Draft Copy Economic Assessment of Small-Scale Inland Fisheries and Wetland Livelihoods in Cambodia 1

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1 Draft Copy Economic Assessment of Small-Scale Inland Fisheries and Wetland Livelihoods in Cambodia 1 1. Ms. Hap Navy, Socio economic head, Inland Fisheries Research and Development Institute (IFReDI), Dept. of Fisheries, Cambodia. ( hap_navy@yahoo.com) 2. Dr. Madhusudan Bhattarai, Environmental Economist, Mekong Wetlands Biodiversity Conservation Programme (MWBP), Vientiane, Laos ( madhu@mekongwetlands.org). Paper prepared for presentation at International Riversymposium, Brisbane, Australia, 4-7 September, Abstract: This study evaluates economic cost, profitability and sustainability of small-scale inland captured fisheries in Cambodia. This was done based on a case study in 3 selected fishing communities in 3 provinces of Cambodia, each representing a distinct eco-hydrology and floodplain characteristics along the mainstream of Lower Mekong River. We found that economic profit from small-scale captured fishing has large degree of seasonality. Returns from small-scale fishing, in general (measured by Gross Profit and Real Profit (subtracting opportunity costs of family labors use) were much higher during the open season of fishing (October to May) than that of the close season (June to September). In the surveyed villages, the Real profit during the open season of fishing was 4 times higher than that of the close season. Very low level of profit margin of the fishing effort during the close season suggests a need of alternate livelihood diversification activities for small-scale fishing communities, particularly for the period of 4 to 5 months of close season. In addition, the sharply increased costs of inputs in fishing over the years and lack of formal credit access in the rural Cambodia now have led to high dependency of fishing communities on private money lenders with exorbitant internet rate. A targeted micro-credit like public supports to small-scale fishing communities could alleviate the rural credit constraints and help smooth diversification of the wetland livelihood activities, and it would also generate additional income to small-scale fishing communities during the close season of fishing. 1. Introduction This paper summarizes major findings of a case study in cambodia on economic profitability, costs and returns, and livelihoods implications of small-scale captured fisheries. Cambodia is a major part of the floodplain region of Lower Mekong Basin, and in some sence its flood plains are unique ecological charecteristics. This study attempts to explains criticasl aspects of opportunities provided and cosntraints faced by the small-scale fishing (SSF) communities in Cambodia, and Lower Mekong Basin, general. This is important when over 90 percent of the inland fishing sector empoyment and total population engaged in fishing sector in Mekong Basn are from the small-scale captured fishing, or also 1 DISCLAIMER: The opinions and interpretations expressed in this paper are those of the authors alone and they do not necessarily reflect the views of any of the organizations involved in funding and implementing the this study, nor the views of organizations the authors are working now.

2 called family fishing related activities. The results are derived here from case study approch of asssesment, with a detailed socio-economic analysis of smallscale fishing communities in 3 different ecological regions of the main-stream Mekong River in the portion of Cambodia. Since historical times, fishery and paddy cultivation have been two primary occupations in Cambodia and in the Lower Mekong basin, in general. On an average, fishery contributes to about 10 percent of the national economy of Cambodia. The small-scale fisheries play a very critical role in sustaining rural livelihoods in Cambodia, as a several millions of Cambodian derive their livelihood and employment from small-scale fishing activities. Small-scale fisheries are source of food security, employment, and livelihood for many millions rural communities. About 75% of the animal protein intake of the Cambodian households comes from fish intake, and most of it comes from freshwater fisheries (Hap Navy 1999). Given this level of importance of the inland fisheries in Cambodia, and in Lower Mekong Basin, in general, there is an increased interest of both the academicians and the policy makers to make sure that the sustainability and long-term viability of the small-scale fisheries would not be compromised during this era of globalization and free-trade led development. The historical trends of captured fisheries and aquaculture production in Cambodia are summarized in Figure 1, and the detailed data are provided in the main project report by Navy et al (forth coming). The figure 1 suggests that production of captured fisheries and aquaculture has sharply increased in Cambodia after 1997, which is mainly also due to adjustment on the fisheries sector national statistics done during mid 1990s. 500, , , , , , , , ,000 50, Total of caught fish ( Tone ) Inland caught fish ( Tone ) Aquaculture Production (Tone) Fish Figure 1. Freshwater fish production in Cambodia during

