BRAZIL FISHING SECTOR
The world´s fishing sector is worth approximately US$ 92 billion which is much higher than meat and poultry combined - US$ 45 billion.
According to FAO (Food and Agriculture Organization)
It should also be noted that Brazil has 8.500 km² of coast line, 4,3 million km² of its own Exclusive Economic Zone but produces only 450 thousand tons of marine fishes, 95 percent of which comes from the capture of species on the coastal areas, over the continental shelf.
The low fishery production in Brazil cannot be justified at all, as the country is strategically well positioned regarding the occurrence areas of the main aquatic species in the Atlantic Ocean. While the vessels operating from the Brazilian ports reach the fishing areas in a few hours, the fleets from countries with great fishing tradition have to navigate more than 20 thousand km to reach the same areas.
The World Health Organisation suggests that average consumption per capita should be at least 12 kilos per capita and Brazil´s current consumption of 7 kilos per capita is well below the world´s average consumption of 16 kilos per capita.
Besides the great proximity of the stocks and the extensive coastal line, with many available ports for the operation of the fishing fleets, Brazil is located near the three greatest economic blocks and consumption markets in the world, and itself it is a major market with 200 million inhabitants most of them in urban centers such as the greater São Paulo (20 million) and greater Rio de Janeiro (10 million).
The Brazilian Government have announced plans to invest, in the Brazilian Fishing Sector, the equivalent of US$ 1 billion up to 2011, in order to expand Brazil´s international presence in the export market. The Brazilian Government intention is to increase Brazil´s fish produce to 20 million tonnes per annum.
In order to attain those goals, the government intends to build 20 public fishing terminals, 120 integrated small-scale fishing centres, with structures for ice factories turned to storage to be installed, fish farming at 40 water reservoirs of the Federal government, and lines of credit totalling 1.5 billion reals (US$ 953 million) for modernising fishing vessels.
In the past few months we have seen some movement by some international seafood players acquiring Brazilian companies based in the North of Brazil. This possibly indicates a trend for consolidation in the sector and Brazilian seafood operations offer an opportunity not just to tap into the huge Brazilian market but also export to North America and Europe.
David Denton – OKTO FINANCE www.oktofinance.com
okto@oktofinance.com
