This SWOT Analysis for El Salvador will make possible to make important qualitative data analysis in order to end up with valuable conclusion on factors that determine the development of tilapia industry in El Salvador. In order to minimize the internal unfavorable conditions weaknesses and opportunities were analyzed, and finally the threats and weaknesses will help to reduce the internal and external unfavorable conditions that this industry is currently facing. In response to the problem approach using the data gathered and SWOT analysis we can evaluate that In order to meet new challenges and opportunities under current circumstances and the process to devise different development strategies, this study can give or provide a better local scenario because the ultimate beneficiaries are the families in need of food and the people who needs employment which is the main purpose of this study. The strategies generated integrate all the advantages has in terms of tilapia industry development. As well the introduction of new technologies as proposed in the study can be beneficial for small producers in the industry in terms of increasing production. As well
innovation of production and commercialization will give an added value to the final product making a significantly improve in demand. This method has been adapted in order to discuss internal strengths of tilapia industry in El Salvador as summarized in Table 3.1. Historically, aquaculture has being a marginal economic activity in the agricultural sector due to a traditionally agricultural attitude in terms of the main economic activity. It was until 2000 that aquaculture policies were formulated in the context of fisheries development. (Ministry of Agriculture and Husbandry, 2000). At present, the agricultural policy establishes the following actions:
Institutional, productive and commercial reconversion of the fisheries sector.
To reconvert productively and commercially industrial fisheries and aquaculture.
To promote the national consumption of fisheries and aquaculture products.
To promote innovative aquaculture with new species and technology.
To create the Fisheries and Aquaculture Warrant Fund.
Institutional planning of aquaculture has evolved from actions based on the operation of aquaculture stations, essentially the production of tilapia fingerlings for restocking of reservoirs, continuing with the adoption of aquaculture technologies of freshwater prawn and marine shrimp, to the introduction of new species (oysters) to begin research on their culture.
Institutional planning is oriented to the cornerstones of zone management, production and coverage. In relation to management, proposals have been put forward for the updating of the Aquaculture Registry which at present records only 40 producers and which should also contain a databank on the characterization of their aquaculture practices. Regarding coverage, several strategies have been considered, including the participation of Producer’s Associations, NGOs, education and training institutions and external cooperation to assist
the largest possible number of producers by means of training and extension on specific themes. To promote the increase in production, actions are oriented to upgrade culture practices, in particular those in which infrastructure is being under-utilized due to the application of extensive and artisanal technology.
Financing
Except for the actions impelled by the government with the participation of cooperation organizations, there is no governmental plan encompassing a specific allocation for aquaculture development within the ordinary budget. This can be observed in the yearly assignment to CENDEPESCA, which on average does not exceed one million US dollars per year and which is designated namely to salaries and basic services (Ministry of Finance, 2005). In summary, there is no financing for investment allotted by the ordinary institutional budget; neither have external cooperation projects financed investment in aquaculture.
However, it should be pointed out that with external assistance, some NGOs do provide support to communities dedicated to small-scale aquaculture, particularly in cages, reservoirs and sea shrimp.
Planning
The Office of Policies and Strategies blames the anti-agricultural and anti-rural bias of the macroeconomic policies as part of the internal environment elements which have affected the performance of the agricultural sector, and in consequence fisheries and aquaculture.
Even though FAO and EU-sponsored technical documents have been prepared for the development of aquaculture (Salgado, R. 1997; FAO, 1995), the institutional planning does
not include strategic actions to prompt aquaculture development, being rather dependent on the financing capability of the State. However there is potential for synergy by channeling the various available sources of resources for the execution of rural development project, support to marketing, small-scale cottage industries, etc.
The Market
The increase of cultured tilapia production was affected by low prices and the commercialization structure of the internal market. The introduction of tilapia fisheries in inland waters drove prices down, due mainly to their mud off-flavor, and thus diminished the value and acceptance of cultured tilapia. Prices in the beginning of the 90’s did not exceed US$ 0.50/pound for whole fish.
The post-war effect
In the decade of the 80’s during which war took place in the country, there was no investment in economic activities. This had negative effects, particularly in marine shrimp farming. The peace agreements established the commitment of reinserting ex-fighters in productive activities. Part of this process consisted in their relocation in the salt pans and marshes areas at Jiquilisco Bay. The process of converting salt pans into shrimp ponds and the developing of human skills, -initially supported by the EU-, has taken several years to begin showing positive results. Also, the upgrading of infrastructure for shrimp farming suffered design failures which still affect production yields and the capability to operate facilities effectively.
