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An Economic Assessment of Fisheries Development in
.... J..IF.
Research and Development Series No. 20
International Center for Aquaculture
Ayricultural Experiment Station
December 1978
R. Dennis Rouse, Director
AID/la-C/1176 CL
Auburn University
Auburn, Alabama
i__k1
vll '
F-4
CONTENTS
Page
INTRODUCTION-- -- - - 3
DESCRIPTION OF STUDY ..- 3
R E S U L T S ------ ----------------------------------------------------------------------------------------- 4
The General Situation-- 4
Repelon 5
Gigante -- 5
L o s L la n o s ------------------------------------------- ....------------------------------ .....-- 6
OTHER ASPECTS OF THE COLOMBIAN FISHERIES PROGRAM ............-7
Use of Economists - 8
CONCLUSIONS AND RECOMMENDATIONS - 9
A P P E N D IX A --------------------------- ....--------- ...... ..- ----------------- ------------------- 1 0
A Market Monitoring Program for Gigante 10
APPENDIX B 10
Itinerary of Donald R. Street 10
PUBLISHED 12/78-1M
COVER PHOTO. Sampling fish population
at Repelon Experiment Station.
Information contained herein is available to all without
regard to race, color, or national origin.
An Economic Assessment of Fisheries Development in Colombia
DONALD 
R. STREET*
INTRODUCTION
THE PRINCIPAL GOAL of the Auburn University-USAID fish-
eries project with INDERENA is to devise means of increas-
ing protein in the diets of Colombians, especially the poorer
segments of the population. An implicit secondary goal is to
increase the well-being of the rural population through im-
proved income. These two goals are not necessarily in con-
flict, and both seem to fit well in the National Development
Plan of Colombia which was to be made available around the
latter part of March 1978.
Colombia has several advantages over some countries with
respect to the creation of a fish culture program and develop-
ment of an improved program of inland fisheries in continental
waters. First, Colombia has a fishery tradition in a large part
of the country, largely because of the effect of the expansive
Magdalena River and its tributaries. Second, Colombia has
a large amount of complementary resources which are amen-
able to the creation of aquaculture and other inland fisheries
programs. Third, the country has a well-developed technical
base in its overall economy, which aids the implementation of
new technology in fisheries. Fourth, the country has several
universities with capacity to continue research and supplement
biological training for ultimate extension services to the po-
tential users of new information on fisheries. Fifth, Colombia
has well developed market and transportation infrastructures
on which new programs can be built.
DESCRIPTION OF STUDY
The purpose of the study summarized in this report was to
give a preliminary socio-economic appraisal of the Auburn-
USAID project and its potential. Special emphasis was given
to changes needed to elicit favorable economic impacts and
to assess such impacts. Primary attention was given to the
Repelon Station in the northern part of the country, the Gi-
gante Station in the southern part, and the Llanos area (with
emphasis on the Meta River watershed, which drains into the
* The author is Associate Professor of Economics at Auburn
University. He was on loan to the Department of Fisheries and
Allied Aquacultures during winter quarter 1978.
Orinoco Basin). The study entailed examination of research
techniques presently in use, data availability for answering
specific questions relevant to the programs, and additional
survey information which should be obtained to more fully
satisfy project needs. The latter phase of the study was co-
ordinated through the INDERENA fisheries economist.
Both microeconomic and macroeconomic problems are en-
countered in the programs which Auburn-USAID and
INDERENA are carrying out in Colombia. At the micro-level
are the costs and returns problems of business firms and the
problem of potential pond owners in attempting to allocate
their limited resources in an optimum manner. At the macro-
level are such problems as determining total income impacts
for the country, improving the nation's productivity through
improved diets for the populace, and public investment needs
for maintaining potential development programs.
The efficacy of actions at both levels depends on the proper
balance of public and private inputs to programs. Without a
proper market infrastructure and complementary transporta-
tion available, private investments in fishculture at the farm
level will not be feasible. Production of large volumes of fish
will not be warranted unless the populace is made aware of
the new products for consumption. Extension work is neces-
sary ultimately for carrying new methods to potential fish
farmers to enable them to supply a high-quality product
which the populace can utilize. Consumption patterns in areas
which presently buy fish in sizable quantities need to be de-
termined to aid in planning for distribution in similar areas.
The principle of using all natural resources wisely must be
followed in planning for development of a country such as
Colombia. Fish culture projects must be considered along
with the development of inland waterways for fish production,
and along with coastal waters, brackish waters, and other
marine water fisheries as a complete package of development
in which each component is properly related to all other com-
ponents.