3 Cambodian s inland fishery is the most productive in the region, and it is fourth most productive in the world after China, India and Bangladesh (Van Zalinge, Thouk, N, 2003). Inland fisheries play a critical role in maintaining local, regional, and national food security in Cambodia. Besides, small-scale Inland fisheries (SSF) like captured fishing, cage culture, pond and rice-fish culture are also important sources of revenue for the government (from taxes on fisheries market, etc). In fact, over 2 millions of Cambodian are directly or indirectly associated with inland fishery activities, and it is the simplest and easiest means to maintain the livelihoods of the poor with comparatively little or almost zero external investment, so far (Rab et al.2005). Nevertheless, most of the past studies on fisheries in the Lower Mekong Basin have focused largely on biology of fishes, migration patterns of fishes, and related ecosystem and habitats issues, but with limited focus on socio-economics and relative profitability aspects of the fishing activities. In particular, missing link is the evaluation of the small-scale fishing sector based on its long-term economic viability and sustainability. The economics and profitability of nonmarketed inputs (such as family labor use and part time fishing) used in fishing activity is always a debated issue in the literature (see, Ahmed, et al., 1998; Hortle, et al., ; Navy et al., 2005). In addition, in the case of Cambodia, the public policies in fisheries are more directed towards managing and regulating large and medium-scale fisheries than that of managing small-scale inland fisheries. Only recently, some of the significant changes on fishing sector rules and regulations have begun, allowing community to control and manage the fisheries resources locally, under the banner of community fisheries program. In summary, improved understanding on economics of small-scale fisheries is important: to provide a comprehensive understanding on socio-economics dynamics of fisheries to the households, local community, and national economy; to assess economic and financial sustainability of small-scale fisheries, and to analyze comparative advantage and sustainability of the sector; to evaluate importance of this sector to the wetland livelihoods, in general; to analyze viability of community resources management institutions of this sector in the context of recent changes in the national and international economic scenario such as increasing trend of free trade among the countries in the Lower Mekong Basin (LMB), and so on. With a rapid expansion of the population and high fluctuations of river flows in the Mekong River, maintaining a long-term economic profitability and viability of small-scale fishing is critical for poverty alleviation and rural livelihoods improvement in the region. Thereby, improved undertsanding on economic profitability of small scale captured fishing activities, including opportunity costs of 2 This was also supported by Sverdrup-Jensen, 2005 (personal communication in Phnom Penh).

4 labor and capital used in fishingm sector, as attempted in this study, is crtical for setting effective policies in fisheries and rural development sectors that will address the needs and requirement of the milllions of marginalized fishing popultions in the region. With this introduction on small-scale fisheries, the second section of this paper sets objectives and scope of this paper. The third section provides a brief review of the related literature on the topic. The fourth section illustrates methodology and analytical techniques used, and data collection techniques followed for the field study. The fifth section provides results and key findings, and cross-sites comparison of costs and returns of small-scale captured fishing activities across the fishing communities surveyed. Our conclusions and policy discussions in relation to the study findings are provided in the last section of the paper. 2. Objectives and scope of the paper 2.1 Objective The main purpose of this paper is to evaluate economic performances of smallscale inland captured fisheries and to assess relative costs and benefits of smallscale captured fisheries in Cambodia. Considering the diversity of fisheries sector activities in Cambodia, the specific objectives of this study are: to carry out a socio-economic assessment of small-scale inland captured fisheries in Cambodia; to identify and evaluate detailed cost structures and economic profitability of small-scale captured fisheries; and to analyze and discuss critical public policy issues and policy prescriptions for improved management of small-scale inland fisheries in Cambodia. 2.2 Scope and limitations In addition to estimating costs and returns of small-scale captured fisheries, using tools and Techniques of participatory rural appraisal, this study also carried out a detailed socioeconomic and livelihood analyses of the small-scale capture fisheries in Cambodia. The field study was carried out in 1-2 villages/communities from 3 different provinces of Cambodia, and each representing a distinct socioeconomic and hydro-ecological setting of the Lower Mekong Basin. The study used both qualitative and quantitative tools for data collection to better understand and illustrate detailed intricacies of socioeconomics and livelihoods issues of small-scale fishing activities, given a short span of the study.

5 The information and improved knowledge base on economics of small-scale fisheries is expected to be useful for management of the small-scale fisheries in Cambodia and in the Mekong region, in general. 3. Literature Cambodia's fisheries sector encompasses extensive freshwater fisheries within floodplains, river, lakes, marine fisheries, rice field fisheries, and several types of aquaculture. In many aspects, the fisheries and wetlands systems in Cambodia have unique characteristics and are important ecosystem habitats for many species of fishes and other aquatic lives (over 500 species of fishes). For example, the Great Lake TonIe Sap floodplain is a globally important biosphere, which includes about 5,000 km 2 of flooded forest coverage within its flood plain system. In fact, the flood plain area of the Great Lake Tonle Sap varies between 2,500 km 2 in dry season to 13,000 km 2 in the wet season (Nao Thuok and So Nam, 2000). In fact, fishing lots alone occupy nearly 5,000 km 2 of area in the Great Lake Tonle Sap system, which includes several critical flooded forest ecosystems habitats. The Grate Lake system alone provides a fish and aquatic system based livelihoods opportunities to over 1.50 million people residing around the Tonle Sap Grate Lake (Hap, et al., 2006). Over 90 percent of the fish production in Cambodia comes from the inland fisheries and particularly catch from floodplain wastelands and main stream river. In relative term, the freshwater capture fisheries in Cambodia probably contribute more to the national economy than any country in the world. This is in term of catch per capita as well as in terms of the relative contribution to the national level gross domestic products and maintaining rural livelihoods. The annual inland fish catch in Cambodia ranges between 290,000 tons to 430,000 tons (Ahmed et al. 1998; Thuok et al., 2000, Nao Thuok et al., 2000, DoF, 2001). It is the fourth largest inland fish catch in the world, and is lagging behind only by China, Indian and Bangladesh (Mekong Fisheries Newt Work News Letter, Vol. 8, No. 2, Dec 2002). The total landing value of inland fish catch in Cambodia is over US$500 millions per annum. Fisheries sector also provides value added benefits to several folds more such as direct employment to over 3 millions Cambodian and indirect employment and livelihood opportunities to few millions more. In addition to direct employment, quite large numbers of Cambodians are also involved in secondary and tertiary activities in fish processing and related other activities, all of that are not yet authentically documented in national account in Cambodia. From a large scale households survey in 8 main captured fisheries provinces of Cambodia during 1995/96, Ahmad et al. (1998) reported that about 87 percent of the sampled households belonged to small-scale fishing (or family fishing). Then,

