Rapid Transformation in Aquatic Food Value Chains in Three Nigerian States

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November 4, 2024 - Lenis Saweda O. Liverpool-Tasie, Ayala Wineman, Mark Umunna Amadi, Ayuba Gona, Chukwuemeka Chinonso Emenekwe, Ming Fang, Olawale Olunuga, Robert Ugochukwu Onyeneke, Sunday Norbert, Taiwo Mayomi Adenike, Thomas Reardon, Ben Belton

The paper "Rapid Transformation in Aquatic Food Value Chains in Three Nigerian States" provides an in-depth look at the evolving dynamics of aquaculture and capture fisheries value chains in Ebonyi, Kebbi, and Oyo states. Nigeria, being Africa's third-largest fish producer and second-largest aquaculture producer, serves as a significant case for studying the integration of capture fisheries and aquaculture in a unified value chain analysis. The study employed a structured, qualitative rapid reconnaissance survey of 180 actors across eight segments of the aquatic food value chain.

Key findings of the study reveal that partial vertical integration is prevalent among firms within all segments, acting as a strategy to counter market imperfections and reduce risks. Local innovation is stimulated by the scarcity and high cost of imported inputs, with efforts focused on developing feed and equipment manufacturing locally. The study also identifies inter-sectoral spillovers, particularly from the poultry industry, which have helped accelerate the development of fish value chains. Improvements in power supply have also contributed to enhancing cold storage facilities, thus facilitating more extensive value chains for frozen fish.

Rapid changes in technology and institutional practices were observed across all value chain segments, including traditionally less dynamic sectors like fish processing and logistics. The study noted the increasing role of digital communications and social media in value chain coordination and marketing. Changes in consumer preferences, driven by rising opportunity costs of time, have resulted in increased demand for convenience food products such as smoked and fried fish.

The research also emphasizes the importance of improving gender equity, environmental impacts, and food safety. Gender dynamics are shifting, with increasing numbers of women involved in fishing activities, especially in Kebbi. The study points out the environmental impacts of aquaculture and fisheries, such as pollution from intensive fish farming and overfishing, and highlights significant food safety concerns tied to poor handling practices.

The paper concludes by calling for a more holistic and integrated approach to value chain development, emphasizing the need for policies that foster indigenous innovation while addressing the structural barriers that limit specialization. The findings are relevant for informing policy and promoting value chain improvements that can enhance the resilience and sustainability of Nigeria's aquaculture and fisheries sectors.

Key Takeaways:

  • Partial vertical integration helps firms mitigate risks and address market failures.

  • Innovations in input manufacturing and logistics are being driven by high import costs.

  • Gender inclusion in fishing is on the rise, with women increasingly entering the sector.

  • Improved cold storage and logistics are extending the reach of frozen fish value chains.

  • Policies should support indigenous innovation and create enabling environments for specialization.

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