In the total economic picture, fisheries must be considered
as a competitor for resources with all other enterprises within
an alternative cost context. Fisheries should compete for re-
sources only to the extent that they put the country's factors
of production to their "highest and best" use.
fI4
Fisherman survey on the Meta River.
RESULTS
The General Situation
Thrlee Ilmajor tieen I relauSWhte(d( to ti e piojec 
t goals ire ( 1)
thet f)FOdtlICtiOll IOf fiJ sf W 1 pOIid tit .( 2 ) the 
mll a gi 'mel it
alit
1 
hltstiiltg of, food fish ft 011 inland ss atet s, 
aiid (3) the
11111)01talice, ecollonuei imipact, alit powtl1 
of ori lietal
flsh in the ecoliomY of C'olombia. The fli st step iii 
assessinig
the s ations fishers- progr ams is to determlinie 
the avaiilbilit '
of data rtlevanltt to the SlbljeCt. \lI 
tifetttor-gallit/atiolis
are iis ohs ed ill ft'e 5atious atsj'ct-s ot fishli is 
and there has
betti little effiot tto pool informtlion. 
A f151111ies lbillitiapllx
One' problemn is thle lack of' sulfficienit etifies 
of reports of
soni of ' ttftie stud1it's rtelat ed toI fishe(rie s. Ill some 
studit's en-
repor~lt are 1 idt'. Th tese tof tetn go to heat' 
o1l5tf 1)u1rt'aus andit
lnevetr get in thet haiti', of t'e seit'ntists 55 
lit ('all use thetmt. A
lrgi' study! by ottsid agt' cies ' at a ti st o)f 
many' th ousandis
of thtlhairS prtIll f~ot'd(lr hlad ol]\ Iarioundl 20 t'tpies matde. 
Often
andi iti 'for ilittI tlal luse oid~ ' A ss-orfliv 
goa~l seenils to I)(
plilI tit illY of sulfficienlt C-opies of studtv, rettflts 
ill "fill al'' fo tli
andt tto exspress aill , t as ('is tor data fillltatiolis 
ovet'ly A
tfair fii ll tletilli dailta ar collecte the jt'he 
t1111' 1111y is e pub-hi
Stll as Ptossile tol bet of list' ill currt detcisionl 
makilig til
fishiet , vfpolic'.
R t', fi she~rjies a I es set'l tall~ a' floss il rere ill 
ft'e it
olut tlallfagillg filit' fisli poipidlationf. ile \s lrk 
ill thw e ta
mlanl agt'menllt an li hia rves t dtecis5ion IlS ',if I 
rtespec't to ftod for
lianS c01151111pfiol. Both tlte Gigate~ an~d Repeloll pirojects
il C tdesigneud to) shlow costs alid itullni', alit to demllonistralte
pt'efe-rretd Illthodtlis of groill ig fish i il t'e Colon) 1 dam xs atetrs.
ht 011r111m'lental fisheitries are tof ilntetrest as a meat'nl s to in-
tI tast' ilittlet fromn tlit'ir capture areas. Survey s Culrrenltly
I ti 1 cal lietl tot w,,ill aidl iti the dtltf'liiinititll of inicome re-
et-cit't at thett first levecls, sp'ti's caturedl tti anit opporltutnitit's
tto im~prov e t'e slystemi to fft'e benetfit iof tue poptulace.
The folloss tog secttionis givt' a gelial appralisa] tof ftle prot-
'Tese setctitts arellt fios', t'tl Li rt'ct 11 n titi afiols for nteeed
c hillges ill 1pol1icy tol~1 i s t' t-t t' efficttitsc of illit t thetlt
progras.
"~
I,
~ (
Fishing boat with port of the day's catch near Son 
Miguel.
Repelon
'Ille (01st! uct iu progiram wxas piroceeding at tile Repl)(on
Station. Several of the ponds are now in piroduction wvithi ex-
periments inl progress. Other ponds were under construction
at tile time, of the author's v isit. The Repelon Station xwiii
aflnidi oppor tunities for significant expeirimentation and pro-
duct ion in oine of the xxarmier climatic regions of the Counltry.
Af ter sufticient researiclh to assure co(0nfideince in data onl pr o-
duct ion, costs, i(id pirobale ireturn s, the resllts gai ned cail lie
extendied to a wvide area of tile couiitrx 'vwith lairge ruaikets
establishled to fill tile needs of the popuilace.