6 the other 9 percent of their sample fishing households were engaged in middlescale fishing and one percent in large-scale fishing, and about 3 percent were engaged as the commercial fish workers (working for commercial fisheries). This clearly indicates the relative size and contributions of the small-scale inland captured fisheries for national account (both GDP and employment, and value added) and for maintaining livelihoods for rural Cambodian households 3. Despite the importance of the small-scale fisheries in Cambodia, the economics of the small-scale fisheries has still not been fully understood. Most of the economic studies in Cambodia in the past focused mainly on the large and medium-scale fisheries. There is no unanimous view on scale of fish catch per household (or per operator) per year in Cambodia; rather there is a wide variation on these findings across the studies. The fish consumption per capita in Cambodia, a proxy for the fish catch, varies from about kg per capita per annum, depending upon the sites selected for the field survey. For a detailed review on the past study-findings on fish catch and fish consumption related statistics in Cambodia, the related controversies on the topic, and the temporal and regional variation on these parameters, see Navy et al. (forthcoming). Considering the scale of fisheries related economic activities in the Mekong basin, and wide variation of the availability of fish and fish catch as per the local ecosystem and local characteristics, the high variation of per capita fish catch across the past studies (and across the sites) is not a surprising fact. Unlike the crops yield, the fish catch per operator, particularly in the case of family fishing, varies widely from the operator to operator, and from the one fishing site to another, and so across the locations and the floodplain types. Besides, the fish catch is also influenced by the type of the gear used, the fishing seasons, and level of efforts and technology applied. Keeping every thing constant per se, even within a day, the fish catch of an operator varies depending upon duration of fishing, the timing of fishing in a day (morning or evening), and so on. Therefore, unlike the crop yields, the risk and vulnerability associated with fisheries, and particularly in the case of small-scale fisheries, are substantially higher. Because of better technology and sophisticated gears used and concentrated efforts at some of favorable locations (fishing grounds), based upon the fish migration routes, there is a higher degree of predictability on fish catch of the medium and large scale operators than that of the small scale operators. The seasonal and daily variation on fish catch (risk in a fish catch) has large 3 There is no detailed national account based statistics, based on national level census, on contribution of fisheries in Cambodia. The Recent study by Navy et al., 2005 finds that the direct income of fisheries in Tonle Sap lake system alone is about US$230 million/year, hence, the fisheries contribution to national account of Cambodia of US$280 millions, as reported in past studies cited here, seem to be understating the contribution of fisheries products to Cambodia as whole. Some other studies in Cambodia (for example, So Nam and Nao, Thuok, 1999) reported that the fisheries sector contribution to the national economy of Cambodia ranges from 8% to 10% to the total GDP of US$2,800 million in 1999 (MEF, 1999), which seems to be grossly understating compared to the recent findings.

7 implications in terms of how we estimate economics of SSF, its profitability over the seasons, and implications to livelihoods. For detailed discussions on these issues, see Navy et al., forthcoming. 4. Methodology and data This study used both primary and secondary sources of information. Likewise, Participatory Rapid Appraisal (PRA) and related participatory assessment techniques, in addition to structured questionnaires based household survey, were used to collect the primary data. An extensive review of the past studies on economics of fisheries in Cambodia and in Mekong region was carried out, which helped us to establish nature of costs involved in small-scale inland fisheries. This review also guided the researchers in designing field study, developing the questionnaires, checklists, and field survey tools for data collection. After the comprehensive review, a detailed economic assessment of small-scale fishing was carried out at selected villages in 3 provinces. For the capture fisheries, the assessment was done for major types of gear that are commonly used by the small-scale fishers (e.g., gill nets and traps), and by major types of ecosystem in Cambodia. Using participatory survey tools and group discussions, the gear types were also correlated with the major species caught in the specific ecosystem. The field work was carried out in 3 provinces of Cambodia, along the main stream Mekong river, and they are Kompong Chhnang, Stung Treng, and Takeo. Each of the province represents a distinct riverian ecosystem of the Mekong river system, and also represents a distinct pattern of small-scale fishing activities and the river livelihoods. Participatory Rapid Appraisal (PRA) methods and related participatory assessment techniques were used to carry out socio-economic analysis. The PRA was done with the help of checklists and semi-structured questionnaires. Then, the individual interview of selected represented small-scale fishing households was done with the help of semi-structured questionnaire. Detailed discussions on the study methodology are in Hap et al., (forthcoming), and only the summary of the methodology and tools adopted are summarized here. 4.1 Sites Selection for the Field Study The fled work was carried out in 3 provinces as shown in Figure These three study sites are selected to represent the three major ecosystems of Cambodian fisheries, which are also based upon the logistics and other supports available in these sites.

