:
Prabeen Kumar Singh
# +91 9403935423
Access Livelihoods Consulting India Pvt. Ltd.

2. Flow of presentation
Value chain of fishChapter1
Stakeholder analysisChapter2
Community based
hatchery
Chapter3
Community based feed
manufacturing
Chapter4
2

3. District profile
District Block GP Village
Malkanagiri
Kallimela 21 106
Khairaput 9 95
Korkunda 11 240
Kudmulgumma 11 221
Malkanagiri 13 162
Mathili 20 168
Podia 10 52
Total 7* 95 1044
3
*CP has presence in all blocks but not in a compact area

4. Area of intervention
4

5. Commercial bank
Govt.Department
Market
Inputsupply(Seed)
Too far and difficult to access
Difficulttoaccess
Local market &
district market
Highcostofseed
Fish farmer
Resource mapping
>20 km
>50 km
20 km
5 km
5

6. Time line for fish supply chain
0.5 days6 - 8 months 0.5 days
Hatcheries-
Fingerling
P= Rs.300-600/Kg
Farmer
P= Rs.100-120/Kg
Vendor
P=Rs. 110-180/Kg
Consumer
2 months
6
Total life: 8 – 10 months

7. Fish seed supply chain
Hatcheries
(Rs.300-600/Kg)
Farmer
Govt. Dept.
(Rs.300/Kg)
Farmer
Hatcheries
(Rs.500-600/Kg)
Vendor
(Rs. 1500-1800/kg)
Farmer
Hatcheries
(Rs.300/Kg)
Govt. Dept.
(Rs. 300/Kg)
Farmer
Supplier
(Rs.250/Kg)
Hatcheries
(Rs. 500-600/Kg)
Vendor
(Rs. 1500-1800/Kg)
Farmer
7
Most active

8. Fish Supply Chain
Brood
Seed&
Inputsupply
Nursing&
Growing
TradingEnd
Market
Brood development at hatcheries
Hatcheries – fingerling
(N= 5-7 large
& 30-40 small, P= 300-600/kg)
Seed vendor (N=100,
P= Rs500-1800/kg)Govt. Dept.
(P=300/kg)
Fertilizer & feed
Supplier
Individual farmer
(N= 751 P=Rs. 100/kg)
Community pond
(N= 20 P= Rs.100/kg)
Hatcheries-
Fish rearing
(Rs.100-110/kg)
Fisherman – 4 wage labor
(Rs.750/hr + 4kg fish)
Panchayats
(Rs200-2000/yr)
Fish vendor
(P= Rs.120-150/kg)
Hotels
(N=5, P=115/kg)
Defense
(P=Rs. 115/kg)
Family
External supplier
(2 truck in a week)
8

9. Supply chain gap
9
# Particulars Gap
1 Brood development -Unavailability of high yielding variety brood
- Unavailability of technical person
2 Seed & Input supply -Quality seed availability
- Mortality during transportation
- High yielding variety
3 Nursing & Growing -Productivity gap
- Lack knowledge for fish rearing & pond
maintenance
- Unavailability of improved feed material
4 Trading -Lack of storage facilities
- Unavailability of ice
- Fresh fish are available for small period of time
5 End consumer -Unavailability of fresh fish around the year

10. Value chain analysis
10
Rs. 1
(2%)
Rs. 54
(90%)
Rs. 5
(8%)
Hatchery
Farmer
Vendor
End consumer
Rs 60 for ½ kg
-Per fingerling cost of Rs 1
- 2-3 month old
- Supplied to the farmer by the middle man
- Farmed rear fish for 5 – 6 months
- 1 fingerling gain weight of 500 gm
- No intensive stocking & feeding
-Minimum 30% mortality
- Compel to sell within a day
- Available variety- rohu, catla & carp
- Most sell from the market

11. Available fish vendor in local market
At Malkangiri town40-50 Vendor
At Govindpalli15-20 Vendor
At Guma10-15 Vendor
At Ballimela10-15 Vendor
At Sillero10-15 Vendor
At Chitrakonda3-5 Vendor 11