Cities siuchi as C arta genla, B arrainquiill a, and inany sinaller
toxxns arc in the spheri Co(f influence oIf the Repelon Station.
Colombia ai eadx' has a fishei x tradlitioIn xvith abo(ut 60) per-
cen t (If t ile fi sh sol d coi ii from inlainid xwaters. A( uaeil tuiral
fish aire I ikclx t v 1o Ie oil].x a sin all part oif the total fish1 prodluc-
tiii an I- sholud ilot 1), expected to affect the markets appi Cci-
al ,v For dleterinin g economic feasillilit\ , cost of produic-
i(I d (ata xlihiuld 11e coinplem ented bx inairket in iitorin g in
the areas (If in flueince of' iexx ponds coiiig into p roducet ion.
This monitoring could iclude pirices oif coml~petitive fish sim-
ilai to tholse to 1),il arxvested fromn aqfuaciiltiiral operations as
xx,(,]I as pirices of' the fish firom the m(fnu~lturil operations
themiselves. The serxvices oIf the INDERENA economist
should he used in this plrograml.
The Repelon Station is in the basin oIf the Mlagdaleina Rivei,
xxhIich has a bigl lx seasonial fluctuation of fisi qjuaintities and
correspoindiing ighi fluctuations of p~rices accordiing to quan~-
tities received iii the mairkets. Fish cultuire operations canl lie
aIjuistcd toI take advantage (If thlese fluctuations. H arvesting
can be timedr for tlue most proifitable exploitation of the mar ket
aiio to level out the quantities supplied per unit oIf time dur-
ill, ill(, duf l ilt 41 fII %( 11 tl( I c u i, Ii ult ii f))(l
thu is also fiaxve the ffxifiilit x to]- fiilslihig tile fliodoiit at
sp(ecial festixvC alid hiolidax times xx 11(1 the demnid is explected
to iinciease gi eatix.
Iii all projects under taken, every effort shiould he made to
assess suich ecoinomic factors ais costs of different size olpera-
tioiis iil terms oif const ructioin, life of tile facility, tile oplera-
toi s alteirniat ixe oppor tuities f oi his labor, andl altei iat ix
cost of using is oxxn caplital. This tx ,pe of data xxiii he x alu-
abile, not oiily to INDERENA but also to other countries xvithl
similar ci i a racteris ties to tilose in Colomrbia's production and
experimnital areas.
Other xwork presently in progress in this part of the loxver
MIagdalena areCa fincludes data collection and analysis for ar-
tis iiial fisheirie s iiludilig cert aini sociolecoiinmic chiaractei sties
of tile fishiermain, equiipiment dlescrip~tions, equtipment costs,
wxork patterins, andf other character istics. Price and xvalue of
fish fly diiff ereiit species are also iincluded is these stud~ies.
Tl lese data xxiii lie important in tile overall planllnig of total
ICSOiirCO (developoment for the Co eri nent of Colombia ill
future years.
Giga nte
The Cigante airea had( the good foirtulle to hsave aboui~t 40
local poinds either in experimental p~rojects or in production
(of fish foi homne use and for sale a(t tise time of the author's
xvisit. It xxas expectedl that tile contract for coinstructioii of
exp('riinital facilities would he signed xxithin at fcxv dlaxys.
Sex eral inlterestiing exflerirmniits xvere in flrogress includling
feeding a local plant, bioire, to tilapia. Whien this plant xxas
mised as the onlx isiti ient aiii fed to iiaxiillil (ilnslinption,
fish yield xxas 4,00(0 kilogramns per hectare.
,~ ~I
At
'I
04- ft
4.
Jig
g fish.Experimental plot of bore used for feedin
5,
Lea semsreainngafer is hae onume bre lats
It ~ ~ ~ ~ ~ -\,;l. taecnieal ii obul h xeietlpo
ducio uit t i~an ad o rng it ' iit se,- rgti
elarte remiin after fispetiave conume bre pqalnts.
ptoxxcill tke prics ~eand)I aitme oful the ieperimenal pio-
prducts un atricae and qt itlit iof copsie. intisl
poteiaittotin prodcsSc i e pork quai tivti Tshe data.
