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2012 Global Youth Economic Opportunities Conference Engaging Unattached Youth in Small-Scale Ornamental Fish Farming: An Urban Value Chain Approach Project Partners Jamaica Ornamental Fish Farming Project The Competitiveness Company – Implementing Partner A not-for-profit project management and consultancy firm based in Kingston, Jamaica. Their mission is to enhance the prosperity of the country, improve MSME competitiveness and widen opportunities for the young and unemployed. SEEP Network – Technical and Learning Partner A global network of over 130 practitioner organizations dedicated to combating poverty through promoting inclusive markets and financial systems. Why Urban Value Chain Development? Why Urban Value Chain Development? How can we harness the resources of today’s cities to reduce poverty and benefit the vulnerable populations? Urban Value Chain Development Practitioner Learning Program India ACCESS Dev. Services with 4 other orgs. Jaipur Jewellery Artisans Development Project Jamaica The Competitiveness Company with 2 other orgs. Jamaican Ornamental Fish Urban Value Chain Kenya AMPATH with 2 other orgs. Value Initiative Program (horticultural value chain) Indonesia Mercy Corps Indonesia with 3 other orgs. VIP (Tofu and Tempe) What We Are Learning Reaching vulnerable populations in urban areas Results measurement in complex market development projects Improving working conditions in urban informal sectors Leveraging social networks in VCD Models and Strategies for value chain finance Engaging Governments and policy makers in VCD VCD strategies in different sub-sectors in an urban setting www.seepnetwork.org/value Who Are the Youth in this project? Unattached Youth • Unemployed • Not looking for work • Not in School • Not in Vocational Training • More likely to join gangs • More likely to be pregnant at a young age Jamaica and The Urban Youth High unemployment among youth and in Urban Areas • Long term economic stagnation • High rates of crime • High rates of slum conditions Program Objective The development of competitive and exportoriented niche value chains that result in sustainable profitability of urban youth entrepreneurs. Methodology – Value Chain Selection Identify and list SME Sectors Identify and List existing SMEs Develop Criteria for Unique SME Market Segments Develop Criteria for Value Chain selection Analyse segment characteristics Screen SME sectors Identify Market Trends and Opportunities Select Value Chain and Develop Interventions Project Development Process Why The Ornamental Fish Value Chain? Existing & Potential Market Demand Total export value – Over US$300 Million per year Total value of aquarium industry US$ 27 Billion On average, over 1.5 billion fish traded 104 exporting countries vs. 144 importing countries Resilience: Industry rebounded well from 1997, 2001 and 2008 Recessions Annual Growth of 8% per annum Why The Ornamental Fish Value Chain? Good fit with Local Conditions and Target Group • Jamaica’s climate is ideal for year-round production • Proximity to the high demand markets: Canada & the U.S. • Logistical cost advantages through air freight • Fish breeding already a Youth entrepreneurial activity Major Value Chain Challenges Ineffective farming methods and backward technology Community Divisions affected economic activity Low levels of technical knowledge Few support services (training, extension, quality control) Access to Finance (Given profile of target group) Low levels of market knowledge both locally and internationally. Very little State support for exporting. Program Causal Model Wealth creation, and stability in communities Overall impact goals Objectives Increased local and export sales Improved market knowledge and relationships Intended results Market Driven and productive Farmer Groups. Strengthen links between farmers and local exporters Market development interventions 1. Identify and train new young urban farmers; 2. Upgrade production systems; 3. Introduce demanded species; 4. Develop breeders 1. Build capacity of local exporters; 2. Conduct market research; 3. Build farmer – exporter relationship Accessible Market-based support services Effective and affordable Support Services 1. Develop extension services ; 2. Negotiate with suppliers; 3. Increase access to technical information 4. Expand Breeder capacity 5. Engage MOA to support farmers with QA. Interventions – Activities & Results Updating skills and available technical knowledge and training Interventions – Activities & Results Introduce new technology to improve efficiency and productivity in a backyard setting. Interventions – Activities & Results Aggregate production and minimize operational costs through collaboration Interventions – Activities & Results Market learning and penetration exercises to gain market knowledge and initiate exporting relationships Interventions – Activities & Results Link Urban Youth Farmers to local sources of microfinance where necessary. Ornamental Fish Value Chain Foreign Consumers Domestic Consumers Pet Shops Exporters Consolidators / Agents Engage Lead Firms to Link Large number of Small Farmers to Export Markets MicroLenders Trainers Urban Fish Farmers Input Supply Hardware Train-thetrainer Extension Officers Fish-Farm Technicians Breeders and Brood stock Importers Build Capacity Of Trainers to deliver Training and Advice Fish Food & Supply Wholesalers Suppliers or Packing Materials Build Capacity Of Para Vets and Technicians Key Lessons and Challenges • Working with at-risk youth in volatile urban communities requires • Enhancing and matching existing skills to sustainable markets • Identifying and involving influential voices within their communities • Selecting and working with exemplars • Learning about the power structure and daily life in the community • Include several group exercises that require communication and interdependence. • Value Chain Selection must be rigorous and based on current data, context. • Clusters/Production Groups are a useful mechanism for Economic Development in Urban Context. More resources, publications, and information about The Value Initiative www.seepnetwork.org/value Thank You! Yibin Chu Program Manger The SEEP Network [email protected] Nicardo Neil Project and Marketing Manager The Competitiveness Company nicardo@thecompetitivenesscompany. com