this presentation shows the ornamental fish industry in Sri Lanka

1. Ornamental Fish
Sri Lanka
BY THUSINI RANASHIGHE
MISHALI THEMPANA
VENU SANTHITAN
SUPUN ABAYAWARDANA

2. Overview
1.
Outlook of the Sri Lankan Economy
2.
Ornamental fish industry of Sri Lanka
3.
World Ornamental fish industry
4.
Challenges, barriers and risks in the domestic industry
5.
Special Characteristics & trade terms in the Ornamental Fish Industry
6.
SWOT Analysis and PESTEL of the Ornamental fish industry
7.
Export and import policies implemented by the Sri Lankan government
8.
Country analysis
9.
Possible modes of entry to the market
10.
International Business Strategy
11.
Conclusion
12.
Recommendations

3. 01. Sri Lankan Economy
Finishing of the civil war 2009, Sri Lanka started to
development rapidly.
 Development in the economic environment
 Infrastructure development & Regional development
 7.80% growth rate in GDP 2013

 Inflation
 Interest
rates
 Unemployment
 Exports
 Imports

: - 4.70% as per 2013.12.31
: - 6.50% as per 2013
: - 3.80% as per 2013
: - 1031.80 USD million as per 2013
: - 1647.50 USD million as per 2013
Balance of payment USD 615.70 million

4. 02. Ornamental fish industry in Sri Lanka

The industry was first started in 1952, the country exports marine,
fresh water, brackish water fish species and marine invertebrates.

The fish has rich bio-diversity giving an competitive advantage to
the exporters.

Fresh water fish are guppies, swordtails, platys thorns tetras, angels,
gourami's, catfishes. These fish are colourful and eye-catching. The
most demanded fish in the global market are guppies.

Sri Lanka has two seasons, Northeast (December to March) and
Southwest (June to October) monsoons.

Animal Quarantine health standards goes to every shipment.

Hobbies and to reduce mental stress

5. 02. Ornamental fish industry in Sri Lanka

The industry is supported by coral reefs, sand bars,
lagoons around Sri Lanka and the island comprise of
inland water, streams, waterways and reservoirs help for
reproducing of marine, brackish water and freshwater
species in Sri Lanka.

Contribution from ornamental fish exports 0.4%

10. 03. World Ornamental Fish Industry

Aquaculture products are demanded all around the world. The
industry worth in 2003, US$ 3 Billion. Exports worth US$200 million.

Singapore is the market leader in exporting ornamental fish.

The leading importer is United States owning 25% of market share

Divers are finding new ways to catch fish without harming the
environment.

World demands for ornamental fish are of fresh water fish (90%)
and marine (10%).

New methods are introduced to importer, buyer and retailers.

Further many other industries are supported by the ornamental
fish industry.

11. 04. Challenges & Barriers

Quality of supply and holding facility

Packing method

High competition

Establishing a market

Lack of exporters
Risk in Ornamental industry
•
•
•
•
Vulnerability
Payments
Sudden changes in the market
Not entering in to contract

12. 05. Characteristics

Industrial rules and regulations by organizations, countries and
the local authority

Quarantine procedures taken by the exports.

Playing the supplier after reserving the shipment
Trade Terms

Industry prefers always direct payments.

Transportation and Export is done through air

Discounts.

No return policies

13. 06. SWOT Analysis of the Ornamental fish industry

14. Ornamental fish Industry - Porter’s 5 Forces

15. 07. The Import and export policies implemented by the
Sri Lankan government specific to the industry

Regulation in the imports due to invasive varieties being
introduced to the water

Endangered species available which are protected and not
allowed to export

Permits being issued for restricted verities

Certificates required in order to export and import

16. 08. Country analysis
United States (US) performance

US has European colonization from 16th to 18th century.

US has a large market, political-legal system, vast area to
cultivate, natural resources and entrepreneurial qualities and
material, capital and technology.

Early 1990 till late 2000, US began Globalisation.

During these the national debt expanded by 75%, GDP climbed
by 69%, and the stock market system as measured by the S&P
500 developed more than triple.

The country faced recession in 2008.

17. 
The Gross Domestic Product (GDP)
3rd quarter 2013- 4.1 percent growth
4th quarter 2013- 3.2 percent growth

The personal income of in:
December 2013- 0.0 percent (individual income)
November 2013- 0.2 percent (individual income

In 2013, total 20 to 22 industry groups lead to 2.8 percent rise
in real GDP.