ofthe dtax of it elud te pcs anduanite of fih cur-
ket, xx loch ii eludes on~ly oine fish stall, justifies this appiroach
to the stuidy. Some f armers mnax 1begin po mid ciii ture opJera-
tioiis as the experimn tal f acilitx is beingT 1 ilt. NIMarket mioni-
tori ng xxill aIl~ oin t in geney phni ilg to prex cut failuires in
the eficieit imoivement of fish to cilhice the protein in diets
of the area's populace. If the aiea of ponds 
estalislhed is
such t hat prooduct ion is greater thIan thei local 
mairket can
hiandle, plans can be made to ship fish to outly ing ar eas 
such
Its N(is a, ( II niI, 111
1  
('011)p0a11'(1e. N In ketitig outlets amid
transportation means should he explored we 
ll ahead of time
to prex cut losses to pioduceirs and potential 
consumners. De-
tails of the piroposed market monitoring progiram 
ai e gix en ini
the Appendix. A questioiniaire was desigined for setting tip
the market monitoriing sx stein.
Additional suxrveys considlered xx ere house-to-house inter-
v iexvs to deteirmine the preferried 
sizes of fish by consumners,
anld the segiregation of fishi by size in the markets to obseirve
customer preferences. Piroducers hav e some 
leewvay in re(gti-
lating the size of fish marketed by adjusting the tfime 
of bar-
est. This ty pe of action imust h)e consideired in conjunction
xx itli the pr ice of fish of diflereilt sizes and \%,itli the per 
unit
(cist of production.
It may lie difficult to create a tradition of eating fish 
in an
amrea xx here fish hias not been a popular food. Ciganite seems
to be in suich an airea. Suifficienit adv'ertising of fishi 
shouild he
doiie before large quantities of thle newy fishi cultmie 
proluicts
are mairketed. In amreas xwhere 
incomes are sufficiently high),
such ats in El Salvador, fishi have mioved xwell oil the market.
Quiestions remain on the iespouse oif both fishi farmer s in
huld(inig facilities and( siippl -viiig the 1)1odiic t and of cons umners
to the availability of the product.
In addition to Tom Popnia, from inhiurn Unix cisitx 
', the
Ci gailt e Station is st affed byli All eu to 
Vi IIaneda, acting head,
Ji ()](~ Trujillhi, biologist, an, adminiis trative an alys5t, a secretariyx
xx ateien, aiid a cleaniing xx email. All of the ponds serviced
bx, thle C igam Ite St at io n are xxith iii a 41)-inliiite (hiv se from th e
Station and are ,tx teii 90t) and 1,60t0 ietem s abosve sea
lev el.
Los Lionos
Thle bioloigi cal Nxork in thn Llanos airca uif the coun try Wxas
miaki ig substanitial progress. Sexveia wxoirkers xvere par ticipat-
log iii i sourveys on tlie M Ieta B asin and iii dlat a collection
at the xvariouis shipping points, such as the onies at Puerto
Lopez, Puei to Caitami, andl San Miguel. WVork xx as in progress
vi ~
~- ~
A~. -,
5-,
Private fish pond used for experimental work in southern Colombia.
INN,
N-
~i 
>1
4
LEFT-Dried fish sales in market 
at Puerto Lopez in the Ilanos; 
RIGHT-typical catch
Gaiton.
for oirnamet al fish ats wseli as for 
food fish. Orntineintal fish decision 
inakit i
a fford at siz /able oppoi tuni tv for ecol 
Iom I gain for ti e area cult ural 
Pondis.
and ti (e s to b~e s tudcied i ore ft om the standcipinlt 
of cci ob iemc nat kct fi sih at ti
e'xplitt io 111 d tiopt imulin deve (lopmenI 
t. Sot iocol'totI 011ic dtlai ifreais 
Wiill t1
1
) 'lit
ielatecd to thle fi shijeman, equipm enit, 
atd ci n et iods are being fot his 
tint e atndc
collcted in tilet aiea. 
decision moakinig
Fu 51 proi'e data aire being collectetd at Loving-collection 
tneilt pout
1 
prodl
points, lut tfta are lacking for 
it termnc diate levels of the
matrket. Futhtier ,v ork is needed 
to trace the costs ofi market-
itigT andc tranitsportation at poitits betw etn tile fit st Los ci 
level THE COI
cthei retail leveci. 