The natural environment
The location of the country in natural disaster occurrence areas and the high levels of vulnerability constitute high risk scenarios that have adversely affected the development of aquaculture.
Interaction with the environment
In 1995 PRADEPESCA undertook a study for the territorial management and development of marine shrimp. (Currie, J. 1995); the document recognizes the potential for the development of between 3 000 to 4 000 hectares for shrimp farming. Of these, 2 000 hectares would be located in Jiquilisco Bay as long as the monitoring assessment programme does not show negative effects on the environment. Since salt works have not been yet converted into shrimp ponds, and extensive areas are still utilized for artisanal farming of shrimp, environmental restraints have not been imposed that could constitute a limiting factor for the development of shrimp culture.
Credit
Even though lines of credit for aquaculture have been in place, producers are restrained in their capability to comply with the requirements to gain access to such funds since they normally lack the guarantees or collateral required by the financial system. This deeply affects the growth of production units located in leased national lands and waters which cannot be pledged as collateral.
Table 3.1 SWOT Analysis of Tilapia Industry in El Salvador
Strengths Opportunities
There is existence of strong effort to organize the tilapia sector resources, because of the size in territory it easy to get access to raw materials
The activity is profitable and assures return of investment
Technical cooperation that improves the development of the culture
Growing local market
Potential international markets
There is institutional interest on the production of tilapia enhance profitability in tilapia culture like the relation of Tourism - Tilapia Aquaculture aquaculture producers to manage market
High costs on environmental impact studies
Confusion of consumers between Cultured tilapia and Silvestre tilapia
Spread of delinquency
Destruction of the caudal rivers and reduction of aquifers
the sudden existence of sickness in the culture
bad quality feed stuff
the increase of price on feed stuff
bad tilapia genetics in tilapia stocks
lack of maintenance on the access roads
Lack of technicians in the area
There is no existence of good planning of sowing and production
There is no monitoring plan for the sustainability and quality on water resources
Inefficient quality inputs
Lack of promoting to population to consume Tilapia, where can be shown the benefits of the nutritional advantages
Lack of credit lines
Climate change Source: based on information from Tercer informe técnico MINEC 2013
With this results we can determine that the resources available inside El Salvador can improve the quality of life of some families and enforce the aquaculture, some of the direct benefits found in this study are as follow:
a) Employment b) Distribution c) Health
Some of the indirect benefits found are:
a) Education
In terms that opportunities increase in rural areas, child labor will be reduced, in the way that parents that satisfied their needs could send its Childs to school.
b) Basic services
The coming of a company to a rural area takes an improvement in services of transport, electricity, illumination, water.
c) Substitution in imports
In 2010 77 tonnes of fish were imported in El Salvador, hence the implementation or analysis of this study could help to satisfy this situation.
Tilapia is produced using a wide variety of production systems determined by the socioeconomic characteristics of the producer. As Molnar et al. (1996:9) stated, “The kind of technology used is closely linked to the socioeconomic
circumstances of the farmer, as the intensity of production often corresponds to the amount of capital investment (Molnar et al. 1996:9).” Consequently, the proper understanding of tilapia culture compels the analysis of the socioeconomic factors using multiple sources of data. However, the task is not easy, since in aquaculture, quantitative and qualitative data usually are unavailable because aquaculture is in its early stages of development (Engle et al. 1997).
Cage production is an intensive management system that facilitates the use of water bodies unsuitable for conventional production systems that require draining or seining for the period of harvest (Lazur 2000). Thus, cage culture makes possible the exploitation of public or communal water reservoirs, lakes, irrigation systems, village ponds, rivers, cooling water discharge canals, and estuaries (McGinty &
Rakocy 1989, Watanabe et al. 2002). Other economic advantages of cage
production over pond production are that the level of initial capital investment is low compared with open ponds (Watanabe et al. 2002), and that by concentrating fish, the farmer has better control over feeding and harvesting. However, the disadvantages include higher risk of poaching and water quality problems, and reliance on commercial feeds s (Lazur 2000, Watanabe et al. 2002).
The study has several limitations given the nature of the data source. In general, producers do not keep written records of production costs, sales, and in most cases do not verbalize perceptions regarding the opportunity cost of land and
other assets. FAO (1996:35) noted, “Because the products of small-scale rural aquaculture are only partially marketed, and objectives relating to the production of fish are only part of the story, quantification is inherently problematic.” Small producers, in fact, only market a fraction of their production and do not keep records of their transactions.