Effect of fish downstream supply chain on wealth creation: the case of tambatinga in the Brazilian Midnorth

Abstract We describe the downstream supply and value chains originating from commercial tambatinga farming in Midnorth Brazil. We assessed how farm size affects intermediaries and job creation, income generation and the number of wealth beneficiaries. We surveyed 16 commercial farms from 0.1 to 220 ha and their supply chains. To compare wealth creation and the number of beneficiaries we established a baseline annual production of 550 t. Labor hours per tonne tended to rise in medium and extra-large farms. There were two main types of fish downstream supply chains: small farms selling their fish directly to consumers and large farms relying on intermediary trading, where gross revenue was spread among the different parts of the supply chain. Large supply chain stakeholders enhanced net income, typically through supermarket sales. However, the few farms and intermediaries involved resulted in low, poorly distributed, wealth creation. Intermediary trading through markets resulted in high global wealth creation but incomes below the minimum salary of most market sellers. Market sellers shipping from the wholesale market showed improved income. Fish trading undertaken by small farms produced the best gross revenue per traded fish, providing considerable wealth creation, especially in the case of selling at consumers’ homes and markets. This supply chain also permitted good wealth distribution. Net incomes of self-employed farmers exceeded the regional minimum salary by a factor of 3 to 5. Direct selling was thus more appropriate for lifting people out of poverty.