In talkiiig wiit
Satmplinig mtodts being osed 
ttm the Mieta his er ss stem 
ouce
sucsin colonl
aie ilitt'tlii' tot letetmnine 
the s aloe of tile fishery 5 
tio tilt' cljlll- ant i moi 
extetl'
trv, iii silliflar fashiionl to 
the sttodl% by Chillan 
oIil the \Iag- 
Thac'f>. ile P~
clalia ss stcn. ( bapian 
used an interest rate of 
12 percent cci ned 'aboot 
tii(
in his lisilutiting, wh ichi 
setns to be ses c -ls lows 
in tertins food fisllct 
opet-
of carls v 19'78st Icitton 
s (a pime inteirest r ate 
iii thle 28 to :30 expor 
t produlcts
perctlt I Iliwe anti actuald 
rates in the .30 to 45 percetit 
ran ge sxorld. lie 
\\,ias
for btusiness loalns wsithi 
somle risk) . A cuiiretit 
itfliation iate in wholesaile 
tradele
the' ran1ige iof :t0 perlcent itmas 
itndcicate slome 01 l-tat iiig. 
butt it 01rtam ental 
ftisi i
is toitkely to reach loss' 
lev els soon, 
expressed col cet
Init situtatiotn ssit li 20 pe'rc'ent 
iniflation rate, at 20 percent 
at eas of tile fish(l
noin a llIl initeriest rate is actutal]\ st 
ael rate iii it t erest lot zero. 
agetnci es werite ci(
Ati ilit('i'st r ate ill excess oIf the 
iflationl iate inist be chatrged, 
their- mnatllaco
ci ci iiic, to proid iti aposltis e ret 
urn 01oil ies loatneid. Risk 
atl interest 1itl k il
1111 st al sio be respondll ted to 1)5 a 
high er raite toi cover t I I pos- 
fishi c s anti pon
sf1 ilits of' loss(' oill tile loan. 
Use of a tate of dliscioun t equal 
the Nliuaciina I
to ilt iil tile proper rate 
will x icid ati expected v alue 
of steason s of the
tree tiltIt's tihie ille whs' ich -w'ouild 
he pro per. 
alre. 111et efo ic, s(
Thic e editcts to Lc' anl integration 
of tile ecoiotic datta ft om 
A sets extitnsi
tite foo~d fish pr otittetuent areas 
to tile fix e titsy ciltsuttuer sitr 
in the \iinisti v
si's Mulich%\sits tio lbe pubtlished 
bs' tile NI itistty sof Agtricullturte. 
ecoliotnlist. Thiis
A dcittiptioi ofi tilis 
studs is gise itl it 
la ,ter sect ilon Tile 
suonetr iihlit's us
tiflict ilcIs iii thet oiriia~l costs 
of the fish it tilt riser baniks 
Blocaratnlaltlga, N
atnd till pi ices tol tiit constlmier 
at'( ('55i'tiailis the( costs o~f 
sigtnifc'icne ill s
maritketiing ,llit tt'itlnportatioli. 
Intetmneciat(' le'vetl sailliltw 
to total jpipulationl
ii it ii t 1111 pi ci's at te aiu Iwhole llt5 
s le t steps swill facilitate 
55'ilicii .v''e to it)
from the Meta and Monococios rivers 
at Puerto
il w shere c tI o market fish producced it) aqua
Wheii'the itIt is t nore profit ale 
fiol fai 11crs to
c' p)1)1 banltk or- to tratnsport thin to outside
hIis eqi iptmenl t as ailablii t' . -I'lIt' 
satine tN lpt iii
will apply to the Repelon anti Ciganlte 
eXIc'ri-
OTHER ASPECTS OF
.OMBIAN FISHERIES PROGRAM
IIliii tilisml officials related 
to fishiltit's re-
ihia, tilt itdea that tile cotlntiy 
needed Lt'ttt'
,iv t' lll c imt ll' st's 
\\-as lo Ug
1
t til tre-
o-aiilitw Officc'r of 
IN DEIIENA a 
o
elactk ill glood soc'ioecotloIlic 
stuiets oil titi'
iteri'stei'l l tilt collectiotn oper 
atiotns, tilt'
Iifit dletict levSels, atnd finl ilt'5des~tiaions 
of' tilt'
ti sodic plactes i1s time Utlited States. 
Hei also1
TV ope'ratiotns of Colotnilia, ntinilg 
tihat lull
it. Tile Prltgranmtlmg Office'r 
also e'xpre'sse'd
oinlg traditii'iti of resoutrces bectwee'nt 
atrtisant
(I cilitlui'. ihere is at sizab~le 
slack pcilot
1 
ili
si'r 1- becauisc' of tile 5111 ien dai' 
ibs dliifrt'ti
(' Alti'rnlatisve eni pl os iellt 
o1p)p1riiuniit ies
flifflit llt fishietmen sso ar) le aiffectedt.
t' soct'ieconictitl studyx ssas being 
cairrie'c iltt
ofi Agt i cuiitu in'idter tile 
direct ion of tllilI
stitls ss ais illte'l to fish mlat ketilig 
ll( nd co-
itthillin, atii C'ali. Th lese cities 
cnot' l~f gt m
z/i' conitaitning ain itmportanlt 
frac tionl il' tiii'
oif thiii countrs v. 
