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Press Release from Philippines Information Agency
January 25, 2010

Dept Trade Industry (DTI) supports ornamental fish breeding
by Charlie S. Dajao

Rising export industry

Calamba City (25 January) -- Breeding and growing of ornamental freshwater fish, a looming industry, faces challenges in its export debut.

In a consultation meeting with industry stakeholders held in Tanauan City, Batangas, Marilou Quinco-Toledo, Regional Director of the Department of Trade and Industry (DTI) in Calabarzon committed to assist the industry as ornamental fish is a rising export-earning sector of the region.

It was brought up during the consultation that high freight charges is a major hindrance in exporting live fish.

"Issues such as high freight charges for export products hinders the country to be competitive, weakening our chances in the world market", Toledo said.

"DTI shall explore on possible applications of incentive packages for the industry under existing laws", Toledo added.

Industry players are looking at tax holidays to ease up initial operational costs and become competitive with other countries.

Due to its market potential, the ornamental fish industry is promoted particularly in the Calabarzon Region and proposed in time of changing conditions such as decreasing aquaculture areas in the Laguna and Taal Lakes; decreased fish production, and the dislocation of cage/pen operators and fisher folk resulting in decreased incomes; and the limited use of bodies of water due to multiple use by industries.

Opening other potentials

The ornamental fish industry is seen as a potential catalyst or multiplier of other economic activities.

Aside from being viable, the industry would also stimulate ancillary industries such as aquarium production; commercial and natural feeds; organic plants; tourism; and the educational & training sectors.

The industry would promote tourism as buyers particularly the Swiss and the Germans get interested with the sources of the fishes they buy thus they come to the country and tour to the site to see how they are bred. More often, they bring with them another business and investments aside from exclusively rest and recreation.

The construction sector would also benefit when the industry would need more grow-out facilities.

As more people with higher skills in aquaculture and allied disciplines would be needed, the education and training sector would be invigorated.

Being labor intensive, ornamental fish growing is appropriate as a community-based industry that would generate more jobs and incomes especially in the countryside.

As envisioned by BFAR, the industry supplying around 10-20 percent of the global demand would provide jobs to 5,000~15,000 fisher folk families, and within the medium term, would be capable of generating monthly incomes ranging from P5,000 to P12,000 per family.

Collaboration

Yoreca Farms, Inc. is a private corporation that responded to the government's initiative led by the Bureau of Fisheries and Aquatic Resources (BFAR) to develop the freshwater ornamental fish industry particularly in Calabarzon.

"Yoreca is a techno-demonstration facility under development for the export of live ornamental fish and is currently capable of breeding and growing live and egg-bearers", Rosa F. Macas, Regional Director of the BFAR in Calabarzon, said.

Also a consolidator, Yoreca collaborated with the Tanauan Ornamental Pisces Growers Multipurpose Cooperative (TOP Growers) and with other community-based growers to build up a supply of ornamental fishes.

The collaboration is supported by the Tanauan City Government.

Yoreca's facility implements four (4) protocols prior an export shipment:


The quarantine, where fish from breeders and growers are initially staged for physical inspection for parasites and diseases;

Treatment, where fishes are placed through various treatment protocols;

Conditioning and screening, where healthy and treated fish are then conditioned up to export quality standard and quality control activities are performed through rigid screening methods; and

Export preparation and packing, where extensive culling, grading and segregation is performed prior to actual staging to export quality status.
By implementing such protocols, Yoreca posted a very low mortality rate on its first export shipment, immediately gaining credibility from its buyers.

Partnership with an NGO

The East Asian Seas and Terrestrial Initiatives, Inc. (EASTI), an NGO, volunteered to help manage the cooperative professionally and profitably.

Ferdinand P. Cruz, consultant of the EASTI and an expert in the world market for ornamental fish, spends most of his time mentoring TOP Growers and partner consolidator, Yoreca Farms, Inc., to grow tropical ornamental fishes qualified for the very meticulous US and European markets.

Cruz also introduced vermiculture and aquaponics in tandem with ornamental fishes. The biowaste retained or absorbed in the soil through filtering in water recycling process provides rich nutrients for the aquaponics that would produce organic vegetables and organic fertilizers.

Beyond technology transfer, Cruz is training the team to do business the professional way.

Cruz said that for the industry to make big in the world market, it needs to be in synergy with the local government, relevant agencies and the community and to be cohesive in advancing its interests and objectives, just like Singapore, Malaysia is now following the Singaporean experience.

Competitive advantage

Cruz said that Philippine fishes have fantastic colors, are unusual, distinct and superior in comparison to the rest.

"Foreign scientists observed that the color, body shape and the fins of our fishes are exceptional and attracting attention. These attributes provides a competitive advantage over the rest of the countries", Cruz affirmed.

Market

According to BFAR, the ornamental fish trade industry worldwide amounts to about USD P500,000-million with the freshwater species cornering 85% while rest of the trade value is of the marine species.

Top buyers are the United States (25%); Japan (18%); Germany (9%); France (8%); and the United Kingdom (7%).

According to Cruz, the world's second top hobby is raising ornamental fishes, only next to photography.

"That’s how big the market is, it’s billions of dollars. But you have to know how to be competitive in the market. Just like photography, cameras have to be competitive, and the same thing with ornamental fishes", Cruz declared.

Asian countries delivers more than half of the total supply. Among the Asian countries, Singapore tops the supplier list capturing 25% share. China, Indonesia, Malaysia, Taiwan, Sri Lanka and Japan had shares ranging from 6.3 to 4.2 percent, while the Philippines is supplying only 3.8%.

Challenges

The industry still has to be capable of timely and quality production of ornamental fishes in wide varieties - around 460 species - and in volume for the domestic and international markets.

"The current stock variety count is way under the ideal number of 460 species thus the need to import breeders from other countries", Director Macas said.

"Also, there is a need for more players, and we shall address this by promoting the industry to local governments to generate more industry participants", said Ruel Gonzales, Director of the DTI Batangas Provincial Office.

"We will seek the support of Batangas Governor (Rosa) Vilma Santos-Recto for replication in other areas to complement existing growers in Tanauan", Gonzales added.

"The market is there, and we are confident about our quality as we already have our protocols. It is the volume and variety on our side that lacks", said Roy Vitangcol of Yoreca. (DTI-Calabarzon) [top]
 

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