12. Fish feed
Rice Husk
@ 5% wt. of
fingerling
Groundnut
cake @ 5%
wt. of
fingerling
Azzola &
aquatic
weed
Water
hyacinth
12

13. Consumer preference
Size (>1kg) Disease free
Fresh
(A day old)
Preferred variety
(Rohu, Catla & Carp)
13

14. Roles and responsibility of value chain players
# Actors Roles and responsibility
1 Pond owner - Fish rearing
2 Fisherman -Work as wage labour for fishing
-Own fishing net
-Also work as fish vendor
3 Seed Vendor -Supply fingerling at door step
4 Fish vendor -Purchase fish from pond owner
-Do fishing as wage labour
-Own fishing net
-Chain intermediaries between producer and
consumer
5 Hatcheries - Availability of fish seed
14

15. Risk factor for value chain player
# Actors Risk (qualitative & quantitative)
1 Pond owner -Very rarely (once in a decade) disease & poisoning
effect production
-Mortality
-Low/high rainfall effect fish growth
2 Fisherman - Sometime accident occur during fishing
3 Abundant vendor -No storage facilities
-Customer prefer to buy fish bigger than 2 kg
4 Seed supplier -Unavailability of transportation facilities
-Mortality
5 Hatcheries -Technical labour availability
-Large infrastructure
-Low/high rainfall
-Disease
-Medical facility
15

16. # Institution Role and responsibility
1 NGO Extension services, linkages with government
department and handholding support to fish
farmer in seed and feed purchase
2 Govt. Line department
(district/block)
Schemes for fisherman, fish farmer and
marketing
Extension services
Fish seed supply
3 Private player- seed supplier Supply of fingerling and yearling
4 PRI Auction of community pond
5 Banks Finance for each value chain player on
mortgage and margin money
Roles and responsibility of Institutions
16

17. Situation of financial sector in fisheries
Types of
finance
provision
Value chain
actors
targeted
Product details Competitive strength Competitive weakness
Commercial
banks
Farmer General agriculture
loan on mortgage
of land & down
payment
Strong organization,
enough liquidity,
transparent & uniform
interest rate
High documentation &
low accessibility
MFI Farmer,
Fisherman &
Fish vendor
Smaller loan,
repayment of less
than 1 year
Minimum document
required, easy
accessibility, door service
High interest rate, low
transparency and
strong monitoring
SHG Farmer Smaller loan,
repayment of less
than 1 year
No document & easy
accessibility
High interest rate, small
loan & less liquidity
Shopkeepers Fisherman Small loan for
purchasing assets
No document & easy
accessibility
High interest rate, small
loan & less liquidity
17

18. Constraint for fish farmer
Low productivity (gain weight.
for 500 to 750gm per fish)
Fisheries
Poor extension facilities
Available water for fishing -
for 6-8 months
No access of financial institution Poor quality available fish seed
Unavailability of technical staff
No scheduled fish feedingPoor pond maintenance
Small pond size (0.5 to 2 Acres)
18

19. SWOT
Strength Weakness
Opportunity Threat
• Large market
• Large number of ponds in
surrounding (about 5000)
• Tool for poverty elevation &
livelihood
• Potential source of nutrition and
food security
• Well established local market for
fish
• Highly perishable product
• Unavailability of storage facility
• Water is available for only 5-6
months
• Quality seed
• Yield gap of pond
• Supply gap
• Growing demand of local as well
as national level
• External fish supply
• Lack of service delivery &
technical person
• Climate change affects fish
production
• Theft of fish from pond
19

20. Status of fisheries
Socioeconomic
Productivity
20
A
B
C
D
Low High
High

21. Status
21
Matrix Socio-
economic
Productivity Remarks
A Low Low Most of the farmers are in matrix A
because fisheries are treated as
complementary source of livelihood,
less focus is given and productivity is
low.
B Low High Small number of fisher farmers have
high productivity but they doesn't treat
this as source of livelihood
C High Low There are some farmers who treat this
as source of livelihood but productivity
is low
D High High Very limited number of farmer treat
fishery as major source of livelihood
with appropriate productivity

