Monday, 3 March 2014

Conversations in Local Subsistence Marketplaces

For this part of the project, I follow with the subsistence fish marketplace in Mpulungu, located on the shores of the Lake Tanganyka, northern Zambia.

Value chain subject to interview with local actors in this subsystem marketplace - Production (Fishing and drying of the fish); Sales (includes transport to point of sales); Distribution

1. Key takeaways after conversation with producer - Local fisherman
He has been 25 years in the business. He fishes every day after sunset. He uses a medium-sized boat and gets help from 4 others from his local village. He comments on the issue of depleting fish resources, exacerbated by the appalling use of illegal nets, even mosquito nets used for malaria prevention. No fish even the smallest escapes, which negatively impacts fish reproduction cycles. He has to go to deeper water to get enough capenta. He says that uncertainty has increased, since It has become harder and harder to make enough for a decent livelihood. He believes that this creates higher financial constraints in the village. He then talks about the drying process, how women in the local village dry the capenta fish before it is ready for selling in Mpulungu.

2. Fish seller - In this case, a random fisherman's wife who carries her baby on her back
She travels by boat taxi with sacks of the dried capenta from her local village to Mpulungu's fish market every Monday, Wednesday and Friday. The boat taxi departs from the local village at 4.30 am. The journey takes 3 hours, the boat is crowded with other sellers, many with their babies. She comments on the dangerous conditions and the high fare she has to pay to the boat owner. 
Concerning the selling, she says there is fierce competition. It's a buyers market, most customers are small distributors of fish who come from far away towns. Bargaining is the norm. She only accepts cash transactions. She does not keep record of any transaction. All she focused on is to sell all the sacks of capenta before taking the taxi boat back to the village at 3pm. She takes the opportunity to buy some groceries and soap to bring back home, since the only local store in her village charges high prices.

3. Fish Buyer - Small distributor coming from Mpika, 12 hours south to Mpulungu
He says that it takes him 12-hours by bus and does it twice a month. There is no distribution network serving capenta to small distributors like him, that's why he has to go to where the fish is sold. He then sells to small fish street vendors in local markets in Mpika. The trip, long hours spent on the bus and the investment in time, effort and money, makes him push prices higher. He believes it is a very inefficient process. He would pay for a service that saved him from going himself. However, seeing, touching and tasting the fish before buying is key. Buying from local sellers is not always reliable. That is why he shops around before making a decision.The margin on the fish makes for a good living. She also makes some money by offering his customers credit
 
4. Fuel seller that supplies taxi boat operators and owners of private boats.
He and his two business partners smuggle fuel from nearby Burundi, across the Tanganyka Lake. This way they avoid paying fuel duties to the Zambian government. Good margins. Mainly cash transactions although credit is also provided to some regular taxi boat customers. He commented on small bribes payed to local police agents so that they turn a blind eye on the smuggling activity. He also made comments on family planning, he just had one son and not willing to have more as he is aware of how expensive it is to support more than one child.

As a note to the peers for evaluation, I had all these observations during my travels in Zambia last summer. I have a modest blog. One of the posts contains further details of my experience in Mpulungu, in case it may be of interest. Thanks

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