Impact investment for a grouper aquaculture project in areas of intense grouper fishing in Indonesia

Author(s): 
PEMSEA
Year: 
2017
Topic: 
Enterprise and Livelihood Development
Financing and Investment
Location: 
Indonesia
Type of Resource: 
Technical Reports / References
Based on the priorities of COREMAP, PEMSEA developed a business case for Selayar Island in South Sulawesi. The proposed business plan lays out the case for a hatchery and grow-out for tiger grouper (Epinephelus fuscoguttatus). The operation at the time was not commercially viable, and furthermore was not environmentally sustainable based on the sourcing of wild caught juvenile groupers for raising in cages. The business plan proposes establishment of an integrated hatchery and farming approach, where one half of the hatchery-reared groupers are raised to marketable size by an integrated grow-out operation, while the other half is available for independent farmers. The case also proposes investment in infrastructure and training for the local farmers. These community farmers would buy grouper fingerlings from the hatchery and sell the commercial-size groupers on the local live market or back to the hatchery company, which would run supply chain logistics for the product.