22. Recommendation
• Since per acre productivity of fish is very
low. It is required to work for increasing
productivity.
• As per the rapid assessment it is observed
that farmer gain 90% price of fish.
• Availability of quality fingerling is a crucial
problem. So, it is recommended to
establish community based hatcheries.
• The production cost of one fingerling is Rs
0.76 and selling price is Rs 1. 22

23. Recommendation
23
• For intensive fish rearing near about 75% of
total input is incurred in feeding.
• As per calculation it is observed that if feed
is supplied to 200 acres than the producer
organization can make Rs. 6 lakhs in a 10
months of operation.
• So, community based feed production is
most appropriate enterprises.

24. Recommendation
• For taking community based enterprises
we are also required to work on compact
population for scalability
24

25. Suggested community organization
25
Producer company
Harvesting net
hiring
Hatchery Feed processing/
Packing
Common Interest Group (10-15 farmers)
Financial
Institution-
Banks/
Govt. Dept.
Debt-
Working
Capital/Fixed
Asset
Farmers
Saving
/Credit
Farmers
Share
Capital
Share
Capital
Tech.
Services
Tech.
Services
Market
Fish
Input
Fish
Input Money
Money

26. Better fish production

27. Integrated fish farming system
• Fish farming with agriculture
• Horticulture-fish system
• Mushroom-fish system
• Seri-fish system
• Livestock-fish system
• Pig-fish system
• Poultry-fish culture
• Duck-fish culture
27

28. For best production
28
Feed
management
Reduce
chemical
usage
Soil water
management
(pH)

29. Detection of pond water quality
• Clear water indicates very low or absence of
biological production- not fertile enough and
the fish will not grow well in it.
• Muddy water (clay particle), fish can have
their gills blocked by the soil particles and
this can result in death.
• Deep green water indicates over-production
of planktons that serve as food for fish but
occur as a result of application of more than
enough fertilizer, manure or nutrient rich feed
to a pond
29

30. Cont.…
• When a fish pond gives an offensive odor,
it indicates pollution of pond water due to
excess food stuff in the pond, inflow of
polluted water and application of
chemicals.
• In a stocked fish pond, if a farmer notices
the fish always struggling at the pond
water surface to get oxygen, then there is
low dissolved oxygen content in the water
30

31. Suggested water quality for pond
# Parameter Acceptable
range
Desirable
range
Stress
1 Temperature (oC) 15-35 20-30 <12,>35
2 Turbidity (cm) 30-80 <12,>80
3 Water colour Pale to light
green
Light green to
light brown
Clear water,
Dark green &
Brown
4 Dissolved oxygen (mg/L) 3-5 5 <5, >8
5 CO2 (mg/L) 0-10 <5, 5-8 >12
6 pH 7-9.5 6.5-9 <4, >11
7 Alkalinity (mg/L) 50-200 25-100 <20,>300
8 Hardness (mg/L) >20 75-150 <20, >300
9 Plankton (No./L) 2000-6000 3000-4500 <3000, >7000
31

32. Stocking ratio
# Species 3-species 4-species 6-species
1 Catla 4.5 3.0 1.5
2 Rohu 3.0 3.0 2.0
3 Mrigal 3.0 2.0 1.5
4 Silver carp - - 1.5
5 Grass carp - - 1.5
6 Common carp - 2.0 2.0
32

33. Species feeding habit & zone
Species Feeding habit Feeding zone
Indian major
carp
Catla
Zoo plankton
feeder
Surface feeder
Rohu Omnivorous Column feeder
Mrigal Detritivorous Bottom feeder
Exotic carps
Silver carp
Phytoplankton
feeder
Surface feeder
Grass carp Herbivorous
Surface, coloumn
and marginal
areas
Common carp
Detritivorous/Omniv
orous
Bottom feeder
33

