Diagnosis and Activities for the Development of the Fishery Sector in Teluk Dalam /South Nias

1. Diagnosis and Activities for the Development of the Fishery Sector in Teluk Dalam /South Nias

2. Identify, with a rapid appraisal, the main strengths and weaknesses of a local economy, sector or value chain(duration: 1 - 2 weeks) Identify options for practical activities to strengthen the competitiveness of firms -- Criteria: feasible with local resources quickly implementable (starting next week) quick, visible results (with 3 months) What is the objective of PACA?

3. Preparation: *Organisation *Advance Info Interviews HypothesisWorkshop Kick-off Workshop Presentation Event Way-forward Workshop Imple- mentation Fieldwork (11-20/6) Mini-workshops PACA-Exercise (11-23/06) PACA-Project What is the sequence of activitiesin the PACA Exercise in South Nias? Results- Workshop: Diagnosis + Proposals 15.06. 23.06onwards 21./22.06 23/06

4. Kick-off workshop (15 June 2006) Interviews with businesspeople and stakeholdersin Nias and Medan (11 – 20 June ) Mini-workshops with Fishermen (16 June) Fish Farmers (16 June) Local Fish Traders (19 June) Boat Owners (20 June) Supporting Institutions (20 June) Internal Results Workshop (21-22 June 2006) Presentation Event (23 June) Way-forward workshops (from 23 June onwards) What have we been doing?

5. Kick-off Workshop

6. Interview

7. Interview

8. Mini-Workshop

9. Mini-Workshop

10. What are the fishery value chains mainly considered? • Fish Net / Bagan Fishing Products • Rope / Rawe Fishing Products • Lobster Product • …and their supporting structures

11. Analysis of the Fishery Sector in Teluk Dalam

12. Net / Bagan Fishing

13. Fish Net / Bagan Fishing Products Value Chain Con-sumption Trans- formation Selling Collection Production Input Boat Owners Net Fishers Collectors Local Market Traders Local Households Ice Factory Bagan Fishers Fuel Depot Processor: Fish Salter Salted Fish Traders Restaurants / Rice Stalls Electricity Equipment Fish Farmers Fishing Equipment Fishermen (non-net) Ransom Howu Howu Foundation Local Ports Head of Port Dep. Fishery District Office Dep. Industry Marine Security

14. Net / Bagan Fishing Strengths (1) Ransom shop with good customer base Self-help initiatives to produce home-made ice Private capital Availability of specific bagan equipment and net supply shops Increasing catches Relatively short working hours Fishing location is close by Good cooperation among boat crews Collectors take any amount of fishermen’s catches Little competition in the processing sector

15. Net / Bagan Fishing Strengths (2) Small scale salting business in Teluk Dalam Fish catchesnot fully bought by local traders can be sold to local processors (salting) Fishes can be sold both in markets or around villages Continuously high demand from consumers, restaurants, fish farmers etc.

16. Net / Bagan Fishing Weaknesses (1) Limited fuel supply Large capital needed to buy equipment No one takes the business opportunity of establishing an ice factory Lack of rowboats and canoes after the tsunami No fishing equipment shops that specifically serve all the needs of bagan ships Traditional fishing equipment In need of computers / satellite equipment The fish price is cheap due to over-supply Decreasing number of catches due to environmental damages

17. Net / Bagan Fishing Weaknesses (2) Collectors are lacking equipment (boat, ice boxes) Collectors are lacking cold fish storage Decreasing quality of fishes Low human resource skills in business management Very limited processing activities (merely drying and salting) No fish auction places available The products can only be sold for local market consumption

18. Rope / Rawe Fishing

19. Rope / Rawe Fishing Products Value Chain Con-sumption Distribut-ion Processing Selling Production Input Boat Owners Shipping Business Sibolga Exporters Collectors Ice Factory Fishermen Fish Drying Salted. Fish Trader Medan Local Market Fuel Depot Fish Farmers Restaurants Spare Parts Teluk Dalam Local Market Local Collectors Fishing Equipment Ransom Port Howu Howu Foundation Boat Aid Department of Fishery Head of Port Dep. Industry Marine Security Dep. Tourism Tax Department

20. Rope / Rawe Fishing Strengths High reliance on ice supply to preserve the fishes Fishers are able to traditionally mark the fish locations Unsold catches can be processed into salted fish Export quality fishes High selling prices achieved, especially for export High demand of the Indonesian society for fish consumption

21. Rope / Rawe Fishing Weaknesses (1) Difficulties in obtaining fuel Difficulties in obtaining ice The (pancing) boat owners are lacking capital Decreasing catches due to coral reef damages Knowledge is limited to traditional methods Competitors have more sophisticated equipments and skills Fish catching in T. Dalam is depending on the captain’s (tekong) skills Inexperienced fish farmers Untapped tuna resources due to the small boat sizes Produksi Pupuk

