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A new ministry, and a host of initiatives: fisheries has arrived. Undersecretary of Fisheries, Dr Hamed Said Al-Oufi, speaks to Letha Jose about future plans

Last year an Undersecretary for Fisheries was appointed for the first time. Now a ministry has been formed. How will these developments impact the sector?

Fisheries is one of the few renewable economic resources that contribute to the national economy. It plays a major role in employment creation, not only in the primary sector but also in related fields like transportation, processing industries and ice factories. The sector also contributes towards food security and foreign exchange. With 3,240km of coastline and a huge variety of fish, some of which not yet exploited, Oman has a unique place as a fishing nation in the Middle East. There are several issues to be tackled and needs undivided attention of a government body. Now that we have a ministry, all development programmes can be executed well and we can make sure that the sector withstands changes in the international market.

What are the biggest challenges the ministry has to tackle?

The biggest challenge is to strike a balance between traditional fisheries, which is the cornerstone of the country's fisheries sector, and the needs of the industrial sector. We have to develop both. Traditional fisheries contribute to about 84 per cent of the sector, both in terms of landings and revenue. Processing factories face several problems, but we cannot promote one at the cost of the other. We have to restructure the marketing systems in such a way that both benefit.

Another challenge is to make sure that fisheries is sustainable. In many parts of the world, fisheries has collapsed due to overexploitation and misuse. Right now we have the big project going on, a survey by a New Zealand-based consortium, which will go on for 2-3 years. Apart from estimating the total allowable catch of the fish in our waters, it will also explore the possibility of exploiting deep-sea fish till a depth of 1,000-metre, not tapped till now.

Almost 50-60 per cent of the exports are to neighbouring markets, which does not bring in optimum revenue for the country. Is the ministry planning to organise the export sector?

The need of the hour is to restructure the market. There is no need for government intervention in the form of price control or restricting the movement of commodity. It is an open economy, the fishermen will have the freedom to trade and export to any market they want.

However, we are planning to establish the centralised fish market where all landings have to be traded before they are exported. Direct export whereby fish is landed at a site, transferred to a truck and taken to other countries by road will not be allowed. Right now fish jump the local market. Ideally they should be landed, traded in an auction at a market and then exported or sold locally. When fish go from the landing site to the export market, we are losing out on revenue as there is no value addition.

Why do fishermen take the catch to the other countries? Is it the price?

Right now we don't have a single big market where fish can be traded. Our research shows that it is a misconception that the prices in the neighbouring countries are higher. That is a mindset we have to overcome. However, the convenience factor comes into play sometimes. Unlike here, when they take their catch to the neighbouring countries, they are able to sell the whole catch at one go at the auction markets.

How will the centralised market benefit the sector?

We are in the process of establishing an international standard centralised auction market in Muscat. It will be electronically linked to all the main local markets in coastal towns. It will be organised on the lines of such markets in Japan and the UK. The market will have experts checking the quality of the fish before it is traded. This will ensure that the fishermen maintain standards while fishing and landing.

Everyone will benefit from the centralised market. Fishermen will have a place where they can trade the entire catch without going out of the country. This will also solve the problem of the processors, most of whom are working below capacity at present, as they can't secure enough fish. We are aiming at a market that can take in 40,000 tonnes of fish a year initially and expand it later on. We plan to create a cluster of fish processing plants around the centralised market.

Fisheries account for just 0.6 per cent of the GDP currently. The vision is to increase it to two per cent by 2020. How is the ministry planning to achieve this?

When this target was set, the oil prices were around US$25-30 a barrel. Oil prices have almost trebled and we can't expect the contribution of fisheries sector to go up to match that. If you calculate the contribution on that base price, the contribution of the sector is much more than the target set for 2020. It is more practical to compare it with the non-oil products.

There is another anomaly by which the sector loses out in tabulations. What is counted in the GDP is the gate price – the price on the boats at the landing sites. Anything after that, the price difference from the boat to the consumer plate is not counted. We are now trying to persuade the authorities to include satellite accounts. If you count that, the contribution of the sector to the GDP will be much more. Even now, revenue from fisheries export is growing at nine per cent, triple the target of three per cent in the Seventh Five Year Plan.

When we evaluate the sector we must also look at the employment opportunities it creates. We can have multi-billion rial projects that create huge growth rates but employs just a handful. We are not looking at such growth; that is not good for the overall growth of the country's economy and social stability. With 30,000 registered fishermen, about 200,000 people depend directly on fisheries for their livelihood. That is almost 20 per cent of the population.

How can the country make more money from fish?

By going into value-added products, by restructuring the fish market and marketing system, by reducing wastage and also by ensuring better quality of the catch. We are concentrating on value addition, as that is where the sector can contribute to the national economy in a big way.

Traditional fisheries account for 84 per cent of the sector. Are there any plans to modernise the fleet?

We need to make fishing more efficient – not in terms of more catch, but in terms of optimum utilisation of available resources. For this we are planning vertical integration: reduce the number of boats and increase the size of the boat. Instead of 14,000 small boats if we can have 5,000 big boats, that will reduce the cost of fishing and mean more profit. We have some programmes to help fishermen acquire bigger boats; Oman Development Bank (ODB) also provides soft loans to them to buy boats.

We are encouraging vessels more than 30 feet long as they will have all the facilities required to maintain quality on board. This will enable sales to more lucrative markets. Fishermen can also explore deep-sea fishing, resources beyond their traditional grounds right now. This is what we are aiming over the next two years.

There is a suggestion that establishing a fishermen's co-operative is a viable option to modernise the sector. Do you think it is feasible?

There is already a move on that front. We have initiated a project to establish fish production associations, which are essentially fishermen's co-operatives. The idea is to have a group of fishermen in a town forming an association that will enable them to catch and market their products collectively. We have already talked to the fishermen about the idea. We are studying such examples in countries like Egypt, Yemen and Morocco. In a year or two you will see tangible benefits.

Phase one of the project is going on in Quriyat. They already have their own informal co-operative, an organised market and auctions. They are even paying a small fee for cleaning the market. It is now being developed as a model fishing harbour. We are installing winches to lift the fish from boats in boxes and conveyor belts to carry those to the market. We hope to have everything ready in three months.

What is the scope of aquaculture here?

Aquaculture is the future of the industry as it is the fastest growing sector around the world and will account for a substantial amount of revenue from fisheries here. We have discussed a strategic plan with Food and Agriculture Organisation (FAO) and have just received the final draft, a roadmap for development of the aquaculture sector. Among high-value species that are planned to be cultured are abalone, shrimp and fin fish. We are also thinking about introducing pearl culture as part of the plan as Gulf pearls are considered unique.

Right now we have three successful aquaculture projects, and 20 applications for such projects are pending with us waiting for permission from other ministries. This is one area where we can attract foreign investment in the sector. A couple of companies from Norway and Japan are planning to invest here. Apart from foreign investment, this will also bring in technology and expertise. We can also use aquaculture to increase wild stock. We have already put in place a legal framework on aquaculture so that the sector grows in an organised way.