Tile reisiults oif this 
s t t v,
e' lla avai' is'Ila le ablout P-1.ti 
illti Is afteir tile
* d
~
-
All,
~
- ,*-~
4 
-
I
Ice house and holding facilities for fish 
on the Meta River at San Miguel.
author's v isit, may be useful for extenision to other 
cities onl
a smnall sample basis for deteirmining differences 
in consumlp-
tion patterns in dillferen t ar eas. Yielding 
income aiid plrice
elasticity coefficients friom the areas wxith 
highly developed
markets, this study should he hielpful 
for future pianncing in
other arecas.
The Director of Inland Fislherics repor 
ted on some of the
projects of tile overall fisheries pr ogram 
of the country. WVork
is in progr ess in tile Pacific area onl 
v arions shi ip fishei ics
researchb. Studies ale lunderwsay in the Cartagena 
area relat-
ing to mi cury pollution. Coiral mor 
tality studies are also in
progr ess, in adidition to fisliciies, 
in tile Atlantic Ocean. CIDA,
tile Economic Des elofinent agency from 
Can ada, is also do-
illg res ear ch in) the Caibb ean area 
of Colombi a. Var ions
shrimp experiments aire ill progress 
in tile Pacific area of
Colombia inl sshich pond 
cultur e is used. Maci 01)1aelium,
ml10jarra, .1111 othler fillfisil wer ce involvecd 
in the research. Four
scientists hiorn Taiwan11 alnd six Colomb~ians 
svere iluvols ed in
the progirami. ('IDA~'s insvolvenment 
in Colombia's Pacific and
Caribbiean areas amiounts to S83.455 million 
( Canadian ) over
a 5 sear period. This insvestmnen t elntails 
equlipment suhl as
ice planuts, electric pilai ts. presers ation 
eqjuipment, and a lorge
fishing vessel. Colombia wxili htiild the 
vessel and Canada wsill
don ate the en gilnes.
T1 le combined girouip of L SAID, (ADA, 
FAO, and the Chi-
lnese mission)1 involv5ecd inl tile aboveC resear 
ch ill maiime and
in land ssaters fiwlucles 70) iNologists. 
No econlomists wveire
melltiowlVd inl relation to these illsestigations. 
The ablove de-
scrip~tionls swer e not mecant to 1w exhlaustive 
b ut wxere givenl to
illustrate tha~t actions Ille bleinig takenl. 
Some good results are
likels vto come of thlis sizabule cdimitmnent 
of the Government
of C allada an id its coo perat inlg 
(01111trlies. Al so. a soun1d ill-
trastructur e is in tile prlocess (If des 
elopniett in tile counltry.
Iii a debriefing mneetinlg at tile Ministry of Agiriculture 
at
tile eild of the svisit, the Colombian officials 
suggested that the
blaseline mlarket monlitolrinlg studs dceveloped 
for Gigante lbe
extemlled to olther outly ing cities for comparative 
pupss
Data procur111emenlt could be 
included for tile cities of 
Carzon,
ColopoalegI e, and Neix i in tile Department 
of H uila of tile
tipper NMagdlalella Basil). It wxas aliso sulggested 
that tile salnlC
kind of baseline data be pr ocuired from 
Cartagena aild Bar-
rati l ia so flltulle market illg studlies mnight 
hase conlsumption
and pr ice dlata accorcdiing to speci ,s an~d 
01riginl of tile produlcts.
Thle obljectives oIf tile market blaselinle 
study in the Giganlte
areOld ainv outlinigo cities swerc to establlishl 
p1rice anid (fILIlil
tity data for fishl. Suchl data swold then be 
used to determine
seasonal patternls, to establish similar patternls 
for competitixve
meats, and1( to) establlishl marketing plians 
for tile fuituire.
Extensioin of the miarket monitor ing wlork 
sxouid recquire
anothler economirist to set tip anld sup~vise 
tile w~ork. This ile' v
r esoulrce req
1
uiremnent sihuld lbe gisven a hlighl priority 
by tile
Government (If Colombia.
