The Danish company ScanFi has been granted funding to do a feasibility study of fish food production in Tanzania.
Along with local partners, ScanFi started work on the Ruvu Fish Farm in 2014 with support from IFU and will start production in January 2016.
However, one of the major expenses in fish farming is the cost of proper fish fodder – a product that at the moment needs to be imported from Egypt, making it an expensive and time consuming operation.
By establishing a fodder mill near the fish farm, ScanFi and its partners would be able to cut a substantial part of the fish farming cost as well as creating a new market by selling fodder to local smallholder fish and chicken farmers.
“The support from access2innovation means that we are able to start up earlier than we would have otherwise done,” says ScanFi CEO Poul Hansen.
“Normally we would have to wait for the fish farm to make money before we could start looking at investments into this sort of infrastructure, but with this funding we are able to cut about 18 months out of the process before we start making a profit.”
Ruvu Fish Farm aims at producing around 50 tonnes of fish in 2016 and expand production gradually to 500 tonnes over the next five years.
For every ton of fish, you need 1,7 tonnes of fish food.