22. Rope / Rawe Fishing Weaknesses (2) Lack of involvement in alternative sea product businesses (seaweed) High production (catching) cost Nias is not yet proven to be suitable for grouper farming No training offered in improved fish processing methods (beside fish salting) Collectors are lacking supply of ice and cool boxes,limiting the volume of fishes caught No information on export prices The market is dominated by collectors/traders with bigger capital Produksi Pupuk

23. Lobster Catching

24. Con-sumption Specific Input Distribut-ion Selling Collection Production Lobster Value Chain Speed Boat Owners Sea-slug Divers Collectors / Traders Speed Boat w/ water cage Compressor Provider Regular Fishers Lobster Raiser Jakarta Tello Market Padang Market Malaysia Cage Carpenter Spear Fisher Lobster Catcher G. Situli Market Singapore Diving Equipment Head of Port Dep. Fishery Department Industry Tax Depart. Marine Security

25. Lobster Catching Strengths (1) Availability of local marine cage builders No dependence on ice supply (traded alive) Private capital available and invested Nias sea conditions are suitable for lobster farming Some fishers catch lobster without using boats and diving tools, such as the tire compressor Lobster catching skills are available (Small scale) lobster farmers succeed in raising lobsters traditionally Community is still interested and engaged in the lobster collecting business

26. Lobster Catching Strengths (2) Distributors directly collect from the fishers/farmers High and stable demand

27. Lobster Catching Weaknesses Lobster catching equipments are expensive Usage of inappropriate diving equipments Decreasing number of lobsters after the earthquake due to the change in underwater contour Small number of lobster farmers due to lack of knowledge and skills Need for special packaging Sent with special transportation Expensive lobster prices can only be afforded by high-economy communities

28. Supporting institutions

29. Supporting institutioins Strengths Fishery sector is one of the Real Regional Income (PAD) contributors Availability of economic empowerment fund for the fisher community from the central/provincial government The central government give special attention to the fishery sector Department offices which handle various aspects related to fishery sector Availability of fishery vocational school in Tello Island

30. Supporting institutioins Weaknesses (1) Difficult access to loan In need of more honest and professional cooperatives Weak human resources and skills within government Inexperienced and poorly managed government due to the newly founded district South Nias Complicated bureaucracy Lack of supporting facilities from government

31. Supporting institutioins Weaknesses (2) Aid programs from the government do not meet the fishers’ needs The Marine Security does not perform well in guarding Teluk Dalam waters from fishing boats from other regions and countries DPRD (Regional People’s Representative Council)/legislative’s lack of attention towards the fishery sector The Department of Tax & Income needs to socialize tax information more frequently Trainings are not based on real needs There is no offer to provide specific training program in fishery sub-sector programs

32. Supporting institutioins Weaknesses (3) INGOs often show poor aid control The aid given by NGOs do not specifically address the fishers’ needs Teluk Dalam can not access Internet Lack of coordination among institutions Lack of human resource (e.g. expert staffs) Need to improve port facilities

33. LED Proposals to Upgrade the Fishery Sector in Teluk Dalam/ South Nias

34. Technical assistance to fishery cooperatives on how to improve the financial and administrative management Entrepreneurship training for fishery actors Mangrove tree planting along the coast Short-term Proposals

35. Training on boat engine repair and maintenance Training on seaweed farming Field visits for fish farmers, e.g. to Tello Island Establishing a fish auction place Expanding the development of Teluk Dalam market (traditional, physical market) Linking the fishery with the tourism sector, e.g. fishing trip for tourists Ice factory (and private port) investment promotion Medium- and Long Term Proposals

36. Technically enabling internet access in Teluk Dalam Forum for regular meetings of institutions related to the fishery sector Establishing a micro finance scheme Establishing an efficient and professional fishery cooperative Medium- and Long Term Proposals

37. Business Opportunities • Establishing an Ice Factory • Fuel Depot in Teluk Dalam • Open an Internet Café in Teluk Dalam • Fish Storing Place

38. Christian Schoen (mesopartner) Julien Magnat (ILO) Muh. Rizal (ILO) Hilbin Bina Teulambanua (Dinas Perikanan Nias Selatan) Jamaluddin (KDP Teluk Dalam) Juang Solala laiya (IKIP Teluk Dalam) John Sorryanto Sarumaha (ARDIN) Joni Harefa (HSNI Nias) Siado Zai (BAPPEDA Nias Selatan) Saifullah (BAPPEDA Sabang) Who is the PACA Team?

39. Terimah Kasih