34. Manual feeding
34
Broadcasting Feeding frame

35. Mechanical feeding
35
Demand feeder Automatic feeder

36. Golden rule for fish feeding
• Rule: 1 Always feed fish at same time and
place
• Rule: 2 Never overfeed the fish
• Rule: 3 Do not feed on harvest day
• Rule: 4 Regulate feed quantities at cold
season
36

37. Producing of feed pellets
• Particle size of ground ingredients should
be uniform.
• Measured ingredient should be mixed
thoroughly in desired proportions.
• Particle size of pellets for most fish range
from 2mm-9mm in diameter
• The pallet may be for floating type for
surface feeder or sinking types for bottom
feeder
37

38. Community Based
Hatcheries

39. Hatching process
6 hrs.
>1 yr old 2-3 days
2-3 months
2-3 hrs
1 yr
39

40. Timeline for fish raising
Actions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Promoting fingerling supply
Planning Developing
nursery network
Hatchery Condition
bloodstocks
Spawning
Nursing Seed to farmer with
nursing ponds
Fingerling transport Fingerling to farmer
for raising
Raising fish
Fish raising Raising fish Raising fish
40

41. Government subsidy and schemes
• A 40 % subsidy on the construction cost of
hatcheries – without the loan
• 50% subsidy when it is constructed on loan
• 100% for pond digging from MGNREGA
• 1 lakh subsidy for vehicle purchase
41

42. 42
Size in mm
Age (in
days)
% of
biomass
Size of fish
(in gm)
Feed (in
gm/day)
40-45 1-10 days 4% 1 0.04
45-50 11-20 days 4% 2.5 0.1
50-55 21-30 days 3% 5 0.15
55-60 31-40 days 2.50% 8 0.2
60-70 41-50 days 2.50% 10 0.25
70-80 51-60 days 2% 15 0.3
80-100 61-70 days 2.50% 20 0.5
Fingerling feeding schedule
Source: Orrisa Watershed Development Mission

43. Assumption
• Total fingerling production will be 10 lakhs
• The mortality rate at the hatchery will be
20%
• Human resource will be consist of one
technical person and 6 non technical
people
• Fingerling business is from 4 to 5 months
only
43

44. 44
# Fixed asset Unit Quantity Rate (in Rs.) Total (in Rs.)
1Brood unit No. 1 15,000 15,000
2Larva collection unit No. 1 5,000 5,000
3Larva rearing unit No. 2 15,000 30,000
4Bore well with motors No. 1 1,00,000 1,00,000
5Pipeline fitting No. 1 5,000 5,000
6Pond No. 2 50,000 1,00,000
7Office No. 1 20,000 20,000
8Harvesting net No. 1 20,000 20,000
9Happa (small net) No. 5 5,000 25,000
10Weighing machine No. 1 1,000 1,000
11Land Acre 2 40,000 80,000
Sub total 4,01,000
Fixed investment

45. 45
# Recurring cost Unit Quantity
Rate (in
Rs.)
Total (in
Rs.)
1 Brood fish No. 15 200 3,000
2 Medicine No. 1 2000 2,000
3 Feed Kg. 16150 15 2,42,250
4 Pond maintenance
Fertilizer Kg. 50 10 500
Lime Kg. 100 5 500
Micronutrient fertilizer Kg. 2 250 500
Bleaching powder Kg. 5 30 150
5 Packing bag (plastic) Kg. 10 100 1,000
6 Oxygen litre. 100 50 5,000
7 Depreciation (@5%) 32,100
Sub total 2,87,000
Recurring Cost

46. 46
Expenses
# Expenses Amount (in Rs.)
1Recurring 2,87,000
2Human resource 3,24,000
Total expense 6,11,000
1Total fingerling production (in no.) 10,00,000
2Fingerling ready to sell (mortality @ 20%) 8,00,000 *
3Cost per fingerling (in Rs.) 0.76
*This will serve for at least 200 acres of ponds

