Final Technical Report part 3 - ACP Fish II

Aquaculture Development Strategy for St. Kitts and NevisComment: The Aquaculture Zone Companies could eventually have a large ‘product’portfolio (see bullet below), requiring them to be economically strong andoperating on business principles. However, due to their social responsibility,development agenda and some of the exclusivities that they would begranted, it is suggested they be launched as purely public companies.Nevertheless, if a suitable private partner (or partners) was (or were) present,a PPP arrangement could also be envisaged, especially during Phase 2 whenthe share owned by the Federation would be reduced as the sector wouldhave achieved a certain development level, and when the AZCs’ nationaldevelopment task would thus have been achieved.- Detailed business plans would be developed for the AZCs, including their objectives,the financial resources needed, their legal status (part of the DMR, public or PPP), aproduct portfolio (renting out land, facilities, selling quarantined fish juveniles, feed,training courses, consultancy/extension service, etc.). The business plans should alsoinclude an approach for obtaining external financial and technical support, and animplementation schedule.- The AZCs should develop AZ management rules/bylaws with which AZ farmers, astenants, would have to comply.Comment: The AZ management rules/bylaws would be a timesaving alternative todeveloping a full body of legislation. In addition to purely administrativeissues, the management rules could include farming practices such as whichquality of feed to use, the quality of fish juveniles (health certificates) to stockand biosecurity measurements to be observed, etc. They could be updatedas appropriate, and later (during Phase 2) form the foundations, based onexperience, for developing comprehensive/full regulations dedicated toaquaculture management.• 1.1.4 To ensure the social development of SKN, applicants must reside in the Federationfor minimum 10 years prior to application.Comment: It is common practise in many countries for no foreign investors to beauthorised to have (majority) ownership in the primary production sector(agriculture, forestry, fisheries and aquaculture). This can mean that foreigninvestors are not entitled to any shares whatsoever or that their shares cannotexceed 50%. However, it is also known that foreign investors sometimes useproxies to bypass such regulations. It is suggested that the current ’Applicantsmust reside in the Federation for ten (10) years prior to application’ bemaintained in the Draft St. Kitts and Nevis Aquaculture Policy, 2011, todiscourage foreign investors at a time when SKN is trying to develop the sectoritself. A number of strategic observations are made regarding foreigninvestment in the aquaculture sector during Phase 2 (ref 2.5.2) when SKN is in abetter position to evaluate its pros and cons.• 1.1.5 Develop human resources to ensure the presence of sufficient, qualified staff in therelevant public bodies.- Identify or recruit two members of staff at the DMR/DF to be trained in aquaculturegovernance and production.- Recruit three persons for each pilot farm: a pilot farm manager, a land-basedproduction manager and a sea-based production manager, all of whom should beassigned to both production and extension work.- Arrange an aquaculture study tour for permanent secretaries, directors of the DMR/DFand above mentioned two members of staff at the DMR/DF to observe best practicesin relevant countries in relation to both livelihood and corporate farming.Project funded by the European Union A project implemented by pg. 9RTF pg. 160/204