Think positively! Good chance to invest in...

Investors would always be interested in finding lucrative industries to invest in. A true investor senses the real oppertunity. In my opinion looking at all the positives which are lying around seafood industry in Sri Lanka seems to be one of the most lucrative industries to touch upon in the comming few years.

There are many reasons for me to tell like that,

The readers should bear with me for only concentrating on the deamand created for the processing factories from the above mentioned scenario since I am only concentrating on the investment potential.

As I mentioned in my last post as well, there would be a great influx of seafood to Colombo from N&E as soon as the A9 is open.

On the other hand most of the processing factories currently uses about 50-60% of their operational capasity using the current supply from the rest of the country. One million dollar question would be whether Colombo based processing factories have the capasity to entertain the large influx from N&E. Here I do not necessarily mean that all the current processing factory owners should look at increasing their current operational capasity or build new facilities aiming at the influx. But mind you, there are quite a number of people who have already started the negotiations to set up new facilities. Many more are looking forward to enter into the industry.

There is another perspective to the problem in concern. Rather than trying to bring down the N&E catch to Colombo, if someone take the initiative and sets up factories in the Nothern part of the country to cater for the N&E catch then it would also have a lot of positives. It would create a lot of job oppertunities to the unemployed youth, it would reduce the spoilage during transportation and allows the development of the seafood industry as a value adding cluster in the Northern part of the country.

Many would not know that Nothern part of the country had more than a dozen seafood processing factories before the seperatist war broke out. They processed the seafood catch of N&E. The breaking out of the war saw the closing down of all those factories which operated in the North. Then only in the late 80's we saw the setting up of processing factories in the Western province.

Also when processing factories were in operation in the early 80's South India did not have more than one or two factories which specialised in seafood exports. But after the war broke out seafood processing factories mashroomed in South India. This is an indication how India benefited due to the war of Sri Lanka.

I heard from very informed sources that currently there are few seafood processing factories being constructed in Trincomalee in the Eastern part of the country. Also there is news that many cold storage facilities are being constructed in the North. Further government is in the verge of supplying the needed fishing gear to uplift the profession of the fishermen in the North. Thus we can be assured that we are going to get a good time in the coming years.

On the demand side the world demand for seafood have been on the increase for the last few decades. If Sri Lanka generates quality seafood the potential would be immense.

Due to that I hope this is the right time for the investors to look at seafood industry as a lucrative investment for the future. many established organizations have identified the potential and are making arrangements to conquer the North.

The first mover would always have an advantage as in all other cases....

Back to the good old days!

I am writing on this blog after the lapse of more than 3 years. Many things have changed from then to now. Country situation have changed dramatically, economy is overcoming a period of global recession and there are a lot of changes with regard to the seafood industry as well.

Couple of months back we witnessed the end to the seperatist war which ran for more than 2 dacades. The coastal belt in the N&E which was not open for fishing for many years have now been open again for the local fishermen.

The N&E breeding grounds which have not been fished for nearly 2 decades would be full of resources, and Sri Lankan fishermen can be sure of getting a good income for their living in the comming months.

Eventhough fishing restrictions in the N&E have been taken off, still the A9 is not fully open. Thus we still have a problem in getting the fish catch down to Colombo. But we can be assured that it would not be long for us to see huge seafood quantities arriving in Colombo from N&E as soon as the A9 is open.

Also in the last couple of years the trend in Sri Lankan seafood exports also have changed drastically. Initially Sri Lanka exported large volumes of Shrimps. Now with the global demand shifting towards Tuna, Sri Lankan too have ventured into tuna exports.

There are quite a few processing factory owners currently who have mastered the art of tuna exports to EU countries in the last couple of years. And there are many more who are catching up the art of tuna loining very fast. Thus we see a very good trend in the development of tuna exports in Sri Lanka.