47. 47
Income
# Income Amount (in Rs.)
1Number of fingerling sold 8,00,000
2Selling price per fingerling 1
Total cash in flow 8,00,000
Net gain 1,89,000

48. Community Based Feed
Manufacturing

49. 49
1. No feed or fertilizer input: depend on natural productivity
2. Fertilization: Organic fertilizers, green manures (fresh plant
cuttings), fresh or composted agricultural by-products. This feeding
strategy is typical of extensive and semi-intensive farming systems.
3. Supplementary diet feeding: The natural productivity alone
cannot sustain adequate fish. Supplementary feeds usually consist of low-
cost agricultural/animal by-products, as single food item or the use of a
combination of different feed items in the form of a feed mash or pellet.
This feeding strategy is typical of a semi-intensive farming system.
Existing feeding practices

50. Feeding process
50
A. Broadcasting: Most preferred method of
feeding
B. Bag feeding: Nowadays this has been
promoted and the farmer is showing good
response
C.Tray feeding: This method is unknown to the
farmer.
D.The frame is feeding: Unknown to the farmer
E. Automatic feeder: Unknown to farmer

51. Feeding rate, frequency & timing
51
• Feeding rates and frequencies are in part a function of fish size.
• Small larval fish and fry need to be fed a high protein diet frequently and
usually in excess.
• As fish grow, feeding rates and frequencies should be lowered, and
protein content reduced.
• Generally, growth and feed conversion increase with feeding frequency.
• Factors affecting feeding rates of fish - time of day, season, water
temperature, dissolved oxygen levels, and other water quality variables.
• During the winter and at low water temperatures, feeding rates of warm
water fishes in ponds decline and feeding rates should decrease
proportionally.
• Feed acceptability, palatability and digestibility vary with the ingredients
and feed quality.
• Farmers can calculate optimum feeding rates based on the average size
in length or weight and the number of fish in the pond
• Farmed fish typically are fed 1-4% of their body weight per day.

52. Feed requirement
52
Age (in days)
Rice husk (in
Kg./acre)
Oil cake (in
Kg./acre)
7 8.4 8.4
14 16.8 16.8
21 25.2 25.2
28 33.6 33.6
56 168 168
84 168 168
147 126 126
182 105 105
245 252 252
Total 903 903

53. Assumption
• Rice husk will be purchased from local
villages and oil cake will purchased from
out of state
• The ratio of husk & oil cake will be 50:50
• All mixing and packing work will be manual
• Per feed requirement will be 903 Kg of rice
husk and 903 Kg of oil cake
53

54. Fixed investment
54
# Fixed cost Unit Quantity
Rate (in
Rs.)
Total (in
Rs.)
1 Packing machine No. 5 500 2,500
2 Mixing tub No. 5 500 2,500
3 Weighing machine No. 5 1,000 5,000
4 Table No. 1 500 500
5 Chair No. 4 200 800
6 Fan No. 2 1,000 2,000
Sub total 13,300

55. Raw material
55
# Material cost Unit Quantity
Rate (in
Rs.)
Total (in
Rs.)
1 Rice husk Kg. 1,80,600 3 5,41,800
2 Oil cake Kg. 1,80,600 10 18,06,000
3 Packing bag (1kg plastic bag) Kg. 100 150 15,000
4 Gunny bag No. 1,000 10 10,000
Sub total 23,72,800

56. 56
Expenses
# Expenses
Amount (in
Rs.)
1 Office maintenance/Administrative cost 1,09,000
2 Material cost 23,72,800
3 Human resource 5,25,000
Total 30,06,800
1 Total production (in Kgs.) 3,61,200
2 Production cost (in Rs./Kg) 8.32

57. 57
Income
# Income
Amount (in
Rs.)
1 Selling price (in Rs./Kg.) 10
2 Total quantity sold (in Kg.) 3,61,200
Total income 36,12,000
Net gain 6,05,200

58. Thanks!