8 i. Kampong Chhnang province representing the Great lake ecosystem and flood plain characteristics, ii. Takeo province - representing the Mekong-Bassac ecosystem, iii. Stung Treng province - representing the Upper Mekong ecosystem, and The representative villages selected for the detailed field study and their demographic features are shown in Appendix Table 1. The field study was carried out in close cooperation with the Department of Fisheries, and its other subsidiary agencies in each of the provinces. Several researchers from Dept. of Fisheries also took active part in the study process and in conducting the PRA assessments and group discussions in the community. Study Area Figure 2. Map of Cambodia showing the study areas in each of Kampong Chhnang, Takeo, and Stung Treng provinces. In order to generate representative sample of the households for the individual interview, focus group discussion and participatory rural appraisal (PRA) were carried out in each of the community identified for survey. A team of researchers discussed with the chief and vice chief of provincial fisheries office, head of the commune and village in each province. After the discussion with them, the smallscale fishing households were selected on the basis of their ability to recall and provide us useful and accurate information. The sampling was therefore not

9 random, but based on information provided by the commune and village chiefs about those involved in small-scale fishing related activities in each site The survey tools and techniques Tools for Participatory Rural Appraisal (PRA) Survey tools like PRA, focus group discussion (FGD), and individual household survey were applied for collecting both quantitative and qualitative data. This study adopted a participatory method and a key informant survey. Using the participatory method, cost and benefit structures of small-scale fisheries were identified and then quantified in monetary terms. The information collected from PRA survey was cross-checked with the information collected from the key informant survey, and/or, from few experienced fishers involved in this process. The key informant survey was done with help of semi-structured questionnaires, which enabled us to verify the information collected from other sources. A number of tools were selected for implementing the PRA, which includes the history of the village, time line, trend analysis, resources flow, venn/institutional diagram, cost, and benefit analysis and problem ranking (see table 1 below). These tools were used to describe and characterize the villages selected, and to estimate the costs and benefits of the freshwater fisheries and aquaculture 5. Key variables assessed from each of the PRA tools are summarized in Table Household Survey Tools Household survey was conducted to collect information to describe characteristics of the households, to derive costs and profit analyses, and access and constraints facing the small-scale fisheries in Cambodia now. Seven villages were selected for the household survey in total (both for captured fisheries and aquaculture), two villages each from Kompong Chhnang and Takeo province and three from Stung Treng province. In each village, the household population was classified into small scale fishing, cage culture, pond culture and rice field culture groups based on discussions with the village and commune heads and key informants (Provincial Fisheries Officer, and NGO experts). From each group, the households were randomly selected. In total, 36 households were selected for the household survey, 16 households for the small-scale captured fishing category, 7 hhs. for the cage culture type, 7 hhs. from the pond culture type and 5 hhs. for the rice-fish culture type. 5 The combination of PRA tools also allow us to provide insight about the relative values of small-scale fishing, cage culture, pond culture and rice-field fish culture and gathering and the opinions of villagers on the access right to fisheries resources and the problem and challenged faced by the small scale fishers. But, this paper exclusively deals on the economics of small-scale captured fisheries, and the details on aquaculture related activities are in the project report by Hap et al., forthcoming.

10 Table 1. Major tools and Techniques of PRA used for the field study. Activity Time Line Trend Analysis Focus group discussion Resource flow Diagram Venn/Institutional diagram Cost and benefits of production Problem ranking Outputs Important history of development in the village. Fisheries resources and fishing activities in the village. Events with major impacts on livelihoods. Ethnic group and demographic features. Access and right to use natural resources. Variation in number of fishers in the village. Variation in total catch per household. Change in input costs for fishing, cage, pond, etc. Change in total catch per village (5 years). Shift of benefit per household (5 years). Identify participation in different fishing activities and by type of aquaculture. Issues on fisheries activities occurred in the villages. Existence of natural resource in the village (e.g. fisheries, wetland, flooded forest, etc.). Export and import of products from village. Identification of institution which play an important role inside and outside the village. Intensification of interactions between the villagers and the institutions. The villagers perceptions on importance of institutions, and kind of relationships that exist. Cost and benefits of small-scale inland fishing. Cost and benefits of aquaculture (cage, pond, and rice field culture). Identify, compare, prioritize, and rank the problems. The villages for the household survey were selected on the basis of the importance of the small-scale fishing and aquacultures, fishing intensity, population, accessibility and perceived cooperation of the villagers with the ongoing project. These data were gathered from the key informants interviews and focus group discussions. The village selection process also took into account opinions and perceptions of the Department of Fisheries, national and provincial counterparts, local NGOs, working in the areas. As much as possible, we selected the households that are best representative of the typical smallscale fisheries activity in the villages selected. 5. Results This section provides results from both the qualitative and quantitative survey across 3 provinces in Cambodia. Considering the scope of this paper, for

