Promoting responsible artisanal fisheries in Guatemala

Along Guatemala's Pacific coast stretches a 254 kilometres long expanse of dunes and sandy beaches, bordered by mangrove-lined lagoons. These ecosystems provide crucial environmental services as breeding grounds for marine species, protecting the coast from erosion and extreme weather, capturing carbon and conserving biodiversity.

Despite Guatemala's vast territorial waters and Exclusive Economic Zone spanning 120,230 square kilometres, the country's artisanal fishing industry faces significant challenges. Traditionally relying on small-scale fishing practices to supply fish for local consumption and trade, artisanal fishers now face threats like overfishing, climate change, pollution and competition from industrial fishing fleets, all of which jeopardise their livelihoods and communities.

Inadequate infrastructure, limited market access and insufficient government assistance result in the artisanal sector struggling to thrive sustainably. And with a lack of key management measures such as seasonal fishing bans, minimum catch size regulations (except for sailfish) and protected recovery zones for target species, the industry risks further depletion of fish stocks. Studies indicate declining fish populations, high catches of juvenile fish, and an urgent need for reforms in size regulations and improved resource management.

Addressing the challenges

Fortunately, mission-driven enterprises like Coastal Catch (previously called Tunart), sustainability specialists like Future of Fish and international impact investors like Oikocredit are working to address the challenges. Our shared goal is a sustainable artisanal seafood sector that can support socioeconomic development while responsibly managing marine resources and protecting the ecosystem.

Located in the south Pacific coastal department of Escuintla in Guatemala, Central America, Coastal Catch is a social enterprise supporting a network of more than 500 artisan fishers to supply yellowfin tuna, mahi-mahi and snapper to local and international markets. Coastal Catch’s mission is to work directly with independent artisanal fishers and create a more sustainable and fairer industry that benefits the coastal communities that are in most need.

Before Coastal Catch began operations in 2019, these communities mainly relied on endangered shark species as their source of income. With Coastal Catch they now earn four times more by focusing on alternative species while responsibly managing these stocks. With strong environmental, social and governance policies, Coastal Catch is passionate about preserving the rich marine environment through sustainable fishing practices designed to reduce by-catch levels and to catch only fish that have reached maturity in their natural growth cycle.

Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.

Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably. While relatively new to the artisanal fishery sector, Oikocredit recognises the potential socioeconomic and environmental benefits of investing in enterprises like Coastal Catch. Oikocredit’s five-year term loan will provide Coastal Catch with the working capital and capex investment it needs to further enhance its monitoring and evaluation system, guarantee the sustainability of its operations in Guatemala, and extend its supply chain to neighbouring countries such as El Salvador and Honduras.

Future of Fish is an international NGO whose mission is to empower thriving, resilient ocean communities by driving innovation and investment to small-scale fisheries. Future of Fish was honoured to contribute to the environmental due diligence for Oikocredit’s investment in Coastal Catch and is eager to team up with other impact investment funds looking into entering the artisanal fishery sector in Latin America.

Q&A with Oikocredit Investment Officer Daniel Amézquita

Why did Oikocredit choose to partner with Future of Fish?

Oikocredit has known Future of Fish for many years, most recently engaging to discuss ways to catalyse opportunities to invest in fisheries in partnership with other investors in the Peruvian artisanal fishing sector. We have been impressed with Future of Fish’s business and investment acumen and their ability to engage with stakeholders to design solutions that could truly benefit fishers and cooperatives.

Tell us about the project and its importance to your work

For Oikocredit, investing in Coastal Catch is not the first project in the blue economy. However, investing in wild-capture fisheries carries significant risks regarding both repayment and also reputation. With Coastal Catch we believe we have a good project to finance with moderate risk. It is a first step to looking for more of this type of project. Support from Future of Fish was important to validate and create clear recommendations about areas that Coastal Catch can focus on to improve their sourcing and support to fishers and responsible fishing.

What elements of this partnership and project excite you?

The potential social impact for coastal communities is as important to us as sustainable fishing practices. These are very vulnerable communities, and if we can improve their incomes while generating minimal environmental impact it will be an important achievement for everyone involved.

What does the future hold?

It is important to do more in the artisanal seafood sector, seeking a balance across the areas of society/community, environment/ecosystem and financial risks. Currently, there are only a few companies that achieve all three elements. However, as more blue economy initiatives emerge, we will continue evaluating them with a view towards achieving our mission of empowerment.

Q&A with Future of Fish Executive Director Peter Battisti

What is the value of partnering with Oikocredit?

With our focus on supporting small-scale fisheries to improve their businesses to both be more efficient and profitable and practise more responsible production, there is a basic need to unlock investment to support this transition. This means finding and building partnerships with aligned investors who can understand the risks associated with small-scale production and are also willing to put time and energy into what is necessary to tackle the fishing sector – a sector that is vastly underserved by private capital. Oikocredit has a history of innovation and collaboration that makes it a natural partner for us in exploring opportunities in the seafood sector.

How does this project contribute to Future of Fish’s mission?

Working in partnership with Oikocredit, we can recognise and support businesses innovating to improve practices at producer level. With this investment in Coastal Catch, we are supporting a company with the principles and values that we aspire to among all our partners: to advance better business practices that support more responsible production. If we can demonstrate that these practices create win-win outcomes for everyone concerned – producers, seafood businesses, consumers and communities – as well as for the environment, this develops the business case for sustainable fishery production.

Q&A with Coastal Catch Founder and General Manager José Miguel Quezada

What value has working with Oikocredit and Future of Fish brought to your business?   

Our partnership with Oikocredit has been invaluable, coming at the perfect time to support our company’s growth and impact. Oikocredit believes in our vision to create the first sustainable, profitable and high-impact enterprise in the seafood industry in Guatemala. With their support, we have positioned ourselves as the largest exporter in the country and have successfully opened new markets both locally and internationally.

A successful business relies on the right partners, and in Oikocredit we have found exactly that. Future of Fish’s goals are aligned with Oikocredit’s, and they work collaboratively towards our envisioned future. We are already witnessing the results of this partnership and anticipate five years of remarkable growth and transformative change for our company, our industry and our country.

What changes have you made, or are planning to make, to support traceability and sustainable fishing practices?                            

To enhance traceability and support sustainable practices, we have undertaken significant measures and plan to implement further improvements based on insights gained from the process. We are working with our suppliers to ensure complete traceability of our seafood activities, from the initial catch to delivery to our clients. This involves training our suppliers to accurately complete necessary documentation, establish effective control measures and track their fishing activities meticulously. We also emphasise the importance of using appropriate equipment to adhere to sustainable practices.

Given that our fleet is artisanal, it is already relatively sustainable. However, the primary challenge lies in maintaining rigorous controls and comprehensive reporting. To address this, we focus on collaborating with business partners who are committed to adopting these practices. We believe this extra effort will foster growth for both our company and our suppliers by creating new opportunities.

In addition to these efforts, we are proud to be the first company to work with Guatemalan public authorities to secure the necessary fishing licences for all our artisanal fishers. This milestone, which has not previously been achieved, is crucial for the advancement of the industry and acknowledges the hard work of our fishers.