Ministry of Agriculture and Land Reclamation
(Agiculture Research Center (ARC
(National Agriculture Research Project (NARP
Economic Impact Assment of the Maryut Finish Hatchery
Study Principal Investigator
Prof. Dr. Nabil Fahmy Abd El-Hakim
Team Members
Dr. Osman Salama
Dr. Ahmed El-Hindy
Dr. Ali Abd El- Fattah El- Saied
Cairo, November, 1994
Executive summary:
Maryut finfish hatchery is considered is as a pioneer pilot Project. Its main objective is to develop and adapt to Egyptian conditions, finfish hatchery technologies can in turn be transferred to private industry. This would have an important effect on eventual production levels, saving wild fry, stocking lakes, and providing greater employment and income in the fisheries and related sectors.
The following study aims at evaluating this project from both the economic and technical points of view. It has been divided into four parts. The first one deals with the demand-supply problem of finfish fries as a formidable obstacle facing the development of the aquaculture industry in Egypt. It covers, mainly the natural availability of finfish fry, depletion of the natural stock, fry catch from the wild, seasonal pattern, Post harvest handling techniques and prices. Fry demand assessment and projections up to year 2000 are also discussed in details. The demand-supply gap of marine fish fries and aquaculture requirements to fill this gap have been quantified. The final conclusion of this analysis is that, there is a dire need to increase the supply of marine fish fries in the near future to sustain the development of the aquaculture industry in Egypt.
Part two. Is devoted to discuss in details the new hatching technologies developed and adapted in the maryut finfish hatchery and its technical feasibility. The main objective of this part is to describe this new technologies and its applicability by the private sector. This part describes the techniques of hatching mullet, seabass, seabream, red tilapia and shrimps. Several patterns of marine fish hatchery technologies which is suitable to both small scale and large scale producers are thoroughly described. This description can be considered as a technical guide to private sector investor who is willing to apply this technologies. In general, this kind of technologies is feasible and suitable to any scale of production. However, transfer of such techniques to the private sector requires further training of the recipients.
Part three details the financial analysis of the maryut finfish hatcheries. Different levels of hatching technologies and different scenarios of scenarios of production have been taken into consideration. Starting with the simple technologies of the green house hatchery up to sophisticated technologies of the permanent hatchery. Moreover, different scales of different levels of this new technologies have been taken into consideration. The financial analysis conducted in part three could be considered as a model to carry out such analysis by private sector investors. In general, this project is profitable. Profitability, however depends heavily on scenarios, timing (Seasonality) and scale of production. In many cases the Internal Rate of Return (IRR) would reached over 40 percent.
Part four looks at the Cost-Benefit analysis of this pilot project arising from its engagement in a type of economic that which produce externality-generating inputs. It includes the analysis to discover whether this new hatching technologies is socially desirable, at different activity scales as well. Ecological externalities as well as other non-marketed outcomes are fully discussed. The projects impact on the fisheries sector in Egypt is a main item of this part. Impact on fish production, foreign trade of fish, fry market, fisheries income and other external effects have been discussed. In general, adapting this new technologies will produce very important environmental externalities, increase fisheries sector income, adjust the monetary balance in the foreign trade of fish. Particularly, one tenth of this high valuable fish could be able to cover all fish import costs. Another numerous positive externalities could be achieved as avoid the fry market distortion and increase the employment.
Introduction:
Maryut finfish hatchery is considered as a pioneer pilot project. The main objectives of this project are to develop and adapt to Egyptian conditions, finfish hatchery technologies which can then in turn be transferred to private industry. Private hatcheries will be established using technologies available through this facility. This could have an important effect on eventual production levels, saving wild fry, restocking natural lakes and providing greater employment and income in the fisheries and related sectors. In particular, the Northern lakes would become a major beneficiary of production of mullet and other marine fingerlings.
The following study aims at evaluating this project from both the economic and technical points of view. It has been divided into four parts. The first, titled "marketing feasibility of fish fry in Egypt" deals with the demand-supply problem of finfish fry as the significant major obstacle confronting the development of the aquaculture industry in Egypt. It covers important points, mainly the natural availability of finfish fry, depletion of the natural stock, fry catch from the wild, seasonal pattern, post harvest handling techniques and prices. Fry demand assessment and projections up to year 2000 are also discussed in details. The demand-supply gap of marine fish fry and the aquaculture sector requirement to fill this gap have been also quantified.
Part two is developed and adapted to discuss in details the new hatching technologies developed and adapted in the maryut finfish hatchery and its technical feasibility. The main objective of this part is to describe these new technologies and its applicability by the private sector. This part describes the techniques and of hatching mullet, seabass, seabream, red tilapia and shrimps. Several patterns of marine fish hatchery technologies which may be suitable to both scale and large scale producers are heavily discussed. This description can be considered as a technical guide to private sector investor who is willing to apply this technology.
Part three details the financial analysis of the Maryut finfish hatcheries. Different levels of hatching technologies and different scenarios of production have been taken into consideration, starting with the simple technology of the green house hatchery as well as sophisticated technology of the permanent hatchery. Moreover, different scale of different levels of this new technology have been taken into consideration. The financial analysis conducted in part three could be considered as a model to carry out such analysis by prospective private sector investors.
Part four looks at the Cost-Benefit analysis of this pilot project arising from its engagement in a type of economic activity which produces externality-generating inputs. It includes the analysis to determine whether this new hatching technology is socially desirable at different activity scales as well. Ecological externalities as well as other non-marketed outcomes are fully discussed. The project is impact on the fisheries sector in Egypt is a main item of this part. Impacts on fish production, foreign trade of fish, fry market, fisheries income and other external effects have been discussed.
The annexs are grouped at the back of study. It well act as a guide to the reader who wishes to investigate the statistical analysis in more depth.
Contents:
Chapter 1 Marketing feasibility of fish fries in Egypt
Chapter 2 Technical feasibility of hatching technology
Chapter 3 Financial analysis of Maryut interim and permanent hatcheries
Chapter 4 Cost-Benefit analysis of the Maryut Marine
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