11 qualitative analysis and local institutional assessments related subject ares,we have provided summary and key features of the small-scale capture fisheries mainly from the one province of Cambodia, i.e., Strung Treng, loctaed in the northen part of Cambodia (see Figure 2). But, in the later part of this section, we have compared the study findings on quantitative assessment on detailed costs and returns of small-scale fishing across the 3 communities each representing each of the province selected for the study. The basic features, the local institutional settings, and recent changes on patterns of the smal-scale fishing are almost similar in each of the 3 provinces surveyed. Thereby, the illustration of these qualitative results (from PRA survey) from one province should be indicative to other two provinces as well. Moreover, the detailed description on these issues in each of the provinces are found in the main report (Hap et al., forthcoming). However, economics parameters and costs and returns and economic profitabilities largely vary from province to province, therefore, we have provided a cross-province comparisions of the these basic economic parameters. Then, we have also derived average of these parameters making it indiactive for Cambodia as whole. Considering the lareg temporal variation on these parameters, we have also derived a separate economics parameters for open season (October - May) from that of close season (June - September). 5.1 Major findings from qualitative analysis in Strung Tremg General Overview Stung Treng province is located in northern part of Cambodia, adjacent to the Lao PDR in the north (Figure 2). Stung Treng has a land area of 11,110 square kilometer, and a population density of 8.3 persons per square kilometer (D.C. Israel, M. Ahmed, C. Lim and T. Nao, 2005). In 1998, Stung Treng had a population of 81,000, which increased to 92,019 in Field study in Koh Sneg Koh Sneng village was selected for the field study. This village is located in Koh Sneng Commune, Thalaboriwat District of Stung Treng province, and it is also one of the key Ramsar sites in Cambodia. It located along the Main stream River, and is trapped by the branch of main stream Mekong River from all four sides. That is, this is an island type of village along the main stream river, and is cut off from the rest of the other parts of the district. The village is about 18 kilometers north from the central town of Stung Treng province and can be accessed by boat along the Main stream Mekong River. There were about 170 households in this village in 2005, and with population of 950. Khmer and Lao are the two major ethnic groups residing in the village.

12 Household Income and Credit System The small-scale fishing is practiced both for household consumption and for market sale. Due to increased market access now, the proportionate of market sale of fish has recently been increased in the village. Gill net is the main gear used for small-scale fishing in both close and open seasons of fishing. The main occupation of the people there is fishing and farming; as 90% of the household has joint occupation of fishing and farming as their main occupation for livelihoods. The rest are either farmer alone, small traders like grocery selling, raising livestock, driving boat, and daily wage worker. The average annual gross income of the sampled household engaged in SSF in the village was 6,889,400 Riel or (USD 1,722), which ranged from 2,596,000 Riel (USD 650) to 12,770,000 Riel (USD 3,190). The household income was derived from both fishing and non-fishing activities. Non-fishing activities include farming of rice and other crops, small business, and daily wage worker in outside village. The inputs cost on fishing has sharply increased recently. In order to support their fishing activities, fisher households usually borrowed money from different sources such as relatives, friends, local money lender, local credit related project, and public banks/cooperatives located in the nearby district-town. For the fishing business and other short-term loan, the local credit project charge an interest rate of 3% to 4% per months, whereas the local money lenders charge an interest rate of about 6-8% per month per annum). The fish traders are also providing credit to the fishers without collateral, but at a substatial high interest rate. There is a lack of other soft loan option in the village surveyed. Characteristics of Fishing Gear/Equipment Used of SSF In the study area selected, gillnet, cast net, bamboo trap, and seine net were the main fishing gears used by family fishers (SSF). Among them, gill net is the most commonly used fishing gear. The numbers of gillnet per fishing household ranges from 3-10 dais, and the average length of gill net was about 60 m per dai, and it ranges from 30 to 80 meter. In Cambodia, most of the fishermen use boat (motorized and non-motorized) for fishing and as a means of transportation from villages to outside world. All sampled households in the village selected used boat for fishing activities. The capacity of boat was ranged from 0.4 to 0.8 tons for the motorized and nonmotorized boat, respectively. However, the small-scale fishing household there kept only one boat per household. The trend on use of motorized boat in the village has in rising trend over the last 10 years, also because of the availability of the low cost small pump engines in the local market in the recent past. Catch of Major Fish Species of SSF

