Strengthening productive chain for trout breeding and export in Puno

(Puno, August 26, 2008).- Some 30 microenterprises will benefit from the "Model for trout competitiveness in the Puno region" project through which the Andean Development Corporation (CAF) and Swisscontact will offer technical support and institutional strengthening to small-scale breeders of this species in the localities of Pomata and Santa Lucía on lakes Titicaca and Lagunillas, respectively.

CAF representative in Peru Eleonora Silva Pardo said that the multilateral bank - through the Competitiveness Support Program (PAC) - was aiming to consolidate, coordinate and strengthen a network of trout breeders through actions to develop their breeding techniques, implement quality management systems in their operations, and commercial linkage.

"With the alliance formed with the Piscifactorías De los Andes company, the project reinforces the work of training, quality guidelines and linkage to the trout producer market in the Puno region, in a scheme in which all the chain gains competitiveness. This private initiative is also part of the priorities of the public sector – for example, the Sierra Exporter Program - as well as the Technical Standards Program for export of aquatic species which Promperú is promoting," the CAF executive said.

The project also reinforces the economic development activities that CAF is promoting in the radius of influence of the IIRSA South Highway, particularly in the Puno region, she added.

"Puno is the main trout producer, so there will be a broad demonstrative and replication effect in the sector, particularly taking into account that the technicians who give the training are local so they will be able to offer advice to more companies in the area in the future," she said.

The Swisscontact representative in Peru, Jon Bickel, said that although the direct impact of the project will be on 30 small-scale trout breeders, there is clear potential to scale up the impact of linkage to the target group of the 400 trout breeders that operate in Puno.

The chain will also be strengthened by the value added which the project will receive from linkage with a processing plant to be set up by Piscifactorías De los Andes, the largest export company in the market, he added.

"Achieving a standardized production will permit participants in the chain to access developed markets and improve profitability levels. The increased competitiveness of fish farming will favor the region, and improve the socioeconomic situation of the population of the Puno districts of Pomata and Santa Lucía," the Swisscontact representative said.

The general manager of Piscifactorías De Los ?? Andes, Joaquín de la Piedra, said that trout breeding at industrial level is an emerging activity in Peru which has grown 25% annually in the last five years with a total production of 5,800 tons which positions the country as 11th world producer.

"The main destinations for Peruvian trout exports are Europe, United States and Canada, where local production has fallen and imports have increased. However, Peruvian trout exports are only US$4 million and represent less than 1% of international demand. The Puno region concentrates 42% of domestic production, but only 25% has export quality standards. We consider that this project promoted by CAF will improve current levels of profitability and competitiveness," he said.

Peru has advantages in trout production because it has optimal climatic conditions and water bodies for growing commercial-size trout in eight to 10 months, while the normal is 11 to 12 months. Specifically, the Puno region has considerable water resources (Lake Titicaca has 17,400 hectares) suitable for fish farming of which only 4.5% is exploited. These resources have favored the existence of about 400 companies dedicated to trout production in Puno.

The Swiss Foundation for Technical Cooperation - Swisscontact - is a cooperation organization focused on developing the business sector. Its aim is to promote economic and social development through technical assistance and training applying the principle of self-help. Swisscontact has been operating in Peru since 1996 and has implemented various programs in the area of professional training, promotion of economic development and small- and medium-sized enterprise (SMEs) in urban and rural areas, strengthening of microfinance institutions, urban and industrial environment, among others, promoting job creation for men and women.

Piscifactorías De los Andes, which is the main trout exporting company in Peru, is supplied by its own production and other companies. The company will invest in a trout processing plant in Puno and plans, as strategic partner of this project, to provide training and cooperate with local trout producers to develop a sustainable production chain with export quality standards.