Market Gaps on Access to Finance - Bank of Valletta

6.2.3 Fisheries and aquaculture
The proportion of the Maltese working population dependant, to varying extents, on the fisheries
sector for its livelihood, is limited to around 1.0%. The fisheries industry provides direct employment
to around 1,500 people in the primary and secondary sectors (including aquaculture). Around 60%
of registered fishers are over 40 years of age whilst only c. 10% are aged under 25 114 .
The Maltese aquaculture industry has two sectors: tuna penning, which relies on captured wild fish,
and farming of closed cycle species such as seabream and seabass, which are cultured from the egg.
Production from tuna penning reached a peak of 7,000 tonnes in 2007, but is expected to fall due
to quota restrictions and reductions in the fishing fleet. At the industry peak, Malta was the largest
producer in the Mediterranean, aided by its favourable position on tuna migratory routes and
expertise in offshore aquaculture. In contrast, Malta is only a minor producer of closed cycle species,
with production reaching c. 2,000 tonnes in 2009, compared with a regional production of around
250,000 tonnes. This sector is dominated by major industries in Greece, Turkey and Spain and is
highly cyclical in nature and prone to overproduction 115 .
The fish processing industry in Malta is very limited. This relates mainly to aquaculture harvesting
and packing with little or no value added. There is also some limited activity relating to captured fish
(both local and imported, fresh and frozen). In this case some activity in terms of slicing, filleting,
portioning, rewrapping and smoking takes place. The main reason why this activity has remained
rather limited is that the local catch usually consists of high-value fish which is consumed in its fresh
state or exported.
EU financial support for aquaculture in Malta comes in two forms: for commercial projects,
European Fisheries Fund (EFF) grants (mainly for capital expenditure) are available for projects
addressing key strategic objectives such as the diversification of cultivated species, reducing
environmental impacts, and development of markets. For R&D, funding is available through RTD
Framework Programmes, an example of which is the SELFDOTT project on bluefin tuna which
involves Maltese partners. EU aid is intended to stimulate the development of an economically
profitable fisheries sector that is respectful of the environment and contributes to the well-being of
the populations dependent on the sector, thus encouraging sustainable fisheries and aquaculture.
For the 2014-2020 MFF, the European Maritime and Fisheries Fund (EMFF) is intended to be the
main tool to drive the implementation of the reformed Common Fisheries Policy to foster Europe’s
fishery’s transition to sustainability. This fund reflects the EU’s social, economic and environmental
ambitions for the fisheries sector, and needs to sustain growth, food supply and employment. To
reflect the common strategic framework to be adopted for the 2014-2020 programming period, the
EC has again recommended a shift to financial instruments so that EU support for SMEs from the
EMFF is more targeted, focusing on enhancing the competitiveness and growth performance of
SMEs in line with the SBA and its review 116 .
The following table provides an assessment of the financing needs and local scope for further
financing within this sector.
114 Ministry for Resources and Rural Affairs (2011), Fisheries Operational Programme for Malta 2007-2013
115 Stirling Aquaculture (2012), An Aquaculture Strategy for Malta
116 European Commission (2012), Elements for a Common Strategic Framework 2014 to 2020
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