13 The focus of this study is small-scale fishing activities, and this type of fishing activity is allowed to operate in both open and close season. The commonly used fishing grounds of the sampled households were main stream Mekong River, inundated forest, and rice field areas. We found that the number of species of fish catch (quantity) varies between open and close season, as shown in Table 2. Table 2. Top ten fish species by small-scale fishing in ST, Commonly catch species during the opened season Commonly catch species during closed season English name Khmer name English name Khmer name Greater black shark Ka ek Jullien mud carp Riel Jullien mud carp Riel Greater black shark Ka ek Common silver Truncated carp Chpin estuarine catfish Tronel Small-scale mud carp Proul Greater black shark Sanday Common silver Smith barb Cha keng carp Chpin Truncated estuarine catfish Tronel Blue danio Chang var Siamensis Yellow mystus Chhlang pangasius Chhveat Mystus wyckioides Khya Snake head Ros Blue danio Chang var Smith barb Cha keng Siamensis pangasius Chhveat Greater lipped barb bony Krum Major changes in fishing activities The major changes on fishing activities and fisheries resources in the study area were analyzed by using a trend analysis tool of Participatory Rural Appraisal (PRA). Table 3 summarizes the major changes in key elements of small-scale fisheries in Koh Sneng village from 1980 to 2005.

14 Table 3. Trend analysis of SSF in Koh Sneng village, 1980 to Year No of Fisherman Fish Catch per household per trip Cost per one fishing Total fish catch at village scale Profit from fish catch per hhs. 1980!!!!! (85 hhs.) (2kg) """ "" K K K K K """ "" K K K K!!!!! """ """""!!! K K K K """" """"" K K K K K K K (130 hhs.) 53% (15kg) 300% 40% 200% 100% """" K K K K!!!!!!!!!! """" """"" K K K K "" " K (160 hhs.) 25% (10kg) -33% 36% - 40% - 40%!!!!! """""!!!!! """"" K K """!! "" K K K (185 hhs.) 22% (4kg) -60% 33% - 40% - 50% Major changes in fisheries activities in Koh Sneng village during are summarized below. Under the Khmer Rouge regime ( ), several households were relocated in the villages from the urban area. However, during late 1970s and early 1980s, the population again decreased there because civil war ( ), and some returned back to live in the urban areas after Pol Pot regime. After 1990, the population is rising in the village both due to immigration, and due to natural population growth. The number of fishing households increased from 85 in 1980 to 186 hhs. in 2005 (up by 190%). In 1980s, the total fish catch per household was relatively small because fishing was done mostly for household consumption, as the fish market (trading) did not exist in the area then. There were abundant of fish in the area until early 1990s because there were few fishermen in the village. Most of them were also operating traditional boat (manual rowing) till mid of 1985s. In 1980, the average catch per household was 20 kg per day, whereas in 2000, it was reduced 5 kg per day, but in 2005, it was further down to 1.5 kg per day (during the later part of open season). The average fish catch has been declining recently due to increasing number of fishers, increasing use of sophisticated fishing techniques, use

15 of illegal gears and illegal fishing techniques (bombing, electrocuting). During the open season, several fishermen from outside come to the village for fishing, and the fish trade has recently also been increased during the peak season. At present, the fishing areas have been overstretched, and the villagers think that the fish habitats need to be rehabilitated soon. Same situation also exists in other parts of Cambodia. The inputs costs for fishing operation have been sharply increasing over the years, an almost double in 2005 as compared to price level in In 1980, the fisheries resources were abundant, but the total fish catch of the village as a whole was small as there was small number of fishers. However, in 1990, the total catch per household decreased but the total catch in the village increased by about 200%, and it decreased after The small scale fishing households had relatively high profits from fishing activities until 1990, but it started to sharply decline from 2000 onward. This is due to increase in the price of fuel, increased cost of fishing materials/equipments and other fishing inputs, and simultaneously also due to diminishing fish production in the area. In 2005, at times even in open season, a typical household could hardly catch fish for the household consumption; forget about the daily sale of catch to the trader. The fish market came into existence there around 1985s, then the village level fish catch and marketed sale of fishes have increased over the years. Before 1985, the marketing of fish was a major problem in the area Major resources flow The major out-flow and in-flow of resources (products, commodities, goods) into and out of the village was estimated using a resource flow assessment tool of PRA, and the key findings are summarized below. Natural resources and other products available in the village: River created resources, flooded forests and other forests, natural pond created along the Mekong River, rice field, and farm orchard in the village. Fish, rice, minor crops and vegetables were the main resources outflows from the village. Out-flow of resources from the village: This village is located in a big island and it gets benefits from fertile land created from annual flood. Major agricultural produces are paddy and other crops such as water melon, bean, corn, cucumber, spinach, sweet potato, sesame, etc. Surplus products are sold to neighboring villages and to the central town of province. As fishing is the main activity of most households, fish is the most important commonly traded commodity in the village. Occasionally, the villagers also trade out high value woods harvested from the flooded forest. In-flowed of goods or commodities into the village: The most frequently brought commodities in the villages are medicine, home appliances, engine boat, rice miller, pumping machine, generator, fishing gears, etc.