The Balance of Payments in US,
3rd quarter of 2013-$94.8billion
2nd quarter of 2013 -$96.6 billion.
The current account deficit decreased by $1.8 billion from
third quarter to the fourth

18. 
State personal income, personal income growth has
2nd quarter 2013- 1.2 percent
3rd quarter 2013- 1.1 percent

In 2007 it was recorded that the service sector contributed
toward country nearly 78.5% and the industrial sector
contributed about 20.5% to GDP.

Economic drivers are exports, innovation, service sector.

Macro economic policies- Fiscal and Monetary Policy

19. United States Ornamental fish industry




1.
Ornamental fish industry is most popular in the State of
Florida, recording 95% of all ornamental produce in
United States.
The industry is worth US$47.2 million.
Warm weather to breed the fish. The industry is based in
Florida.
Ornamental fish industry in US jointly breeds hundreds of
different species and different kind of fish from different
geographic regions.
US is the largest importer in ornamental fish due to high
demand.

20. Ornamental fish
structure and
value chain

21. Performance of the US ornamental fish industry

United States considers ornamental fish industry to be a cash cow
to the country in the aquaculture economy.

The largest importer in ornamental fish is US with 25% market
share.

Southeast Asia accounting to about 75% freshwater fish. The
country imports approximately 1500 different species annually.

Most demanded Guppy, Neon Tetra, Platy, Siamese fighting fish,
Goldfish, Chinese Algae-eater, Short finned Molly, Cardinal Tetra,
Glassfish, Tiger Barb.

Approximately 201 million fish amounting to $44.7 million,
imported.

22. 
The Los Angeles port handles 39% of all aquaculture
trade, Miami 22%, New York 16%, Tampa 6% and
Honolulu 6%.

Fresh water is amounted to about 96% of the total
capacity and 80% of imports.

Florida is the only State that produces ornamental
fish.

23. Country Analysis
Analyse the countries competitors, competitiveness
and the external factors:

Porter’s five forces

Diamond theory

PESTEL

24. Porter’s five forces
Rivalry among existing competitors- High

Singapore, Malaysia, Thailand, Philippines, Vietnam,
China, and Japan, China and Singapore.

Singapore is the largest exporter.
Threats of new entrant - High

1976 there have only been 28 exporters, and in 2004
there are 146 exporters.

The industry provides employment hence
government encourages.

25. Porter’s five forces
Bargaining power of the buyer- High
 Long term suppliers who have created good
relationships.
 Loyal customers
Threat of substitute products- High
 Plastic fish tanks
 Genetically injected fish
Bargaining power of suppliers- High
 Wide variety of fish
 High quality at low prices
 Delivery without harming the fish

26. Diamond theory
Firm strategy, structure and rivalry

Private Limited Company

High competition, governments promote
Demand condition

Best quality

Best prices

Many varieties

27. Diamond theory
Related and supported industries

Live/dead coral, aquatic plant, sea weeds and live
rocks

Ceramic and plastic ornaments
Factor conditions

Technology- weather

Fresh water and sea water

Space

Food

Nutrition and aquatic diseases

28. Political
•High political pressure on local breeders and farmers.
•High rules and regulations on standardization of fish
•Low government sport to the industry
Economical
•Cost of production is high due to low price imports.
•High labor cost
Sociological
PESTEL
•Lack of awareness about the local industry
•The amount breading of species are less
•Waste water management policies
Technological
•Poor technical maintenance of the facility
•High cost on technology
Legal
•None updates acts and policies
•Lack of monitoring in fish handling
Environmental
•Bad weather conditions such as tornedos, floods, etc
•Lack of inadequate sewage management

29. Growth prospects

Geographically large

Recession

Imports large quantities

Cost of production

Varieties

30. 09. Possible Modes of Entry to International Markets

Exporting
1.
Direct
2.
Indirect

Demanded ornamental fish

Ways to get to know about the industry
1.
Internet
2.
Visiting international Exhibitions
3.
Magazines

31. 10. International Business Strategy

Exporting

Collaborating with legal bodies or legal institutes

Expanding the assortment of the ornamental fish

Healthy relationship with the exporters and the suppliers

32. Ornamental fish Industry -Diamond Theory

33. Challenges, risks and barriers of the International arena
Challenges

Offering a better product

Competitive prices

long lasting business relationship

widest range of varieties of ornamental fish

Increase in the packing densities
Risks/Barriers

Non-payments of the invoices

Reporting of the dead fish on arrival without proper proof

Non signing of contracts

34. Conclusion

35. Recommendation

Finding and exporting new products

Participating in international exhibitions and pet shows

Reach new markets such as Japan, Middle East, Norway

Implement policies and standardization for the fish and the
industry

Introducing Insurance facilities and risk baring facilities.

Improving technology in transportation.

Government should find new byers and then encourage the
farmers to bread more fish

37. Thank You