The edclationlal aspect of thle IN DEREN 
A prolgrain hlas
bleen growxxing rapidly. N inc Colombian 
stud~ents ale pr esen~tly
stucising fisheries at Auhurn Ulli'el sits7 
and twxo more are in
WVashington, D.C., for lallguage 
training ill prcpai at iol for
elterillg Aubhurn 11 I-~eSity. Other-~ 
studenlts ar1e plannling to
elnt or Vl0\t scar and hasve sigiiclant 
researchl in progre(ss. Tile
educationlal complemenlt of the IN DERENA 
IJSAID-Auhurn1
pr oject is a mneans to illerease tile hutman 
capital inlfrastructure
(If tile clltiltrv anld add to tile future 
productiv e callacits.
Use of Economists
INi)ERENA can benefit from tile 
use of thecir own'l con-
oinist ,ln(l f1r)1m othiers on a con~suiltilg hasis. 
Tile IN DEIAEN
econom~list shold~ conltriblute to tile 
desvelolpmenlt andc appraisal
of projects in general by converting price and cost data to
constant or real terms, by correctly portraying opportunity
costs for the other researchers, and by acting as a general ad-
visor on business analysis related to fisheries. He should be
able to aid in the formation and execution of sampling survey
matters, some of which are listed. The INDERENA econo-
mists should also act as a go-between in coordinating eco-
nomic matters from the biological scientists to policy forming
personnel with the Government of Colombia.
Specifically, the economist will collect data related to agri-
culture from the Census of Agriculture in Colombia. He will
procure seasonal patterns from crops, harvest times, yields of
crops per area unit, and other data relevant to agriculture as
an alternative to fish culture. He will procure labor cost in-
formation from the Ministry of Labor and working capital
and investment funding information from the Caja Agraria
and other sources. The economist may also aid in gathering
diet information from Bienestar Familiar and from the USAID
Health Group. He may contribute to background data pro-
curement by working with the Ministry of Agriculture study
related to fish consumption in five cities in Colombia as men-
tioned above. He will also conduct studies on marketing and
transportation costs and on prices of fish at intermediate levels
of marketing.
The work envisioned by INDERENA and the Ministry of
Agriculture is too much for one economist to complete alone.
It is advisable to employ another in the Repelon area to as-
sume a part of the work load.
CONCLUSIONS AND RECOMMENDATIONS
The Auburn University-USAID-INDERENA Fisheries Proj-
ect has made significant progress to date and will vitally affect
future opportunities of the populace through improved infor-
mation. The Repelon and Gigante projects have begun to ac-
complish parts of the work envisioned for them despite delays
in construction and procurement of certain equipment and
vehicles. Surveys in the Lower Magdalena and in the Llanos,
which are bringing in much needed data on biological-pro-
ductivity phases of the fisheries, also are useful in supplement-
ing the socio-economic phases of the study.
There has been a scarcity of serious economic studies in
Colombia in the past, with economic content being given con-
sideration largely as an afterthought. Thus, the present study
of consumer patterns in five cities, which seems to have a val-
uable content, will be welcomed by scientists interested in
building on the data for future plans. The fishery bibliogra-
phy in preparation at the Ministry of Agriculture should be a
tremendous help to persons needing orientation on previous
work. The recently-hired INDERENA economist will fill a
vacancy from a previous resignation and should be able to
aid in bringing economic information to potential users.
The training element in the fisheries project is designed to
get the most out of the economy's most valuable resource, its
people. The nine persons presently in the program and the
two in language training will add greatly to the human capital
growth of the country. Several more plan to enter advanced
degree programs later.
Construction delays (for whatever reasons) are costly in
view of the high inflation rates in Colombia at present. A
fixed sum of money appropriated deteriorates rapidly in terms
of buying power for buildings and equipment.
Other development agencies, such as CIDA, the Chinese
delegation from Taiwan, FAO, and similar agencies, comple-
ment the Auburn-USAID work in favor of a balanced effort
to develop the country's natural resources. Mutual informa-
tion exchanges of these groups will make improved results
available to all parties concerned.
Specific recommendations for the project are given as fol-
lows:
1. Another full time economist should be hired by IN-
DERENA. He should have at least a masters degree with
special training in econometrics. This economist would be
used in upgrading demand studies and would aid in oppor-
tunity cost and resource allocation problems as well as in
macroeconomic matters.