16 5.1.4 Institutional Analysis The local level institutional analysis was carried out using Venn Diagram tool to identify major stakeholders in the community affecting the fisheries resource there. This was done to explore social networks within the village, the relationships between the villagers and external organizations/institutions, and the extent to and way in which different individuals (institutions and organizations) influence the livelihoods of the villagers (fishers). A summary of the findings are summarized in Figure 3, and detailed are in the main report (Hap, et al., forthcoming). Fish Trader (1) Local Authority and CF (3) CF/Local Market (3) FISHERS Sellers (2) Health Center/ Hospital (2) Provincial Fisheries Office (3) NGOs (UNICEF, CEPA) (4) Figure 3 Institutional diagram of SSF in Koh Sneng village of Stung Treng province pf Cambodia. Explanatory note: The strength of relationship among actors (or influence of the institutions) is ranked as high, medium or least (and 1= strongest relationship). The results found in Strung Treng are similar to the cases in other Provinces surveyed. Venn diagram provides an overview of the institutions located in the village and helps to identify the institutions playing critical roles for the community livelihoods. It also illustrates local level relationship between different groups, institutions, and individuals, type and intensity of interactions between the

17 villagers and the organizations/institutions, as reflected by the distance or size of the arrow connecting the circle. The size of the circle in the diagram reflects perceptions of the villagers (fishers) about importance of these institutions to them and kind of their relationships (degree of associations) with the institutions (see, Figure 3). The major findings of the institutional analysis are summarized below. Fish traders (1). Fishers gave highest priority and strength of the relationship to fish traders. In general, the fishers have got good relationship with fish traders. In addition to purchasing fish, the fish traders also provide credit to the fishers in a time of need. Usually, the spouses of the fisher sale fishes to the traders, and the fishing communities almost daily interact with the traders. Hence, they ranked fish traders as a most important local organization (ranked by 1). Sellers (fishing materials/equipments and fuel) (2). After fish traders, the communities have got the next closest relationship with the sellerssuppliers of the fishing and household commodities. This is logical, as the fishers often need to buy fishing and household materials from the sellers. Health center or medical personals (2). For the treatment, the fishers visit at the local health center in Strung Treng town. This also reflects the intensity of the health problem there and the villagers worry on illness due to poor health service in the village. Community Fisheries (CF), Local authority (3). The third closest relationship is with local CF, local authority and provincial fisheries officers. Fishing households are also in close contact with the community fisheries leaders there. Provincial fisheries officers (3). The provincial fisheries officers and fishers also occasionally visit the village, but the relationship is weaker compared to other places of Cambodia. This is due to island type of village and relatively inaccessibility of the village from the province/district town. NGO (CEPA and UNICEF) (4). A national NGO, called CEPA, is actively working in organizing the community fisheries related activities in the village. There are also some relief related and drinking water supply related project activities (household jar) in the area, supported from the UNICEF project. Thereby, the fishers have given a higher importance to these two organizations for their local livelihoods Ranking of problems felt by the fishers The problem ranking method was adopted to identify, compare, and prioritize major problems that are faced by the majority of the fishing households in the

18 community. The results show that there were six major problems faced by the small-scale fishers (see Table 4). The main problem was recent increased price of fuel (for motorized boat), fishing gears, then increasing practices of illegal fishing (bomb, electrocution) leading to decrease in fish catch. The mobile fishers were also important cause of concerns as their excessive mobility along the river also lead to conflicts with the local community members. The interviewed group reported that the river was becoming shallower in the recent past (especially it is becoming shallower quickly after the main season rain compared to the situation in the past). Table 4. Problem ranking of SSF in Koh Sneng village in Sturng Treng. Problem facing Ranking of the problem - Increasing fishing inputs prices (gillnet, fuel, machine) 1 - Increasing in illegal fishing (electrocution fishing, bomb, 2 fishing by outsiders) - Decrease in fish catch 3 - Increasing non-indigenous fishers in the area 4 - Water level changes rapidly and also reduced flow 5 - Increased sedimentation and increased green algae Cost and Profitability Analysis of SSF in Cambodia In this section, we estimate the net return/income of small-scale fishing households in study sites selected. The aim is to make cross-site comparison of costs/returns from small-scale fishing across the 3 provinces selected for the study. The results largely vary across the 3 different villages surveyed during The key economic parameters of costs-benefits analysis carried out, and how they differ by the open and close seasons, are summarized in Table 5. The costs and benefits are analyzed based on survey of individual fishers in the 6 to 7 villages from the 3 provinces. A total of 20 fishers were individually surveyed. Detailed break down on composition of costs and benefits are provided in the appendix table 2, and in Hap et al, forthcoming. On an average, the fishers are getting gross return of about US$17 out of a fishing trip (a day and two person labour and boat) during the open season fishing, and gross return of about US$9 during the close season of fishing, which is nearly only of 50 % than that of the open season. The gross returns from SSF (fish and non-fish catch) not only vary from locations (provinces) but it also largely between the seasons in a year (also largely vary by month) 6. Gross return is the monetary value that fishermen derive from the catch of fish and non-fish 6 In fact, one of the major conclusions drawn from the results presented here is that the fish catch is widely varied across the household by locations and by season. This high fluctuation of fish catch also reflects high vulnerability and