2. Market monitoring should be started immediately in the
Gigante area to make better plans on pricing, shipping prod-
ucts, and preparing for contingencies. This plan should be 
car-
ried out according to the details in the Appendix and by the
survey questionnaire developed for use by the INDERENA
economist. A simpler market monitoring plan is recommended
for the Repelon area of influence only to trace price patterns
for competitive fish to aquaculture production and to examine
prices of the aquacultural fish. These data can be used to
plan shipping patterns of aquacultural fish.
3. The pricing structure of river fish between the first buy-
ers and retail levels needs to be studied to learn at what levels
aquacultural fish can most economically break into the 
market
and to determine costs of marketing and transportation be-
tween important marketing points.
4. An in-city survey of ornamental fish needs to be set up
to complement data which are presently being collected 
on
the rivers at first-buyer collection points. This phase of the
work would be carried out by the INDERENA economist.
5. Market monitoring similar to the program recommended
for Gigante should be extended as suggested by the officials
at the Ministry of Agriculture to the extent of personnel avail-
able. The hiring of an additional economist would aid in
attaining this goal.
6. Plans should be made for extension personnel to carry
research findings directly to potential fish farmers in Colom-
bia. The proper allocation of the country's resources cannot
be made without adequate information to the public.
APPENDIX A
A Market Monitoring Program for Gigante
The Gigante market is open for 2 days per week with the
opportunity to sell fish. New fish from aquaculture may be
competitive with fish which are presently sold in the market
and with other animal protein products. Market monitoring
will allow at least a rough approximation of economic effects
elicited by changes in quantities of fish. Gigante is located
on the headwaters of the Magdalena River and is not affected
by seasonal fish harvests from the rising and falling of the
river as are other areas of the system. Gigante is affected by
seasonal demands for fish induced by holidays and such na-
ture-oriented patterns as the coffee harvest, which elicits large
inflows of migrant workers.
It is proposed that the market base monitoring for Gigante
be set up as follows:
1. The first phase of the study will entail the aggregation
of known data on prices, consumption, and socio-economic
characteristics of consumers of fish. These data may be in the
form of bulletins and unpublished data of various govern-
ment organizations in Colombia.
2. The second phase of the study will entail collection of
base line data at the Gigante market itself. These data will
include prices and quantities sold for fish, beef, pork, chicken,
and any other animal protein available. The consumption data
will allow seasonal patterns to be determined. These data
may be supplemented by past sales records of suppliers in the
markets. As new supplies of fish enter the market, the moni-
toring system will be able to note changes in prices and quan-
tities of fish from the river system, prices and quantities of
fish from aquacultural developments, changes in the quantity
of beef and pork sold (local governments control retail prices
of beef and pork), and changes in the price and quantity of
chicken.
3. The third phase of the study will be to prepare alterna-
tive contingency plans based on the flow of data from the
market monitoring. Efforts may be necessary to even out the
flow of the quantity of fish to prevent market disruptions in
the Gigante area. As a part of the contingency planning, if
excess quantities tend to flow into the Gigante area, other
markets in Neiva, Garzon, Compoalegre, and other cities may
be checked for the possibility of making shipments there. This
alternative would entail studying the availability of transpor-
tation, ice, and holding facilities for storing fish before ship-
ment. An additional alternative is to market fish in Gigante
more than the 2 days in which the market is'usually open.
These phases of the study could be supervised by the
INDERENA economist with data collection by the personnel
at the Gigante Station.
This study will have the limitations of a short time allowed
for seasonal analysis and a lack of secular trend data to form
a sophisticated econometric model. Cross elasticities and other
devices useful in market analysis will not be available, but
the new information should allow an improvement in decision
making for production planning.
APPENDIX B
Itinerary of Donald R. Street
February
February
February
February
March 1
March 2
March 3
March 4
March 6
March 7
March 8
March 9
25
26
27
28
March 10
March 13
March 14
March 15
March 16
March 17
Arrival in Cartagena.
Project review.
Visit to Repelon and North Coast area.
Interview with project economist, interviews
at Ministry of Agriculture, interviews at
INDERENA to discuss National Program.
Interviews with INDERENA to discuss fish
marketing studies, afternoon trip to Gigante.
Study of the Gigante area.
Study of the Gigante area.
Return to Bogota.
Trip to Villavicencio.
Study of the Los Llanos area.
Study of the Los Llanos area.
Return to Bogota via Villavicencio.
Interviews with agricultural and economic
agencies.
Interviews with agricultural and economic
agencies.
Work at AID offices.
Work at AID offices.
Review of observations.
Return to United States.
10