19 (other aquatic animals and vegetables) per fishing trip. The fishing trip is considered here as a day and it includes use of two persons (household head and another labor and a motorized boat). Most of the catch is sold and small quantity is kept for household consumption (about 10-15% of total catch), which in fact also largely varies from fisher to fisher in a village depending upon fisher s dependency on fishing for livelihood and availability of other source of incomes. The open season of fishing in Cambodia is from October to May, wherein historically the fishing activity is legally allow for medium and large scale fishing, and the government issue permits and licenses to large and medium fishing lots allowing them to operate during this period. Then, close season of fishing is from June to September, wherein the fishing in the inland water by medium and largescale fishing is officially banned. Moreover, the small-scale fishing and/or family fishing is allowed to operate all round the year. The total costs consist of variable costs (VC) and fixed costs (FC) per fishing trip (or day). The variable costs component of the fishing is substantially higher compared to the fixed cost. In fat, the variable cost alone was about 25% and 37% of the gross return during the open season close season, respectively. One an average, the net profit was US$11.7 per fishing trip (of one day) during the open season, whereas it was only of US$4.6 during the close season (see Table 5 and Appendix Table 2). This implies that the small-scale fishing activity in Cambodia (also applies to other parts of Lower Mekong basin) is profitable in both open and close seasons. The small-scale fishing (or the family fishing) is expected to continue profitable operating for some times unless the real labor wage in rural sector rises substantially. However, the profitability is very low during the ring the close season of 4 to 5 months, and the small-scale fishing households can not depend only on fishing for maintaining their livelihoods because of very low net income (real profit) during the period. This suggests that the small-scale fishing households in the Mekong region need to be supported fro alternate jobs and alternate livelihood options (livelihoods diversifications) during the close season of fishing for food security and form maintaining their livelihood. The net profit (subtracting total cost variable cost and fixed cost from gross return) and real profit (when the cost for family labor use is subtracted from the net profit) in open season are about 3-4 times higher than that of the close season (Table 5). The net profit and real profit not only differ between open and close seasons, but also by communities selected for survey (Appendix Table 2). The gross returns and profitability parameters are relatively higher in Strung Treng province than that of the other two provinces. This is because of better fishing grounds along the Mekong River and relatively less densely settled fishing communities in Strung Treng than in other two communities surveyed (Kampong Cham and Takeo provinces). Other detailed parameters on cost structures and profitability among the three sites are provided in Appendix Table 2.

20 Table 5. Costs and profitability of small-scale fishing across 3 provinces in Cambodia, Unit: US$ per fishing trip Name of province K. Chhnang Takeo Stung Treng Average of all Items Open Close Open Close Open Close Open Close Season Season Season Season Season Season Season Season I. Gross return A. Total VC B. Total FC II. Total costs (A+B) III. Gross profit (I A) IV. Net profit (I II) V. Opportunity costs for family labor uses V. Real Profit (subtracting cost for family labor uses)

21 In relative term, the real profits of small-scale fishing in Takeo province are substantially lower compared to the case in other two sites surveyed. This suggests for urgent public policy interventions in SSF there for improving livelihoods and living conditions of hundreds of thousands of fishers in the province. In fact, some of the other methods like restoration of fishing grounds and fish habitats that would enhance fish availability are also preferred public sector activities in increasing annual catch in the area. In all the 3 provinces, the small-scale fishing activity is expected to be continued its operation for times, as the typical households have positive net profits from the family fishing activity. During closed season, on the other hand, only the fishers in Stung Treng are getting better net and real profits compared to Kampong Chhnang and Takeo provinces (Table 5). This may be because of the fact that there is high water level in Strung Treng even during closed season, because of the a typical hydrological and riverian feature of the Mekong River. Also, there are many flooded forest areas and river spawning grounds close to the Strung Treng (and it is also confluences of a major tributary Sekong into the Mekong system). This allows for more fish grounds and abundance of river area per fisher compared to the situation in other surveyed sites. Because of the boarder trading with Laos market and then access up to Thai market (via Laos-Pakxe market route), the fish price is slightly higher in Strung Treng than that of the other surveyed sites. In addition, the size of fish catch in Strung Treng is slightly bigger than that of the other places. The fish with large size and/or over 3 kg size 7 is fetches almost double price in Strung Treng market (Keh Snaneg site). Therefore, the eco-hydrological features, relatively less densely populated fishers community and wide area of fishing grounds, and better marketing channel, all favor for the more net profit and more real profit in Strung Treng than that of other places in Cambodia. 6. Conclusions and Discussions The objective of this study was to better evaluate costs and returns of smallscale inland captured fishing activities in Cammbodia, and to 7 During the survey it was reported that the fish traders directly transfer fishes from the koh Sneng village to the boarder market between Laos and Cambodian (Khambuwan market close to Khon Fall), which is a tourist place and with lots of restaurants, and this boarder market is also well-linked with the Thai market through a all season high way. 21